Home About Archives RSS Feed

The Independent Investor: Will Our Country's Military Win the Next War?

By Bill SchmickiBerkshires columnist
There was a time, not long ago, when most Americans would answer that question in the affirmative without much thought. It was one of those "truisms" that we didn't give much thought. But today, many experts are debating that answer.
 
Back in the day, after World War II, our military prowess, (aided by the development of the atomic bomb) was unquestioned throughout the world. Growing up, it was never a question of spending on defense for me, it was simply how much. Republicans wanted more, Democrats wanted less. Today, not only is the amount of spending crucial but also its predictability and even more importantly, what those billions are spent on.
 
The Pentagon's National Defense Strategy was issued in January. Like all of their tomes before, it is heavy reading and fairly boring but this time around things were different. The United States Institute of Peace, a federal institution, issued a 98-page report rebutting some of the assumptions made about peacetime competition or wartime conflict.
 
The authors focused primarily on our top competitors for global hegemony, Russia and China, but also included recognized threats in Europe, Asia, portions of the Middle East. The report authored by a panel of former security officials and military experts did not mince words.
 
"The U.S. military could suffer unacceptably high casualties and loss of major capital assets in its next conflict. It might struggle to win or perhaps lose, a war against China and Russia. The United Sates is particularly at risk of being overwhelmed should its military be forced to fight on two or more fronts simultaneously."
 
Unlike WW II, where we did fight successfully on two fronts, on future battlefields we will face enemies that have developed extremely lethal weaponry, outnumber us, will be fighting on their own turf and will get to hit us first. In addition, it would be a big mistake to assume that our enemies would confine their attacks to the war theater. America and its military should expect devastating kinetic, cyber or other types of attacks (biological or otherwise) while fighting us abroad.
 
Until recently most of our conflicts were fought with America enjoying total air dominance, our logistics base (supply lines) were safe and secure from interdiction. Rarely, if ever, did we face long-range fire. About the worst anti-armor our tanks and Humvees faced were rocket-propelled grenades. We also owned the field when it came to unimpeded communications.
 
What our soldiers can expect to face in the next war will be advanced, tandem warhead anti-tank guided missiles, precision-guided artillery projectiles, long-range guns, armed drones and air-delivered weapons. The skies will no longer be exclusively ours as well. By now you are getting the picture.
 
Warfare is changing but the report says we are not keeping up. The proliferation of advanced technology, things like hypersonic and artificial intelligence that our enemies are applying to weaponry and soldiers on a mass scale are quickly eroding U.S. advantages and creating new vulnerabilities in a military that has relied for far too long on more ships, tanks and aircraft carriers.
 
Not only must the actual spending be increased but it should be allocated to those areas where we are behind the competition. The report suggested a 3-5 percent increase (above inflation) for the Department of Defense with areas such as cybersecurity and new technologies taking the brunt of the increase. Of course, that will cause lots of problems in Congress where "pork" has been a tradition among legislators when voting for the defense budget roll s around.
 
Year after year, politicians allocate the lion's share of defense spending to their states, which manufacture all that traditional and increasingly obsolete hardware. That would need to change but don't hold your breath. Those jobs (and votes) are what make Washington the swamp that it is.
 
Bill Schmick is registered as an investment adviser representative and portfolio manager with Berkshire Money Management (BMM), managing over $400 million for investors in the Berkshires.  Bill's forecasts and opinions are purely his own. None of the information presented here should be construed as an endorsement of BMM or a solicitation to become a client of BMM. Direct inquiries to Bill at 1-888-232-6072 (toll free) or email him at Bill@afewdollarsmore.com.
 

 

     

Support Local News

We show up at hurricanes, budget meetings, high school games, accidents, fires and community events. We show up at celebrations and tragedies and everything in between. We show up so our readers can learn about pivotal events that affect their communities and their lives.

How important is local news to you? You can support independent, unbiased journalism and help iBerkshires grow for as a little as the cost of a cup of coffee a week.

News Headlines
Clarksburg Joining Drug Prevention Coalition
Pittsfield Road Cut Moratorium
Adams Lions Club Makes Anniversary Donations
2nd Street Second Chances Receives Mass Sheriffs Association Award
Swann, Williams College Harriers Compete at NCAA Championships
MassDOT Advisory: South County Road Work
ACB College Financial Aid Event
The Nutcracker At The Colonial Theater
McCann First Quarter Honor Roll
Pittsfield Looks to Update Zoning for ADUs
 
 


Categories:
@theMarket (509)
Independent Investor (452)
Retired Investor (217)
Archives:
November 2024 (6)
November 2023 (1)
October 2024 (9)
September 2024 (7)
August 2024 (9)
July 2024 (8)
June 2024 (7)
May 2024 (10)
April 2024 (6)
March 2024 (7)
February 2024 (8)
January 2024 (8)
December 2023 (9)
Tags:
Election Economy Greece Jobs Markets Euro Europe Unemployment Debt Ceiling Congress Bailout Debt Currency Taxes Selloff Stocks Commodities Pullback Deficit Federal Reserve Qeii Interest Rates Oil Crisis Rally Stimulus Metals Banks President Japan Recession Stock Market Retirement Energy Fiscal Cliff
Popular Entries:
The Independent Investor: Don't Fight the Fed
Independent Investor: Europe's Banking Crisis
@theMarket: Let the Good Times Roll
The Independent Investor: Japan — The Sun Is Beginning to Rise
Independent Investor: Enough Already!
@theMarket: Let Silver Be A Lesson
Independent Investor: What To Expect After a Waterfall Decline
@theMarket: One Down, One to Go
@theMarket: 707 Days
The Independent Investor: And Now For That Deficit
Recent Entries:
@theMarket: Stocks Should Climb into Thanksgiving
The Retired Investor: Thanksgiving Dinner May Be Slightly Cheaper This Year
@theMarket: Profit-Taking Trims Post-Election Gains
The Retired Investor: Jailhouse Stocks
The Retired Investor: The Trump Trades
@theMarket: Will Election Fears Trigger More Downside
The Retired Investor: Betting on Elections Comes of Age
@theMarket: Election Unknowns Keep Markets on Edge
The Retired Investor: Natural Diamonds Take Back Seat to Lab-Grown Stones
@theMarket: As Election Approaches, Markets' Volatility Should Increase