I wrote a post earlier about the U.S. budget and how they were running at a deficit in the current year and going forward this was only going to get larger with the unfunded entitlements. What I didn’t point out at the time was that of their $3.5 trillion annual outgoings, 20% of this is on defence. Now as we know when you have a defecit you can do 3 things, increase income, cut spending, or both. Look at the chart below and tell me if you think the U.S. might be spending a little bit too much on defence and could perhaps cut back giving that, you know, they are spending more than the are earning!
I’m off for a couple of weeks for a family holiday in Bali, I might drop the odd post here and there otherwise will be back on the job in two weeks.