Arms Industry Group Says Pentagon Facing Inflation Crisis

Here’s an example of one of those things I’ve been saying forever and ever coming into the headlines.


The US Department of Defense will need an extra $42 billion in the next fiscal year to account for soaring inflation and rising procurement prices, according to the National Defense Industrial Association.

In a report released on Tuesday it’s estimated that the Pentagon will experience a $110 billion loss of purchasing power because of record-high inflation.

It also warns that this development “comes at a dangerous time” as the US faces challenges from China and still suffers from Covid-19 fallout, as well as supply chain and workforce issues. The crisis also overlaps with the ongoing Russian military campaign in Ukraine, a country Washington has been supplying with weapons and other aid.

“Inflation is particularly disruptive to our national defense because the long budget and acquisition processes [the Pentagon] use prevents timely adjustments for inflation,” the report states.

If this deficit is not remedied, this will bring about “maintenance backlogs, lower readiness ratings and delays in modernization efforts” and various other programs, undermining the overall readiness of US forces.

To salvage the situation, the report recommends that Congress add at least $42 billion to the Fiscal Year 2023 Defense Budget to avoid losing buying power, provide inflationary relief to companies that hold long-term fixed price contracts with the Pentagon while adjusting all future contracts for rising prices.

Meanwhile, all these figures and recommendations are based on the premise that “inflation has already peaked” and will return to a “normal” level in a couple of years.

Frankly – and this is probably obvious – there is really no chance that the Pentagon is going to be wanting for money as long as the US economy is still functioning on a level resembling its previous glory. If inflation lowers the buying power of the Pentagon, the government will just give them more money.

That said, what I’ve said for a very long time, which this report speaks to, is that in the long run, the US War Machine is going to be a casualty of the decisions being made about the US economy. The US “defense” spending is massive, and as inflation rises, it is going to become a bigger and bigger part of total spending, as inflation causes the economy to spiral.

Infamously, the Soviet Union was said to be spending 20% of its GDP on “defense,” and the US is going in that direction.

To expand it outward now, it would necessarily have to cut into Social Security and Medicare.

Eventually – and probably pretty quickly, once this process gets rolling – you’re going to see visibly spiraling problems at home as money is diverted into war funding, and then this whole beast is going to start spiraling.

In the long term, the war funding will have to be abandoned completely, because the government will have to bring money home to deal with domestic concerns in order to keep from collapsing.

This is why I am so strict about supporting Russia and China. It’s not because I think that Russia and China are going to be hero countries and “save America.” Many people have accused me of that, and it really sounds dumb. What I support is the US being bled dry in the international sphere, as this is going to mean less money to oppress the population at home, and will eventually result in a crisis for the Anal Empire.

The US was claiming that they were going to bleed Russia with the war in the Ukraine, and just like with the sanctions, the opposite is happening. People are focusing on the military situation in the Ukraine, meaning they don’t understand what upshot is. As long as Russia can keep this going, and keep the West dumping money into the Ukraine indefinitely while their economy suffers for the sanctions, the US is losing. This is of course a war between the US and the Russians, with the Ukraine having more or less no relevance.

This is not like the Cold War. During the Cold War, both sides had relatively stable economies for decades on end. In this new game, as long as Russia and China can hold out for a few more years, while doing everything they can to force the US to burn money, they are going to win by default.

When they win, the American people win, because the US government will no longer have the money to do virus hoaxes on us, they will no longer have this huge budget for the FBI, they will no longer be able to sustain any of this micro-managing of our personal lives.

At that point, a charismatic leader will be able to assume power in the chaos.

Believe it.