In a real test, US military will fail - The Daily Reckoning
The Daily Reckoning by Bill Bonner
On This Day - 5 July 2012
In a real test, US military will fail A  A  A

Paris, France

Sic transit Gloria imperii...

"Hey Bill," writes a Dear Reader. "You are a sad excuse for a military analyst. You can criticize the military all you want, especially from your leftist headquarters in Paris. But when trouble comes, you're going to wish you had US military forces to protect your sorry ass."

Hey Dear Reader, your editor replies, go f**.... Never mind. You may be right. Maybe history doesn't work now the way it used to.

Our beat here is economics. But the US 'security' industry currently eats up about $1 trillion per year - which is a big part of the economy and even bigger part of the federal budget. When we talk about an upsurge in manufacturing, for example, we are talking about an industry that is making 40% of its output for the Pentagon. And when we talk about an increase in the use of energy, we could mention the world's biggest energy user - also the Pentagon. And when we calculate the US federal deficit we could remind ourselves that every penny of it is about what America's 'security' agenda costs.

Dear Readers will also recall that we are not the kind of economist you see on TV...the kind that wins a Nobel Prize with some elaborate mathematical proof of a proposition which is, on its face, preposterous. No, we are an old fashioned 'literary' economist...the kind that can barely do binomial equations, let alone calculus.

What we are interested in is how the world works. And we notice that the world of military spending works just like the rest of the world. That is, it obeys the law of declining marginal utility. You can put more in...but you don't necessarily get more out.

But first, our dear reader above, missed the point. First, we're not criticizing the military. We're not criticizing the uniform, that is; we're criticizing the man in it. He will always do what comes naturally - when he can get away with it; he will aggrandize his own position at others' expense. He is a lazy, foul, half-witted, opportunist...always trying to do the least work for the most reward possible. That is to say, he is just like the rest of us. Second, when the next real shooting war breaks out, we're not likely to thank the Pentagon; we're more likely to curse it. We'll be sorry we spent so much money to produce such a fat, coddled and incompetent military industry.

Why incompetent?

Strategically, the proper job of a defense department is to defend the country...not to waste its resources stirring up trouble all over the world. It is meant to protect the nation against enemies, not create them.

It is also incompetent in a tactical sense. So much money, time and effort is spent fighting make-believe enemies - 'terrorists' or 'insurgents' - that it will most likely lack the equipment and the know-how to fight a real one. We don't have to know in detail how the US military will fail. Instead, we know that power and money corrupt...and enfeeble. You see, military power - like almost everything else you can mention in a family publication - is subject to the law of declining marginal utility...aka the law of diminishing returns. At some point, you can spend more...and get less. And when the real test comes, we predict, the US military will will be too corpulent, too slow, and too out-of-date to meet the challenge.

------------------- Take the first step towards becoming a well-informed individual -------------------

Sign up for the weekly e-letter Straight From The Hip to get a weekly dose of unadulterated views on business, social and political events across the world and their impact on our lives from astute stock market observer, Jawahir Mulraj.

Click here to sign up for the free e-letter and become a well-informed reader today!


Military preparedness probably reaches the point of declining marginal utility when the armed forces are able to mount a credible defense of the nation and its borders - and no more. Thereafter, "the military/industrial complex," as Eisenhower called it, becomes too inwardly-focused...on promotions, on procedures, on procurement...too self-serving. In a real war, it is usually humbled by a faster, cheaper, more modern enemy.

But it gets worse. A large, well-funded military is a tempting weapon. Keep it lying around, loaded...and someone is bound to get killed.

After a while, the temptation to use a big army is irresistible. A large military is typically captured by the militarists, who want to use it for their own glory. At that point, the army is no longer an asset to the country it is meant to serve; it is a danger. It will enter into ruinous wars...turn against its own citizens...or both

But why does the US security industry focus on phony enemies...and insignificant threats? Because it is looking out for Number One. It is being human. It is taking resources from the productive part of the economy and redistributing them to itself...with no benefit, other than the aforementioned aggrandizement of the military itself, along with its contractors, suppliers, and its pet politicians.

The US military has more power and more money than any institution in the world. It has now been taken over by neo-con ideologues with their own crackpot agendas. It has the support of the American people and their government. We can imagine how this will turn out...badly!

"We got a call from our daughter last night," said friends, whose daughter is staying at our house in Baltimore. "She is doing very well. She said she had a hard time sleeping at night because of the helicopters...but now she's gotten used to it."

"Helicopters? Oh yes...the police helicopters..."

We've gotten used to them too. We scarcely notice them. Soon, we probably won't notice the drones either. And now we go through airport 'security' without noticing that it is absurd and unconstitutional.

They now have 'security' personnel at railroad stations too. A friend, recently making the trip from New York to Baltimore, reported that Homeland Security agents pulled some passengers aside to riffle through their belongings.

But you can't be too careful, can you?

Actually, you can. Carefulness...aka security...costs time and money. Not only that, it breeds a timid, risk-averse population afraid of its own shadow. These patriots are easy to control...and easy to lead - even to their own destruction.

Remember the words of Ben Franklin:

People willing to trade their freedom for temporary security deserve neither and will lose both

But another Dear Reader reminded us yesterday that poor ol' Ben couldn't even get on a plane in today's America. At airport security would he meekly take off his coat, and put his shoes on the belt...and then hold his hands up in the air so the king's agent...ooops, we meant TSA agent...could see him naked? Not likely. He'd probably be what mindless slaves his descendants had become.

"Surely you don't actually believe that I intend harm to this flying machine or to the people in it, do you?"

"Sir, put you your shoes on the conveyor. And your belt."

"Do you have a warrant for a search of my personal affairs?"

"Sir, you're holding up the line..."

"By what right do you..."

At that point, the goons would probably be on him. They'd probably hit him with a stun gun and then hold him in jail...

Bill Bonner is the President & Founder of Agora Inc, an international publisher of financial and special interest books and newsletters.

The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Get The Daily Reckoning directly
in your mail box.
Just enter your e-mail address » 

Read our Privacy Policy and Terms Of Use.

Equitymaster requests your view! Post a comment on "In a real test, US military will fail". Click here!

5 Responses to "In a real test, US military will fail"

P R Roy

Jul 11, 2012

I a very ordinary tax paying Indian, somewhat like the protagonist in the film "Wednesday" played brilliantly by Nasiruddin Shah; a rather too small fry to dwell on such weighty issues. USA sailed through WW I & II because it is 6k miles from it's nearest foe. Are it's and for that matter border of any country secure today? One example,-- to keep out the perfidious pakis India has put up a thousand km+ fence.There is a place called "Ramnagar TOWN" near Jaisalmir. That "Town" has more 4 wheel drive vehicles than any other place; why? Simple-- for international smuggling.Everybody is happy. So, where is the border.Go to east, same story. where is the border? Of course India is a unique country.How a paki starlet like laila khan can amass so much wealth? The political class, civil society, pseudo secularists are all bending backwards to placate and foster anti national elements in the name of democracy/ secularism. It's a pity that we do not get a general like VK Singh everyday. But army and the para-military forces are our only safeguard.AND YES US is still the last resort of all, even the Islamist terrorists and they have installed checks and controls. There has been no terrorist attack in US since 9/11. Look at ourselves and then decide.


Sunny Palamattam

Jul 6, 2012

Having lived in North America, coming from India I completely agree with Bill.

People who have lived within the well for too long can not see beyond their narrow confines.

As Gandhi once said : There is enough for everyone's need, but not enough for everyone's greed


R S Das

Jul 6, 2012

i like your views...carry on


Hasit Hemani

Jul 6, 2012

Revealing insight, brilliant and very eloquent. This article should be read not only by Pentagon officials but all the military bureaucrats of all the countries. Mindless self seekers in bureaucracy are a bigger threat to the country than outside enemies.


Anis Mohiuddin

Jul 5, 2012

That sounds more like Soviet Union daktat. What a shame! Life is not worth living.

Equitymaster requests your view! Post a comment on "In a real test, US military will fail". Click here!

Recent Articles:
Trump Takes a Beating
August 18, 2017
Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.
Which Gods Will Bring Down the US Empire?
August 17, 2017
Mr Trump is in the White House and the gods are in their heavens; what's not to like?
Will They Haul Off Trump's Statue, Too?
August 16, 2017
All across the country, the old gods become devils. New, gluten-free gods take their places...
Farm Loan Waivers: Why Bad Economics Makes for Good Politics
August 14, 2017
It is because the negative effects of the waivers aren't clearly visible.