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Leon Panetta Warns Against Budget Cuts Despite Reported Pentagon Spending Spree

Abrams Tank

First Posted: 11/15/2011 4:14 pm Updated: 11/15/2011 4:27 pm

WASHINGTON -- As the military brass and congressional hawks issue dire warnings about the "disastrous'' effects of cutting the defense budget, a new study details a $1 trillion spending spree over the past decade that has left the military services better equipped than ever.

During the last 10 years of generous war funding from Congress, the military services spent heavily on troops and operating costs for fuel, ammo and other consumable combat supplies, the study says.

But the services also reportedly tucked away as much as $135 billion a year to buy new warships, jet fighters, armored vehicles and other major equipment that not only replaced war losses but expanded the arsenals of all the services.

Since 1990, for instance, the Army has bought 4,000 Stryker armored vehicles for $12 billion, and 15,000 heavy armored trucks called Mine Resistant Armor Protected vehicles, or MRAPs, for $20 billion, according to the study. Both vehicles are new to the the Army, giving it an expanded capability for ground combat.

The Army also purchased 658,606 M4 carbines and 110,830 M240 machine guns. It upgraded 4,300 Bradley Fighting Vehicles and 1,100 M1 Abrams tanks with digital communications, GPS navigation systems and other state-of-the-art improvements, the study says. It boosted a planned purchase of 392 .50-cal sniper rifles, originally intended only for elite units, to 3,336 of the rifles and distributed them throughout the force.

"At the start of the second decade of the 21st century, U.S. military capabilities and technology are the most advanced in the world,'' Russell Rumbaugh, a former Army infantry officer and budget analyst for the Pentagon and the CIA, writes in a new report.

"Although much of the U.S. military strength is rooted in the professionalism and dedication of the people in the services, they are also outfitted with the best equipment in existence,'' writes Rumbaugh, currently at the Stimson Center, a nonprofit, nonpartisan national security research organization in Washington.

But the build-up of the armed forces is getting scant mention amid the drumbeat of warnings about budget cuts.

In a letter this week to Sens. John McCain (R-Ariz.) and Lindsey Graham (R-S.C.), Defense Secretary Leon Panetta repeated that the Obama administration has already decided to scale back projected defense spending over the next decade by $450 billion.

These self-imposed cuts, Panetta has warned, would take the Pentagon "to the edge.''

Any further cuts, he said in the letter this week, "would be devastating,'' and the Pentagon would be "forced to terminate most large procurement programs ...''

McCain and Graham, in reply, agreed that cuts of that magnitude "would set off a swift decline of the United States as the world's leading military power.''

Out on the line with the services, however, things look slightly different.

Over the past decade, the Air Force spent $347 billion to buy hardware. But it chose to spend most of the money on two costly aircraft systems: the F-22 stealth fighter and the C-17 airlifter, two of the world's most advanced aircraft, the study says. But because of the cost ($142 million for each F-22), it was unable to buy as many aircraft as it wanted.

In Rumbaugh's analysis, the Air Force spent $38 billion during the past decade to buy jet fighters; for that money it got 220 expensive fighters. During a previous decade, in the 1980s, the Air Force bought less costly fighters -- for $68 billion, it got $2,063 fighters, mostly F-15s and F16s that are in service today in Afghanistan and elsewhere.

The smaller but more technologically advanced Air Force that resulted may or may not be well suited to future combat needs. But as Rumbaugh pointed out, it came about not because of budget cuts, but because of how the Air Force chose to spend its money.

The Air Force during the past 10 years also has expanded its operations into the entirely new business of unmanned aerial vehicles, building a fleet of Predator, Reaper and Global Hawk drones currently being used extensively for surveillance, tracking and attack against terrorist targets in Afghanistan, Pakistan and Yemen, Rumbaugh's study says.

The Navy met most of its shipbuilding goals during the past decade, acquiring eight of the 10 amphibious ships it wanted, the two carriers it wanted, a dozen cargo ships, 18 of a planned purchase of 25 destroyers, and 10 of 16 planned attack submarines. The Navy also bought 369 aircraft, about 90 percent of its planned purchase.

The Marine Corps, despite its proud claim to austerity, also did okay, the study says, with $3 billion worth of new helicopters, $14 billion worth of 155 new tilt-rotor V-22 Osprey aircraft, 500 new howitzers, 5,000 trucks, and $7.2 billion worth of MRAPs, among other acquisitions.

Where the services did without, they did so not for budgetary reasons, but because military procurement programs sometimes have to be canceled. Trouble often arises because of technical complexity, cost overruns, or both.

In the past decade, the Army shut down three of its most ambitious and costly acquisition programs -- the Commanche attack helicopter, the Crusader artillery system and the "family'' of vehicles known as the Future Combat Systems. None of these programs were terminated because of budget cuts.

Where congressional budget-cutters might look for efficiencies, then, is at how the military services buy weapons and other military systems. Since 1996, for example, the Army spent at least $1 billion a year on weapons systems it eventually canceled, according to an internal Army report released earlier this year. It had to cancel 22 major programs during the past two decades, 15 just in the past decade.

"This track record of too many cancellations, schedule slippages, cost over-runs and failures to deliver timely solutions to the warfighters' requirements is unacceptable,'' declared the report. "The Army cannot afford to continue acquiring materiel the way it has in the last two decades.''

Worse, the steps the Army has taken to solve the problem appear to have actually made things worse. "In an attempt to not repeat past failures, additional staff, processes, steps and tasks have been imposed,'' the report said. "While well intended, collectively these modifications are counterproductive.''

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WASHINGTON -- As the military brass and congressional hawks issue dire warnings about the "disastrous'' effects of cutting the defense budget, a new study details a $1 trillion spending spree over the...
WASHINGTON -- As the military brass and congressional hawks issue dire warnings about the "disastrous'' effects of cutting the defense budget, a new study details a $1 trillion spending spree over the...
 
 
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HUFFPOST SUPER USER
aonorat
US Navy Veteran; concerned senior citizen.
06:55 PM on 11/23/2011
The Generals and the defense Industry have already gotten to Panetta. He is talking nonsense and he knows it.
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HUFFPOST SUPER USER
aonorat
US Navy Veteran; concerned senior citizen.
09:53 AM on 11/18/2011
C'mon Leon Panetta, you know better. Stop fear mongering. Anti up. Nation is in jeopardy and Pentagon can afford to give a little more.
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HUFFPOST SUPER USER
JJJandW
We don't need no stinking Republicans
03:06 PM on 11/23/2011
I found his comments disgusting. We need to drastically cut defense spending
and bring troops home from just about everywhere we have them.
Cut the size of the military and instead put young men and women rebuilding
this country.
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HUFFPOST SUPER USER
aonorat
US Navy Veteran; concerned senior citizen.
06:39 PM on 11/23/2011
I agree with you. I support the military, especially men and women who serve. However, as a military veteran who also worked in the Pentagon as a civilian for many years, I find his suggestion of such dire consequences from cuts to rates of growth fear mongering at its highest form. No one is talking about real cuts--the defense budget continues to grow under all scenarios and will continue to exceed the combined budgets of all other industrialized nations.

It did not take long for the Generals and Defense Industry to get to Panetta. He knows better. This country needs to be rebuilt physically and, most regrettably, morally. The infrastructure is crumbling and we are falling behind other industrialized nations in mass transit, health care and energy.

Our government continues to remove more and more of our cherished freedoms and privacy. Military engagement has become the preferred method of problem solving. In the meantime, our economy is quickly sinking into massive debt. Each day, more and more of our citizens enter the roles of the poor while the very rich get richer and richer which includes a good number of our elected officials. We may be winning the military battles at an incredible human and finacial cost but we are losing the psychological battle . We are a nation living in fear which is exactly what the terrorists want. Our elected officials are setting a terrible example.
04:04 PM on 11/17/2011
For the full text of the report cited in this editoral, see:
http://www.stimson.org/books-reports/what-we-bought-defense-procurement-from-fy01-to-fy10/
04:00 PM on 11/17/2011
Military equipment needs to be upgraded and replaced on a regular schedule. Just like your Pentium 2 equipped computer at your house. This article is more of a commentary than reporting. I smell an agenda hidden in this piece. Note the author cites a report.
For the full text of the work cited in this article see:
http://www.stimson.org/books-reports/what-we-bought-defense-procurement-from-fy01-to-fy10/
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Mister Grumpy
An Angry American
11:59 AM on 11/16/2011
Maybe if our military wasn't being used as a world police force we wouldn't need four thousand mine resistant vehicles.
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HUFFPOST SUPER USER
jimtodd
Unrepentant child of '60s
11:28 AM on 11/16/2011
Much like other fading hegemons of the past, the US hopes to maintain militarily what it has lost economically. As with all past hegemons this attempt will ultimately fail, either through bankruptcy or military defeat. The hope of the world is that Americans will retake control of the government and reign in its mercenary corporate forces before we reach that point.
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LeFlaneur
does nuance.
10:28 AM on 11/16/2011
As the head of Department X, I feel it would be unwise to cut the budget of Department X.
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baxtron
tek phlarpt
09:59 AM on 11/16/2011
$1.036 trillion per year in spending for the WAR DEPT. tough economic times I guess.
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baxtron
tek phlarpt
09:58 AM on 11/16/2011
It no longer makes sense to increase the military size as countries sign trade deals with eachother. The US is about 15 years behind this fact.
09:58 AM on 11/16/2011
This is so mind-bendingly stupid that it's difficult to say how stupid it is. Well over half of all money spend, or borrowed, by the US government goes to the military/industrial/security/intelligence complex. In the next ten years we will spend a trillion dollars on private spy agencies who are staffed by former CIA, the NSA and other government and military spy agencies such as George Tenet (former head of CIA) who works as an adiviser to four private intelligence agencies, James Woolsey (former head of CIA) who now works for Booz Allen Hamilton, as does Joan Dempsey (former CIA community management director, and others too numberous to mention. Of course when there's big bucks to be made from advising the US government on threats to its security you can bet your bottom dollar (quite literally) that more threats will be found that require even more money to monitor or liquidate.
HUFFPOST SUPER USER
MDhome
lets make it a crime to lie while campaigning for
10:53 PM on 11/16/2011
Knowledge of Eisenhower's warning is desperately lacking today. There is much money to be made by the unscrupulous by spreading fear to the population. There needs to be someway to walk things back, however, I think it will need to get much worse before it gets better. One hope I have is the "Get the Money Out" organization will be successful, the only hope I see at the moment.
F&F
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HUFFPOST SUPER USER
JJJandW
We don't need no stinking Republicans
03:09 PM on 11/23/2011
well said, fanned.
09:17 AM on 11/16/2011
"If we can no longer spend $300 on a toilet seat, the terrorists have won."
This user has chosen to opt out of the Badges program
12:54 AM on 11/16/2011
This panderer is doing exactly what he was hired to do and at the same time, pad his retirement. I remember Caspar Wineberger went on his 'speaking tour' and described how Russia had 6000 tanks and we had better spend billions and billions more so we could counter this threat. Apparently, these tanks could float and they would sail to the the US and shoot something.

It also points up how much politicians rely on the mis- or ill-informed ,ignorant people in this country. The dumbing down didn't start last week.
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HUFFPOST SUPER USER
aonorat
US Navy Veteran; concerned senior citizen.
10:05 AM on 11/18/2011
Right on. Just listen to most of politicians spout their nonsense and it is clear how much dumbing down has occurred... Also applies to the media, the so called fourth estate who are supposed to be the ombudsman for the people. In reality, they range from being extremely partisan to simply unable to analyze issues and to ask politicians hard follow-up questions. Few exceptions. No media Giants left.
HUFFPOST SUPER USER
edejan
12:50 AM on 11/16/2011
Neither Panetta nor any of the MIC is going to give up a penny without an all-out revolt by the people. Not only will they not have their budget cut, they'll end up with more money to throw away. OWS!
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Fit2betied
Give Peace a Chance ☮
12:44 AM on 11/16/2011
I don't know if the nubers quoted by this website are correct, but they certainly are eye opening.

You want to see the cause of America's fiscal problems? They are spelled out pretty clearly here.

http://www.militaryhub.com/article.cfm?id=363
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HUFFPOST COMMUNITY MODERATOR
SvrWx
Eileen, toora tooluri Eh..
12:42 AM on 11/16/2011
I'll tell you what, those C-17's are awesome and they are being worked to death. We definitely need replacements for some of the older models.