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America Spends About Half of World’s Military Expenditures

The restored ‘Cold War’ could produce a much stronger global tarnishing of America’s global reputation.

Eric Zuesse

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The National Priorities Project headlines “U.S. Military Spending vs. the World” and reports: “World military spending totaled more than $1.6 trillion in 2015.

The U.S. accounted for 37 percent of the total.” But it can’t be believed, because, even if other nations aren’t under-reporting their military expenditures, the U.S. certainly is — under-reporting it by about 50%.

The reality is approximately twice the official figure, so that America’s current annual military expenditures are around $1.5 trillion, which is to say, almost equal to that entire global estimate of “more than $1.6 trillion in 2015.”

America’s actual annual military budget and expenditures are unknown, because there has never been an audit of the ‘Defense’ Department, though an audit has routinely been promised but never delivered, and Congresses and Presidents haven’t, for example, even so much as just threatened to cut its budget every year by 10% until it is done — there has been no accounatability for the Department, at all. Corruption is welcomed, at the ‘Defense’ Department.

Furthermore, many of the military expenditures are hidden. One way that this is done is by funding an unknown large proportion of U.S. military functions at other federal Departments, so as for those operations not to be officially “‘Defense’ Department” budget and expenditures, at all.

This, for example, is the reason why Robert Higgs, of The Independent Institute, was able to report, on 15 March 2007, “The Trillion-Dollar Defense Budget Is Already Here”. He found that America’s military expenditures, including the ones he could identify at other federal agencies, were actually already nearly a trillion dollars ($934.9 billion) a year:

“To estimate the size of the entire de facto defense budget, I gathered data for fiscal 2006, the most recently completed fiscal year, for which data on actual outlays are now available.

In that year, the Department of Defense itself spent $499.4 billion. Defense-related parts of the Department of Energy budget added $16.6 billion. The Department of Homeland Security spent $69.1 billion.

The Department of State and international assistance programs laid out $25.3 billion for activities arguably related to defense purposes either directly or indirectly. The Department of Veterans Affairs had outlays of $69.8 billion.

The Department of the Treasury, which funds the lion’s share of military retirement costs through its support of the little-known Military Retirement Fund, added $38.5 billion.

A large part of the National Aeronautics and Space Administration’s outlays ought to be regarded as defense-related, if only indirectly so.

When all of these other parts of the budget are added to the budget for the Pentagon itself, they increase the fiscal 2006 total by nearly half again, to $728.2 billion.”

Furthermore,

 “Much, if not all, of the budget for the Department of State and for international assistance programs ought to be classified as defense-related, too. In this case, the money serves to buy off potential enemies and to reward friendly governments who assist U.S. efforts to abate perceived threats. … [As regards] Department of Homeland Security, many observers probably would agree that its budget ought to be included in any complete accounting of defense costs. … The Federal Bureau of Investigation … devotes substantial resources to an anti-terrorist program.

The Department of the Treasury informs us that it has ‘worked closely with the Departments of State and Justice and the intelligence community to disrupt targets related to al Qaeda, Hizballah, Jemaah Islamiyah, as well as to disrupt state sponsorship of terror.’”

But, almost everything there relied upon mere estimates, because the Congress and the President always supply to the public numbers that are sadly uninterpretable by anyone who wants to know what percentage of the federal government is actually military.

For example, on April 3rd, the White House, as required by law, sent to Congress “the Seven-Day-After report for the Consolidated Appropriations Act, 2018 (Public Law 115-141). The President signed this Act into law on March 23, 2018.”

That’s the current authorized spending for the entire U.S. Federal Government. It was broken down there into twelve categories, some of which were for multiple federal Departments, in order to make the reported numbers as uninterpretable as possible — for example, nothing was shown for the Treasury Department, but something was shown for “Financial Services and General Government Appropriations” and it didn’t even mention the “Treasury” Department.

And nothing was shown for the Justice Department, nor for the Commerce Department, but something was shown for “Commerce, Justice, Science, and Related Agencies” (whatever those are). However, as bad as this is, the military (or invasions) department is even less fathomable from the publicly available reports than those other ones are. The ‘Defense’ Department is the only one that’s still “unauditable” so that in one of the attempts to audit it:

“The audits of the FY 1999 DoD financial statements indicated that $7.6 trillion of accounting entries were made to compile them. This startling number is perhaps the most graphic available indicator of just how poor the existing systems are.

The magnitude of the problem is further demonstrated by the fact that, of $5.8 trillion of those adjustments that we audited this year, $2.3 trillion were unsupported by reliable explanatory information and audit trails or were made to invalid general ledger accounts.”

Largely as a consequence of this, Wikipedia’s “Military budget of the United States” is a chaotic mess, though useful for links to some sources (all of which are likewise plagued as being uninterpretable).

On 1 March 2011, Chris Hellman headlined “The Real U.S. National Security Budget: The Figure No One Wants You to See”, and he estimated (using basically the same approach that Higgs had done in 2007, except less accurate than Higgs, due to failing to base his numbers on “the most recently completed fiscal year, for which data on actual outlays are now available” but instead using only the President’s budget request) that at that time, the U.S. Government was spending annually on ‘Defense’, “$1,219.2 billion. (That’s more than $1.2 trillion.)”

That amount was far less than the totals that the Inspector General of the U.S. Department of Defense had been reporting, in some of its periodic investigations (such as the one just cited), to have been missed or undocumented or falsely ‘documented’ as having been spent, by that Department; but, for some mysterious reason, the American people tolerate and re-elect ‘representatives’ who ‘debate’ and rubber-stamp such corruption, which is of enormous benefit to corporations such as Lockheed Martin and Boeing, whose sales and profits depend upon the U.S. Government and its allied governments.

Any such privatization of the ‘Defense’ industry, in America or any other country — treating its military operations so as to produce profits for investors (investors in mass-murder) — thus guarantees that the national-security function will be heavily loaded with lobbying and graft, because the military industry’s entire market is to one’s own government and to its allied governments: it’s not a consumer market, but a government one.

Thus, privatized military suppliers grow virtually to own their government; democracy consequently becomes impossible in such nations. And, one outcome from that is the uninterpretable financial reports by America’s government, regarding ‘Defense’.

For example, probably fewer than 1% of Americans have even been informed by the press as to what the currently authorized annual federal spending for the ‘Defense’ Department is.

When the Washington Post, on 23 March 2018, reported their main story about the FY 2018 federal spending authorizations (“In late-night drama, Senate passes $1.3 trillion spending bill, averting government shutdown”), the figure for the ‘Defense’ Department was buried inconspicuously in a 52-word passage within that 1,600-word ‘news’-report, which was otherwise loaded with distractive trivia.

This buried passage was: “The legislation funds the federal government for the remainder of the 2018 budget year, through Sept. 30, directing $700 billion toward the military and $591 billion to domestic agencies.

The military spending is a $66 billion increase over the 2017 level, and the nondefense spending is $52 billion more than last year.” That’s all. For readers interested in knowing more, it linked to their 2,200-word article, “Here’s what Congress is stuffing into its $1.3 trillion spending bill”, and all that it said about the military portion of the new budget was the 27-word passage, “defense spending generally favored by Republicans is set to jump $80 billion over previously authorized spending levels, while domestic spending favored by Democrats rises by $63 billion.”

Though 23 categories of federal spending were sub-headed and summarized individually in that article, ‘Defense’ wasn’t one of them. Nothing about the budget for the U.S. Department of ‘Defense’ — which consumes more than half of the entire budget — was mentioned.

However, the reality was that, as Defense News reported it, on 7 February 2018 — and these figures were unchanged in the bill that President Trump finally signed on March 23rd — “Senate leaders have reached a two-year deal that would set defense spending at $700 billion for 2018 and $716 billion for 2019.”

This year’s $700 billion Pentagon budget thus is 54% of the entire $1.3 trillion FY 2018 U.S. federal budget. Another article in Defense News on that same day, February 7th, noted that, “‘I’d rather we didn’t have to do as much on non-defense, but this is an absolute necessity, that we’ve got these numbers,’ said the Senate Armed Services Committee’s No. 2 Republican, Sen. Jim Inhofe, of Oklahoma.”

So: 54% of the federal budget wasn’t high enough a percentage to suit that Senator; he wanted yet more taken out of non-‘defense’. How can people (other than stockholders in corporations such as Raytheon) vote for such a person? Deceit has to be part of the answer.

Using similar percentages to those that were employed by Higgs and by Hellman, the current U.S. annual military expenditure is in the neighborhood of $1.5 trillion. But that’s more than the total authorized federal spending for all departments. Where can the extra funds be coming from? On 5 February 2018, CNBC bannered “The Treasury is set to borrow nearly $1 trillion this year”.

Then, charts were presented on 10 May 2018 by Dr. Edward Yardeni, headlined “U.S. Government Finance: Debt”, in which is shown that the U.S. federal debt is soaring at around a trillion dollars annually; so, that extra money comes from additions to the federal debt.

Future generations of U.S. taxpayers will be paying the price for the profligacy of today’s U.S. aristocracy, who receive all the benefits from this scam off the public, and especially off those future generations.

But the far bigger losses are felt abroad, in countries such as Iraq, Libya, Syria, Yemen, and Ukraine, where the targets will be suffering the consequences of America’s invasions and coups.

Notwithstanding its pervasive corruption and enormous uncounted waste, the U.S. military is, by far, the U.S. institution that is respected above all others by the American people. A great deal of domestic propaganda is necessary in order to keep it that way. With so many trillions of dollars that are unaccounted for, it’s do-able.

All that’s needed is a tiny percentage of the huge graft to be devoted to funding the operation’s enormous PR for ‘patriotism’. And this treasonous operation has been sustainable, and very successful (for its ultimate beneficiaries), that way, in the U.S., at least for decades.

I have previously explained why specifically military corruption has come to take over the U.S. Government, but not certain other governments. And the result of its having done so has by now become obvious to people all around the world, except in the United States itself.

Furthermore, ever since the first poll was taken on that matter, in 2013, which showed that globally the U.S. was viewed as the biggest national threat to peace in the world, a subsequent poll, in 2017, which unfortunately was taken in fewer countries, showed that this negative impression of the U.S.

Government, by the peoples in those fewer countries, had actually increased there during the four intervening years. So: not only is the situation in the U.S. terrible, but the trend in the U.S. appears to be in the direction of even worse.

America’s military-industrial complex can buy a glittering ‘patriotic’ image amongst its own public, but America’s image abroad will only become uglier, because the world-at-large dislikes a country that’s addicted to the perpetration of invasions and coups. Just as bullies are feared and disliked, so too are bully-nations.

Even if the given bully-aristocracy becomes constantly enriched by their operation, economies throughout the world suffer such an aristocracy, as being an enormous burden; and, unfortunately, the American public will get the blame, not America’s aristocracy — which is the real beneficiary of the entire operation.

This deflection of blame, onto the suckered public, precludes any effective response from the publics abroad, such as boycotts of U.S.-branded products and services might be. Instead, American tourists abroad become increasingly perceived as ‘the ugly American’.

The restored ‘Cold War’ — this time with no ideological excuse (such as communism) whatsoever — could produce a much stronger global tarnishing of America’s global reputation. The beneficiaries, apparently, just don’t care.

—————

Investigative historian Eric Zuesse is the author, most recently, of  They’re Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010, and of  CHRIST’S VENTRILOQUISTS: The Event that Created Christianity.


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The conclusion of Russiagate, Part II – news fatigue across America

The daily barrage of Russiagate news may have been a tool to wear down the American public as the Deep State plays the long game for control.

Seraphim Hanisch

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Presently there is a media blitz on across the American news media networks. As was the case with the Russiagate investigation while it was ongoing, the conclusions have merely given rise to a rather unpleasant afterbirth in some ways as all the parties involve pivot their narratives. The conclusion of Russiagate appears to be heavily covered, yet if statistics here at The Duran are any indication, there is a good possibility that the public is absolutely fatigued over this situation.

And, perhaps, folks, that is by design.

Joseph Goebbels had many insights about the use of the media to deliver and enforce propaganda. One of his quotes runs thus:

The best propaganda is that which, as it were, works invisibly, penetrates the whole of life without the public having any knowledge of the propagandistic initiative.

and another:

That is of course rather painful for those involved. One should not as a rule reveal one’s secrets, since one does not know if and when one may need them again. The essential English leadership secret does not depend on particular intelligence. Rather, it depends on a remarkably stupid thick-headedness. The English follow the principle that when one lies, it should be a big lie, and one should stick to it. They keep up their lies, even at the risk of looking ridiculous.

If there has ever been a narrative that employed these two principles, it is Russiagate.

A staggering amount of attention has been lavished on this nothing-burger issue. Axios reports that an analytics company named Newswhip tallied an astounding 533,074 web articles published about Russia and President Trump and the Mueller investigation (a number which is being driven higher even now, moment by moment, ad nauseam). Newsbusters presently reports that the networks gave 2,284 minutes to the coverage of this issue, a number which seems completely inaccurate because it is much too low (38 hours at present), and we are waiting for a correction on this estimate.

Put it another way: Are you sick of Russiagate? That is because it has dominated the news for over 675 days of nearly wall-to-wall news cycles. The political junkies on both sides are still pretty jazzed up about this story – the Pro-Trump folks rejoicing over the presently ‘cleared’ status, while of course preparing for the upcoming Democrat / Deep State pivot, and the Dems in various levels of stress as they try to figure out exactly how to pivot in such a manner that they do not lose face – or pace – in continuing their efforts to rid their lives of the “Irritant-in-Chief” who now looks like he is in the best position of his entire presidency.

But a lot of people do not care. They are tired.

I hate to say it (and yes, I am speaking personally and directly), but this may be a dangerous fatigue. Here is why:

The barrage of propaganda on this issue was never predicated on any facts. It still isn’t. However, as we noted a few days ago, courtesy of Fox News’ Tucker Carlson, at present, 53% of US registered voters believe that the Trump campaign worked with Russia to influence the 2016 election.

That means 53% of the voting public now believes something that is totally false.

Many of these people are probably simply exhausted from the constant coverage of this allegation as well. So when the news came out Sunday night that there was no evidence of collusion and no conclusive evidence, hence, of obstruction of justice by the Trump Administration – in other words, this whole thing was a nothing burger – will this snap those 53% back into reality?

Probably not. Many of them may well be so worn down that they no longer care. Or worse, they are so worn out that they will continue to believe the things they are told that sustain the lie, despite its being called out as such.

C.S. Lewis wrote about this peculiarity of human nature, in particular in the seventh book of his Chronicles of Narnia. After a prolonged and fierce assault on the sensibilities of the Narnians with the story that Aslan, the Christ figure of this world, was in fact an angry overlord, selling the Narnians themselves into slavery, and selling the whole country out to its enemy, with the final touch being that Aslan and the devilish deity of the enemy nation were in fact one and the same, the Narnians were unable to snap back to reality when it was shown conclusively and clearly that this was in fact not the case.

The fear that was instilled from the use of false narratives persisted and blocked the animals from reality.

Lewis summarized it this way through the thoughts of Tirian, the lead character in this tale:

Tirian had never dreamed that one of the results of an Ape’s setting up as a false Aslan would be to stop people from believing in the real one. He had felt quite sure that the Dwarfs would rally to his side the moment he showed them how they had been deceived. And then next night he would have led them to Stable Hill and shown Puzzle to all the creatures and everyone would have turned against the Ape and, perhaps after a scuffle with the Calormenes, the whole thing would have been over. But now, it seemed, he could count on nothing. How many other Narnians might turn the same way as the Dwarfs?

This is part of the toll this very long propaganda campaign is very likely to take on many Americans. It takes being strongly informed and educated on facts to withstand the withering force of a narrative that never goes away. Indeed, if anything, it takes even more effort now, because the temptation of the pro-Trump side will be to retreat to a set of political talking points that, interestingly enough, validate Robert Mueller’s “integrity” when only a week ago they were attacking this as a false notion.

This is very dangerous, and even though Mr. Trump and his supporters won this battle, if they do not come at this matter in a way that shows education, and not merely the restating of platitudes and talking points that “should be more comfortable, now that we’ve won!”

The cost of Russiagate may be far higher than anyone wants it to be. And yes, speaking personally, I understand the fatigue. I am tired of this issue too. But the temptation to go silent may have already taken a lot of people so far that they will not accept the reality that has just been revealed.

Politics is a very fickle subject. Truth is extremely malleable for many politicians, and that is saying it very nicely. But this issue was not just politics. It was slander with a purpose, and that purpose is unchanged now. In fact things may even be more dangerous for the President – even risking his very life – because if the powers that are working behind the people trying to get rid of President Trump come to realize that they have no political support, they will move to more extreme measures. In fact this may have already been attempted.

We at The Duran reported a few months ago on a very strange but very compelling story that suggested that there was an attempted assassination and coup that was supposed to have taken place on January 17th of this year. It did not happen, but there was a parallel story that noted that the President may have been targeted for assassination already no fewer than twelve times.  Hopefully this is just tinfoil-hat stuff. But we have seen that this effort to be rid of President Trump is fierce and it is extremely well-supported within its group. There is no reason to think that the pressure will lighten now that this battle has been lost.

The stakes are much too high, and even this long investigation may well have been part of the weaponry of the group we sometimes refer to as the “Deep State” in their effort to reacquire power, and in their effort to continue to pursue both a domestic and geopolitical agenda that has so far shown itself to be destructive to both individuals and nations all over the world.

Speculation? Yes. Needless? We hope so. This is a terrible possibility that hopefully no reasonable person wants to consider.

Honestly, folks, we do not know. But we had to put this out there for your consideration.

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Parliament Seizes Control Of Brexit From Theresa May

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Schaeuble, Greece and the lessons learned from a failed GREXIT (Video)

The Duran Quick Take: Episode 117.

Alex Christoforou

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The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris examine a recent interview with the Financial Times given by Wolfgang Schäuble, where the former German Finance Minister, who was charged with finding a workable and sustainable solution to the Greek debt crisis, reveals that his plan for Greece to take a 10-year “timeout” from the eurozone (in order to devalue its currency and save its economy) was met with fierce resistance from Brussels hard liners, and Angela Merkel herself.

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Via FT

“Look where we’re sitting!” says Wolfgang Schäuble, gesturing at the Berlin panorama stretching out beneath us. It is his crisp retort to those who say that Europe is a failure, condemned to a slow demise by its own internal contradictions. “Walk through the Reichstag, the graffiti left by the Red Army soldiers, the images of a destroyed Berlin. Until 1990 the Berlin Wall ran just below where we are now!”

We are in Käfer, a restaurant on the rooftop of the Reichstag. The views are indeed stupendous: Berlin Cathedral and the TV Tower on Alexanderplatz loom through the mist. Both were once in communist East Berlin, cut off from where we are now by the wall. Now they’re landmarks of a single, undivided city. “Without European integration, without this incredible story, we wouldn’t have come close to this point,” he says. “That’s the crazy thing.”

As Angela Merkel’s finance minister from 2009 to 2017, Schäuble was at the heart of efforts to steer the eurozone through a period of unprecedented turbulence. But at home he is most associated with Germany’s postwar political journey, having not only negotiated the 1990 treaty unifying East and West Germany but also campaigned successfully for the capital to move from Bonn.

For a man who has done so much to put Berlin — and the Reichstag — back on the world-historical map, it is hard to imagine a more fitting lunch venue. With its open-plan kitchen and grey formica tables edged in chrome, Käfer has a cool, functional aesthetic that is typical of the city. On the wall hangs a sketch by artists Christo and Jeanne-Claude, who famously wrapped the Reichstag in silver fabric in 1995.

The restaurant has one other big advantage: it is easy to reach from Schäuble’s office. Now 76, he has been confined to a wheelchair since he was shot in an assassination attempt in 1990, and mobility is an issue. Aides say he tends to avoid restaurants if he can, especially at lunchtime.

As we take our places, we talk about Schäuble’s old dream — that German reunification would be a harbinger of European unity, a step on the road to a United States of Europe. That seems hopelessly out of reach in these days of Brexit, the gilets jaunes in France, Lega and the Five Star Movement in Italy.

Some blame Schäuble himself for that. He was, after all, the architect of austerity, a fiscal hawk whose policy prescriptions during the euro crisis caused untold hardship for millions of ordinary people, or so his critics say. He became a hate figure, especially in Greece. Posters in Athens in 2015 depicted him with a Hitler moustache below the words: “Wanted — for mass poverty and devastation”.

Schäuble rejects the criticism that austerity caused the rise of populism. “Higher spending doesn’t lead to greater contentment,” he says. The root cause lies in mass immigration, and the insecurities it has unleashed. “What European country doesn’t have this problem?” he asks. “Even Sweden. The poster child of openness and the willingness to help.”

But what of the accusation that he didn’t care enough about the suffering of the southern Europeans? Austerity divided the EU and spawned a real animus against Schäuble. I ask him how that makes him feel now. “Well I’m sad, because I played a part in all of that,” he says, wistfully. “And I think about how we could have done it differently.”

I glance at the menu — simple German classics with a contemporary twist. I’m drawn to the starters, such as Oldenburg duck pâté and the Müritz smoked trout. But true to his somewhat abstemious reputation, Schäuble has no interest in these and zeroes in on the entrées. He chooses Käfer’s signature veal meatballs, a Berlin classic. I go for the Arctic char and pumpkin.

Schäuble switches seamlessly back to the eurozone crisis. The original mistake was in trying to create a common currency without a “common economic, employment and social policy” for all eurozone member states. The fathers of the euro had decided that if they waited for political union to happen first they’d wait forever, he says.

Yet the prospects for greater political union are now worse than they have been in years. “The construction of the EU has proven to be questionable,” he says. “We should have taken the bigger steps towards integration earlier on, and now, because we can’t convince the member states to take them, they are unachievable.”

Greece was a particularly thorny problem. It should never have been admitted to the euro club in the first place, Schäuble says. But when its debt crisis first blew up, it should have taken a 10-year “timeout” from the eurozone — an idea he first floated with Giorgos Papakonstantinou, his Greek counterpart between 2009 and 2011. “I told him you need to be able to devalue your currency, you’re not competitive,” he says. The reforms required to repair the Greek economy were going to be “hard to achieve in a democracy”. “That’s why you need to leave the euro for a certain period. But everyone said there was no chance of that.”

The idea didn’t go away, though. Schäuble pushed for a temporary “Grexit” in 2015, during another round of the debt crisis. But Merkel and the other EU heads of government nixed the idea. He now reveals he thought about resigning over the issue. “On the morning the decision was made, [Merkel] said to me: ‘You’ll carry on?’ . . . But that was one of the instances where we were very close [to my stepping down].”

It is an extraordinary revelation, one that highlights just how rocky his relationship with Merkel has been over the years. Schäuble has been at her side from the start, an éminence grise who has helped to resolve many of the periodic crises of her 13 years as chancellor. But it was never plain sailing.

“There were a few really bad conflicts where she knew too that we were on the edge and I would have gone,” he says. “I always had to weigh up whether to go along with things, even though I knew it was the wrong thing to do, as was the case with Greece, or whether I should go.” But his sense of duty prevailed. “We didn’t always agree — but I was always loyal.”

That might have been the case when he was a serving minister, but since becoming speaker of parliament in late 2017 he has increasingly distanced himself from Merkel. Last year, when she announced she would not seek re-election as leader of the Christian Democratic Union, the party that has governed Germany for 50 of the past 70 years, Schäuble openly backed a candidate described by the Berlin press as the “anti-Merkel”. Friedrich Merz, a millionaire corporate lawyer who is the chairman of BlackRock Germany, had once led the CDU’s parliamentary group but lost out to Merkel in a power struggle in 2002, quitting politics a few years later. He has long been seen as one of the chancellor’s fiercest conservative critics — and is a good friend of Schäuble’s.

Ultimately, in a nail-biting election last December, Merkel’s favoured candidate, Annegret Kramp-Karrenbauer, narrowly beat Merz. The woman universally known as “AKK” is in pole position to succeed Merkel as chancellor when her fourth and final term ends in 2021.

I ask Schäuble if it’s true that he had once again waged a battle against Merkel and once again lost. “I never went to war against Ms Merkel,” he says. “Everybody says that if I’m for Merz then I’m against Merkel. Why is that so? That’s nonsense.”

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