“Remember Enron and Lehman Brothers, the energy and financial giants that seemed immune to immutable principles of fiscal health? Reality caught up to their poor assumptions and unsound business practices.
Today, the Defense Department is in alarmingly similar straits—except that the stakes are far higher.
Since the end of World War II, America’s ability to project military power has helped stabilize the world order and protect access to the global commons, fostering an era of unprecedented economic growth and prosperity.
Unfortunately, DOD is becoming so constrained by poor fiscal and modernization policy that it threatens the United States’ ability to lead globally. If the nation should become unwilling or unable to fund a military that can remain globally present, the effects on global stability would be similar to that of the failure of financial giants and mainstays on the world’s economy: devastating.
Like Enron, which infamously used off-balance-sheet financing…
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