To the Point
Reshaping the Pentagon for a Dangerous New World
The Pentagon spends 85% more than it did eight years ago, but US forces are stretched almost to the breaking point. In the midst of recession, with new threats on the horizon, will Barack Obama have to increase strength and readiness at the same time he decreases spending? We hear radically different views. Also, the auto industry continues its push for a bailout, and consumer prices are on the decline. Is that good news or bad?
By Warren Olney • • 1h 0m ListenThe Pentagon spends 85% more than it did eight years ago, but US forces are stretched almost to the breaking point. In the midst of recession, with new threats on the horizon, will Barack Obama have to increase strength and readiness at the same time he decreases spending? We hear radically different views. Also, the auto industry continues its push for a bailout, and consumer princes dropped by a record amount in October. Is it time to worry about deflation?
Banner image: Sen. Jack Reed (D-RI) (R) speaks during a briefing on operations in Iraq by Army Gen. David Petraeus (R), commander of the Multi-National Force in Iraq, as then-Senator Barack Obama (D-IL) (3rd-L), Sen. Chuck Hagel (R-NE) (L), and Ryan Crocker (2nd-R), US ambassador to Iraq, listen July 21, 2008 in Baghdad, Iraq. Photo: Lorie Jewell/U.S. Army via Getty Images
In this episode
3 storiesAuto Industry Continues Its Push for a Bailout
The CEO's of the Big Three were back on Capitol Hill today, testifying before the House Finance Committee . General Motors CEO Rick Waggoner testified that the rescue package would help them get through next year.
Read the story6 minRebuilding a Struggling Military at a Time of Fiscal Crisis
Bailouts, infrastructure and financial stimulus will require big money during a deepening recession. Barack Obama also needs to worry about defense. The US spends almost as much on defense as the rest of the world combined, and more than any time since World War II. But it's stretched too thin to cover both Iraq and Afghanistan.
Read the story35 minDrop in Consumer Prices Raises Deflation Fears
Consumer prices took a dive last month, the biggest monthly decline in 61 years. Pollsters say falling prices make people hopeful, and that's good for the economy. But last month's record decline has raised another concern. Is it a warning sign that America could be hit with deflation?
Read the story8 min
