U.S. military planners are ready for just about anything. Anything, that is, except a fiscal crisis driven by rising interest rates. The federal government has accumulated so much debt that even a moderate rise in rates could drive the annual cost of servicing the debt over a trillion dollars. If that were to happen, defense would likely become a bill-payer for the government’s past profligacy, and equipment purchases would be hit especially hard. The Trump defense buildup might come to an early end. I have written a commentary for Forbes here.
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