As the 2011 new year dawned, I sat down to write an article on the implications for the Department of Defense (DOD) and the Department of the Navy of the current U.S. fiscal climate. At the time I had only an inkling of how the situation would play out by late summer 2011. Now we know, as I will spell out here. Bottom line up front: There could be a silver lining.
In January a number of recent studies had concluded that the United States had serious weaknesses as a nation and as an international power. A December 2010 Brookings Institution report by Michael O’Hanlon stated, “These [weaknesses] include first and foremost [the U.S.] budget and trade deficits which have the effects of weakening investment, surrendering more of the nation’s wealth to others, and making the country far less resilient in the face of a future crisis.”