Senate Republicans and Democrats vote to slosh around still more on defense spending.
The Military Times reports Senate panel OKs plans for $852 billion in defense spending next year
Senate appropriators advanced plans for roughly $852 billion in defense funding next fiscal year, a significant boost over White House goals and House lawmakers’ outlines for military spending in 2026.
The appropriations measure advanced out of the Senate Appropriations Committee by a bipartisan 26-3 vote, with both Republican and Democratic leaders praising the plan as meeting the emerging needs of the armed forces.
The bill includes plans for a 3.8% pay raise for troops next January and an increase in overall military end strength in 2026, similar to plans adopted by House lawmakers earlier in July.
But the measure also includes a 2% increase in base defense spending next fiscal year, about $20 billion above House approved spending levels and the White House’s request for defense spending.
The White House for months has advocated for a generally flat defense budget next year coupled with about $150 billion in one-time defense spending approved in a budget reconciliation measure earlier this summer.
So much for weeding out waste, fraud and abuse.
The defense department has the largest discretionary budget, a record of large cost overruns, and an inability to pass an audit for seven years.
So let’s just give them a lot more money, even more than they asked for.
Gold Soars to Another New High, What’s the Message?
On May 6, 2025, I commented Gold Soars to Another New High, What’s the Message?
Three Messages
- Gold does not believe the Fed is under control
- Gold does not believe Congress is under control
- Gold does not believe Trump is under control
And neither do I.
Think!
If you think the Fed will stop monetizing the debt, then think again.
If you think either Congress will do anything about soaring deficits, then think again.
If you think DOGE will do anything about soaring deficits, then think again.
If you think Trump will do anything about soaring deficits, then think again.
If you think tariffs will offset spending that Trump demands and Congress will deliver, then think again.
I didn’t realize the word ‘audit’ was somehow striken from the English language to a degree that anyone/everyone in government is unable to conduct one.
Dittos! What is our total defense spending up to? Equal to the Top 7 next closet counties.
As you said NO ONE will be serious about The DEFICIT OR WASTE until they cut the defense budget.
How many hundreds of millions did we lose on just last week’s giant waste F35 crash? Nice post mortem Congress and Trump.
And the southern hick delegation is among the most bought and paid for by defense.
Couple yrs ago I went to an auction from a Sr Air force officer who should have been busted forbribery from the nearby Lockheed plant. (Maker of the F35 megapork.)
They had gifted him over 150 original oil paintings and autographed prints by major artists (Picasso, etc).
This, when millions of Americans don’t even have 100 dollars in their bank account, it appears.
Let’s rebuild infrastructure here at home instead of making merchants of death and misery, rich.
But ALL of you will keep voting Democrat or Republican. When the solution is to VOTE but just vote for ANYONE that’s neither Dem nor Rep.
Can we agree to stop calling it The Department of Defense and call it The Depof Offense, that’s what is. So much wasted on bombs and endless wars….the opportunity cost are immeasurable on what this country could have became.
The “expert” thought that armored tanks and APC days are over. Wrong. The “Expert” thought that fighting in underground tunnels is impossible. Wrong. The “experts” thought that there is no defense against thirty thousands missiles and drones launched against a small country. Wrong. If China sinks an aircraft carrier Shi is gone. The US rules every choke point and the space. Recently Trump and Bibi dismantled the evil axis, ex the Hoothies.
One more still to go. But it’s the most dangerous one.
You’re so stupid you can’t even spell Xi right AND mouthing off about the strike we warned Iran about? Damn I only need one more for Mikey bingo.
You should make a poster of this for offices!
But the raw truth is that politicians don’t want honest numbers. Too many would not get reelected then.
No surprise as the senate rubber stamps whatever taco wishes.
SPX crazy rallies: After dropping 1,327 pts from Jan 22 @4,818.62 to Oct 22, SPX rallied == > 2,656 pts to Feb 2025 high. After dropping 1,312 pts to test Jan 22 high in Apr 2025, SPX rallied ==> 1,592 pts in July 25 high // 1312/2656 = 60%. QQQ have the same ratio. SPX 2025 annual range: 1,592, the highest ever. The rally from 666.75 in 2009 to 6,427 might be over. Ben’s raiders sent SPX 5,760 pts up. If SPX drops 25%, down 1,500 pts, to about 5K. A 38% drop, down 2K/2.2K, to 4.2K/ 4.4K. Above Oct 22 and below Apr 25 lows. Speculators will never ever forgive Trump.
Any of that money for accountants so the Pentagon might finally pass an audit? Rumor has it that Rumsfeld is still trying to track down some receipts from FY2001.
You are going to wish the government spent even more on military acquisitions. Developments in autonomous vehicles and their deployment will reduce US casualties. The arsenal of missiles has dwindled as global conflicts have ramped up, so much so that the US would take substantial losses fighting in one theater. The one-two punch of US industry outsourcing the equipment and manufacturing skills to our adversaries, along with a failing education system have weakened national security that will take years to ramp up. US leaders in business and government knew about these scenarios and intentionally neglected the dangers.
The goal is for the wealthy to extract all tge wealth from the country then once it goes belly up they will rush in a buy the assets at fire sale prices.
If the mag7 will decay from $18.6T to $10T/$15T realized taxes will fill gov coffer until higher payroll taxes replaces them. The mag7 aren’t going to $25T/$30T.
The AI bubble might deflate like the ev, gold, RE, the dems and US gov debt bubbles: NVDA: $4.24T, MSFT: $3.9T, AAPL: $3.02T, Googl: $2.29T, AMZN: $2.28T and TSLA: $0.976T = $18.6T > the Chinese GDP. They are all essential US assets in Israel, es TSLA.
Yes ~ Our government is producing more debt than equity.
Therefore, it is important to hedge ones long term portfolio with some exposure to precious metals mining stocks. Especially those that pay decent dividends. A bit of physical gold and silver is also a good insurance policy if you think a societal collapse is imminent (I do not). The mining stocks have been my thing for a few years and their balance sheets are becoming downright fantastic as I write.
Given the clear message that the unitary will not be curtailing spending, keeping assets in tangibles is wise.
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If society collapses gold will be worth nothing. What you need are trade goods and the best by far are alcohol and cigarettes. The Siege of Sarajevo amply documented that.
In 1923 Germany, I think it was good to be a rural farmer. Also in 1945.
LOL prepper fantasies are so childish…
In any serious scenario, you won’t be able to own any trade goods, unless you have means to defend them. Not just guns and ammo, you need a mafia crew, a mutual-defense club.
Which is where governments come from in the first place.
I am not a prepper. I just read accounts of how the economy worked during the siege.
Me too. It was eye opening.
The other thing you need is in demand skills (mechanical, medical, ability to brew alcohol etc).
In the siege Doug mentions, NO ONE trusted crews. It was strictly family trust (uncles/aunts/cousins etc). The obvious reason being anyone would betray you for their family if it came to that (and it did).
Governments are preceded by local strongmen.
Whatever you have will be taken from you by others with more strength, more weapons, more bodies to expend.
Add 12 gauge ammo to list beause you can’t bury trade goods under your flower bed.
Bitcoin has been telling me since 2009 to buy bitcoin but I didn’t listen to my regret.
So here’s a thought… Suppose we turn Super intelligent AI loose on the defense budget, and it completely reorganizes priorities and spending? Of course everything turns on the prompts and parameters provided, but somehow I doubt the number would be higher just as I doubt that Congress would follow any generated suggestions.
That’s easy. AI would just change the entire defense budget to a 1 trillion dollar Palantir contract.
There are studies out now, AI as investor bots figure out how to conspire, rig markets and price-fix, all by themselves.
Each quarterback is protected from sacking by a center, LG, RG, RT and LT, the full back and the running back…in order to launch an attack.
By now, the US has 36 men on the field, with 4x those protective players.
The most essential 11: 6 constant: [QT, C, LG, RG, LT, RT] and five interchangeable players: RE, TE, FB, WR… whatever. 11 out of a 53 roster.
Remember Refrigerator Perry?
yes !
Any budget savings elsewhere are squandered with increased military spending. The “Golden Dome” is a guaranteed multi-trillion dollar boondoggle.
They were able to cut Medicaid (which Trump said he “wouldn’t touch”) and SNAP with no pushback. That’s where all the “savings” came from.
Emboldened by how easy it was to cut social programs, they’ll be coming after social security and Medicare next. No doubt the “savings” will go towards more military spending.
Homeland militarization seems to be ramping up. Gotta contain the proletariat when the real ideal budget comes out.
No doubt, the funds go towards AI, because human intelligence cannot comprehend such waste.
“Defense Spending” should be removed from the GDP calculation as it encourages over-funding to make up for a faltering economy. This wasteful papering over of basic economic malaise produces no value. It is a handout for defense contractors and government sycophants.
IMO the money should be spent on much needed infrastructure repairs or improvements. We have an aging highway network and thousands of crumbling bridges to invest in. The jobs created support the entire economy and increase the velocity of money and increased state, local and federal tax revenues. Money spent on infrastructure flows UP the feeding chain…
Trump was going to do infrastructure, remember? And health care, “beautiful.” And a wall they pay for. And peace on Day One. And I’m so happy that trade wars are easy.
Widely-broadcast (and troll-farm-enhanced) digital fantasy worlds are the new enclosure, the new colonization, the new religion, the new opiate. But it takes a truly self-lobotomized crowd to make any of this possible.
Can a US aircraft carrier veer to the left and veer to the right to escape an anti ship missiles. The Hoothies claimed that they hit the Truman. The ships that protected the Truman saved it. They ran out of ammunition. The last thing we need is that the Chinese, Putin, Iran, N. Korea or the Hoothies will sink a US aircraft. The arm race is on. Even Germany, the UK and France increased the defense budget. The whole world entered an arm race.
Probably not the best time to cut defense spending.
The West wouldn’t need so much military spending if it behaved differently. For example, China is able to secure it’s oil supply with peaceful trade deals and investment in trading partners, not wreaking military havoc.
Weird to say, but I think military threat has been in our DNA and business model for many decades now, right into the underpinnings of the dollar. China and Europe were, the whole world was, free-riding on that. Trump was the first to even suggest us not simply picking up the tab, endlessly. And as our debt goes out the wazoo, this might be the moment to consider that, so we all get our Medicare and so on.
Chiba’s oil supply is secured by the freedom of navigation defended by the U.S. Navy, such that most anywhere in the world (except near Yemen…) ships can freely carry trade goods without fear of piracy.
Sure. It’s all our fault and other countries are run by honest, upright people.
I remember Suez and what that meant to the Brits, a rude awakening, and I shudder about such a moment. But now, the other guys might be on the receiving end. We can’t do wars simply from remote, but our track record lately isn’t so very bad. And we have the “Madman Theory II” (highly enhanced, on-steroids second version), topping the original Nixon version.
In Naval warfare there are just submarines and targets.
Carriers are a massive liability which is why they mostly remain WAY offshore to avoid missiles from shore launches.
It should still be called the Department of War, not the Department of Defense. The “Empire of Lies” is a fitting moniker.
In line with our Orwellian practices of calling the US a “democracy”, the toxic Fauci jab a “vaccine,” and journalists getting Pulitzers for lies.
Blurry words carry deplorable thinking the way mosquitoes carry malaria.
The United States Department of War was the name of the federal executive department responsible for the operation and maintenance of the U.S. Army, Navy, and other military branches from August 7, 1789, until September 18, 1947. It was an appropriate name because especially in the beginning we were surrounded by hostile powers.
Like the Middle Kingdom?
“If you think……”
Yes, I have been doing a great deal of thinking and like you Mish, I don’t think any of these issues will get addressed so the real question to think about is who is going to be left holding the bag?
We all need to think about who the suckers are that are going to:
1. get taxed to death (state, federal, property, etc)
2. get inflated to death
3. get a deteriorated quality of life
4. get surrounded by angry bitter people from full spectrum of political landscape
5. get long lines for healthcare because 70+ million people isn’t sustainable
6. get to see it in action in just 5 short years
Yes, I’ve thought things through and it’s time for greener pastures.
Dude. Hook a brother up. Give us some specifics. Where? Thailand? The Falklands? Die Schweiss? Singapore, Macau? Australia? I’m serious. Do you have a departure time in mind and, if so, why then? Thanks
The answers to your questions on where all depend on you and your likes and dislikes. For me, the primary driver is taxation as in I don’t want to pay any and there are a few places that offer zero tax rates (subject to change on a country’s political whim).
When: I had hoped to be out by now but circumstances (changes to visa rules and programs) altered my plan. The problem is smart people are leaving America and impacting other nations. Just read about the complaints in Spain, Portugal, Mexico, Thailand, etc about expats moving there and driving up prices of housing. That’s why governments keep changing the rules. The mad rush has started.
https://www.nytimes.com/2025/07/05/world/americas/mexico-city-protest-gentrification.html
After I am out and get my residency and buy a few properties to get ahead of the curve, I’m happy to let you know. Heck, might even rent out to you for a small premium 😉
You have been talking about leaving for years but you never do. It means you never will leave because either you don’t have the gumption or the means and you probably lack both.
It’s the Barbra Streisand syndrome.
Healthcare is largely a self prescribed situation. The human body responds to good care, exercise and feeding. Little care is needed for the average American that takes care of themself.
Our air and water are relatively clean compared with unregulated nations.
In addition to the above mentioned countries I had a friend go to India and it totally sucked, horrific overpopulation and failing infrastructure. Another friend of my son learned Mandarin, became a Navy Seal and went to China. He soon returned because the place was filthy.
Sure we have a government that is full of liars and sycophants. Even a pederast for a president. But it we can travel through our beautiful nation without borders or any real interference with our freedoms. Our speed limits are reasonable and law enforcement does not target us for revenue.
I regularly pay well into six figures in taxes. I should be a massive complainer by many standards. Yet it is relatively easy to produce a large income here in the US if you work hard and smart.
I could not afford a home until I was in my late 20’s but once I started to buy property and improve it with my own sweat and smarts, the world opened its doors to equity growth.
Travel is fun and romantic but I feel safest in the US…
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2 presidents of the same name in the last 40 years were necrophiliacs based upon the lore of their university social club.
Everything you wrote describes the past. You’re obviously not spending enough time moving about. Every major city is trashed, city services are in total decay and disarray. Heck even parks are getting trashed. It will all get worse with a dwindling working population. And just wait till the effects of no more medicaid or SNAP hit society.
https://www.dallasnews.com/news/texas/2025/02/24/long-lines-and-overflowing-trash-texas-national-parks-brace-for-chaos-following-job-cuts/
But believe whatever you want. I have been very clear that I’m planning for the future (5 to 10+ years out) not the present.
As for the US the “safest” you’re insane. A CEO was gunned down in New York just a few days ago because the idiot gunman thought it was the NFL. There are road rage shootings every week along with mass shootings at least once a month. It’s hard to see reality when you got rose colored glasses on.
There is nowhere to escape to. The planet is too small and peopled-over for that. Oldest fantasy in the world.
Every locale has its risks, and they are not small. I’m getting a pretty good deal here in he USA, but that is why I study history constantly: to get a reasonable baseline. People here seemingly have no idea what the average human experience has been, or even the average earth dweller’s experience in the 20th century. Americans are the biggest complainers I have ever seen, even as they wallow in perks and luxuries unimaginable to most, now or in all of the history of life.
“Our speed limits are reasonable and law enforcement does not target us for revenue.”
Quite the opposite, but believe as you want to. This is dated, but shows a result that may surprise you-
https://www.nemannlawoffices.com/blog/law-enforcement-seized-more-from-people-than-burglars-stole-last-year.cfm
https://www.forbes.com/sites/instituteforjustice/2021/10/25/new-proof-that-police-use-civil-forfeiture-to-take-from-those-who-cant-fight-back/
As we discussed before your vacation, you aren’t renouncing your US citizenship. So you will forever be paying US taxes regardless of where you live. Furthermore unless you are selling all your US rental properties you’ll also forever be paying all those state/local taxes on them.
So in essence you are just going to be trading in the Illinois sales tax (I think you reside in Chicago) and state income tax (presuming you’ll still work since being in tech you can work almost anywhere).
Yes, US taxes will haunt me forever which is why I must be somewhere that doesn’t have additional taxes, that’s the whole point.
If the US deteriorates further and starts canceling anything that might benefit me in the future like social security and medicare then what would be the point of keeping citizenship be?
I am contemplating that now.
Thanks, Bud. You know I’ve only called you Monkey Pox out of love. Besides, somebody else here made it up. We had a gubernatorial candidate (Jon Grunseth) here in Minnesota who got into trouble for groping 1-2 of his daughter’s teen friends in a pool. In his defense, he was very young at the time. He was 36. Anyways, he had to drop out of the race, and his wife divorced him. He moved to Tasmania and ran a cherry farm. I guess he always liked cherries. I assume he had pulled out a globe, found the furthest spot on the planet from MN and moved there. Are you moving to Tasmania? I’m not implying you’re a child molester.
I’m on a What’s app thread with 12 people here in Los Angeles currently looking to move to Spain/Portugal. I’m not sure it’s going to be a great option unless you jump now.
Wallis Island?
This guy is a world authority on the subject. Here’s an article from a couple of years back. You can wander his website for more up-to-date info:
https://www.cheapestdestinationsblog.com/2023/12/14/cheapest-places-to-live-2/
Inflating away the debt seems like the most likely path. Gold agrees. Politically speaking this is a game of hot potato. Whoever is not in charge when it comes to a head will likely get their chance to do something radically different.
Personally I hope that is not someone from the “men can menstruate” crowd. Tampons will be way too expensive for me to buy.
I heartily disagree with the “run away” from America as a solution. Having traveled widely and visited multiple ex-pats in various nations (Costa Rica, Mexico, New Zealand, Australia, Canada, Argentina, Japan, Ireland, France and Italy). I see few advantages to the escapist mentality. Taxes are inevitable and many of the nations mentioned have poor infrastructure and physical safety for Americans.
Vacationing in a foreign land is one thing. Trying to assimilate into a different culture, with it’s rules and norms are two very different things.
Australia and New Zealand were my favorite nations but Australia has changed dramatically over the years. New Zealand has the best migration policies as it is skills based for younger people and bring lot’s money for older immigrants.
The romance of moving is indeed appealing, but the reality is often daunting.
Be careful what you wish for.
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If you don’t speak the language and don’t seriously want to learn it then you might as well just stick to vacationing because you will always be on the outside.
“I see few advantages to the escapist mentality.”
Get back to me in 2030. I hope this blog is still around, would be a shame to not be able to gloat about it.
“Get back to me in 2030”. No problem, but if you believe that things will be that bad here you best sell your rentals here and move everything to wherever you are aspiring will be safer, juster and have everything you want.
Just remember that adage that “When the US catches a cold the rest of the world gets the flu”.
My largest asset is a relatively rural farm with many allied neighbors. Lots of cameras and security as well as our own private power generation. Security is not to be taken lightly anywhere on this earth. But here in the US we have it damn good.
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Lol. You accuse me of “escapist mentality” while this whole time you’ve run away to a rural area and built your own little fortress with your neighbors. Oh the irony.
The U.S. is in permanent decline, perhaps it won’t decline enough for you to be impacted in farmland by the time you die and so be it. Some of us are thinking about giving our kids an alternative to the US. I believe in giving my family options and not put “all the farm eggs in one basket.”
And I’ll do with my assets what I please, don’t need your advice on that front but here’s a hint: global diversification.
Reinvent yourself as a 501(c)3
You can even proselytize now, and not lose the tax-free status!
Politicians from both cliques of the Uniparty spend recklessly. I’m shocked, shocked!
The metastasizing MIC budget is *NOT* a mere trillion. Let’s please not repeat the regime’s dubious self-reported figures.
https://www.independent.org/article/2007/03/15/the-trillion-dollar-defense-budget-is-already-here/
That is from 2007. We need a new analysis.
Furthermore:
https://www.marketplace.org/story/2006/05/24/negroponte-given-power-waive-sec-rules
https://corbettreport.com/interview-1479-catherine-austin-fitts-explains-the-financial-coup-detat/
Mish, would you please read those articles (in prior 2 comments) and watch that interview?
Oh they will deal with the problem. You are wrong about that. They will just wait until the fiscal fire is a 5 alarm blaze torching nearby homes at which point they will pull out a kinked garden hose to deal with it.