This link is to a recent document published by the U.S. Joint Forces Command titled: 'Joint Operating Environment 2010'. This year USJFC has included a section on "Economics". Here are some choice excerpts:
“The dollar’s “extraordinary privilege” as the primary unit of international trade allows the U.S. to borrow at relatively low rates of interest. However, the emerging scale of U.S. Government borrowing creates uncertainty about both our ability to repay the ever growing debt and the future value of the dollar. Moreover, “any sudden stop in lending…would drive the dollar down, push inflation and interest rates up, and perhaps bring on a hard landing for the United States…”
“if current trends continue, the U.S. will be transferring approximately seven percent of its total economic output abroad simply to service its foreign debt.”
“Interest payments, when combined with the growth of Social Security and health care, will crowd out spending for everything else the government does, including National Defense.”
“Habsburg Spain defaulted on its debt … its overseas empire collapsed. Bourbon France became so beset by debt due to … its overthrow by revolution. Interest ate up 44% of the British Government budget …..inhibiting its ability to rearm against a resurgent Germany. Unless current trends are reversed, the U.S. will face similar challenges…..going to pay interest on the money borrowed to finance our deficit spending.”
It appears that the USJFC did not come to these conclusions on their own. The report cites many references to mainstream organizations and authors. Among them are: Peterson-Pew Commission (key word here being 'Peterson'!), Heritage Foundation, 'The Old' Paul Krugman, Niall Furguson, World Bank and others.
I have to this point taken some solace in the fact that our Military had never shown any evidence of overt acceptance of these dangerous beliefs. I will try to provide a more detailed review and some counterpoints to some of the report over the next few weeks.
The stakes in this intellectual 'war' between the mainstream and modern monetary theories are being raised.