defense drawdown is now well underway, and the defense industry is starting to
pack up, if one is to believe what is being said this week at the Paris Air
budgets peaked in FY 2010, including war funding, and have been down about 10
percent in constant dollars. Factor in the budget sequester for this year,
which looks like it will hang on through the rest of the fiscal year (and maybe
make a repeat appearance next January), and the defense budget will have fallen
24 percent in constant dollars from their height.
future does not look different. If the sequester remains, one can expect
another roughly $500 billion to disappear from projected defense budgets over
the next nine years.
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