How Is The Financial Crisis And Budget Deficits Impacting Defense Spending?

Defence Spending In A Time Of Austerity -- The Economist

The chronic problem of exorbitantly expensive weapons is becoming acute.

THERE were the starlings: aerobatic teams with mesmerising group displays. There were the albatrosses: Boeing’s 787 Dreamliner and Airbus’s A380, heavy airliners that still manage long, effortless flight. And there were the buzzing propeller-driven military transporters, including the latest, the Airbus A400M. But the star turn was reserved for the birds of prey, the jet fighters.

Read more ....

My Comment: It always comes down to money. But with financial and budgetary deficits being forecast to be in the stratosphere for years to come, defense budgets and procurements are going to be cut. The Economist/IISS looks at these trends, and does a rather good job in analyzing what to expect.

Aviation Week has a good commentary on the IISS report.

But what caught my eye, was IISS's assertion that China now has more warships than the U.S. (see graph). Hmmmm .... that is going to raise eyebrows in a few places.