Friday, November 30, 2012
Why we need bigger defense cuts
So that the Perfumed Princes of the Pentagon would not have to funds to do this. From Bloomberg:
Lockheed Martin Corp. (LMT) and the Pentagon have reached an “agreement in principle” to complete a contract valued at as much as $4 billion for the fifth production batch of F-35 fighters, according to the Pentagon’s spokesman.32 more jets that can't perform their mission. Fortunately their mission is against an enemy that doesn't exist.
An accord has been reached to buy 32 fighters in addition to the 63 already on contract, Pentagon spokesman George Little told reporters today.
The Pentagon said in December that it would spend a maximum of about $4 billion on the production lot. Dollar figures for the contract won’t be available for about a week, according to officials who spoke about the negotiations on condition of anonymity. The contract is the second consecutive one to involve the purchase of 32 aircraft, an indication the Pentagon assesses the program’s manufacturing processes are on solid enough footing to sustain that rate.
“It was a tough negotiation and we are pleased that we’ve reached an agreement,” Little said. “It ends the year on a positive note and sets the program to move forward.”
Signing the contract before year-end means that the dollars obligated won’t be subject to reduction if the Pentagon is forced to make $52.3 billion in additional cuts during the current fiscal year under the process called sequestration. Those cuts would begin in January unless President Barack Obama and Congress reach agreement to avert the spending reductions and tax increases known as the fiscal cliff.
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