Guest Post: Springtime For The Military-Industrial Complex

Tyler Durden's picture


Submitted by John Aziz of Azizonomics

Springtime for the Military-Industrial Complex

The FT erroneously concludes that the boom-times are over for the military contractors:

The wars in Afghanistan and Iraq have been a boon to US contractors. The US has used so many of them in the conflicts that at times they outnumbered the military they supported. But the boom times are coming to an end and military service companies in particular are being squeezed.


Moody’s, the rating agency, expects revenue and margin pressure on defence service companies to become visible soon as the US Department of Defence, the world’s biggest military spender, negotiates tougher terms for contractors, reduces spending on them and brings its troops home from Afghanistan in time to meet the end 2014 deadline set by President Barack Obama.


In Iraq and Afghanistan the top contractor was Kellog, Brown & Root, the engineering and construction services company. It earned $40.8bn during the past decade, while Agility, the logistics company, and DynCorp, which specialises in security, earned $9bn and $7.4bn respectively, according to a US government report.


After a decade of unrivalled prosperity thanks to war and a booming global economy the defence service sector will have to work harder through innovation, as well as lean and well-focused management, to prosper.

In a word, nope. What cuts? The Obama budget aims to increase military expenditures far-above their already-puffed-up status quo:

Offering a military budget designed to head off charges that he’s weak on defense, President Obama unveiled a Pentagon spending plan that fails to cut any major procurement programs and calls for spending $36 billion more on the military in 2017 than it will spend this year.

Here’s what Obama intends to increase (and what Romney, of course, intends to increase more):

Yeah, America is spending more today drone-striking American citizens in Yemen, drone-surveilling Mexican drug lords and “turning our attention to the vast potential of the Asia-Pacific region“ than she was during the cold war when a hostile superpower had thousands of nukes pointing at her.

Military contractors have nothing to fear. Whether it is the Pacific buildup to contain Chinese ambition, or drone strikes in the horn of Africa or Pakistan, or the completely-failed drug war, or using the ghost of Kony to establish a toehold in Africa to compete with China for African minerals, or an attempted deposition of Bashar Assad or Egypt’s new Islamist regime, or bombing Iran’s uranium-enrichment facilities, or a conflict over mineral rights in the Arctic, or (as Paul Krugman desires — and what the heck, it’s 2012, why not?) an alien invasion, or a new global conflict arising out of a global economic reset, it’s springtime for the military contractors. It’s everyone else who should be worried.

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Tue, 06/19/2012 - 15:12 | 2540445 Cognitive Dissonance
Cognitive Dissonance's picture


It sure looks like 9/11 came just in time to "save" the day.

Tue, 06/19/2012 - 15:13 | 2540457 Newsboy
Newsboy's picture

Gotta' find a way to sit this one out for 20 years...

Tue, 06/19/2012 - 15:20 | 2540488 CIABS
CIABS's picture

Hey John, here's a re-write:

The FT lies that the boom-times are over for the military contractors...

Tue, 06/19/2012 - 15:44 | 2540568 Gully Foyle
Gully Foyle's picture

I found this particularly creepy.

Troy Public Library would close for good unless voters approved a tax increase. With little money, six weeks until the election, facing a well organized anti-tax group who'd managed to get two previous library-saving tax increases to fail, we had to be bold. We posed as a clandestine group who urged people to vote to close the library so they could have a book burning party. Public outcry over the idea drowned out the anti-tax opposition and created a ground-swell of support for the library, which won by a landslide.

Tue, 06/19/2012 - 15:57 | 2540633 CommunityStandard
CommunityStandard's picture

At least it wasn't an orphanage....

Tue, 06/19/2012 - 16:50 | 2540796 ZerOhead
ZerOhead's picture

9/11 sure saved the Pentagon's budget... considering the news from the day before that got burried... you know... the $2.3 trillion dollars missing that Rummy was yammering about...

Talk about great timing! ;)

Tue, 06/19/2012 - 19:47 | 2541245 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Dude, I don't think that FT knows what they are talking about. Military contractors are laying people off left and right due to the fact the US Congresscritters have not passed a budget in over 2 years. I was an example.

Tue, 06/19/2012 - 20:57 | 2541483 Greyhat
Greyhat's picture

"the $2.3 trillion dollars missing that Rummy was yammering about... "

It was really lucky that "they" bombed the pentagons bookkeeping dep. just in time! :)

Tue, 06/19/2012 - 16:14 | 2540709 Bring the Gold
Bring the Gold's picture

Ok so this is a thread about insane levels of military spending and you're concerned that a group did a *chortle* "False-flag" operation to pretend to be enthusiastic about book burning to SAVE a public library?! REALLY?!?!?! Uh holy what the fuck batman? Seriously? Priorities perhaps? 

Tue, 06/19/2012 - 18:23 | 2540733 TruthInSunshine
TruthInSunshine's picture

I miss AMC's Rubicon series. I'm not a big consumer of media, but that was one of the best shows of all time, IMO. I think AMC canceled it after one season because a) there are too few non-imbeciles in the U.S., or b) the director and producer of the show, along with AMC, had the kabosh put on them, as it hit way too close to reality, or c) a combinatrion of too few non-imbeciles in the U.S. -AND- the director and producer of the show, along with AMC, had the kabosh put on them, as it hit way too close to reality.


Having said all that, what will the next Operation Northwoods be, that doesn't get 86ed, and is carried out to fruition? The higher ups at the Pentagon have hired the brightest minds in Hollywood to write scripts for them (The Pentagon's strengthening grip on Hollywood), so it's probably going to be something that James Lipton will find "delightful."

Thu, 06/28/2012 - 01:52 | 2541445 Bringin It
Bringin It's picture

ETF - various controlled opposition plays spring into existance and dissipate as required.

As with the RPs, best to avoid the kool-aide.

And I made the only political contribution of my life for RP.

Tue, 06/19/2012 - 22:44 | 2541763 mirac
mirac's picture

I'll pick door numnrt 3 Bob...

Tue, 06/19/2012 - 16:14 | 2540711 Matt
Matt's picture

Well, Marketing is Propaganda, and they did a great job at using propaganda to exploit the citizens to get them to make the "right choice", so I say they totally deserve their marketing award.

Tue, 06/19/2012 - 17:48 | 2540882 Bob
Bob's picture

Special Olympics Edition, maybe. 

I mean, once the medium openly is the message (and the only message in that medium), it can't be all that hard.

Makes me feel all warm and fuzzy inside knowing at least that somebody got what they paid for, free market and all. 

Tue, 06/19/2012 - 17:51 | 2540969 Stuck on Zero
Stuck on Zero's picture

What exactly does a library do today?  It seems like you only need a Kindle and a NetPad to get access to all the worlds greatest works. 

Tue, 06/19/2012 - 19:07 | 2541143 RECISION
RECISION's picture

Just so long as you can pay the entry fee/tax

Tue, 06/19/2012 - 15:22 | 2540491 Sudden Debt
Sudden Debt's picture

Yeah... Just sit and relax because when the banks need their hard earned cash back from the citizens who spoiled it all away, there will need to be done some backbreaking work at in the mines of the United States Of Goldman Sachs!

Tue, 06/19/2012 - 15:22 | 2540492 resurger
resurger's picture
Yuri Orlov

"There are over 550 million firearms in worldwide circulation. That's one firearm for every twelve people on the planet. The only question is: How do we arm the other 11?"

Don't blame the MIC Aziz, the US is capitalist country and its a cold world, money is money to those pigz

Tue, 06/19/2012 - 15:24 | 2540499 Sudden Debt
Sudden Debt's picture

Like the russians did it in WOII!
12 men are send to the front, the first gets the riffle and if he get's shot, the one who stands behind him picks it up and fights.
Talk about guts...
Can you imagine those guys actually did it like that and beat hitler that way?

Tue, 06/19/2012 - 15:34 | 2540528 optimator
optimator's picture

They had a chance of surviving.  Turning around and retreating meant no chance of surviving as the Commisars 'blocked' any step back.

Tue, 06/19/2012 - 15:40 | 2540552 Offthebeach
Offthebeach's picture

FDRs' good old Uncle Joe's "Not One Step Backward" order. Very motivating. Basically, you will most likely die fighting the Nazis, but you will be killed by the KGB kill battalions right behind you. And your family maybe too.

Tue, 06/19/2012 - 16:38 | 2540786 aerojet
aerojet's picture

What guts?  Anyone who didn't advance was immediately shot by an officer.

Tue, 06/19/2012 - 15:43 | 2540563 Gully Foyle
Gully Foyle's picture

Canadian airport to bug travelers' conversations

Ottawa airport installs microphones that are intended to, quite simply, bug private conversations between travelers. Might this be slightly intrusive? Or just plain creepy?


Tue, 06/19/2012 - 16:16 | 2540715 Bring the Gold
Bring the Gold's picture

Ok now this actually IS creepy.

Tue, 06/19/2012 - 17:25 | 2540894 Never One Roach
Never One Roach's picture

Reminiscent of Communist USSR before the wall fell. Very creepy, indeed.

Tue, 06/19/2012 - 15:21 | 2540480 vast-dom
vast-dom's picture


ATTENTION: all concerned parties please write to The Federal Reserve consumer complaint email and report the Federal Reserve bank for FRAUD at the following email:


This is their very own service for fraud and econ misuse for the banking sector that they themselves are bestowing fraud and misuse upon. Report them for the subversion of interest rates as determined by marketplace: ZIRP. For QE. For Hopium. For any and every valid FRAUD that The Fed has egregiously engaged in. Remember your complain is predicated upon the concept of FREE MARKETS and the very constitutionality, more at lack thereof, of The Fed.


PS remember, inflation targeting is illegal according to the Federal Reserve’s mandate.


Tue, 06/19/2012 - 15:26 | 2540503 resurger
resurger's picture


"Thank you for saving your money with HSBC. We wanted to let you know that your Online Savings Account Annual Percentage Yield (APY) was lowered to 0.50% APY1 as of June 14, 2012."

I wrote a short message to Andrew saying "Fuck You"


Tue, 06/19/2012 - 15:29 | 2540510 vast-dom
vast-dom's picture

you the man resurger! 

Tue, 06/19/2012 - 15:52 | 2540564 sunaJ
sunaJ's picture

They make the laws.  They choose which laws to enforce and when.  We are all the frogs in the proverbial boiling pot (eventually TPTB, too).  But before we die from the boil, there are a few thousand psychopaths with power in the world that would like to have a little bit of fun with the frog before we check out.


Tue, 06/19/2012 - 16:26 | 2540740 waterhorse
waterhorse's picture

Good idea.  However, when I made a complaint they published it for public view with my name, address and telephone number now on the net for anyone and everyone to see.  I'm not intimidated by that tactic, but I'm not real pleased about it either.

I asked them the same questions about the GAO audit, TARP, ZIRP, QE, etc.

Tue, 06/19/2012 - 17:44 | 2540941 vast-dom
vast-dom's picture

that is also in violation of YOUR privacy! yet another illegal tactic by The Fed.


i shall provide my PRIVATE DETAILS and INFO when Ben Bernank et. al. provide theirs. We are all citizens after all. 


I think we shall post Bernank's private info somewhere public shortly....

Tue, 06/19/2012 - 20:52 | 2541464 Bringin It
Bringin It's picture

Fair's fair.

Tue, 06/19/2012 - 15:20 | 2540486 LawsofPhysics
LawsofPhysics's picture

Yep, building a new society somewhere between fahrenheit 451 and 1984, winning.  So long as the paper holds anyway.  More and more I see two economies in play.

Tue, 06/19/2012 - 15:22 | 2540493 Tirpitz
Tirpitz's picture

I'm with the black, underground economy.

Tue, 06/19/2012 - 15:42 | 2540559 Gully Foyle
Gully Foyle's picture

Cognitive Dissonance

From Canadian Bacon

Secretary of State: We were thinking, what could be a bigger threat than aliens invading from space?
General Panzer: Ooh boy! Scare the shit out of everyone. Even me, sir!
U.S. President: Jesus, is this the best you could come up with? What about, ya know, international terrorism?
General Panzer: Well, sir, we're not going to re-open missile factories just to fight some creeps running around in exploding rental cars, are we, sir?

Tue, 06/19/2012 - 16:57 | 2540822 Uncle Remus
Uncle Remus's picture

Wow. You can still rent a Crown Vic?

Tue, 06/19/2012 - 15:47 | 2540586 asteroids
asteroids's picture

War Pigs.

Tue, 06/19/2012 - 15:10 | 2540447 Careless Whisper
Careless Whisper's picture

The Careless Whisper News Update & Threadjacking


VIDEO: Charles Biderman Tribute To Dan Dorfman (Dead At 80)

QUOTE OF THE DAY: "I was wrong, and when you're wrong you don't wait, you just get out. I took a beating and left."  Mark Cuban Explains His Losing Facebook Trade

GS Shareholders Spend More For Convicted Felon Board Of Director Gupta Legal Bills Than Lloyd's Salary & Bonus

HIDING IN PLAIN VIEW: NSA Data Center To Monitor Everything So They Can Protect You; Promotes Hit TV Show "Person Of Interest"





Tue, 06/19/2012 - 15:14 | 2540451 hedgeless_horseman
hedgeless_horseman's picture



What about that modest proposal to build an Empirial Death Star?    Since the USA no longer operates under a budget, why not?

Tue, 06/19/2012 - 15:28 | 2540481 narnia
narnia's picture

No kinetic action & no freshly printed promises make Homer something something


Tue, 06/19/2012 - 15:38 | 2540544 francis_sawyer
francis_sawyer's picture

Only problem with building a 'death star' is that then the joos will start a full fledged campaign of fear that some other intergalactic planet is also building a death star and is hell bent on using it to take out downtown Tel Aviv... Then you'll be on the hook (no pun intended) for at least 2 death stars...

Tue, 06/19/2012 - 15:47 | 2540584 Gully Foyle
Gully Foyle's picture


Dude, would that be a DEATH STAR OF DAVID?

And who the fuck would run it from Friday evening to Sunday?

Tue, 06/19/2012 - 15:53 | 2540605 francis_sawyer
francis_sawyer's picture

Fuck Gully, it never ends...

20 years after that, you'd get some kinda story that towelheads (with boxcutters), commandeered one of the death stars (from caves in Afghanistan) & flew them into the Magic Castle at Disneyland... They'd know it was towelheads, because despite the fireball wreckage, one of their intergalactic passports would be found unscathed over by the "It's a Small World" ride...

Tue, 06/19/2012 - 16:03 | 2540666 krispkritter
krispkritter's picture

And then 'magically', The Hall of the Presidents would collapse all on it's own after receiving only minimal damage...all history of prior regimes, er, presidencies would be erased.

Tue, 06/19/2012 - 16:08 | 2540684 Cognitive Dissonance
Cognitive Dissonance's picture

Priceless. Just priceless.

Ten Gold Stars and one hundred up arrows. :>)

Tue, 06/19/2012 - 17:06 | 2540840 Uncle Remus
Uncle Remus's picture

Not exactly that far-fetched...

And it's called "It's A Small Universe" ride now...

Tue, 06/19/2012 - 21:08 | 2541397 New World Chaos
New World Chaos's picture

Werner Von Braun spent decades warning us that a UFO hoax would be used to shovel money and power to the MIC.  But it goes beyond that.  The puppetmasters got feudalism back by other means but they are still pissed about losing their divine right of kings.  Being untouchable under the law is not enough.  They want to be worshipped.  Think Stargate SG-1.  Much is hidden in that series.  This Witch Mountain movie (and Prometheus) might be a way of conditioning us to the idea that the elites have alien ancestry and alien occult secrets with which they have "protected" us for thousands of years. 

They are never sloppy when they implant occult symbols into the collective unconscious.  They see these symbols as a sentient network of mind-viruses.  Gateways of control.  The CIA's heavy involvement with the symbology of this film is just one more clue that they are planning an epic UFO hoax on Dec. 21.  There have also been a lot of alien invasion documentaries, even on supposedly respectable channels like National Geographic and the BBC.  The overarching message is that we will have to rely on governments, experts, and military.  We will have to unite behind a world government.  Michio Kaku said so and he is way smarter than you.

On the Discovery Channel, Lynn Rothschild (astrobiologist) said what is unique about Earth is the biosphere.  The aliens would want to wipe us out without harming the biosphere.  She also argued that the aliens would be much like us.  WTF?  An astrobiologist said this?  Are the Rothschilds so broke they will have to rely on nose-putty special effects?  With all the diversity on Earth, real aliens should be squids or cockroaches or robotic plants or something completely unimagined. 

The alien weapons were EMP, engineered bird flu, and tsunamis.  Micro-drones with botox stings were conspicuously absent because we can't mass-produce them (yet)!  The solution was for the military to save the day by putting a nuke at the bottom of a mine elevator shaft and turning it into a giant shotgun to take out the mothership.  I bet the inflatable mothership will go down in the uninhabited South Pacific.

If real aliens do show up, it will be to stop the nuclear war which the Illuminati have planned as a desperate last measure.  You will know which scenario is happening by the the way the media treats it:  Hype and fear --> it's a hoax.  Distraction and coverup --> alien hippies (which would scare the Illuminati way more than the stomach bursters).

Tue, 06/19/2012 - 15:50 | 2540530 Cognitive Dissonance
Cognitive Dissonance's picture

With tongue slightly in cheek........exactly how do you know they are NOT building something along those lines?

The so-called Pentagon budget is not an accurate counting of all that is being 'spent' on defense. Let's count the hundreds of billions of cash that comes in from "official" (CIA) drug running and various financial scams.

Black Budgets Bitches!

Tue, 06/19/2012 - 15:48 | 2540591 midgetrannyporn
midgetrannyporn's picture

You must first take zee Siegfried Oath.

Tue, 06/19/2012 - 17:19 | 2540876 Bunga Bunga
Bunga Bunga's picture

Why you need a Death Star to destroy Earth, if alone building one destroys Earth.

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