The Unz Review:ㅤArms Industry Group Says Pentagon Facing Inflation Crisis, by Andrew Anglin

the-unz-review:ㅤarms-industry-group-says-pentagon-facing-inflation-crisis,-by-andrew-anglin

16-09-22 04:00:00,

Here’s an example of one of those things I’ve been saying forever and ever coming into the headlines.

RT:

The US Department of Defense will need an extra $42 billion in the next fiscal year to account for soaring inflation and rising procurement prices, according to the National Defense Industrial Association.

In a report released on Tuesday it’s estimated that the Pentagon will experience a $110 billion loss of purchasing power because of record-high inflation.

It also warns that this development “comes at a dangerous time†as the US faces challenges from China and still suffers from Covid-19 fallout, as well as supply chain and workforce issues. The crisis also overlaps with the ongoing Russian military campaign in Ukraine, a country Washington has been supplying with weapons and other aid.

“Inflation is particularly disruptive to our national defense because the long budget and acquisition processes [the Pentagon] use prevents timely adjustments for inflation,†the report states.

If this deficit is not remedied, this will bring about “maintenance backlogs, lower readiness ratings and delays in modernization efforts†and various other programs, undermining the overall readiness of US forces.

To salvage the situation, the report recommends that Congress add at least $42 billion to the Fiscal Year 2023 Defense Budget to avoid losing buying power, provide inflationary relief to companies that hold long-term fixed price contracts with the Pentagon while adjusting all future contracts for rising prices.

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