"Here's how crazy defense is. Just think about this. The U.S. has a treaty with Taiwan that we'll protect Taiwan if they're invaded by the Chinese. There's only one problem with that. We gotta borrow the money from China to do it."Erskine Bowles, speaking of the defense budget, in July. This is from a CNBC interview of him, Alan Simpson and Warren Buffett. (The quote is from page four of the transcript.)
The discussion was about how to bring down the federal deficit, and, of course, the work of the commission that Bowles and Simpson co-chaired. On page one, Bowles points out that federal revenues equal only our "mandatory" spending -- entitlements. All the other spending, including defense, comes from borrowing.