Allies and enemies of the USA will be watching
“Our generals are not ready for this moment in history. Not even close. The next President of the United States needs to radically overhaul Pentagon senior leadership to make us ready to defend our nation and defeat our enemies. Lots of people need to be fired,” Pete Hegseth wrote in his 2024 book The War on Warriors: Behind the Betrayal of the Men Who Keep Us Free.
Pete Hegseth, the incoming Secretary of Defense, knows that it was a job with high attrition during Trump’s presidency. Five men held the post during Trump’s first term, as they struggled to explain Trump’s sometimes erratic tweets about the role and adapt to his style of management.
Secretary of Defense, Mark Esper was famously sacked by Trump via a tweet in 2020 after they initially fell out over Trump saying he wanted to use the military against civilian BLM protesters on U.S soil.
In Hegseth’s 2020 book American Crusade: Our Fight to Stay Free, he wrote about the possibility of civil war if the Democrats won: “The military and police, both bastions of freedom-loving patriots, will be forced to make a choice. It will not be good. Yes, there will be some form of civil war.”
Hegseth warned: “It’s a horrific scenario that nobody wants but would be difficult to avoid.”
Department of Government Efficiency (DOGE)
Entrepreneurs Elon Musk and Vivek Ramaswamy’s appointment as co-leads of the Department of Government Efficiency (DOGE) signals a potential shift in the Pentagon’s financial management. DOGE aims to streamline federal operations and reduce waste, with the Pentagon’s budget and audit challenges likely under scrutiny.
The Pentagon is the headquarters building of the United States Department of Defense which manages 3 million servicemen, and over $3 trillion in assets with an annual budget over $900 billion. During fiscal year 2018, the U.S. government spent $4.1 trillion, with the Defense Department accounting for 14.7% of that, and the Department of Veterans Affairs accounting for 4.4%.
Historically, the Department of Defense (DoD) has faced significant audit issues, failing to pass comprehensive financial audits since 2018. Challenges include decentralized operations, outdated financial systems, and the sheer scale of assets, leading to untracked items and inefficiencies.
Musk’s involvement suggests a push for technological solutions to these problems. His experience in automating complex systems could lead to the implementation of advanced tracking and accounting technologies within the DoD.
Musk’s advocacy for cost-effective defense measures, such as favoring unmanned systems over traditional manned fighter jets, indicates a potential reevaluation of defense spending priorities.
Musk’s dual role as a government advisor and CEO of companies like SpaceX, which have defense contracts, raises potential conflict of interest concerns.
Hegseth, Musk and Ramaswamy’s efforts through DOGE could lead to significant reforms in the Pentagon’s financial management, emphasizing efficiency and technological innovation. The success of these initiatives will depend on navigating institutional resistance and addressing ethical considerations.
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Drain the Boonies
Implementing such reforms will face challenges. The Pentagon’s entrenched bureaucracy and existing contracts may resist rapid changes.
Trump said during the campaign that he would fire “woke” generals and those responsible for the troubled 2021 pullout from Afghanistan.
U.S. military officers seen as connected to Mark Milley, Trump’s former chairman of the Joint Chiefs of Staff are also on the endangered species list, including Milley’s successor, Air Force General C.Q. Brown. The Joint Chiefs of Staff include the highest ranking officers in the U.S. military and comprise the heads of the Army, Navy, Marines, Air Force, National Guard and Space Force.
Milley was quoted in the book “War” by Bob Woodward calling Trump “fascist to the core” and Trump’s allies have targeted him for perceived disloyalty to the former president.
What does this mean for US allies?
The Pentagon’s disarray due to challenges like the DOGE audit could introduce vulnerabilities to its operations, potentially impacting commitments to Ukraine, NATO, and Taiwan. Here are some key considerations:
Ukraine and NATO
- Military Aid and Support: The Pentagon’s inability to account for assets and funds effectively could delay or misallocate military aid to Ukraine. Accurate tracking is crucial for ensuring that supplies, equipment, and funding reach the right recipients in a timely manner.
- NATO Collaboration: NATO relies on the United States as a primary defense contributor. Financial disarray may weaken trust among allies, complicate joint operations, or limit the Pentagon’s ability to fulfill shared defense commitments.
- Operational Readiness: If inefficiencies result in unaccounted inventory or wasted funds, the Pentagon’s readiness to respond to NATO-aligned crises could suffer.
Taiwan
- Defense Planning: Taiwan’s security depends on consistent U.S. support, including military training, arms sales, and strategic cooperation. Audit failures could disrupt these processes, weakening Taiwan’s preparedness in the face of regional threats.
- Geopolitical Signaling: Disorganization within the Pentagon may embolden adversaries who perceive it as a sign of reduced U.S. capacity to act decisively in Asia-Pacific security matters.
Broader Implications
- Resource Allocation: Audits reveal inefficiencies that, if unresolved, could reduce funds available for strategic priorities like bolstering defense against Russian aggression or maintaining Indo-Pacific stability.
- National Security: Fraud, mismanagement, or delays in financial operations may expose the Pentagon to risks, undermining its ability to safeguard U.S. interests globally.
Mitigation Strategies
While these vulnerabilities are concerning, robust leadership and modernization efforts could mitigate their impact. Steps such as integrating advanced financial systems, increasing interagency transparency, and prioritizing critical programs for allies might preserve the Pentagon’s commitments despite internal challenges. Additionally, Congressional oversight and external accountability mechanisms can pressure the DoD to address inefficiencies with urgency.
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Balancing the Books at the Pentagon: A History of Failed Audits and Missed Accountability
In 2017, the U.S. Department of Defense (DoD) set out on an ambitious journey—to undergo a full financial audit. This decision came years after the Government Accountability Office (GAO) highlighted the Pentagon’s financial management as a “high-risk” area.
With a budget exceeding $900 billion annually, managing the largest discretionary spending arm of the U.S. government is no small task. In the five years since the first audit, the Pentagon has yet to pass one, raising questions about accountability, waste, and the sheer complexity of its operations.
The Audit Process: A Herculean Task
The first full-scale audit of the Pentagon began in 2018, involving more than 1,200 auditors examining thousands of systems, assets, and transactions. The audit covers an extensive range of areas: weapons systems, personnel records, real estate, and inventory management. Each audit has revealed persistent issues, from untracked assets to outdated financial systems incapable of reconciling data.
In the 2023 audit, the DoD acknowledged it could not account for about 60% of its assets. This is not a new phenomenon.
Historically, the Pentagon has struggled with inventory management, famously leading to anecdotes of paying exorbitant amounts for simple items like hammers and toilet seats. While such examples may be exaggerated, they underscore the department’s systemic inefficiencies.
Why Does the Pentagon Fail?
Several factors contribute to the DoD’s recurring audit failures:
1. Decentralized Operations: The Pentagon oversees 27 distinct entities, each with its own financial systems and processes. Synchronizing these disparate systems into a cohesive audit trail has proven nearly impossible.
2. Legacy Systems: Many DoD financial systems were designed decades ago, making integration with modern accounting practices a significant challenge. Attempts to upgrade or replace these systems have been slow and costly.
3. Scale and Complexity: The DoD manages over $3 trillion in assets, including real estate, military equipment, and inventory spread across the globe. Tracking every item—from fighter jets to office supplies—is a monumental task.
4. Culture of Accountability: Critics argue that the Pentagon has long operated with minimal oversight compared to other federal agencies. The sheer size of its budget often shields it from scrutiny, allowing inefficiencies to persist.
The Costs of Failure
Audit failures at the Pentagon have significant consequences. Beyond undermining public trust, they hinder the department’s ability to identify and eliminate waste. For instance, billions of dollars have been lost to overpayments, improper contracts, and unaccounted-for inventory.
Moreover, the lack of financial transparency creates vulnerabilities. In the absence of a clear audit trail, the risk of fraud and mismanagement increases, potentially compromising national security.
Steps Toward Improvement
Despite these challenges, there are signs of progress. The Pentagon has implemented several initiatives aimed at improving financial accountability:
- Inventory Management Reforms: Programs like the Advancing Inventory Accountability initiative aim to better track and manage assets.
- Upgrading Systems: Efforts are underway to replace outdated financial systems with modern, integrated solutions.
- Cultural Shifts: Leadership has emphasized the importance of audits, making financial accountability a key performance metric.
The Road Ahead
The Pentagon’s financial audit failures are a stark reminder of the challenges inherent in managing such a vast and complex organization. While progress has been made, significant work remains to ensure accountability and efficiency in the DoD’s operations.
Ultimately, balancing the books at the Pentagon isn’t just about numbers on a ledger. It’s about maintaining public trust, ensuring taxpayer dollars are spent wisely, and strengthening national security. The road to financial transparency may be long, but it is one the Pentagon cannot afford to abandon.
Whether Trump, Hegseth and friends decimate the military capabilities in their efforts to balance the budget, and whether enemies of the USA take advantage of the turmoil, remains to be seen.
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