As European governments try to reduce their budget deficits under pressure from financial markets, it is not just the social programs responsible for runaway spending that are being cut. Defense programs are also being reduced. In America, a push for fiscal responsibility will have to wait until after the November elections, but a similar squeeze on the Pentagon is expected. The Office of Management of Budget Mid-Session Review released July 23 shows Washington's share of the national economy at 23.5 percent of GDP in 2020, compared to the average of 20.2 percent of GDP during the 20 years prior to 2009. Annual Federal spending will increase by $1.9 trillion between 2012 and 2020, but only $125 billion of this will go to the defense budget. The Congressional Budget Office forecasts "mandatory" entitlement spending rising by an average of 4.4 percent during the 2012-2020 period, but "discretionary" defense spending rising only 1.7 percent annually,...(Read Full Post)