My friend Robert O’Brien writes about the state of defense spending as a result of the credit crisis in the following commentary:
He raises an interesting idea about getting all of our allies, such as Australia and India, to share our defense burden. We need to find more such allies and operate on the assumption that U.S. power will increasingly be dependent upon allied forces. Along these same lines, we need to work for an open trade environment to facilitate common interests. There is actually a risk of a festering trade war that might come about as a result of our current currency war. History has shown that trade wars eventually escalate into real wars. In my opinion, if we can keep currency and trade dictated by market forces, we hopefully will avoid this risk.