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Deloitte Department of Defense practice leader General Charles Wald on the impact of defense cuts to national security.
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Thank you there.
On a serious -- on borrowed time thanks to congress kicking the can down the road massive defense cuts were put off until March 1.
But with just one month to go there is little sign of progress in Washington in my next guest says the -- sequestration is played out has been quote.
The worst possible scenario general Charles Wald is a force general and leader of to what's Department of Defense practice welcome sir we're so pleased to -- and -- -- -- -- -- 500 billion dollars in Defense Department spending cuts may have been delayed but they are likely inevitable.
Your your thoughts on the impact.
Well first of all the short have been 487.
Billion dollars in cuts are loaded on the duties so the 500 billion that's pending.
Would be devastating as you pointed out earlier -- one of the things are elected.
Remind people of is that we're really -- -- sequester ration for those -- think we're wait until they actually decisions made all the money is cut.
In fact the department has already started cutting their spending and stopping spending on many of their programs I think.
And Lisa I'm in the latest movie.
Driven largely by a decline in defense spending -- you know there -- a lot of deficit hawks out there who are happy to see cuts.
Is painful as they -- be here arguing sir that these are the wrong places to cut where then should these cuts be.
Well absolutely I think first of all its last phase of work that the government is overspending in some areas.
And the DOD is going to take probably some more cuts.
The problem is has been pointed out and you -- -- -- -- that through the way it's being done very draconian.
And very inefficient to me this like.
Senator -- from Virginia said you can't.
Purchase two thirds ownership and that basically every system we have would have some cuts -- just doesn't make any sense.
So how at all -- -- -- day to day operations and national security Department of Defense.
Well the good news is I think for our overseas operations else we will still have funding for that that.
Everything other than that is going to be pretty much held in abeyance and for example.
The -- the debt department of -- as it was directed that potentially if the sequestration and does wonderful -- in within months or so.
By the third and fourth quarter of this year.
All maintenance for all aircraft and all ships will be stopped if that happens for two quarters -- think we're doing about ten -- recovery rate.
Now -- cuts will -- US still have the largest defense budget in the world and how.
Will that affect how vulnerable we are as a nation protecting ourself against trouble spots from the world.
-- ironically I think.
If done properly I think again everybody needs to take somewhat of a haircut if you will on spending because of our economic situation our deficit.
So I think if given an opportunity dirt right the Pentagon.
Can take a few -- some more cuts are cellmark can give you what -- that might be but I think if there were a budget around 450 billion annually.
Which is a fairly significant -- from the 700 we -- -- last year.
We can certainly with the right type of planning.
Take care of our national defense but but I won't.
That one little -- the fallacies that many people believe I think -- after Afghanistan and Iraq are completed what you shortly here reported fourteen for Afghanistan.
That we're going back to -- pretty much of peace dividend when we're gonna live in a world persistent conflict and are prepared for the rest for our allies we're gonna have for a -- world laughter phase.
I mean we're watching Turkey and is Egypt and Israel Syrian all of these trouble spots right now generally it is it's alarming general Charles -- thank you for your input.
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