Nobody could gain any leverage out of it.
What's going to happen is that defense procurement gets a hit and there will be a trickle-down effect with government employees, particularly at the state and county level.
In other words, the cuts to federal spending are actually going to be felt harder at the state and county level than they would be at the federal level because these cuts represent a bigger percentage of state and county budgets than they do federal budgets.
There has also been some noise in the media how civilian employees will be cut. However the PMC (Private Military Contractor) business has already been cut in half in the last two years. That;s a dying business.
Companies like Blackwater-Academi have lost half of the business they had with the US federal government and they've lost more than half of the business they have with foreign allied governments, who are also cutting the use of PMCs.
With increasing troop withdrawals from Afghanistan and our involvement with it, which is now winding down (even though of course the conflict will never wind down), the PMC business is going to get hurt even more.
The PMCs are going to have to do what they've done before and that is to increasingly rely on third world strongmen for contracts. That's always the reserve well that they dip into. As you may have heard, Blackwater-Academi is now protecting the politicians in Greece.
They've done a good job in diversifying because they knew they had to. They're not just PMCs anymore since they provide a much greater range of services now. They provide executive and political protection services because they had to in order to stay in business.
And speaking of PMCs, people have asked me whatever happened to Halliburton and KBR. It's true that these companies have become a bit of a has been business because so many of their oil assets are foreign and with foreign oil imports into the United States now dropping precipitously, those who have benefited are those with domestic oil and gas refining and transportation assets at the expense of those with foreign assets.
This would include the oil and natural gas fracking industry, which already is the golden goose and it's going to get bigger. Why? Because there is enough political pressure that the Obama Regime is finding that it's going to have to compromise less and less with the greenies, the environmentalist faction.
There is increasing public sentiment for "energy independence" which has always been a Republican mantra and which also sells well with Working Class Democrats because of the psychological benefit that the Working Class gets from this concept of not sending so much of their minimum wage paychecks overseas...
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* AL MARTIN, author of "The Conspirators: Secrets of an Iran Contra Insider," is an Independent Political-Economic Analyst with 25 years of experience as a trader on NYMEX, CME, CBOT and CFTC. He is also currently trading the commodity futures market day and night and has a teleconferencing service to facilitate transactions in the markets. This is a service for independent experienced traders.
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Also a Kindle eBook version of "The Conspirators: Secrets of an Iran Contra Insider" by Al Martin is coming soon. And a Kindle eBook version of "One Nation under Fraud: The Collected Writings of Al Martin," a collection of Al Martin columns published on Al Martin Raw.com since 2000, is also in the works. Stay tuned...