Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 12,454.80 -74.92 -0.60%
S&P 500 1,317.82 -2.86 -0.22%
Nasdaq 2,837.53 -1.85 -0.07%
Ticker Volume Price Price Delta
STOXX 50 2,161.87 +5.35 0.25%
FTSE 100 5,351.53 +1.48 0.03%
DAX 6,339.94 +24.05 0.38%
Ticker Volume Price Price Delta
Nikkei 8,580.39 +17.01 0.20%
TOPIX 722.11 -0.14 -0.02%
Hang Seng 18,713.40 +47.01 0.25%
Gold 1,571.20 +0.73%
EUR-USD 1.2517 -0.1227%
Nasdaq 2,837.53 -0.07%
DJIA 12,454.80 -0.60%
S&P 500 1,317.82 -0.22%
FTSE 100 5,351.53 +0.03%
STOXX 50 2,161.87 +0.25%
DAX 6,339.94 +0.38%
Oil (WTI) 90.86 +0.22%
U.S. 10-year 1.738% -0.039
BAC:US 7.15 +0.14%
FB:US 31.91 -3.39%

Automatic Budget Cuts Could Break U.S. Defense, Mullen Says

U.S. Admiral Mike Mullen, chairman of the Joint Chiefs of Staff, said military budgets may be trimmed by as much as $1.1 trillion during the next 10 years if a congressional supercommittee fails to agree on a deficit reduction plan, leading to automatic cuts.

A cutback that large “has a chance of breaking us,” Mullen testified today before the Senate Armed Services Committee. That would impose a “heavy penalty on developing equipment” for the military, he said.

Mullen was referring to a potential $450 billion in Pentagon cuts in the next decade under the U.S. Budget Control Act and possibly another $500 billion in automatic cuts if the supercommittee fails to find $1.5 trillion in overall savings.

Mullen told the Business Executives for National Security today that the initial $450 billion in cuts would “only be a little over 9 percent a year from our baseline” and is achievable. “They will also be difficult to identify and execute,” he said.

Mullen said his concern the deeper cuts could be devastating to the military was based on emerging results of a Pentagon review of roles, missions and capabilities.

“The pieces for me are the state of force after 10 years of war and the security environment” that’s been informed by the “extensive work we’ve done” on what might be cut to achieve $450 billion in savings, Mullen said.

Those insights “give me a good look into what would happen if we doubled that,” he said. “Fundamentally, we’d have to change strategy -- not just ‘thin out’ what we are doing right now. It would cause dramatic force structure cuts.”

“We’d get a whole lot smaller very rapidly and the intangibles about who stays and goes, our ability to recruit, breaking faith with our people, all of that, from my perspective, combines to if you took a $1 trillion out of defense right now, I think it would break,” Mullen said.

To contact the reporter on this story: Tony Capaccio in Washington at acapaccio@bloomberg.net

To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net

Key Rates

  • Mortgage
  • Home Equity
  • Savings
  • Auto
  • Credit Cards
See today's average mortgage rates across the country. Source: Bankrate.com
Type Today 1 Mo
30-Year Fixed 3.80% 3.85%
15-Year Fixed 3.09% 3.07%
5/1-Year ARM 2.65% 2.71%
3/1 Year ARM 2.69% 2.64%
1-Year ARM 3.54% 2.78%
30 Year Jumbo 4.38% 4.45%
15-Year Fixed Jumbo 3.61% 3.66%
5/1-Year ARM Jumbo 2.90% 2.91%

Rates may include points.

See today’s average home equity rates across the country. Source: Bankrate.com
Type Today 1 Mo
30000 USD 6.40% 6.42%
Home Equity Loan 7.01% 7.47%
HELOC 30000 USD 5.53% 5.46%
HELOC Loan 3.95% 3.63%
Credit Union HELOC 4.30% 4.35%
See today’s average savings rates across the country. Source: Bankrate.com
Type Today 1 Mo
5-Year 1.49% 1.49%
2-Year 0.90% 0.90%
6-Month 0.52% 0.52%
1-Month 0.11% 0.11%
5-Year Jumbo 1.49% 1.49%
2-Year Jumbo 0.87% 0.90%
1-Year Jumbo 0.72% 0.74%
6-Month Jumbo 0.48% 0.48%
1-Month Jumbo 0.11% 0.11%
See today’s average auto loan rates across the country. Source: Bankrate.com
Type Today 1 Mo
New 36 Month 3.11% 3.16%
New 48 Month 3.24% 3.28%
New 60 Month 3.35% 3.49%
Used 4.34% 4.37%
See today’s average credit card rates across the country. Source: Bankrate.com
Type Today 1 Mo
Standard Variable 14.10% 14.10%
Standard Fixed 14.43% 14.43%
Gold Variable 12.59% 12.59%
Gold Fixed 11.99% 11.99%
Platinum Variable 14.68% 14.74%
Platinum Fixed 13.72% 13.72%
View rates in your area »