America's wartime defense budget: $1.5 trillion to deliver a military able to fight everyone - except China.....

The Grumpy Strategists respond to Australia's defence minister, Richard Marles, discussing and releasing the 'new' 2026 Defence Strategy and investment plan. Marcus sees the spirit of Hiroo Onoda, second last Japanese Imperial Army soldier to surrender after World War Two - 29 years after the war ended in March 1974 alive in Mr Marles today.Like Hiroo, Mr Marles carries the flame of a world that has ended. In Hiroo Onoda's case it faith in the Emperor and Imperial Japan's impending victory. In Mr Marles' case, it's in an America that remains the beacon of freedom, democracy and liberal values, source of global stability and anchor of the rules based international system. Both Onoda and Marles are romantics with streak of obsession in their nature. Hiroo didn't get to determine his nation's defence policy, though.Then it's into the hard numbers of the new plan, including the combination of forensic accounting and clairvoyance needed to understand where the massive new headline Defence budget could have emerged from. The episode ends with mines and the curious case of Pete Hegseth accidentally channeling the spirit of Quentin Tarantino and a 1970s Japanese martial arts movie instead of God.....We're in good hands.

Back in the SAA Bunker deep in the Brindabellas, Marcus & Michael declare energy independence (okay, thanks to government subsidies) and ponder the details of the Trump Administration's new Defense budget. $1.5 trillion dollars delivers an all you can eat buffet of spending for everyone involved in the Military Industrial Complex. The traditional big end of town - Lockheed, RTX Raytheon, Northrop and Boeing get cash, & so do tech bro outfits like Anduril & Palantir. Just the US Army's missile budget is now bigger than the total budget of the US State Department - take that you peacenik diplomats. America First is looking like not just having a Department of War, but an entire Government of War. There are some minor problems: 1. given the real world usage rates in Iran, this 43% increase in annual spending won't produce enough expensive missiles & interceptors to fight even a short war with an adversary like China - so, not the strongest deterrent message. And 2. it looks a courageous assumption to think that US defence industry can ramp up at the scale and speed this cash splash desires. The budget describes a bad plan, that fails to adjust to the practical realities revealed in the Iran war - unless the plan is to be able to fight anyone except China or Russia.....

Marcus calls into the Grumpy Strategists' Brindabella bunker with unwelcome news on more diesel supplies. After this disappointment, the Grumpies ponder the mystery of the Gulf War - a war without belligerents. Everyone is telling their populations that they are not at war, just engaged in military operations or acts of 'collective self defence'. Here in Canberra, PM Albanese has to remember which side of his mouth he's speaking out of - the quietly supportive "I sent a Wedgetail and I know the US military loves it" side for Washington, or the "Australia has no part in this unpopular war we're just helping our good friend the UAE" side when talking to the Australian people. Then they discuss the paralysis in Australian force structure planning and the contribution that "bipartisanship" on defence policy is causing, right when both major parties are increasingly on the nose.

Well, despite the great news from Energy Minister Chris Bowen that Australia faces no energy crisis other than silly unwashed Australians panicking, the Iran War has already created a global energy crisis even if it stops now. That's less about whether the Strait of Hormuz is open and more about the broader damage already inflicted on Gulf infrastructure. Marcus journeys to Oodnadatta to pick up some premium diesel bargains - without any sign of panic.Taking a break from the War gives space to admire honorary Kentucky Colonel Richard Marles' (who is also probably still Australia's Defence Minister) latest masterclass in not answering questions: a new Personal Best from the Colonel is 11 questions, 13 deflections and zero answers. Super Bowl stuff.Then the Grumpies dive into the picture for Australia's AUKUS submarines from data about US and UK partners' actual experience maintaining and operating their nuclear subs. Best case for Australia is after 30 years (when Australia gets 8 submarines) we will be able to consistently deploy 2....Hmmmm.

President Eisenhower's 1961 farewell address warning of the US Military Industrial Complex echoes in Canberra today - but with industry and products replaced in the Canberra version by advisory services, post-career consultancies and invoices.Marcus and Michael discover that biofuel brewing isn't so easy even in a fuel crisis. Feedstock like the National Anti-Corruption Commission's (the NACC) indigestible and philosophically inventive 445 page report into the huge Robodebt scandal proves toxic enough to break the process.And the Grumpy Strategists attend another funeral of a fallen warrior for accountability and transparency when it comes to the $billions spent on Australia's faltering military - the now deceased but invaluable Major Projects Report, killed quietly by a Parliamentary committee that should know better. A new secret Parliamentary committee is apparently the antidote. But anyone who expects Defence's poor performance to improve because it talks to a few well-disposed politicians in a dark room is probably suffering from exposure to the NACC's report..It's a lengthy episode but an important one for anyone interested in how the Canberra bureaucratic machine's most senior levels engage with our political leaders - and keep doing so after both the politicians and the senior Mandarins have left their official roles. It's also a depressing story of comfort zones and single sources of advice that often turn out to be wrong.The latest effort from the now embarrassing National Anti Corruption Commission will be reassuring to anyone who thinks things are peachy - like, say, a former or current Canberra Mandarin. But not to anyone who cares about Australia's security, public services or future.

Marcus and Michael get serious about biofuel, with a novel feedstock straight from Defence's Russell Offices. They look at the rapidly expanding Iran War, with multiple US partners getting pulled into a messy patchwork, all desperately trying to quarantine their roles into a defensive effort. They explain the Australian policy to ensure no ADF personnel are involved in attacking Iran, even when they are (hint: closing eyes at critical moments helps). The missile supply issues have intensified, with US production being diverted to the war and other forces' orders being delayed - probably by years. Despite the war apparently being way ahead of schedule, Iran's attacks are continuing, Israel is evacuating citizens away from Hezbollah drones, and US diplomats are leaving Saudi and Turkey. The episode ends with a capability roundup for Australia - pricey Peregrines, artisanal K-9s, maritime precinct sketches and broken submarines.

Marcus and Michael reflect on their wisdom in modifying the Grumpies bunker to hold thousands of litres of diesel and 8 pallets of tinned tomatoes, as the war escalates in the Middle East. They set out three scenarios for the outcome and only one of them - the least likely (spoiler, it involves rose petals and cheering crowds)- is good. Then it's on to examine the desperate contortions of US allies - notably the UK's Keir Starmer and our own PM Albanese, and ministers Marles and Wong - to avoid thinking or talking about our major ally assassinating foreign governments as a new normal. It turns out assassinating people is okay if they are 'bad guys'. And, luckily, we were kept in the dark until afterwards. Phew.

Marcus goes diving to try to find rock bottom in Australian political discourse, but has to come up for air. He at least found the curious case of a Canberra cafe that police found had put up satirical posters & hosts live music (What have we come to as a people???). No arrests or jail time yet....Then it's back to the undersea world of AUKUS progress and the far more concrete, rapid momentum behind Chinese nuclear powered - and armed - submarine production. They managed to build a new shed and other facilities in 3 years (not 16) and seem to have completed 11 nuclear submarines since AUKUS was announced. Ouch. On the Xi Jinping downside though, the riskiest job in the Chinese military turns out to be one he promoted you into: Xi's purges are expanding in his later years in power, and even seasoned Pekinologists are confused.

The Grumpy Strategists boggle at the sheer chutzpah of PM Albanese and State Premier Malinauskas announcing as a triumph spending $30 billion & taking until 2040 to build submarine construction sheds (not actual submarines). At least the premier had the honesty to say the biggest beneficiaries weren't Australians worried about security, they were the South Australians who are to receive this firehose of taxpayer cash. He's right to be boggled. Meanwhile, Australia's leaders across the spectrum from Labor, through the Coalition into One Nation land are outdoing each other in expressing their fear about the potential return of 34 women and children from camps in Syria, while clamping down on the evil of immigration. It's bad form to notice that our health system - and many other industries - depend on migrants....

The Grumpy Strategists pan for gold in 234 pages of dense, incoherent Government paperwork setting out the Albanese Government's revised plans for our nation's defence, and find some rather smelly nuggets. About $3.2 billion dollars is being brought forward to be spent earlier than planned - with a $1.2 billion chunk on more bills for those still distant AUKUS subs. But the overall Defence budget for this next 4 years is being cut by $2.6 billion. Mr Albanese may have smiled at US President Donald Trump, but he's stood strong against pressure to grow defence spending and got Treasury's razor gang in. Canadian PM Carney might make rousing speeches at Davos opposing the Trump Administration, but Mr Albanese acts. It's a great day for independent middle powers! Oh, and the Defence bureaucracy finds a way to insult King Charles.