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Aah, that's where the money is being spent. Weapons!

The figures are truly staggering. In a period now commonly known as the GFC [Global Financial Crisis] a report just issued states that the worldwide spending on weapons has reached record levels. The US accounts for half of the US$1.4 trillion spent, followed by China.

The Guardian reports:

"Worldwide spending on weapons has reached record levels amounting to well over $1tn last year, a leading research organisation reported today.

Global military expenditure has risen by 45% over the past decade to $1.46tn, according to the latest annual Yearbook on Armaments, Disarmament, and International Security published by the Stockholm International Peace Research Institute (Sipri).

Though the US accounts for more than half the total increase, China and Russia nearly tripled their military expenditure over the decade, with China now second only to the US in the military expenditure league table.

"China had both the largest absolute and the largest relative increase," says the Sipri report. The increase "has roughly paralleled its economic growth and is also linked to its major power aspirations," it adds.

Other regional powers, including India, Brazil and Algeria, also substantially increased their spending on arms, the report says.

Despite increasing its military expenditure by 3% in real terms in 2008 and by 21% since 1999, Britain faces a significant military budget shortfall. Sipri says this is due partly to the UK's involvement in two conflicts, in Afghanistan and Iraq, which are projected to have cost a total of £12bn ($18bn). It is also partly due to commitments to numerous large weapons procurement projects that cannot be funded under current budget plans. To close the budget shortfall, the MoD decided last year to reduce or postpone, but not cancel, large projects including plans to build two aircraft carriers, and high-tech armoured cars for the army.

"The idea of the 'war on terror' has encouraged many countries to see their problems through a highly militarised lens, using this to justify high military spending," said Dr Sam Perlo-Freeman, head of Sipri's military expenditure project. "Meanwhile, the wars in Iraq and Afghanistan have cost $903bn in additional military spending by the USA alone."

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