The author considers the best balance between fiscal responsibility and national security in a period of continued economic stress. He believes that savings in the range of what Obama proposed in 2012 are the right goal for defense cost reductions in the coming years. He explains why cuts of the magnitude required by sequestration, and those suggested by the Bowles-Simpson and the Rivlin-Domenici plans for greater fiscal health, are too deep on strategic grounds, particularly in light of America's rebalancing toward Asia and ongoing turbulence in the Middle East.

American military strategy and grand strategy -- Army and Marine Corps force structure -- Air Force and Navy Force structure -- Modernization -- Nuclear weapons, missile defense, and intelligence -- Military compensation and Pentagon reforms -- Conclusion-and the implications of prolonged sequestration or the equivalent -- Appendix.