The Defense Elephant in the Room The realization that the United States is in fiscal free fall is beginning to sink in. An economic crisis looms, one that bailouts and quantitative easing cannot stop. Regardless of the circumstances, profound changes in defense structure, leadership, and thinking are needed. These changes will inevitably evoke strong responses from Capitol Hill and the defense industry. The incoming President has three choices: 1. Allow service bureaucracies or external events to drive outcomes, resulting in few or no savings. This is akin to letting the ship drift aimlessly, at the mercy of the storm. 2. Make marginal adjustments to the defense status quo, avoiding conflicts but achieving little change and only modest savings. This is like rearranging the deck chairs on the Titanic—it won’t save the ship. 3. Leverage the fiscal crisis to reduce overhead, streamline defense investment, and reset the force structure, increasing capability and promising major savings. This is the bold course correction needed to navigate the storm safely.