steve grunman, lauren thompson, pierre thomas and fred downy welcome to the show. >> so for years the impression has been the defense spending is finally going to level off. it was going to go flat at 534 billion, add inflation and $50 billion, and so everybody's expectation that acquisition spending will come under sharp pressure. but the obama administration decided to add $100 billion to the budget that will be submitted to congress next month. that is a heck of a lot of money. there is stimulus obviously affecting their focussing on the industrial base, lauren, how do you manage to do this with the rising deficit. where does it go? >> when you consider the fact that this is the candidate who got the nomination by pledging to pull out of iraq we're headed for an amazingly high level of defense spending. we'll be in the next fiscal year, 2011, will be somewhere around $550 billion in the regular defense budget and somewhere around $150 billion for overseas contingencies. $700 billion, more than george w. bush ever asked for. >> how do you handle the deficit reduction part of it whic