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The important talk we're not having about defense spending.

This week's last-minute deal to avert the fiscal cliff was welcome at one level, but it did little to address federal spending -- including defense spending. Had Mitt Romney won the presidential election, we might now be talking about modest increases to the Pentagon budget. As things stand, however, the real debate is over how much more to cut, beyond the mid-sized reductions -- about $350 billion if you measure against standard Congressional Budget Office baseline -- already imposed on core, non-war defense spending by the 2011 Budget Control Act. Sequestration -- like the Simpson-Bowles and Rivlin-Domenici deficit reduction commissions of 2010 -- would cut another $500 billion or so over ten years.

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Pentagon faces complex battle over new sequestration deadline -- Stars and Stripes

US Congress tightens belt, trims 2013 spy budget. -- Military Times

U.S. Fiscal Cliff Legislation Affects Military, Civilian Paychecks -- US Department of Defense

Panetta: ‘Cloud of sequestration’ remains -- The Hill

Chinese ASAT Missile Test Looms: China set to conduct anti-satellite test this month -- Washington Free Beacon

China Might Conduct Anti-Sat Test This Month – UCS -- Defense News

Japan likely to increase defense spending due to isles row: media -- Reuters

Report: Japan Mulls U.S. Spy Drones for Marine Surveillance -- Defense News/AFP

Missile Threats Prompt More Countries to Eye Patriot Interceptors -- Danger Room

Egypt says it seized US-made missiles near Gaza -- FOX News/AP

Satellites Spot China’s Mysterious New Warplane -- Danger Room

Warplanes: China Celebrates Another Grand Theft -- Strategy Page

Colombia firm makes armored clothes for kids -- AP

Hunt begins for British Spitfires buried in Myanmar -- Reuters

Karzai to visit Pentagon next week -- The E-Ring/Foreign Policy

Kerry Seen Likely to Favor Greater Engagement With North Korea -- Global Security Newswire

U.S. Missile Teams in Turkey, Missiles Come Later -- New York Times/Reuters

Global Unmanned Aerial Vehicle Payload Market to Reach $68.6 billion by 2022 -- Space Daily

General Dynamics Awarded $4.6 Billion for Submarine Programs -- Space War

Meet Microsoft, the world's best kept R&D secret -- PC World

Obama poised to nominate Chuck Hagel as US defence secretary -- The Guardian

New U.S. national security team coming into focus -- Army Times/AP

Policy ace Michele Flournoy could be first female Pentagon chief -- Stars and Stripes/Tribune

Meet the Pentagon’s new top lawyer (for now) -- The E-Ring/Foreign Policy

No rush by women in military to join infantry -- AP

Uniform Wear Policies Vary Among U.S. Military Services -- US Department of Defense

How Defense Act Addresses Military Suicides and Issues of Conscience -- New York Times

Unemployment rises for all veterans in December -- Army Times

Incarcerated veterans train dogs for other vets -- Army Times/AP

Rebecca’s War Dog of the Week: Sgt. Rex, one of the first dogs to serve in Iraq, dies -- Best Defense/Foreign policy

CIA Official Who Destroyed Torture Tapes Squirms at Zero Dark Thirty Abuse -- Danger Room

Crafting A Pacific Attack & Defense Enterprise: The Strategic Quadrangle -- Robbin Laird, Aol Defense

Avoiding the Defense Cliff -- Thomas Donnelly, Weekly Standard

Don't Just Delay Defense Sequestration—Stop It -- Defending Defense

A word about the alleged economic benefits of the American military -- Daniel W. Drezner

US military muscle (Photo gallery) -- Christian Science Monitor