Hi Zen,
I picked up on it but, honestly, i thought it was a complete and utter red herring. The cost effectiveness argument is based on a positive returns ROI only. In other words, he isn't including the "costs" (or potential costs) of not having big units with a lot of conventional force. My suspicion as to why he left it out is that the two examples that come to my mind, Rome late 4th century and Byzantium ca. 1030, both took his current advice and got trashed as a result of it. It is analogous to a bank saying "Well, we haven't had a robbery in years, so let's cut costs by doing away with our security people and systems"; aka, as my friends in IT put, an id1t error.
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