The template here is the idea of Codevillas (speaking of Livy) of the early Romans being successful by making their wars BIG and SHORT.
How do we arrange our finances for such a contingency.
Well in the first place we have to have the most minimalist non-defense, non-security sector imagineable.
Then what we need is a series of taxes at very low rates. But rates that can be upped for a short time to handle the explosive intervention and for the hurried prepartions after that.
So for example you can’t have GST at 15%. Or the top rate for income tax at 15%…..
Because if you raise these taxes higher then that they become horribly inefficient.
So if you had the GST it would have to be at (lets say) 5%. So that during the action and its super-build-up following the action you could raise it to 15% temporarily.
And thats the same with the income tax if its retained. You might want it at 5% so that it can temporarily be raised to 15%.
The next thing, and this ought to go without saying is that your currency ought to be 100% backed commodity-money. There is just no way you can afford to have the international community losing faith in your bullshit, fractional-reserve-paper money when everyone is sneering that you are going to wind up a satrap of some Crackers or the Chi-Coms.
Another consideration is that there cannot be a single dollar of debt in any government institution….. Federal/State or Local.
If we are looking at a 3 month explosive action and then a massive military build-up AFTER THAT to deter a reprisal the borrowing doesn’t start until after the action.
So for 3 months of action you might have 9 months of heavier taxation. Wherein you fight, borrow, build-up and pay off what you’ve borrowed.
Hopefully this can be avoided of course. Like hopefully you spring into action and do the build-up and mobilisation only. And don’t have to fight at all. And so you don’t have to borrow and keep that financial powder dry.
Potential enemies will know therefore that you have:
1. Fiscal blue-sky above you when it comes to rapidly raising taxes.
2. The strongest and best backed currency on the planet that isn’t going to let you down even if the barbarians take over a chunk of territory.
3. Not a dollar of public debt
There is precedent for superior financial power leading to the ability to kick ass against what otherwise would have been an overwhelming opponent.
During the heyday of the Amsterdam bank the Dutch and British navies were clashing all the time.
They had three wars between 1652 and 1674.
The British.. according to Niall Fergusan had a bigger economy. They had two and one half times the population. And they went through a massive build-up in their navy. They were not without determination to win this thing.
Yet the Dutch whipped their ass and Fergusan credits this ability to their superior financial system.