
By: CNN's Ashley Killough
Outgoing Defense Secretary Leon Panetta said Sunday his "biggest concern" right now is the uncertainty over budget issues on Capitol Hill.
"If the sequester is allowed to go into effect, I think it could seriously impact on the readiness in the United States," he said on CNN's "State of the Union." "And that's a serious issue."
The U.S. military could face the start of $500 billion in budget cuts in about a month if Congress fails to come up with a budget plan that avoids the so-called sequester, a serious of automatic, across-the-board spending cuts spread out over the next decade.

By Pam Benson
Satellite imagery of a North Korean nuclear test site identifies what could be key installations that would likely play a prominent role if Kim Jong Un orders a test, which the government threatened to do on Thursday.
The analysis of the Pung-gye-Ri Nuclear Test site by U.S.-Korea Institute at Johns Hopkins University’s 38 North blog shows recently completed structures essential to an underground nuclear weapons test.
One is believed to be a command and control bunker. Another photo shows what appears to be a radio relay system that zigzags through a valley, which the 38North analysts believe could be used as part of a communications system linking the bunker to the North Korean leadership in Pyongyang.
Why sticks won't work with North Korea
"Located about 150 meters (164 yards) north of the test tunnel entrance, the bunker, used only when a test is about to be conducted, would contain equipment for controlling the nuclear device, managing instruments for gathering test data and communicating with authorities in Pyongyang," the report stated. "The bunker would also provide shelter for all personnel in the area."
By Larry Shaughnessy
Defense Secretary Leon Panetta sent a memo this week to all the troops and civilians who work for him to address concerns about the mandatory spending cuts that would occur if the president and lawmakers do not reach a budget agreement by the end of the year.
In it, Panetta wrote that if the procedure, known as sequestration, were to occur, it "would not necessarily require immediate reductions in spending."
He also wrote that "under sequestration, we would still have funds available after Jan. 2, 2013, but our overall funding for the remainder of the year would be reduced."
It's a very different spin on the sequestration from Panetta, who in the past said it would be a "disaster." If this "meat ax" approach to budget cutting were used, he said, it would "hollow out the force."
The cuts are slated to be across the board, totaling roughly $500 billion over 10 years.
Panetta tried to reassure the troops that "the president indicated his intent to exercise his legal authority to exempt military personnel" from the mandatory cuts.
But he couldn't make the same promise to the Defense Department's million or so civilian employees.
Instead he said, "Should we have to operate under reduced funding levels for an extended period of time, we may have to consider furloughs or other actions in the future."
Asked about the change of tone, a senior defense official said, "The secretary continues to believe that sequestration would be devastating and is puzzled that Congress can't reach a deal."
The same official said the memo reflects the Office of Management and Budget's view of the issue, especially with respect to furloughs.
Panetta wrapped up the memo by writing, "I want to assure you that we will do our very best to provide clear information about the status of events as they unfold."
By Larry Shaughnessy
"You've got to be kidding me."
That's how Secretary of Defense and former CIA Director Leon Panetta first responded when asked about David Petraeus's sudden and unceremonial departure from the CIA.
The question was asked during an event Tuesday at the National Press Club.
"As the former head of the CIA, please explain why Gen. Petraeus was forced to resign, rather than a lesser punishment," an unidentified audience member asked.
FULL POST
By Mike Mount
North Korea's latest missile launch moved the United States into new territory as the success of putting a satellite into orbit could also mean the reclusive country is one giant step closer to firing a missile across the Pacific.
The United States is examining information from Wednesday's launch to gather clues about the capabilities of North Korea's rocket technology that can be converted for use in long-range missiles.
Experts say the launch shows North Korea's rocket has the range to hit Hawaii and parts of the West Coast of the United States.
Secretary of Defense Leon Panetta told CNN's Erin Burnett on Wednesday he is "confident" the United States could stop an incoming missile from North Korea.
FULL POST
By Jamie Crawford with reporting from Jill Dougherty, Elise Labott and Pam Benson
The United States is closely watching how rebel forces operate inside Syria, and what their end objectives might be as the Obama administration weighs whether or not to provide arms to the Syrian opposition.
"Will providing arms to the opposition convince the people who support [Syrian President] Bashar al-Assad, in many cases because they are afraid of their own existence, or will it simply lead to more fighting - that is the question that we are considering," Robert Ford, the U.S. ambassador to Syria, said during a panel discussion in Washington on Thursday on the crisis in Syria.
"Arms are not a strategy, arms are a tactic," Ford said about the deliberation the administration is undertaking on the question, and that a "military solution" is not the best path forward for Syria.
"The president has never taken the provision of arms off the table," he said. "And so, as we think about our policy of sending arms or not, and today we do not, we want to make sure that tactic plays into and helps us achieve a strategy of enabling the Syrian people to reach a political solution."
By Mike Mount, Senior National Security Advisor
The Obama administration will make a decision within weeks on how many U.S. forces will remain in Afghanistan as a residual force after the final combat troops leave at the end of 2014, according to Defense Secretary Leon Panetta.
Panetta made the remarks on the way to Australia and Asia to meet with defense ministers in that region.
He said that top NATO commander Gen. John Allen had recently submitted various options for the final stage of the U.S. presence there. The Pentagon and White House would have to review the recommendations before deciding on a final plan.
"My hope is that we'll be able to complete this process in the next few weeks ... I'm confident that we'll be able to get to the right number that we're going to need for the post-2014 enduring presence," Panetta told the traveling press on his airplane while en route to Australia on the first leg of his trip.
Panetta said that various options would depend on the various types of missions U.S. forces would take part in after the 2014 withdrawal. The expectation is that the remaining U.S. forces will participate in follow-on training of Afghan security forces, while a smaller number will remain to conduct a counter-terrorism mission against al Qaeda.

