budget and near 10% of the base defense budget. >> reporter: gates wants to take $154 billion in proposed cost saving yous and put about half of it into new communication, intelligence and electronic gear to deal with future threats from places like somalia and yemen. so, even as they are going to cut spending at the pentagon, they are going to invest in trying to deal with new threats. gates i want to start a significant new program, a new nuclear-capable bomber aircraft to deal with rising threats from places like china, north korea and russia. wolf? rncht they simply assuming, barbara, with all u.s. troops out of iraq, for example, by the end of this year, and a significant reduction of u.s. troops in afghanistan, the number, the billions and billions and billions of dollars spent every month in iraq and afghanistan will dramatically go down? >> reporter: well that will go down but that is actually outside all of this the winding down of the bars in iraq and