http://www.theage.com.au/ffximage/2005/10/29/30iraq_wideweb__470x308,0.jpgThe world of Nineteen Eighty-Four is built around a never-ending war involving the book's three superstates, with two allied powers fighting against the third. But as Goldstein's book explains, each superstate is so strong it cannot be defeated even when faced with the combined forces of the other two powers. The allied states occasionally split with each other and new alliances are formed. Each time this happens, history is rewritten to convince the people that the new alliances were always there, using the principles of doublethink. The war itself never takes place in the territories of the three powers; the actual fighting is conducted in the disputed zone stretching from Morocco to Australia, and in the unpopulated Arctic wastes. Throughout the first half of the novel, Oceania is allied with Eastasia, and Oceania's forces are combating Eurasia's troops in northern Africa.
Midway through the book, the alliance breaks apart and Oceania, newly allied with Eurasia, begins a campaign against Eastasian forces. This happens during "Hate Week" (a week of extreme focus on the evilness of Oceania's enemies, the purpose of which is to stir up patriotic fervor in support of the Party), Oceania and Eastasia are enemies once again. The public is quite abnormally blind to the change, and when a public orator, mid-sentence, changes the name of the enemy from Eurasia to Eastasia (still speaking as if nothing had changed), the people are shocked as they notice all the flags and banners are wrong (they blame Goldstein and the Brotherhood) and tear them down. This is the origin of the idiom, "we've always been at war with Eastasia." Later on, the Party claims to have captured India. As with all other news, its authenticity is questionable.
Goldstein's book explains that the war is unwinnable, and that its only purpose is to use up human labor and the fruits of human labor so that each superstate's economy cannot support an equal (and high) standard of living for every citizen. The book also details an Oceanian strategy to attack enemy cities with atomic-tipped rocket bombs prior to a full-scale invasion, but quickly dismisses this plan as both infeasible and contrary to the purpose of the war.
Although, according to Goldstein's book, hundreds of atomic bombs were dropped on cities during the 1950s, the three powers no longer use them, as they would upset the balance of power. Conventional military technology is little different from that used in the Second World War. Some advances have been made, such as replacing bomber aircraft with "rocket bombs", and using immense "floating fortresses" instead of battleships, but they appear to be rare. As the purpose of the war is to destroy manufactured products and thus keep the workers busy, obsolete and wasteful technology is deliberately used in order to perpetuate useless fighting.
Goldstein's book hints that, in fact, there may not actually be a war. The only view of the outside world presented in the novel is through Oceania's media, which has an obvious tendency to exaggerate and even fabricate "facts", and the rocket bombs ostensibly fired by the enemy. Goldstein's book suggests that the three superpowers may not actually be warring, and as Oceania's media provide completely unbelievable news reports on impossibly long military campaigns and victories (including a ridiculously large campaign in the Sahara desert), it can be suggested that the war is a lie.
Even Eurasia and Eastasia themselves may only be a fabrication by the government of Oceania, with Oceania the sole undisputed dominator of the world. On the other hand, Oceania might as well actually control only a rather small part of the world and still brainwash its citizens into believing that Oceania dominates the whole Earth or - as in the novel - that they are battling/allying with (a fabricated) Eurasia/Eastasia.
It is noted in the novel that there are no longer massive battles, but rather expert fighters occasionally appearing in small skirmishes; this is relatively paradoxical considering the massive amounts of resources wasted to keep the war effort running.