War-Waging in the Middle East Leading to New Arms Race; Sending Billions of Dollars Our Way!
Mike Larson*|*Monday, April 20, 2015 at 4:20 pm
But one unmistakable side effect of these conflicts is financial — billions of dollars are headed our country’s way.
How so? As the*New York Times*noted over the weekend,
“Sale of U.S. Arms Fuels the Wars of Arab States.”
The story goes on to say
…“As the Middle East descends into proxy wars, sectarian conflicts and battles against terrorist networks, countries in the region that have stockpiled American military hardware are now actually using it and wanting more.
The result is a boom for American defense contractors looking for foreign business in an era of shrinking Pentagon budgets — but also the prospect of a dangerous new arms race in a region where the map of alliances has been sharply redrawn.”We’re not talking about chump change, either. According to the*Stockholm International Peace Research Institute, U.S. military spending dropped 6.5 percent in 2014. That leaves spending off by a fifth since 2010, in large part because of deficit-related defense budget cuts.
Again, regardless of your personal politics or your thoughts about the distastefulness of the arms industry, the reality is that the defense industry*here*is doing big business over*there.
That isn’t going to change unless widespread peace breaks out, and sadly, that doesn’t look like it’s going to happen any time soon.......
....
http://www.moneyandmarkets.com/war-w...0#.VsM3tyNuvJs
China took another step to stimulate its economy over the weekend,
with the central bank slashing its reserve requirement by a full percentage point to 18.5 percent.
That was the deepest cut since 2008, and it’s designed to free up more lendable cash in China’s banking system. China is also considering*financing assistancedesigned to help local governments deal with excessive debt loads.
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