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Why 95% of Traders Fail

Trump Ramps Up US Military Debt Spending In Preparations for China War

Politics / US Military Mar 01, 2017 - 05:16 AM GMT

By: Nadeem_Walayat

Politics

President Trump's announcement to request Congress to increase annual US 'defense' spending by $54 billion (10%) to over $650 billion, some ten times that of the likes of Russia or Britain and approximately 40% of total global military spending. Which underscores the reality that there is nothing defensive about the scale of US military spending as the US is a global military empire that far out spends any other nation, where whilst the establishment media makes much of the Russian military threat in reality is a mere smoke and mirrors propaganda exercise as my 'Trump Reset' series of articles illustrates :


28 Dec 2016 - US Empire's Coming Economic, Cyber and Military War With China (Part 2)

Military and Economic Power 2016

  United States China India Russia UK Japan France Germany Saudi Arabia
Military Spending $600bn $220bn $50bn $66bn $58bn $45bn $47bn $40bn $85bn
Economy $18.6tr $11.5tr $2.25tr $1.3tr $2.7tr $4.7tr $2.5tr $3.5tr $0.65tr
Population 0.33bn 1.38bn 1.35bn 0.145 0.065 0.127 0.065 0.082 0.033

 

Today, as expected the US ranks No1 in the world, with China 2nd. However whilst in terms of military coupled with economic power Russia may rank fourth in the world today, the gap between the US and China and the rest is such that even the likes of India does not even come close to equating to 3% of the overall capability of the United States as the following global power pie chart better illustrates.

President Trump proposes that the $54 billion increase in military spending will be financed through unspecified cuts in other federal spending. However, in reality this and further Trump spending proposals and tax cuts will be financed through printing money (government bonds) as the US debt mountain looks set to climb ever higher, soon expanding the current budget deficit of $441 billion to at least $1 trillion per year and by the time Trumps 4 years are up will leave America with a national debt of at least $24 trillion, well over 110% of GDP.

Furthermore, My 'Trump Reset' series warned that a Trump Presidency would ultimately be trending towards an outright military conflict with China. Where whilst so far only 3 videos from a planned 14 part series have been published, however the full "Trump Reset - War with China" analysis can be read online in the following 3 articles -

1. Delirium - Why Trump Won the Election

    My first video in this series was in the immediate aftermath of the US election and explained why Trump won.

2. The Putin Doctrine

My second video concerned Trump following the "Putin Doctrine", one of there being no difference between that which is truth and that which is fiction.

The Trump Reset - 2 The Putin Doctrine

5. CIA Plan to Assassinate Rogue President Trump

The CIA lies near the top of the ruling elites pyramid where even it's former directors have gone on to become President's of the United States so as to ensure nothing ever really changes so that the ruling elite keep ruling in perpetuity as they continue to concentrate wealth and power into their own hands whilst leaving the brainwashed masses to wave patriotic flags and go through the motions of voting in an illusion of democracy and freedom, all guided by the mainstream establishment media.

Will the CIA Assassinate Rogue President Donald Trump Like JFK?

In terms of the capitalising on the expectations for US ramping up defence spending then No 1 on the list of actions to take was / is to invest in the military industrial complex -

28 Dec 2016 - US Empire's Coming Economic, Cyber and Military War With China (Part 2)

FINANCIAL MARKET CONSQUENCES

In terms of the financial markets i.e. profiting from the new cold war with China then there are five key implications:

1. MILITARY INDUSTRIAL COMPLEX INVESTING - Investing in the western defence and the military industrial complex as the US and other Asian nation’s ramp up defence spending too far out match that of China's growing defence budget as Trump's statements implied would be required of Asian allies.

"You know we have a treaty with Japan, where if Japan is attacked, we have to use the full force and might of the United States". "If we're attacked, Japan doesn't have to do anything. They can sit home and watch Sony television."

"They're paying us a tiny fraction of what it's costing. I'd love to continue to defend Japan, I'd love to continue to defend South Korea - we have 28,000 soldiers on the line between North and South Korea right now. It's costing us a fortune, which we don't have, we're a debtor nation,"

Whilst European nation are also expected to increase defence spending to counter the perceived (over blown) Russian threat as the US withdraws and redirects its military forces increasingly towards the containment and suppression of China. China is NOT going to be allowed the chance to become the next Soviet Union.

Ensure you are subscribed to my always free newsletter and youtube channel for forthcoming analysis and detailed trend forecasts aimed at capitalising on the Trump Reset.

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2017 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 Ebook5The Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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