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What is MDEF™ Investing? Strategy before tactics. Strategic investments dictate tactical actions in the Metals, Defense, Energy & Food sectors.

- Jeffrey C. Borneman

NATO Graduates & Promotes Countries This Week

Jeffrey C. Borneman | September 2, 2014

It's big news in Australia - a promotion to 'enhanced partner' status in the NATO family of countries. But other countries are receiving the same recognition: Sweden, Finland, Jordan and Georgia will also become 'enhanced partners'.

Events are moving at a more rapid pace now - although we are still only in the Speed Chess portion of Eastern European Conflict. The elevation of countries to NATO's 'enhanced partner' status is not a minor event or distinction when considering NATO's primary purpose is to contain one, single, country.

Since I wrote the portion below to highlight the DEMAND for Defense several additional events have occurred: Putin commented he could take Kiev in two weeks (sure to spark a full scale War), and the announcement that NATO will hold joint exercises within Ukraine later this month at the same time Russia is holding nuclear attack drills.

To be specific: "The United States European Command (EUCOM) says the exercise this month will involve about 200 U.S. personnel as well as 1,100 others from Ukraine, Azerbaijan, Britain, Canada, Georgia, Germany, Latvia, Lithuania, Moldova, Norway, Poland, Romania and Spain," reports Reuters - all on Ukrainian soil ...

Now, let's play a round of Spot the DEMAND regarding Australia's promotion to 'enhanced partner' status, but know this applies to all new members for the exact same reason:

"NATO’s enhanced partners are militarily significant nations the organisation wants to integrate more fully into its councils and operations. They are nations that have made significant troop commitments to NATO operations in the past", reports National Affairs. 

But why would Australia be interested in joining an organization formed and dedicated to the protection of Europe from the old Soviet Union? That is a question no one seems to be asking but the answer is evident in this statement:

"The ADF is believed to be keen to get greater access to NATO planning and decision-making, and maintain full military inter-operability, which the new agreement offers", according to National Affairs.

Can you spot the DEMAND for Defense in the above quote? The " ... and maintain full military inter-operability" tells us that Australia and the other new 'enhanced partners' will exclusively purchase, use and maintain NATO military equipment. After all, everyone must be on the same page while at War ... 

While the focus is on Australia because of its size and previous massive NATO arms purchasing (here) and the other states border Russia or are considered in "Russia's sights", Jordan seems to be the other odd addition. Perhaps King Abdullah wants to keep his head as well as his throne. 

Investors are placed squarely in a period of 'What the hell am I to do now?.' Those who watch the geopolitical Speed Chess of DEMAND for Defense will be able to extrapolate what the possible outcomes will be simply by knowing human nature and history. Remember, countries rarely go to War over anything less than control of Metals, Defense, Energy and Food.

If you want to know more about how the MDEF™ Investing strategy is positioned in this, or other geopolitical possibilities, please contact us directly.

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