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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

Trying Hard to Start a War

Jeffrey C. Borneman | January 23, 2015

Eight dead in Donetsk from a mortar attack yesterday that Kiev blames on Russian separatists. Russia denies involvement and calmly claims it will not be drawn into a war in Ukraine. Meanwhile, NATO Secretary General and Prime Minister Solberg says it's time to spend more on Defense.

Meeting with Norway's prime minister, Solberg discussed the pledge made at last September's Wales Summit to invest more in defence, and to "spend more effectively," reports the NATO magazine, and went on to praise Norway's "decision to increase its defence spending in 2015, calling it a positive step towards meeting NATO's benchmark of 2% of GDP."

At the meeting Stoltenberg said, "We are concerned about the serious escalation of the fighting in eastern Ukraine. For several months, we have seen the presence of Russian forces in eastern Ukraine. We are also seeing a substantial increase in the number of Russian heavy equipment in eastern Ukraine. This does not contribute to a peaceful solution of the conflict. So we call on Russia to stop its support for the separatist forces, to respect its international obligations, and to uphold the Minsk agreements."

Investors should understand the situation in Ukraine in this light: Last year's $15 billion IMF loan to Ukraine came with many strings but primary among them was that Ukraine was expected to retake the East of Ukraine and Crimea. In reality this is a NATO/IMF sponsored conflict. Russia is well aware of this and has made it clear it is not biting on the bait no matter how many false-flag events are staged. Russia has no intentions of giving up Crimea, it cannot. As mentioned here Russia will not allow Crimea to become a NATO base which has been a NATO goal.

Defense spending is on the rise globably. In the US, an

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