US Continues Speed Chess (War Prep) - Prepositioning on Russia's Doorstep
Jeffrey C. Borneman | June 13, 2015
Bound by Agreement not to entice or accept ex-Soviet satellite countries into NATO, the US further breaks the Agreement by announcing a first: Its intent to preposition heavy artillery and equipment in Latvia.
The prodding of the Bear continues ... It appears the US desires armed conflict with Russia - why else such a shift of longstanding policy?
From the New York Times (below): "The amount of equipment included in the planning is small compared with what Russia could bring to bear against the NATO nations on or near its borders ... and the “prepositioned” stocks — to be stored on allied bases and enough to equip a brigade of 3,000 to 5,000 soldiers ...".
We can be assured Russia is not concerned with the size of the force the US is planning but that is not the point.
“This is a very meaningful shift in policy,” said James G. Stavridis, a retired admiral and the former supreme allied commander of NATO ... "It provides a reasonable level of reassurance to jittery allies, although nothing is as good as troops stationed full-time on the ground, of course.”
How would Russia view such an action by NATO?
"The idea of moving prepositioned weapons and materials to the Baltics and Eastern Europe has been discussed before, but never carried out because it would be viewed by the Kremlin as a violation of the spirit of the 1997 agreement between NATO and Russia that laid the foundation for cooperation."
Arm sales to NATO countries has exploded (pardon the pun) since the US sponsored coup that ousted Ukrainian President Yanukovych in January 2014. We've chronicled many of those sales here as well as other prepositioning of material across Europe but investors should be careful to always notice the "shifts" in the balance of power. Moving NATO arms into Latvia would be considered such a shift by the Kremlin.
Will the US follow through and place material in Latvia? If the US is consistent, the move has already happened - The New York Times is just providing us the path to agree with its assumptions: The case that Russia is preparing to attack its unsuspecting neighbors and the US is merely being proactive in avoiding future aggression.
US Investors still have the luxury to calmly watch the Speed Chess portion of events. What follows is Blitz Chess and finally, Bullet Chess. Russia has repeated it will not be dragged into a war with NATO, yet NATO continues to tighten the noose.
It is imperative for investors to know that the DEMAND for Defense will be met at the expense of all other things, and therefore, how specifically to allocate assets given the current geopolitical shifts unfolding. Monetary 'adjustments' are failing in all countries and direct fiscal spending on the War machine is evident everywhere. Where, when and between whom conflict comes is the only question. Despite technological advances, regardless of the increased ease with which great wealth can be amassed, our inherent instincts remain the same. Mankind has never changed.
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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By: of NYT Article Date: 2015-06-13