🇺🇸 Why America Is Out of Ammunition
⬛️ Why can't the Pentagon get weapons firms to ramp up production? A new report shows the military doesn't track who owns its contractors, and has just two people looking at mergers in the defense base.
🔶️ “As stockpiles dwindle, there is now widespread agreement among policymakers that America must rebuild its capacity to arm itself and its allies. But according to a new government report, that’s mostly just talk.”
🔶️ “Unlike the mid-20th century defense-industrial base, today government cash goes increasingly to stock buybacks rather than actual armaments. And now, with a dramatic upsurge in need for everything from missiles to artillery shells to bullets, we’re starting to see cracks…”
🔶️ “The signs are unmistakable. In Ukraine, fighters are rationing shells. Taiwan can’t get weapons it ordered years ago. The Pentagon has put together a secret team to scour stockpiles.”
🔶️ “Surges due to wars aren’t new, and there’s always some time lag between the build-up and the delivery. But today, the lengths of time are weirdly long. long. For instance, the Army is awarding contracts to RTX and Lockheed Martin to build new Stinger missiles, which makes sense. But the process will take.. five years.”
🔶️ “The government can’t actually solicit bids from multiple players for most major weapons systems, because there’s just one or two possible bidders. So that means there’s little incentive for firms to expand output, even if there’s more spending. Why not just raise price?”
🔶️ “In 2022, the DOD reported that “that consolidation of the industrial base reduces competition for DOD contracts and leads DOD to rely on a more limited number of suppliers. This lack of competition may in turn increase the risk of supply chain gaps, price increases, reduced innovation, and other adverse effects.” And that’s why, more than a year into the Ukraine conflict, the ramp-up is still not where it needs to be.”
https://www.thebignewsletter.com/p/why-america-is-out-of-ammunition
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🇮🇱 ❌ 🇮🇷 🛢 📈 — Deutsche Bank: Oil Prices will go to $125/barrel if the Iran-Israel conflict spills over into the Straight of Hormuz
@CIG_Telegram
Developments in the Iran-Israel war. It is currently 1:11am in Tel Aviv and 1:42am in Tehran.
Main points:
Iran and Israel have started targeting each other’s energy infrastructure.
Iranian missiles continued to target and impact northern and central Israel.
Israel has started targeting Iranian oil infrastructure, including oil refineries and oil depots.
Israeli airstrikes continue to target various parts of Tehran and the surrounding areas.
Iranian air defence seems to finally be doing some damage to Israeli missiles and drones. In turn, Israel has deployed dozens of small quadcopters and loitering munitions to waste Iranian air defence and saturate for larger attacks with cruise missiles.
Drones launched from Iran and factions in Iraq continue to target northern and southern Israel.
Missiles & drones:
2 rockets were launched from the Khan Younis area of southern Gaza by an unknown Palestinian faction. Neither were intercepted, with the IDF claiming they hit an open area with no casualties.
2 rockets were ...
OIL MARKETS REACT SHARPLY TO ESCALATING MIDDLE EAST TENSIONS
📈 WTI CRUDE IS NOW FORECAST TO HIT $94.10 BY YEAR-END, UP OVER $21 IN A WEEK, ACCORDING TO KALSHI MARKETS.
THE JUMP FOLLOWS IRAN’S CANCELLATION OF NUCLEAR TALKS WITH THE U.S., CITING ISRAELI AIRSTRIKES. WITH TENSIONS RISING, MARKETS ARE PRICING IN THE RISK OF REGIONAL ESCALATION AND POTENTIAL DISRUPTION TO OIL FLOWS THROUGH THE STRAIT OF HORMUZ, A KEY ROUTE FOR 20% OF GLOBAL OIL.
ANALYSTS WARN THAT A FULL CLOSURE OF THE STRAIT COULD PUSH PRICES ABOVE $120–$150 PER BARREL. ...