US economy's heavy dependence on arms sales should worry the world
Advertisement
Since then, the United States has not only retained its formidable military dominance but also eagerly exports its arms, as a source of valuable export earnings and means of subsidising the momentous cost of maintaining global military dominance. Today, the US accounts for 43 per cent of all arms exports, supplying at least 107 countries. A large arsenal? Certainly. All to democracies? No.
The spirit of the US as an arsenal of democracy seems alive and well, as seen from President Donald Trump's triumphal voyage through Saudi Arabia, Qatar and the United Arab Emirates (UAE), and his determination upon return to protect defence spending in the
'big beautiful bill' he is trying to bludgeon through Congress.
During what Trump calls his 'historic four days' in the Gulf region, the White House said investment commitments worth more than US$2 trillion had been secured. The Saudi leadership pledged investments worth US$600 billion – including
US$142 billion in arms purchases
In Qatar, host to the largest US military base in the Gulf, the 'economic exchange' amounted to US$1.2 trillion, including 210 passenger aircraft from Boeing worth US$96 billion and a gift of a
luxury Boeing 747-8 jumbo jet to serve as the new Air Force One. In the UAE, deals were pledged as part of an investment framework worth US$1.4 billion over the coming decade.
Advertisement
Put aside the fact that these deals were mostly non-binding memorandums of understanding or had been previously announced – the gigantic sums involved were indisputably at the heart of a very substantial defence and arms sales relationship.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
5 hours ago
- South China Morning Post
White House to host MMA event next year, says UFC boss
The White House is to play host to a mixed martial arts bout on July 4 next year, the day the United States marks the 250th anniversary of its founding, UFC boss Dana White has said. President Donald Trump has been a regular guest at the often-bloody contests, where fighters punch, kick and grapple with their opponents in a no-holds-barred battle to submission or knockout. Bringing the brutal combat sport to the centre of US political power will mark a historic first. 'It is definitely going to happen,' White, a high-profile supporter of the US president, told CBS television on Tuesday. 'I talked to him last night and I'm flying out there at the end of this month – and I'm going to sit down and walk him through all the plans and the renderings, and we're going to start deciding what he wants and doesn't want.' Ultimate Fighting Championship (UFC) is the largest and most successful organisation in the burgeoning world of MMA, a blend of martial arts disciplines like jiu-jitsu, kickboxing, boxing and wrestling. UFC CEO Dana White (centre) has been a huge supporter of Donald Trump (right). Photo: TNS Bouts take place in an eight-sided ring – dubbed 'The Octagon' – bounded by a chain-link fence.
RTHK
6 hours ago
- RTHK
Hang Seng Index races up amid rate cut hopes
Hang Seng Index races up amid rate cut hopes The Hang Seng Index put on 643 points, or 2.58 percent, to end trading for Wednesday at 25,613. File photo: RTHK Mainland and Hong Kong stocks rose for a third straight session on Wednesday, with the Shanghai benchmark posting its highest close in nearly four years, as prospects of a Federal Reserve interest rate cut next month lifted investor sentiment. The benchmark Hang Seng Index added 643 points, or 2.58 percent, to end trading for the day at 25,613. The Hang Seng China Enterprises Index ticked up 2.62 percent to end at 9,150 while the Hang Seng Tech Index climbed 3.52 percent to close at 5,630. Mainland stocks closed higher, with the benchmark Shanghai Composite Index up 0.48 percent at 3,683 and the Shenzhen Component Index 1.76 percent higher at 11,551. The combined turnover for these two indexes was 2.15 trillion yuan, up from 1.88 trillion yuan on Tuesday. Shares related to glass and non-ferrous metals led gains while stocks related to petroleum and breweries suffered major losses. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 3.62 percent to close at 2,496. Expectations have firmed for a Fed rate cut in September after the US consumer inflation report indicated the pass-through from President Donald Trump's sweeping tariffs to goods prices has so far been limited. With rising expectations of a Fed rate cut, risk appetite improved and "emerging and developed equity markets resonated," analysts at Guoyuan Securities said in a note. Lifting market sentiment further, China said it would offer interest subsidies for businesses in eight consumer service sectors to support services consumption amid a slowing economy. "China retains the fiscal firepower to stimulate growth and absorb slack from reduced exports should tariffs from the US be punitive," said Vivek Bhutoria, portfolio manager for global emerging market equities at Federated Hermes. "We believe the market has been over-discounting risks in relation to Chinese equities, and even if Trump levies punitive tariffs this week, China has the ability to grow its way to prosperity and, as such, we are still positive on China." (Reuters/Xinhua)
RTHK
6 hours ago
- RTHK
Hang Seng Index races up amid rate cut hopes
Hang Seng Index races up amid rate cut hopes The Hang Seng Index put on 643 points, or 2.58 percent, to end trading for Wednesday at 25,613. File photo: RTHK Mainland and Hong Kong stocks rose for a third straight session on Wednesday, with the Shanghai benchmark posting its highest close in nearly four years, as prospects of a Federal Reserve interest rate cut next month lifted investor sentiment. The benchmark Hang Seng Index added 643 points, or 2.58 percent, to end trading for the day at 25,613. The Hang Seng China Enterprises Index ticked up 2.62 percent to end at 9,150 while the Hang Seng Tech Index climbed 3.52 percent to close at 5,630. Mainland stocks closed higher, with the benchmark Shanghai Composite Index up 0.48 percent at 3,683 and the Shenzhen Component Index 1.76 percent higher at 11,551. The combined turnover for these two indexes was 2.15 trillion yuan, up from 1.88 trillion yuan on Tuesday. Shares related to glass and non-ferrous metals led gains while stocks related to petroleum and breweries suffered major losses. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 3.62 percent to close at 2,496. Expectations have firmed for a Fed rate cut in September after the US consumer inflation report indicated the pass-through from President Donald Trump's sweeping tariffs to goods prices has so far been limited. With rising expectations of a Fed rate cut, risk appetite improved and "emerging and developed equity markets resonated," analysts at Guoyuan Securities said in a note. Lifting market sentiment further, China said it would offer interest subsidies for businesses in eight consumer service sectors to support services consumption amid a slowing economy. "China retains the fiscal firepower to stimulate growth and absorb slack from reduced exports should tariffs from the US be punitive," said Vivek Bhutoria, portfolio manager for global emerging market equities at Federated Hermes. "We believe the market has been over-discounting risks in relation to Chinese equities, and even if Trump levies punitive tariffs this week, China has the ability to grow its way to prosperity and, as such, we are still positive on China." (Reuters/Xinhua)
