"War Is A Racket" - Lockheed Martin Sees Jump In Missile-Defense Inquiries

Lockheed Martin CEO Marillyn Hewson should think about sending Kim Jong Un a gift basket.

The escalating tensions between President Donald Trump and the North’s impertinent boy king have, predictably, been a boon for the US military-industrial complex. In an interview with Reuters, Tom Cahill, the vice president of Lockheed Martin’s missile-defense business, said he has been receiving more inquiries about the company’s offerings over the past 12-18 months – a bump that coincides with the accelerating pace of North Korean missile tests and the increasingly heated rhetoric.

Here’s Reuters:

“Lockheed Martin Corp, the Pentagon's No. 1 weapons supplier, said on Tuesday its customers want to defend themselves against possible incoming missile attacks and are increasingly asking about missile defense systems. The greater interest comes amid a surge of North Korean long-range missile tests, unsettling its neighbors South Korea and Japan, as well as the United States.

 

"The level of dialogue around missile defense is now at the prime minister and minister of defense level," Tim Cahill, the vice president of Lockheed's Air and Missile Defense business, told Reuters in an interview.”

With South Korea, Japan and the US in North Korea’s crosshairs, it’s unsurprising that Lockheed’s international business would see a lift. And now that US officials have confirmed the worst-case scenario – that North Korea is already in possession of a nuclear warhead small enough to fit inside one of its ICBMs – inquiries will likely continue to climb.

While President Donald Trump and the North’s dear leader swapped threats of nuclear annihilation, Lockheed’s share price has risen. The company has handily beaten the S&P 500 so far this year (despite giving Trump that $600 million price break on the F-35). It raised its sales and earnings guidance last month after reporting second-quarter earnings.

“Some countries are putting missile defense at the top of their list of desired capabilities, Cahill said. Interest has increased over the last 12 to 18 months, as have threats, he said.

Shares of Lockheed are up nearly 8 percent, to $300.10, since North Korea's first long-range missile test on July 4. The stock is up 20 percent year-to-date.”

Of course, it will take years before any of this interest leads to an increase in sales because, as one might expect, the proliferation of heavy arms is a tightly regulated process in the US.

“The increased demand could turn into sales over the coming years. The U.S. government sanctions weapons sales in a process that can take years and often requires the approval of U.S. legislators.”

Lockheed outperformed the market on Tuesday, finishing 1% higher after Trump’s “fire and fury” comment triggered the algos and forced human traders to ponder the increasingly limited diplomatic avenues available to Trump and the North Koreans.

As we have noted numerous times in the past, war continues to be the best 'racket' in town...

Debt (from the borrower’s perspective) owed to banks is profit and income from the bank’s perspective. In other words, banks are in the business of creating more debt … i.e. finding more people who want to borrow larger sums.

Debt is central to our banking system. Indeed, Federal Reserve chairman Greenspan was so worried that the U.S. would pay off it’s debt, that he suggested tax cuts for the wealthy to increase the debt.

What does this have to do with war?

War is the most efficient debt-creation machine. For starters, wars are very expensive.

For example, Nobel prize winning economist Joseph Stiglitz estimated in 2008 that the Iraq war could cost America up to $5 trillion dollars. A study by Brown University’s Watson Institute for International Studies says the Iraq war costs could exceed $6 trillion, when interest payments to the banks are taken into account.

This is nothing new … but has been going on for thousands of years. As a Cambridge University Press treatise on ancient Athens notes:

Financing wars is expensive business, and the scope for initiative was regularly extended by borrowing.

So wars have been a huge – and regular – way for banks to create debt for kings and presidents who want to try to expand their empires.

Major General Smedley Butler – the most decorated Marine in American history – was right when he said:

Let us not forget the bankers who financed the great war. If anyone had the cream of the profits it was the bankers.

War is also good for banks because a lot of material, equipment, buildings and infrastructure get destroyed in war. So countries go into massive debt to finance war, and then borrow a ton more to rebuild.

Comments

hedgeless_horseman NugginFuts Wed, 08/09/2017 - 10:13 Permalink

 

The Purpose of War According to George Orwell (1984) The primary aim of modern warfare is to use up the products of the machine without raising the general standard of living. Ever since the end of the nineteenth century, the problem of what to do with the surplus of consumption goods has been latent in industrial society. From the moment when the machine first made its appearance it was clear to all thinking people that the need for human drudgery, and therefore to a great extent for human inequality, had disappeared. If the machine were used deliberately for that end, hunger, overwork, dirt, illiteracy, and disease could be eliminated within a few generations. And in fact, without being used for any such purpose, but by a sort of automatic process — by producing wealth which it was sometimes impossible not to distribute — the machine did raise the living standards of the average humand being very greatly over a period of about fifty years at the end of the nineteenth and the beginning of the twentieth centuries. But it was also clear that an all-round increase in wealth threatened the destruction — indeed, in some sense was the destruction — of a hierarchical society. In a world in which everyone worked short hours, had enough to eat, lived in a house with a bathroom and a refrigerator, and possessed a motor-car or even an aeroplane, the most obvious and perhaps the most important form of inequality would already have disappeared. If it once became general, wealth would confer no distinction. It was possible, no doubt, to imagine a society in which wealth, in the sense of personal possessions and luxuries, should be evenly distributed, while power remained in the hands of a small privileged caste. But in practice such a society could not long remain stable. For if leisure and security were enjoyed by all alike, the great mass of human beings who are normally stupefied by poverty would become literate and would learn to think for themselves; and when once they had done this, they would sooner or later realize that the privileged minority had no function, and they would sweep it away. In the long run, a hierarchical society was only possible on a basis of poverty and ignorance.  https://akamat.wordpress.com/2007/07/31/the-purpose-of-war-according-to…

In reply to by NugginFuts

you_are_cleared_hot A. Boaty Wed, 08/09/2017 - 13:01 Permalink

I may be a little cranky today, but Tyler Durden, what is the point of this article?? Thank you for red-pilling us, but this has been the case since we have been chucking spears at each other. How do you think the noble Blacksmith trade came to be?? he was the go-to guy for making swords. EVERY town had one in medieval Europe. One could say that today's defense contractors are the modern day Blacksmith. The only reason the Blacksmith made his money is because we can never leave each other alone...we have to fight and destroy...that is what our identity is as a species.Now, go take your blue pill and STFU.

In reply to by A. Boaty

Nobody For President you_are_cleared_hot Wed, 08/09/2017 - 13:26 Permalink

Most blacksmiths made a hell of a lot more than swords - they worked the new-fangled iron into all sorts of useful stuff: plows, rims for wood wheels, hoops for barrels, all manner of farm tools and more. And swords, but I'll bet it was not their main source of income, and good swordsmakers became specialists very soon.During the Middle Ages in Europe, the sword was the preferred weapon of the knight in armor. The medieval sword was made of steel, and so sharp and heavy that it could easily cut a man in half. The quality of the sword depended to a great extent on the quality of the metal. Production of swords was specialized in certain towns or areas where skilled ironworkers had access to good metal and knew how to work it. From the sixth century, the lower Rhine in Germany was a center of sword manufacturing, and later swords were exported from Milan, Brescia, and Passau. Toledo, in Spain, was renowned for its swords. A test of the Toledo sword's sharpness was to throw a silk scarf into the air so that it floated down onto the sword blade. The edge was so sharp that the silk would rend on impact.Read more: http://www.madehow.com/Volume-5/Sword.html#ixzz4pHPxKgtH

In reply to by you_are_cleared_hot

Justin Case Rich Monk Wed, 08/09/2017 - 10:27 Permalink

If it weren't for the MIC merica would have bankrupt again. NATO members are commited to contribute 2% of GDP to the MIC. I guess the MIC is up against hard times with GDP of the vassels falling considerably. The fear mongering is to promote the industry. Without the creation of a new enemy every few years there would be no reason to re-arm everyone and buy newer technology. 

In reply to by Rich Monk

NoWayJose Wed, 08/09/2017 - 10:14 Permalink

The US military has become so enamored with missiles and drones and unopposed air strikes that they have forgotten how messy a ground war - fought in a place with hills and trees and snow - can be. The current 'brass' needs to talk to some Korean War Vets.

PitBullsRule Wed, 08/09/2017 - 10:30 Permalink

Now you get to learn the hard way, why its important to have an honest president.  Once a president starts a war, he is almost garaunteed to win a second term.  Now you don't know if Kim Jung Un is really a threat to the US, or if Trump is trying to insure his second term.  No one knows, there is no way to know.  Trump certainly has the capacity to con us like that, and Kim Jung Un certainly has the capacity to attack the US.  So which came first, the chicken?  Or the egg?Now you get to play the game, deplorables.  

Martian Moon Wed, 08/09/2017 - 10:31 Permalink

Trump has picked the military industrial complex as his sinYou can't fight all the lobby groups at onceAs long as he delivers on the rest, I'm more than happy 

MrBoompi Wed, 08/09/2017 - 10:35 Permalink

I am not allowed to use preemptive force.  I only have the right to defend myself if attacked.  I'm positive the government will let me know when it's OK to target people who seem like a threat to me but haven't yet attacked me.  

rejected Wed, 08/09/2017 - 10:35 Permalink

I don't suppose the constant B1 bomber flights over Korea, non stop minuteman missile launches, or the off shore war games or the infamous Seal Team 6 practicing taking out Kim would have anything to do with the North Korean warnings.The US is doing everything it can to provoke a North Korean military response so that the US can cry we were attacked! when it destroys the entire peninsula and possibly Japan as well.  Sadly many Americans feel the millions of Asian lives- and thousands of Americans- threatened are worth it so long as America's reputation as the big boy on the block goes unstained. The US has broken every agreement it made with N. Korea yet accuses N. Korea of breaking the agreements.The South Korean government is complicit as they have no control over the South Korean armed forces which is completely under US control and has been since Korea Version 1. Their El Presidente- like our Presidente- promised a reduction in tensions and just like Trump has actually increased tensions, not only with N. Korea but with China as well.  All those millions of S. Koreans protesting a corrupt government last year ended up with another corrupt government that cares less about their lives.

11th_Harmonic Mr. Universe Wed, 08/09/2017 - 15:33 Permalink

^This.

I'm not a prognosticator of doom, but the writing on the wall should be quite visible to anyone with at least one good eye and a few functioning neurons. The only question that remains is which flag will be raised.

Related note: I had a conversation with a 35 year old associate yesterday evening after a business meeting. The topic of 9/11 came up, and I mentioned Building 7. This individual, who was openly questioning the bullshit presented as reality, had absolutely no idea that another building fell into its own footprint on that day. After I shared a few videos and some additional information concerning the event, this individual seemed genuinely surprised.

I find it rather odd that anyone, in this day, that has conducted at least a little research on related topics wouldn't know about the true story of that event.

There were plenty of non-uniformed military in the crowd, so I just assumed the individual was an intelligence asset and went on my way. Sometimes it's damn hard to tell who you can trust with a few pearls...

In reply to by Mr. Universe

Cthonic 11th_Harmonic Wed, 08/09/2017 - 17:57 Permalink

Four years ago there were at least three million people running around with active federal security clearances and a couple million more who were eligible.  That's a significant portion of the working age college-educated population and doesn't even factor in past holders.  Meanwhile the majority of the population isn't even aware that more than thirty different states of emergency have been declared since the inception of the National Emergencies Act, some being renewed since the nineties, granting the executive branch highly authoritarian powers.  Congress is supposed to meet and vote every six months on concurrent resolutions to determine whether emergencies should be terminated.  Whether those votes have ever occurred for any particular emergency is an open question.  An article by White House correspondent Gregory Korte states that they never have; if true, it is just one more example of criminal negligence on the Potomac.

In reply to by 11th_Harmonic

Radical Pragmatist Wed, 08/09/2017 - 10:46 Permalink

Racket indeed.  Note that the Washington "non-profit" policy Think Tanks are actually Pimp Tanks acting as marketing arms for the Merchants of Death that fund them.  The scripts are wired to whatever weapons systems the Death Merchants are hawking.  Note too that many of those Pimp Tank "scholars" are paid HUGE ($200,000 -  $1,000,000) to merely show up and gas-bag contrived existential threats on cue. Stick a fork in America - Because it's cooked...

trailer park boys Wed, 08/09/2017 - 10:50 Permalink

Two large components of the Deep State are the Defense Department and the US defense contractors. In 2014, the top ten arms dealers alone receieved $118 billion in taxpayer money, with Lockheed-Martin alone receiving over $32 billion. This doesn't count all the sales to foreign countries that ramp up in a world under the threat of war. The Defense Department has over 2 million employees - close to a million being civilian contractors. Keeping a military base or a defense plant open, with the jobs and money it brings to a state, is a top priority for US senators and representatives. War is a huge business, from the CEOs to the workers on the assembly line at the local defense plant, to the generals and admirals and the grunts in the field and the sailors aboard ships in the Army and Navy.

JailBanksters Wed, 08/09/2017 - 10:52 Permalink

Two things I ALWAYS sayOne, There's NO Profit in PeaceAnd Two, How do you increase Sales and Profits if you Manufacture Weapons of War ?I suppose there is a Third option, What do you do if there's a sudden outbreak of Peace ? And that brings us to today.So you see, Millions must die so that a handful of shareholders can live high on the Hog.It makes feel like I wanna Puke.

DuneCreature Wed, 08/09/2017 - 11:05 Permalink

War isn't a racket, it's a business model. ........ Everyone in the MIC knows that, you Silly Rabbits.

The idea is to cash in on the threat of war and when the threat level tapers off you pull a 911.

That's called feeding a few chump monkeys to the monkey meat grinder for display purposes.

This is just the Threat-O-War game where the Silly Rabbits pick up the bill with their VISA card.

We haven't had a real war in centuries.

Live Hard, Real War Kills Generals, Admirals, Secretaries Of State and Kings Too, Die Free

~ DC v7.4

Norma Lacy Wed, 08/09/2017 - 11:05 Permalink

Just as a reminder:  CON-gress AND staff are exempt from insider trader rules.   Ever wonder how many of these fucks own Lockheedless Martin?    How about the coal companies?   'Murka is now exporting coal to Ukraine.  And who lifted the resitrictions on coal????    HMMMM?      Money talks.    So now the Connies are going to spend bazillions defending ..... Guam.   Attaboy tontos.

gregga777 Wed, 08/09/2017 - 11:09 Permalink

Yes, wars are very expensive. World War 1 bankrupted the British Empire and World War 2 provided the coup de grace. Just think, if Great Britain had stayed out of WW 1 there would probably still be a British Empire upon which the sun never set.