Hedge Fund CIO: "The Arms Race Has Begun"

Excerpted from the latest Weekend Notes by One River Asset Management CIO, Eric Peters

Oh Shiite:

“Saudi Arabia does not want to acquire a nuclear bomb, but without a doubt, if Iran developed a nuclear bomb, we will follow suit as soon as possible,” announced Mohammed bin Salman, Sunni. Not since World War II have so many major world armies been active in one region. The US, Russia, Iran, Turkey, Israel, Saudi Arabia.

“These words are worthless because they come from a simple mind full of illusions who speaks only bitterness and lies,” said Iranian foreign ministry spokesman Bahram Ghasemi, Shiite, responding to the Saudis.

Oil is at $62.

Nerve Agents:

“We will always do what is necessary to defend ourselves, our allies, and our values against an attack of this sort, which is an attack not only on the UK, but upon the international rules-based system, on which all countries, all countries including Russia, depend for their safety and security,” said the UK Foreign Ministry, expelling 23 Russian diplomats.

“The British side is warned that in case of further unfriendly actions against Russia, the Russian side reserves the right to take further retaliatory measures,” the Russian ministry said.

On Your Mark:

“When the Chinese can deploy tactical or regional hypersonic systems (traveling up to 20x the speed of sound; 15k mph), they hold at risk our carrier battle groups, our entire surface fleet. They hold at risk our forward-deployed land-based forces,” said US undersecretary of defense for research and engineering, his nation gradually withdrawing from the world stage.

“China in particular has set itself on a course to become a global power and America’s primary adversary,” he said, as the pistol popped, and the arms race began.

Read more: Pentagon Official: China's Hypersonic Missiles Could Threaten US Navy's "Entire Surface Fleet"