Today’s News 24th August 2019

  • 'This Is An Appalling Kowtow To Beijing' – Hong Kong Workers Fired For Supporting Protests

    They’re calling it the “white terror”.

    Employees at Hong Kong-based companies, most notably the airline Cathay Pacific, are being fired or otherwise dismissed for supporting the anti-extradition bill (now pro-democracy) protests. On Friday the head of Cathay’s Flight Attendants’ Association said she was fired, without explanation, after managers saw what was apparently a pro-democracy Facebook post (the company later clarified that her firing had nothing to do with her role as a union leader).

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    According to Reuters, workers in other sectors, particularly in the financial industry, have said they are afraid to even talk about the protests among colleagues or in group chats for fear that they might be snitched out to management.

    “Now the best way is to keep silent, because people could back-stab you for no obvious benefits,” said one individual who said he was reported to management. Reuters found one case where an individual received a call from Chinese authorities after posting pro-protest comments on Facebook.

    One Hong Kong-based executive compared the current atmosphere to “the Cultural Revolution.”

    “It feels like we’re back to the era of Cultural Revolution,” said the executive of a large corporate, referring to the decade-long campaign unleashed by Mao Zedong on China in 1966, which encouraged people to inform on friends, colleagues and family members who did not follow the Communist Party line.

    One pro-Beijing lawmaker in HK said in Hong Kong, politics and business are inseparable.

    “The Cathay incident shows that when doing business in Hong Kong, politics and business are inseparable…it’s quite an alarming message,” said a senior pro-Beijing politician.

    Speaking about the resignation of former Cathay Pacific CEO Rupert Hogg, one activist investor questioned whether every CEO of every HK-traded company should resign, according to Bloomberg.

    “This is the most appalling kowtow to Peking,” David Webb, a Hong Kong activist investor, wrote on his blog just hours after Chinese state broadcaster, CCTV, broke the news of Hogg’s departure on Aug. 16. “Every substantial employer in Hong Kong, in both the public and private sectors, has employees who have participated in marches that have frequently gone beyond their approved spatial or time limits. Should all the CEOs resign?”

    By kowtowing to the CPC, some worry the airline risks becoming a symbol of subservience to Beijing.

    Chinese officials called for some Cathay workers who had publicly supported pro-democracy protesters to be banned from flying into and over China and asked for the names of all Cathay workers whose jobs take them through Chinese airspace. China also demanded that Cathay draw up a new plan to improve flight safety and security measures. And, in case that pressure wasn’t intense enough, some big state-owned businesses including China Citic Bank International Ltd. and China Huarong International Holdings Ltd. advised employees not to book Cathay flights.

    Ironically, unions in the semi-autonomous city are pleading with the Communist Party to stop pressuring management to employees who support, or have even dared to discuss, the protests. Hong Kong’s Confederation of Trade Unions held a press conference on Friday.

    The confederation said 14 people have been fired so far over the protests, something it called a “blatant act of suppression.” Meanwhile, Cathay said the firing of Rebecca Sy, the union leader who was fired earlier this week allegedly for posting pro-democracy messages, had nothing to do with her role in the union.

  • Red Flag Gun Laws: Connecticut Man's Firearms Seized Because His Son Shared A Meme On Facebook

    Authored by Cat Ellis via The Organic Prepper blog,

    Due to the recent mass shootings, there is a major push for so-called “red flag” gun laws at both the state and federal levels. These laws are the latest tool for gun control advocates to confiscate guns from people based upon only tips and suspicion. No crime has to be committed to trigger an investigation or confiscation.

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    Red flag laws violate multiple rights protected by our constitution. The Hill has an excellent article on how red flag laws violate more than the 2nd Amendment, including:

    Hopefully you’ll never commit a mass shooting, murder, or violent assault. But while you might not have a criminal connection to such individuals, you do share at least one thing in common: you both have unalienable rights. The right to face your accuser. The right to due process. The right to protection against unreasonable searches and seizures. Every one of these rights are explicitly violated under red flag laws. (source)

    What could possibly go wrong?

    Just ask Brandon Wagshol and his dad, from the anti-gunner haven state, Connecticut.

    Brandon’s No Innocent Angel

    Before I write anything else, let me be clear. Wagshol is not some squeaky-clean, innocent angel. He wrote some vile racist and transphobic tweets. He also seemed to taunt the FBI in his tweets, which certainly isn’t the smartest thing in the world to do. That being said, holding bigoted views is not the same things as acting on those views. Voicing his bigoted opinions, while disgusting, is not a criminal act. The First Amendment protects his right to voice his hate in the same way that it protects flag burning. No one has to like it, but it’s not a criminal act.

    Wagshol may also have been caught in a few lies made on Facebook. According to Norwalk police Lt. Terry Blake:

    A Facebook page for the younger Wagshol said he was a former U.S. Marine and worked at the Department of Homeland Security as a janitor. Blake said both of these statements on Facebook are untrue. (source)

    Wagshol also admitted to purchasing four 30-round magazines at a Bass Pro Shop in New Hampshire to circumvent Connecticut law limiting magazines to ten rounds. Wagshol is now facing four felony counts for possessing those magazines. Whether or not you support Connecticut’s ban on 30-round magazines, he will be found guilty under current CT law for possessing them.

    Finally, Wagshol did admit to ordering a kit to build an AR.  A lot of preppers and gun enthusiasts have done the exact same thing. That’s more than understandable with the government chomping at the bit to enact more gun control.  Wagshol will likely be in legal trouble in CT for that too.

    Be Careful What You Post on Social Media

    This is where a “concerned citizen” stepped in. Wagshol shared a meme on Facebook that someone found scary.

    According to News12 Connecticut:

    FBI investigators say the Norwalk Police Department received a tip about Wagshol’s activity from a concerned citizen. The joint investigation began after the FBI received a tip that Wagshol was trying to buy high capacity magazines from out of state.

    Police say all the weapons recovered from the home are legally owned and registered to Wagshol’s father, but that the 22-year-old had access to them. Investigators also recovered body armor with a titanium plate, camouflage shirt, pant and belt, ballistic helmet, tactical gloves, camouflage bag and computers. (source)

    That’s right. The confiscated guns belong to his father. The son “had access” to them by living in the same house, but they are his father’s property. His father didn’t do anything wrong, but his property has been seized nonetheless.

    This might be a good time to remind your own kids, both young and adult, to watch what they say on social media because it has real-world implications.

    Let’s take a look at those other confiscated items, shall we? Camouflage clothing, body armor, gloves, bags, and computers are all legal to own. Listing it all, however, sure makes it sound super-scary. But, seriously, how much danger were people facing from that camouflage bag?

    What kind of firearms were confiscated?

    I bet you’re expecting to read a long list of firearms. The media spin has been predictable. CNN said “numerous” firearms were confiscated. The Washington Post described the weapons confiscated as a “cache” However, according to the Hartford Courrant:

    Inside the condominium, authorities reported seizing a .40-caliber handgun, a .22-caliber rifle, a rifle scope with laser, firearm optics and flashlights, along with hundreds of rounds of ammunition. They also found body armor with a titanium plate, and tactical attire, police said.

    So, two firearms. That’s what we’re talking about. And, the rifle takes the smallest rounds possible. It’s the kind of round you use plinking or to shoot squirrels or small pests. Who doesn’t have this stuff kicking around?

    What Kind of Post Gets Your Guns Seized?

    Even though Wagshol has denied having any intent to commit a mass shooting, several news outlets have reported that Wagshol made a Facebook post about wanting to commit a mass shooting, including CNNand The Washington Post.

    So, what was this scary Facebook post that led to Wagshol’s arrest?

    Good question. There doesn’t seem to be one.

    The “concerned citizen” reported a Facebook post regarding buying 30-round magazines. However, no post has surfaced stating Wagshol wanted them for a mass shooting.

    The police claim, however, that Wagshol was indeed planning a mass murder. From the Hartford Courrant:

    Norwalk police Lt. Terry Blake said Wagshol had posted on Facebook that he “was into planning a mass murder.” (source)

    From the CTPost

    Police claimed Wagshol made social media posts showing an interest in mass shootings, but did not specify any particular posts. (source)

    According to Wagshol’s lawyer, Stamford attorney Darnell Crosland, the police failed to cite any actual Facebook posts in the official report.

    Crosland also said the report did not include any of Wagshol’s Facebook posts in question.

    “What I understand is that he didn’t make any comments on Facebook, but there might have been other memes, as they call it, that he might have re-posted, but he didn’t make a statement on Facebook as related to any mass shooting.” (source)

    Some readers here may also be familiar with the Facebook page, Uncle Sam’s Misguided Children. Their page posted an article from their website with the potential offending meme.

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    The article goes on to clarify what those terms mean.

    “Boogaloo” – a slang term for shit-hits-the-fan, or government gone bad and they’re coming for you, time to fight back. Boogaloo toys refers to guns. The opposite of “bugging out.”

    “Alphabet bois” – ATF, FBI, DEA, etc.

    “Coat hanger sears” – hand-crafted drop-in auto sears for an AR.

    Could this be the offending post? Maybe, maybe not. The article from Uncle Sam’s Misguided Children also says Instagram has blacklisted the term, “boogaloo”. However, I was able to search Instagram and find both the hashtag and multiple users with “boogaloo” as part of their name. So, that doesn’t seem to be entirely accurate.

    The CTPost stated the “concerned citizen” reported Wagshol’s posts after talking about getting the 30-round magazines from out of state that are illegal in Connecticut.

    Regardless if it was the above-mentioned meme, or a post about magazines which were banned in CT, neither mention mass shootings.

    If it is, how many times have we seen similar memes shared by prepper friends or by fellow members in prepper groups on social media or prepper forums?

    Rights for Some, Or Rights for All?

    Red flag laws are unconstitutional on multiple levels. I know lots of people believe they are necessary. But, we make better decisions when we keep things logical and constitutional, not emotional and reaching.

    Here’s what we know:

    • Wagshol is a 22-year old man, attending college, living with his 2A-supporting dad.
    • This 22-year old holds some hostile and bigoted views.
    • He also holds some anti-government views.
    • He has lied about prior military status and employment history.
    • He decided that his state of residence has imposed unconstitutional laws that violate his second amendment rights and chose to ignore them buy buying 30-round magazines from a Bass Pro shop in NH and ordering an AR kit from CA.
    • Someone reported a meme he shared to police under Connecticut’s “red flag law”.
    • An investigation took place without his knowledge, and his father’s firearms have been confiscated along with some clothing and gear.
    • The official report does not include any specific Facebook posts, never mind Facebook posts discussing mass shootings.
    • He has been banned from the college campus he attends until after the investigation.

    I know I’m going to catch some flak for this assessment, and that’s ok. I’m fine with holding unpopular opinions. I try to remain consistent in my libertarian views, regardless of what’s popular or not.

    But, constitutionally-protected rights apply to everyone, even jerks with bigoted views.

    We’ve got an angry, young man who has run his mouth on social media combined with a general atmosphere of fear over mass shootings and firearms in general. Someone got freaked out and reported him under CT’s “red flag” law. Rather than moving to a state where the laws reflect his values, he chose to violate the law and obtain banned magazines and a kit for a banned gun. These were only found during the confiscation, which was the result of a ruling that denied him and his father (who legally owned the guns) due process. The confiscation violated multiple constitutionally-protected rights. Regardless of what is or isn’t constitutional, he’s still in jail. While Wagshol doesn’t sound like someone I would want to spend much time with, he still has civil rights which appear to have been violated.

    Many would say that because of his views toward other races or towards transsexuals, that alone is enough to constitute a credible threat of violence. Except, that it isn’t. There is a difference between saying, “I don’t like you” and “I am personally going to harm you.” Red flag laws are pure “Thought Police” and “Pre-Crime Division” stuff. 1984 and The Minority Report were supposed to be warnings, not blueprints.

    We either have rights for all, or we have rights for none. If we can overlook someone’s rights because we dislike their beliefs or views, then we should have every expectation that our own rights can and will be overlooked as well. groups we dislike, or we will be torn apart from within by our differences.

    I’m hoping it will be the first but preparing for the second.

  • Hong Kong Chaos Crashes Earnings, Worst Since 2008

    Hong Kong stocks remain in a bear market (-20% from 1Q18 peak). They’re poised to record the worst corporate earnings since at least 2008 as the local political situation and trade war continue to deepen in 2H19.

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    Data compiled by Bloomberg show a 19% slump in operating income for Hong Kong stocks, would be the most significant contraction for Hang Seng Index companies since the financial meltdown in 2008.

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    Citywide protests, US-China trade war, and a weak yuan are mostly to blame for earnings losses.

    Hong Kong’s political turmoil has rattled economic growth citywide, demand for bank loans to real estate loans to automobile loans to even utility gas usage has declined.

    “The third quarter could be even worse given the local political situation and the trade war escalation,” said Jackson Wong, asset management director at Amber Hill Capital Ltd. “Potential downside surprises have not been fully reflected in share prices.”
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    Shangri-La Asia Ltd. fell 7.4% on Thursday and 2.7% on Friday after telling investors “political events” in Hong Kong depressed business at its hotels in the city, while a weaker yuan hurt revenues in mainland China.

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    Cathay Pacific, the leading airliner in Hong Kong, said political and social turmoil would have a “significant impact” on revenue for August.

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    The Hong Kong and China Gas Company has seen its shares dive nearly 10% since Tuesday after it said the local business environment is “full of challenges.”

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    Last week we reported on a hotel crisis that was developing. Here’s what we said:

    “Hong Kong might not be able to avoid a financial crisis this year or next despite possible stimulus packages to shore up its faltering economy amid violent protests across the city. This has led to a rapid decline in tourism, forcing major hotel chains in the city to substantially slash room prices.”

    The escalation of the trade war and at least 11 weeks of protest are also damaging the property market and retail sales.

    HSBC Holdings Plc and BOC Hong Kong Holdings Ltd have seen their shares down significantly this month with the risk of capital flight building as there is no end in sight to the turmoil in Hong Kong.

    And perhaps the global economy has opened up a cycle of vulnerability where a shock could trigger a worldwide recession. That shock could be the events playing out in Hong Kong at the moment. Investors should be on high alert for possible spillover effects into international markets in the coming quarters.

  • Animation: The 20 Largest State Economies By GDP Over The Last 50 Years

    Submitted by Visual Capitalist

    When it comes to understanding the size and scope of the $18 trillion U.S. economy, it’s sometimes easier to consider that it’s the sum of many parts.

    Many states already have economies that are comparable to some of the world’s largest countries, giving you a sense of what they might be combined.

    And while every state plays a role in the bigger picture, some states such as New York and California have an outsized impact on fueling the country’s overall economic engine.

    The State of State Economies

    Today’s animation comes to us from SavingSpot, and it covers the size of state economies by GDP going back all the way to 1963.

    The video uses inflation-adjusted data from the U.S. Bureau of Economic Analysis, showing how the ranking of top state economies has changed over time as different states have taken advantage of economic booms.

    Let’s dive into the data to see how things have changed.

    Going Back in Time

    The earliest data in the animation comes from 1963, when New York led the pack with a $70.6 billion economy in inflation-adjusted terms.

    State Economies by GDP, Inflation-Adjusted Chained $USD (1963)

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    California ($67.8 billion), Illinois ($39.5 billion), Pennsylvania ($34.5 billion) and Ohio ($33.3 billion) round out the top five, and together they added up to 40.5% of the national GDP.

    The Largest State Economies by GDP Today

    Looking at the most recent data from 2017, you can see the ranking changes significantly:

    State Economies by GDP, Inflation-Adjusted Chained $USD (2017)

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    California is the largest economy today – it has a state GDP of $2.6 trillion, which is comparable to the United Kingdom.

    Meanwhile, Florida and Georgia are two states that did not crack the top 10 back in the 1960s, while Texas jumped up to become the second largest state economy. It’s actually not a coincidence that all of these states are in the southern half of the country, as air conditioning has played a surprisingly pivotal role in shaping modern America.

    In fact, the share of the nation’s population living in the Sunbelt rose from 28% in 1950 to 40% in 2000, and this increase in population has coincided with economic growth in many of the states that used to be a sweaty mess.

    A Final Look

    Here is a final animated version of the top 10 largest states by GDP, also provided by SavingSpot:

    Animation: The 20 Largest State Economies by GDP in the Last 50 Years

  • More Wildfires Are Burning In Angola & Congo Than Brazil

    Thanks to a concerted effort by American social media ‘influencers’, everybody and their grandmother is now aware of the fact that wildfires – many of which were allegedly started illegally by farmers seeking to clear out more land for farming or pasture – are tearing through the Amazon.

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    What many don’t realize is that the wildfires in the ‘lungs of the Earth’ – as French President Emmanuel Macron described the Amazon – actually aren’t that uncommon. In fact, they’re a natural part of the rainforest’s process of self-restoration. In total, this year, fires are up by 83% compared with last year.

    And while the rest of the world uses the fires as an excuse to slam Brazilian President Jair Bolsonaro and his environmental policies (some have accused him of tacitly condoning the farmers who set the fires), Bloomberg reports that Brazil is actually third in the world in wildfires over the last 48 hours, citing data from the MODIS satellite analyzed by Weather Source.

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    Weather Source recorded 6,902 fires in Angola over the past 48 hours, 3,395 in the Democratic Republic of Congo and 2,127 in Brazil.

    Like in the Amazon and in California, wildfires aren’t all that uncommon in Central Africa.

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    As for the total number of active wildfires, they’re also nowhere near some of the highs recorded in recent years. According to NASA, more than 67,000 fires were reported in a one-week period in June last year, most of which were started by farmers.

    Over the past two days, roughly 16,500 wildfires were recorded in the top 10 countries.

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    Actually, as far as wildfires go, 2019 isn’t out of the ordinary in any meaningful sense.

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    But we’re sure the Instagram influencer set will soon clarify all of this in a series of sponsored posts putting the Amazon wildfires in context…right?

  • "It's Gone, The Market Has Evaporated:" Maine's Blueberry Industry In Crisis After Trade War Escalation

    If you thought corn and soybean farmers in the Central and Midwest US had it rough, Maine’s blueberry industry just witnessed the largest ever collapse in sales to China, because that country imposed a 70% tariff on berries in retaliation to President Trump’s tariffs targeting Chinese goods.

    Maine’s blueberry industry could be on the verge of a crisis, a 70% tariff rate has generated so much confusion and uncertainties that berry farmers are asking for a government bailout to prevent a tidal wave of farm bankruptcies in the state.

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    However, what’s surprising, is that the US Department of Agriculture (USDA) denied berry farmers government bailouts this summer, which were mostly reserved for corn and soybean farmers in the Midwest.

    “I thought we had a pretty good case,” says Nancy McBrady, director of the Department’s Bureau of Agriculture, Food and Rural Resources. “There’s a demonstrated challenge relative to loss of access to China because of the trade dispute. Its gone, the market has evaporated.”

    McBrady told WCSH Maine that exports account for 20 to 25% of sales of Maine blueberries, and China was a massive part of that.

    The Wild Blueberry Commission said Maine sells blueberries to several major international markets, including Japan and Korea, the global trade war has not yet harmed those sales.

    The Commission warned that when President Trump slapped China with tariffs, and China retaliated against US berry producers, it enabled Canadian berry producers to take away Maine’s market share into China completely.

    “If Canada is selling berries in China, they are not sending them to the USA, which have a good impact on us,” Paul Sweetland, owner of Coastal Blueberry Services, said.

    McBrady said the Commission needs to rework supply chains and increase domestic sales of the berries. But she said President Trump needs to settle trade disputes before more damage tips Maine’s berry industry into further crisis.

    “We just hope the trade situation can be stabilized. Ultimately that’s where everybody wants to end up, so we don’t have to rely on government programs to provide this type of assistance.”

    And there’s more terrible news for berry farmers, the entire agriculture complex, and quite frankly multinationals in the US on Friday morning.

    China announced it would levy retaliatory tariffs on another $75BN in US goods with rates anywhere between 5 and 10%, with the tariffs set to be implemented in two batches, one at midnight on Sept 1 and another at midnight on Dec 15.

    Additionally, China said it would resume 25% tariffs on US autos, stating that “China’s adoption of tariff-adding measures is a forced move to deal with US unilateralism and trade protectionism.”

    There was even a headline that stated China would impose an extra 5% tariff on soybeans on Sept.1.

    With that being said, everyone is focused on farmers imploding in the Midwest. Now there’s more evidence the farm crisis is spreading.

  • First Post-Soviet Luxury Bulletproof Limousine Hits Floor Rooms

    Want to roll like Putin? After a $190 million investment in R&D via a public-private partnership project called “Kortezh,” Russia unveiled its first post-Soviet presidential limousine, the Aurus Senat, in a Moscow showroom on Friday, according to Reuters.

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    The new presidential limousine was initially designed for Russian President Vladimir Putin, reportedly entered mass production at a factory just a few hours outside of Moscow – with plans to sell the new bulletproof design throughout Asia, Africa, the Middle East, and potentially European markets.

    Priced at $274,000, the Aurus offers a lower cost option for heads of states, presidents, dictators, and budget-conscious evil geniuses of the world. 

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    The first publicly available Aurus will roll off the production line in 2020 – built in a factory owned by Russian carmaker Sollers in the economic zone of Alabuga, Tatarstan Republic, according to the Trade Minister Denis Manturov.

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    “We expect a similar showroom will appear in China in 2020-2021,” Industry and Trade Minister Denis Manturov said during the opening ceremony in Moscow.

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    The factory should initially be able to produce around 5,000 of vehicles per year, in both a limo and a sedan model, with an off-road vehicle set to enter production sometime in 2021-2022.

    “The minivan and the SUV Komendant are at the testing stage. I hope to see the latter at the (Moscow International) Automobile Salon in 2020,” Manturov said.

    A hybrid or fully electric version of the Aurus could arrive by the mid-2020s.

    “We believe the audience will be quite wide,” noted Aurus CEO Adil Shirinov, who added that there’s been strong interest from governments and corporations. 

    While introduced at the Manilla International Auto Show several years, the Aurus made its public debut last year when Putin cruised to the Helsinki summit in it last year to meet with President Trump. 


  • Stocks, Dollar, Yields Crash; Gold Explodes As Stunned Traders React To Series Of Surreal Events

    Jerome Powell’s Jackson Hole speech was supposed to be the most important even of an otherwise sleepy, August day day, after which traders could quietly exit for the rest of the day and commence drinking. It did not quite work out that way.

    Not only did Powell’s speech barely make the top 3 most important events, but Friday ended up being an exercise in surreal market newsflow, and one of the biggest drops of 2019 to boot.

    With a few hours left before Jackson Hole, as traders were getting ready to trade Powell’s Jackson Hole speech which was a big dud, and did not reveal anything new (as even Trump figured out when he blasted the Fed chief slamming “As usual, the Fed did NOTHING!” and asking “who is our bigger enemy, Jay Powell or Chairman Xi?”), China shocked the market by unveiling that it would retaliate by slapping 10% tariffs on another $75BN in US imports, which sent stocks sharply lower at first. Then, Powell’s remarks managed to somewhat stabilize sentiment, and the S&P almost regained all losses… before all hell broke loose and in a vicious tirade, Trump first slammed Powell, effectively calling him an enemy of the state”, and then warned he would retaliate to China soon, while ordering US companies (can a US president dictate to companies what they can and can not do?) to find an “alternative” to China.

    The result was a violent slam lower in risk assets, with the S&P tumbling over 70 points, the Dow plunging over 500 point, its 3rd such drop in the month of August, which has emerged as the worst month for stocks since December 2018…

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    … and the VIX soaring, just as dealers had exited their “negative gamma” hedges, forcing them all to load up on VIX futures all over again.

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    Every sector was lower on massive volume and wide breadth.

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    That said, not all hope was lost because a margin-call induced puke in the last 30 minutes of trading found support at the critical level of 2,834 below which the market simply will not allowed to pass… for now.

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    Not surprisingly, as risk tumbled, safe havens, soared, and as the 10Y yield tumbled…

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    … so did 2Y, which meant that the 2s10s yield was once again dipping in and out of negative territory all day, closing just below 0%.

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    Amid this wholesale panic out of safe havens, there were two surprises. Not the surge in gold, which exploded higher hitting a six and a half year high of $1,530…

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    … what was surprising was the plunge in the dollar – as traders feared that Trump would announce an outright currency market intervention to devalue the greenback – however as the yuan plunged even more…

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    … and even without an official statement from Trump – we are still waiting for the mystery afternoon announcement – the dollar index suffered its biggest one day drop in over a month.

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    There was not respite in commodities either, with oil tumbling after China announced it would apply tariffs on US oil imports, prompting traders to fear a drop in imminent collapse in global oil demand by the world’s largest oil importer.

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    What is most scary is that the day is not yet over, and we are now waiting with bated breath for the president to deliver on his promise of unveiling some other mystery response to China which he had not shared even with the Fed. As such, we expect that the reason for the violent flush in the last 30 minutes of trading had to do with traders wishing to be flat over a weekend, where any surreal development is now clearly possible.

    Stay tuned.

  • Japan Requests US Marines Deploy F-35s On Its Largest Warships Over China Incursion Fears

    With the trade war with China turning hotter by the minute, any US troop deployment will be closely scrutinized. And when said deployment takes place close to China, alarm bells are bound to go off. Which is why a Friday report by USNI News that Tokyo officials have requested US Marines deploy F-35B fighters aboard Japan’s largest warships, is especially concerning as it puts in “kinetic” proximity Chinese, Japanese and now US troops.

    According to the report, the Marines are now studying the feasibility of deploying short take-off vertical landing (STOVL) fighters from JS Izumo (DDH-183) and JS Kaga (DDH-184), Japan’s 24,000-ton big deck amphibious.

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    Helicopter carrier Kaga (DDH-184) on Aug. 27, 2015. Japan Marine United Photo

    The warships were originally designed to field a fleet of anti-submarine warfare helicopters and respond to humanitarian aid and disaster relief. However, in December Prime Minister Shinzo Abe approved a move to convert the two ships to field the STOVL F-35s in parallel with Japan’s purchase of 42 F-35Bs, reported The Diplomat.

    In March, the Abe government asked then-Marine commandant Gen. Robert Neller if the U.S. would consider deploying Marine F-35Bs from Izumo and Kaga, The Asahi Shimbun reported this week. Prompted by the request, the Marines are now standing up groups to determine the technical feasibility of deploying U.S. F-35s from the two ships ahead of the Japanese Self-Defense Force F-35Bs being fielded.

    While the two ships were built with an eye toward STOVL fighter operations, the U.S. has to make an independent determination if their F-35s can operate on Izumo and Kaga.

    For example, U.S. Wasp-class big deck amphibious ships have to undergo deck strengthening and have new heat resistant flight deck treatments as the Marines replace their AV-8B Harriers with F-35Bs. It’s unclear what additional work would be needed to make the two ships ready for F-35s. The Marines currently have an F-35B squadron forward-deployed to Japan — the “Green Knights” of Marine Fighter Attack Squadron (VMFA) 121 that operate with the Wasp Amphibious Ready Group as part of the 31st Marine Expediniaory Unit.

    The Marines have charted out a similar relationship with the U.K. Royal Navy to deploy a squadron of F-35Bs from the new HMS Queen Elizabeth (R08) carrier for its first deployment.

    What is behind the odd Japanese request? In a word: China.

    As USNI points out, for Japan, the move comes as the Chinese expand their regional naval ambitions.

    “Chinese naval capabilities are growing rapidly in the region and I think this is an important step in strengthening the US-Japanese alliance. The Japanese acquisition of F-35Bs will enhance their maritime and aviation capabilities in the region and will further bolster interoperability between Japanese and U.S. military forces,” Eric Wertheim, author of U.S. Naval Institute’s Combat Fleets, told USNI News, Friday. “It will also help ease the burden on U.S. assets that are stretched thin responding to a long list of global crises.”

    Understandably, Beijing has been extremely critical of Japan’s move to put fighters on the two warships saying that they could be considered an attack platform and a violation of Japan’s pacifist constitution (which PM Abe has been fighting tooth and nail to change).

    The “carefully crafted” semantic answer was simple: the advanced stealth fighters will not be used for offensive purposes. In March, former director of national intelligence and former commander-in-chief of the United States Pacific Command Adm. Dennis Blair wrote that fielding F-35s on Izumo and Kaga could be considered a defensive move.

    “The challenges to defending the Self-Defense fleet against aircraft armed with cruise missiles (or hypersonic glide weapons) underscore the need to upgrade the Izumo-class to operate the F-35B STOVL aircraft, as the average range of ship-killing missiles is in the hundreds of miles while the average range of defensive ship-launched antiaircraft and antimissile missiles is only about 100 miles,” wrote Blair and retired Capt. Christopher Rodeman in Proceedings.

    “Armed with short-range anti-ship missiles, the F-35B would be very effective against ‘swarm tactics’ by patrol craft or maritime militia vessels. In an “island grab” scenario, the F-35B would be invaluable in establishing the local air control required for Japan’s new amphibious regiment to retake remote islands.”

    We doubt that China will be dumb enough to fall for that particular explanation.

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