- Why The U.S. Military Is Woefully Unprepared For A Major Conventional Conflict
Written and produced by SF Team: Brian Kalman, Daniel Deiss, Edwin Watson
Introduction
In the Department of Defense authored summary of the National Defense Strategy of the United States for 2018, Secretary James Mattis quite succinctly sets out the challenges and goals of the U.S. military in the immediate future. Importantly, he acknowledges that the U.S. had become far too focused on counter-insurgency over the past two decades, but he seems to miss the causation of this mission in the first place. U.S. foreign policy, and its reliance on military intervention to solve all perceived problems, regime change and imperialist adventurism, resulted in the need to occupy nations, or destroy them. This leads to the growth of insurgencies, and the strengthening of long simmering religious radicalism and anti-western sentiment in the Middle East and Central Asia. The U.S. military willfully threw itself headlong into a self-fulfilling prophecy.
The United States engaged in unnecessary wars, and when these wars were easily won on the immediate battlefield, the unplanned for occupations lead to guerilla insurgencies that were not so easy for a conventional military to confront. The U.S. Army was not prepared for guerilla warfare in urban areas, nor for the brutal and immoral tactics that their new enemies were willing to engage in. They obviously had not reflected upon the Soviet experience in Afghanistan, nor the nature of their new enemies. As casualties mounted due to roadside IEDs, snipers, and suicide bombers hidden amongst civilians, the U.S. military and the defense industry were forced to find ways to protect soldiers and make vehicle less vulnerable to these types of attacks. This resulted in vehicles of every description being armored and new IED resistant vehicles being designed and fielded in large numbers. This in turn, equated to a vast amount of time, effort and money. It also focused both the U.S. military services and the defense industry away from fighting conventional wars against peer adversaries.
After a decade of fighting an insurgency in Afghanistan and almost as long in Iraq, the U.S. leadership decided to destroy the sovereign nation of Libya, and foment a war in Syria immediately afterward. There is no doubt with the knowledge of historic events today, that the CIA and State Department facilitated a foreign invasion of Syria of Islamist radicals. They funded and armed these groups, provided clandestine training, and facilitated the logistical movement of fighters and weapons into a sovereign nation to cause its disintegration. In these two examples they decided not to occupy these countries, but to destroy all semblance of ordered society and replace it with brutally violent chaos. The U.S. political and military leadership seems to have learned that their past adventurism resulted in costly occupations, yet instead of refraining from using the military option as a tool to alter geopolitical realities they did not like, they merely opted to abandon the responsibility of occupation and reconstruction all together.
Benghazi, Libya. An example of democratic progress and stability in North Africa courtesy of U.S. led “humanitarian intervention”.
While Secretary Mattis describes the “near peer” nations China and Russia as “revisionist powers”, it was not these nations that made the irresponsible and reckless decisions that have weakened the U.S. military establishment, nor aim to revise the ill-conceived and executed catastrophes of their American “peers”. They have reached a state of military and technological parity with, and in many cases a position of superiority vis a vis the United States, because they exercised better judgement over the past two decades, invested their time, talent and treasure in developing powerful conventional and nuclear forces, and refrained from using their national defense assets to punish their perceived adversaries in such a way that more damage was caused to themselves. In many ways, the poor example of the United States and its ill-conceived military expeditions, influenced both Russia and China to advance along different paths. Now, without recognizing and acknowledging the failures of leadership and decision making that have lead the U.S. military to a weakened state, the United States has declared that it is now in a period of strategic competition with the two other strongest kids on the block.
In order to understand how Secretary Mattis has come to such a declaration, we have to look at the U.S. military decisions, actions, mistakes, and failures of leadership at the highest levels that have brought us to this point. A brief analysis of the resultant metamorphosis of the United States military from a robust and balanced conventional fighting force, backed up by a viable nuclear deterrent into a force obsessed with occupation and counterinsurgency must be conducted. This must be followed by a study of how the U.S. military has decided to invest its extensive funding, the weapons systems it has pursued, and how it envisions that it is best suited to protect the national security interests of the state. Finally, a comparison must be conducted of the capabilities of its declared strategic adversaries. A conclusion can then be made regarding the ability of the United States military to successfully engage and defeat these adversaries in a future conflict.
Imperial Expansion, Regime Change and Occupation
When the Soviet Union dissolved in December of 1991, a global power vacuum was immediately created. Regardless of the many assurances given to the Gorbachev government (which were finally revealed in the December 2017 National Security Archive releases of official NATO correspondence) that NATO would not expand and that the former Soviet federated states would be included in the established European economic and security apparatus, the United States immediately embarked on a policy of NATO expansion and economic exploitation of post-Soviet territories.
Just scant months earlier, the United States deployed military forces to Saudi Arabia as the backbone of an international coalition to confront and reverse the Iraqi invasion of Kuwait. This resulted in Operation Desert Shield, the greatest deployment of combined military forces on the part of the U.S. military since the Vietnam War. By January of 1991, not even a month since the U.S.S.R. ceased to be, Operation Desert Shield transitioned to Operation Desert Storm, with the invasion of Iraq and Kuwait. The conventional military power utilized by the U.S. was greatly effective, and most combat systems worked extremely well on the battlefield. Air superiority was soon absolute, as the Iraqi Air Force largely left the skies uncontested. The great success of Operation Desert Storm largely gave the military planners of the Pentagon a false sense of superiority, which as we shall see, led to a number of wrong assumptions and poor decisions being made regarding the future development and transformation of the U.S. military.
M1A2 Abrams tank platoon advancing during Operation Desert Storm. The armored combat vehicles of the U.S. Army proved very effective against a far inferior opponent in this conflict, yet they proved capable and reliable. Logistical requirements; however, did prove to be a challenge.
The first post-Cold War military “humanitarian intervention” conducted by the U.S. was the Yugoslavian civil conflict interdiction of 1995. Predicated upon escalating ethnic atrocities, the NATO intervention was actually designed to make the fracturing of the former Yugoslavian Republic permanent, and to establish a number of pro-NATO, or pro-U.S.-Atlantic establishment nations on the Balkan periphery of Russia. Slovenia became a NATO member state in 2004, followed by Croatia in 2009, and then Montenegro in 2017. At the same time that a civil war was raging in the former Republic of Yugoslavia, the U.S. and its Gulf State allies fomented and aided Islamic insurgencies in the Caucasus Republics of the newly comprised Russian Federation in an attempt to further weaken and encircle it. At the conclusion of U.S. intervention in the Balkans, which included the deployment of U.S. ground forces as part of multiple NATO-led operations including Operation Joint Endeavor, Operation Joint Guard and Joint Forge in Bosnia-Herzegovina, and the Kosovo Force (KFOR), the United States would de facto create the statelet of Kosovo. As many as 43,000 NATO troops were serving as part of these operations at any given time between 1995 and 2002.
U.S. Camp Bondsteel in the U.S. sponsored protectorate of Kosovo located in southwestern Serbia. The intervention in Kosovo had nothing to do with humanitarian concerns as usual, but in establishing a permanent military foothold in the Balkans.
As I have described and explained in an earlier analysis entitled “U.S. Army Armored Vehicle Developments in the 21st Century; The Future Combat System gives way to Mobile Protected Firepower”, although the U.S. military leadership was pleased with the performance of its legacy armored vehicles and weapons systems in both Operation Desert Storm and its Operation Joint Endeavor, it was not satisfied with the amount of time required to deploy large combined Arms units via available sealift and airlift capacity. The complex logistics involved in mobilizing and moving heavy armored units does not lend well to rapid deployments, especially over significant distances. Even pre-deployment of heavy armored equipment, either in host countries or loaded in sealift vessels kept on stand-by at forward deployed bases (such as Diego Garcia) or berthed at major seaports of the continental United States, present a whole host of logistical challenges.
The desire to streamline U.S. military logistics, and to create a fighting force that was more rapidly deployable, flexible and yet maintained the highest levels of lethality, and that leveraged advanced information technologies and communications systems led to the genesis of the Future Combat System (FCS). Embracing the FCS concept, the Army set very high deployment goals, which would prove to be unattainable. General Eric Shinseki, then Chief of Staff of the Army, stated that the Army would strive to attain the ability to deploy a combat brigade anywhere in the world within 96 hours, a full division within 120 hours, and no less than five divisions in 30 days. Then Secretary of defense Donald Rumsfeld was a vocal supporter of the FCS concept. The U.S. Army would eventually pursue the FCS program, the largest defense acquisition program in U.S. military history with a price tag of approximately $200 billion USD. The program was eventually cancelled in 2009, yet its influence in transforming the U.S. Army have proven substantial, and have had a negative influence on the Army’s ability to fight near peer adversaries in today’s warfighting environment.
The United States military would become a force for invasion and occupation during the Neo-Con era spanning from 2000 to the present. BY 2003, the U.S. was once again invading Iraqi territory, this time during Operation Iraqi Freedom. By this time the U.S. Army had partially realized some aspects of FCS, mainly in the area of rapidly deploying combat ready forces of the Brigade size. Operation Iraqi Freedom was envisioned as a rapid invasion utilizing highly mobile, self-contained, combined-arms combat teams supported by overwhelming airpower. The Iraqi military was far weaker in 2003 than it had been in 1991. It was a shadow of its former self and had been repeatedly targeted over the intervening decade, especially its air-defense and command and control networks. A combined ground force of approximately 148,000 men was deployed and ready for offensive operations in approximately a month and a half. Ground operations of the invasion lasted from March 20th until May 1st, 2003. The initial victory was impressive, but it soon became quite obvious that there was no realistic and pragmatic plan to occupy the country and render aid to a stable and capable new government.
What followed was a time of crisis for the U.S. military. When the U.S. soldiers were not greeted as liberators, and a number of organized and ruthless anti-occupation insurgencies formed, some motivated my patriotism, some my tribal and religious factions, and still others by terrorist groups such as al-Qaeda, the soldiers tasked with the occupation of Iraq were woefully unprepared for the task asked of them. U.S. troops deployed to a nation whose minimal civil infrastructure they had just destroyed, were tasked with reconstruction and nation building in a country producing a growing anti-occupation insurgency on many different levels. Convoys and patrols were increasingly the targets of ambushes by insurgents operating along key roadways and within urban centers. Light vehicles and military transports were targeted and destroyed in significant numbers, and the crews had no protection from weapons ranging from small arms and RPGs to extremely powerful improvised explosive devices (IEDs).
The Bush administration at the time, who had claimed that the U.S. troops would be widely embraced as liberators, began to scramble for ways to reduce the mounting U.S. casualties. The answer was to add armored protection to all existing vehicles, whether they be HMMWVs, or the LMTVs and HEMMTs of the logistics units. Adding armor to logistical support vehicles not meant to see front line combat greatly reduced their fuel efficiency (of great importance in the logistics arm) and was only accomplished at great cost. The U.S. Army only had one armored security vehicle in active service at this time, the M1117, albeit in small numbers. The decision was made to armor the ubiquitous HMMWV and to give it the tasks of armored patrol, internal security and crowd control vehicle. The HMMWV was designed and used quite effectively as a light utility vehicle and had always performed well in such a role; however, it was never intended for the roles it was called upon to perform after 2003.
An Obsession with MRAPs
A number of different armor packages were developed for the HMMWV, mainly to increase the likelihood of crew survivability. The armored Hummer was merely a stopgap until purpose-built armored vehicles could be developed and fielded in greater numbers. Although effective against high caliber small arms, shrapnel and mines, the M1117 was fielded in very limited numbers in 2003 with military police units, mostly in security duties on U.S. military installations. Large orders of the vehicle were placed after the 2003 Iraq invasion, and the number grew from approximately 50 to over 1,800 units in active service.
M1117 at the head of a column of HMMWVs and an LMTV halted along a road in Iraq sometime after the 2003 invasion.
The U.S. military enlisted the help of both the U.S. and international defense industry to produce an armored vehicle that could better serve the needs of an army now faced with occupying not only one rebellious nation, but two. Between 2003 and 2007, the U.S. military would suffer increasing casualties in both the Iraq and Afghanistan theatres of occupation. In the case of Afghanistan, casualties would continue to increase until 2010 before decreasing over consecutive years. Most of these casualties were the result of ambushes with IEDs. Such attacks increased six fold from 2003 to 2007.
The DOD would award billions of dollars in contracts for Mine Resistant Ambushed Protected vehicles (MRAP) between 2003 and the present. The total acquisition cost of the various MRAPs ordered and put into service conservatively exceeds $45 billion USD. The U.S. military has no less than seven different types of MRAPs in service as of today, more than any other nation by far. As the U.S. has reduced its active footprint in both Afghanistan and Iraq, it has sold many of these vehicles to local security forces, and even U.S. domestic police forces, as they are of little use on a contested battlefield where the U.S. military would be fighting a conventional conflict with a powerful adversary. The following list details the main types of MRAPS in use by the U.S. military and costs associated:
M-ATV
The genesis of the MRAP All Terrain Vehicle (M-ATV) was the desire to gain both the IED level protection of an MRAP and the mobility of a lighter all-terrain vehicle. It was realized early on that the armored M1114 HMMWV variant sacrificed much of its off road performance with the addition of heavy armor plate, yet failed to provide adequate protection. A purpose-built light MRAP was called for. Oshkosh Corporation was awarded the initial $1 billion USD contract to supply the new M-ATV to the U.S. Army, USMC, Air Force and Special Operations Command (which employs special operations elements of all the military services) in mid-2009. The initial contract order grew four fold within a few years, and total M-ATVs produced to date has approached 10,000 units of different variants. The acquisition cost not corrected for inflation likely exceeds $4 billion USD, and additional contracts have been awarded to update and refit all units retained in U.S. service. Many units have since been handed over to allied governments in the Middle East and Europe at far reduced prices. NATO recipients include both Poland and Croatia. Both the U.A.E. and Saudi Arabia have made use of the M-ATV in the conflict in Yemen, and have lost a significant number in combat.
Comparative size of the armored HMMWV and the M-ATV. The ubiquitous “Hummer” was never meant to be an armored car, and hundreds were destroyed by IEDs in both Iraq and Afghanistan.
Cougar
The Cougar is a much more robust vehicle than the M-ATV, resembling a heavily armored truck. It comes in a 4 x 4 and larger 6 x 6 version, with several variants based on these two platforms, depending on the intended role. The Cougar was developed by Force Protection, Inc. in 2004. The company was later acquired by General Dynamics in 2011. The Cougar was rushed into service after a very simple and rudimentary testing program in 2004, as the U.S. military wanted thousands of MRAPs for service in Iraq as soon as possible. The Cougar can trace its lineage to earlier South African designed and fielded vehicles, and was also adopted into British and Canadian service as well.
The Cougar was produced in great numbers between 2004 and 2010 for the U.S. military, with further orders filled by the British military, who have fielded the Cougar in at least 4 different variants. A number of Cougars have also be gifted to other NATO countries with contingents serving in Afghanistan. The U.S. military spent approximately $2.5-3.0 billion USD to acquire its Cougars, and additional funds have been spent to upgrade the roughly 20% of the surviving fleet selected to remain in service.
British Army variants of the 4×4 and 6×6 Cougar (Mastiff and Ridgeback) in a convoy protecting military transports in Afghanistan.
Caiman
Probably the most cost effective MRAP to be developed to meet the requirements of the MRAP Vehicle Program is the Armor Holdings (since acquired by BAE Systems) Caiman. The Caiman initially shared 85% of its construction components with the Stewart & Stevenson/Oshkosh family of military tactical vehicles (FMTV). This family of light to medium trucks have been produced since the early 1980s, with over 74,000 units of varying configuration put into service. This commonality of construction reduced manufacturing, maintenance and inventory carrying costs. The total cost of the Caiman contract (including a later contract to upgrade and improve vehicles to the Multi-Terrain Vehicle standard) amounted to over $1.15 billion USD. The United States sold 1,150 Caiman MRAPs that had been put in surplus status to the U.A.E. to aid in their operations in Yemen.
MaxxPro
Manufactured by Navistar Defense, a subsidiary of the Navistar International Corporation, the MaxxPro MRAP is based on a commercial truck chassis and makes use of a bolt-on armor construction as much as possible. This reduces manufacturing cost when compared to welded construction, and allows for easier repair in the field. Approximately 9,000 MaxxPro MRAPs were built for the U.S. Army, Marine Corps and Air Force. At an average per unit cost of $515,000 USD, the Maxxpro cost the United States military over $4.6 billion USD, not counting a number of upgrade contracts. Of the 9,000 units constructed and delivered, the U.S. military services announced in 2013 the intension of keeping only a third of these units in service beyond 2014.
Buffalo MPRC
The largest MRAP in the U.S. inventory, the Buffalo was designed as an IED and mine clearance vehicle. Manufactured by Force Protection Inc., it is based on the Casspir MRAP that has been in service with the South African Army for decades. The Buffalo in a 6×6 armored vehicle with a maximum service weight of 25,000 kgs. (56,000 lbs.). After building the first 200 units, the Buffalo was upgraded to the A2 standard in 2009, after which an additional 450 units were produced. Over 750 total Buffalos have been produced in total, with 650 of these in service with the U.S. military at a cost of over $1 billion USD.
Force Protection Buffalo IED and Mine Clearance MRAP removing an explosive devise by use of its articulated, hydraulically-operated claw.
The Buffalo’s origins are clearly a response to the dangers posed by a prolonged military occupation in an environment of active guerilla warfare. It was based on a proven design, and has been extremely effective in its intended role. The traditional vehicle for mine clearance or IED disposal would normally be an MBT fitted with mine clearance apparatus. The Buffalo is cheaper to manufacture, maintain and operate than an MBT, and is slightly more flexible in a multitude of environments. It also can accommodate 12 soldiers in addition to a normal crew of two.
Nyala RG-31/33
Manufactured by Land Systems OMC (BAE Land Systems) of South Africa and FNSS of Turkey, the RG-31/33 NyalaMRAP is produced in a 4×4 (RG-31) and 6×6 (RG-33) version to meet the requirements of the Mine Resistant Ambushed Protected Vehicle Program. Although used by the U.S. military in the highest numbers (almost 2,000 vehicles), ten other nations use this MRAP to some degree. The USMC ordered 1,385 of the Mark 5E variant, and operate more RG-31s than any other military service. The total cost of RG-31/33 acquisition is easily in excess of $2.7 billion USD.
JLTV
The most ambitious of all of the MRAP programs, the Joint Light Tactical Vehicle (JLTV) is meant to replace the HMMWV in use by all of the U.S. military branches. Although the design of the new vehicle is meant to allow it to exceed at a number of military tasks, it is at its core a mine resistant, ambush protected vehicle. The JLTV is suited to take over the tasks of light armored reconnaissance, armored security, special operations, utility and convoy protection. The JLTV is meant to be flexible enough to perform all of these tasks and its very design allows for the upgrading or downgrading of armor and weapons systems tailored to the task required.
The U.S. Government Accountability Office (GAO) estimated in 2015 that the total acquisition cost of the JLTV across all services would likely be $53.5 billion USD, with a total of 5,500 units for the UMC and 49,099 for the U.S. Army requested. In 2016, the Department of Defense claimed that the total cost of the program would be reduced due to revised unit costs and corrected “cost estimate methodologies”; however, past experience has proven that the Pentagon is usually quite bad when it comes to managing finances. The procurement timetable proposed has the first JLTVs being delivered beginning in 2018, and not being completed until 2040 for the U.S. Army. The 5,500 units requested by the USMC should be delivered between 2018 and 2022.
The JLTV program clearly embodies the U.S. military’s fixation on its experiences in both Iraq and Afghanistan with occupation and the resultant insurgencies motivated by inevitable anti-U.S. and anti-Western sentiments. Invaders are never seen as liberators, but always as subjugators and occupiers. Occupiers are never safe, as the frontline is everywhere. The U.S. military reacted to protect itself by armoring everything. Light utility vehicles and logistics transport of all categories were armored for protection. Only a nation that plans to invade and occupy other countries, and that will find itself always in a hostile environment will require so many MRAPs and armored transports. No other major military in the world has decided to follow this new U.S. model. Perhaps that is due to the fact that the main duty of their armed forces is to fight defensively in defending their own territory. Armies of national defense have no need to prepare themselves to fight a hostile native population.
A side-by-side comparison of an unarmored HMMWV and an armored JLTV. The new vehicle is twice as heavy as the standard HMMWV.
The JLTV is an armored, all-terrain monster that can carry a payload between 1,600 and 2,300 kgs. (3,500 – 5,100 lbs.), weapons as large as the SHORAD (Short Range Air Defense variant of the Hellfire missile) or the 30mm M230LF automatic cannon, and provide crew survivability in most IED attacks. The DOD has decided to replace both MRAPs and the HMMWV family of utility vehicles with the new JLTV platform. The JLTV is equipped with a 6.6 liter diesel V8 which can generate at least 300 horse power. The vehicle weighs in at between 14,000 and 15,639lbs. depending on the variant. By comparison, the unarmored HMMWV weighed in at 7,700 lbs. fully loaded and made use of a diesel V8 (some models used a turbo diesel) generating a maximum 190 hp. Even considering greater efficiencies achieved through modern internal combustion engine technology, a vehicle that weighs twice as much and requires greater horsepower will lead to higher fuel consumption and require higher levels of maintenance.
Counter Insurgency
Not only did the U.S. military experience with occupation and counterinsurgency shape the armored vehicle procurement projects and design priorities of future armored vehicle acquisitions, but it also resulted in an over-focusing of resources toward a traditionally elite, limited and specialized subset of conventional fighting forces; special operations. All effective modern national defense forces operate a small cadre of special operations units. These units are made up of highly motivated, highly trained and highly skilled soldiers who can perform any number of military tasks, but are specifically focused on asymmetrical, hybrid and very specialized warfare subsets. They complement and enhance conventional fighting forces, and often act as significant force multipliers in any conflict.
Prior to the U.S. wars of occupation of Afghanistan and Iraq, the United States operated a robust special operations force comprising of units from all services. The considerable investment in these highly selective forces, the high standards demanded, and the extremely difficult training requirements have always kept these forces small; however this has changed a great deal over the past 17 years. The need for soldiers with a skill set specific to counterinsurgency in Iraq and Afghanistan lead to increased focus and demand on special operations. From 2001 to the present, the special operations forces under the Special Operations Command (SOCOM) have expanded from 42,800 to approximately 63,500 today. Special operations specific funding has grown four fold in the same time period, from $3.1 billion USD to $12.3 billion USD. According to SOCOM, an average of 8,300 special operators are deployed in missions in as many as 149 nations across the globe on a weekly basis, and 70 nations on any given day.
U.S. Special Operations Command has access to uniquely qualified units from across all branches of the U.S. military.
There is little doubt that the Pentagon’s over-focus on counterinsurgency (the State Department is guilty here as well) has lead to U.S. military adventurism involving it in the internal conflicts of 75% of the countries of the world. Does this clandestine military involvement in the civil or regional strife of most of the planet really have anything to do with U.S. national security? Does it make the U.S. any safer, or is it only creating more enemies? SOCOM has even deployed assets to clandestinely train amongst the civilian population of the United States itself, a clear violation of the Posse Comitatus Act of 1878.
This disproportional over-emphasis on special operations has resulted in an atrophying of more traditional martial structures and establishments. While the Armed Forces of the Russian Federation have stayed at the forefront of modern armor and artillery development, and have advanced the related tactics, the United States has fallen far behind. Even the Peoples Liberation Army has made great strides in these conventional warfare realms in comparison to the United States. The United States surely has the economic resources, and the technical capability to close the gap, but the focus of the military needs to be realigned toward conventional warfighting.
Secretary Mattis has obviously recognized the need to focus higher procurement towards conventional forces, as well as fund R&D efforts into better field artillery, rocket artillery, armored fighting vehicles such as the AMPV, and a new main battle tank (MBT). In identifying near peer adversaries as the greatest national security threat, Secretary Mattis realizes that the U.S. must waste no time in closing the technological and quality gap that now exists between the conventional fighting forces of the United States and Russia and China respectively.
A Navy in Disarray
While the ground forces of the United States have suffered from two decades of occupation and counterinsurgency, which has morphed them from a balanced, combined arms conventional fighting force, into a force obsessed with IEDs, insurgents and guerilla warfare, the U.S. Navy seems to have lost any idea of its national security role. After two decades of enjoying uncontested control of the seas and the ability to use aircraft carrier-borne airstrikes to pummel inferior adversaries, none of which possessed a viable navy or air force, nor a modern air defense network or shore-based anti-naval capability, the U.S. Navy has seemed determined to sail further into the realm of irrelevancy in any future conflict. Unless it intends to engage in battle against significantly weaker opponents, the U.S. Navy will not possess an advantage over its two most powerful possible adversaries, Russia and China.
The United States Navy has not engaged in a major naval engagement with a major adversary since the closing days of World War Two. During the Cold War, the United States and the Soviet Union largely kept one another at bay, with very close competition leading to significant advancements in naval warfare. They did not engage in any verified hostile actions. Although the U.S. Navy engaged in combat with Libyan military forces in 1986 in the Gulf of Sidra, as well as sunk a small force of Iraqi Navy vessels of small displacement at the “Battle of Bubiyan” (not really much of a battle at all and UK Navy helicopters did most of the fighting), these engagements were largely one-sided and no one could ever say that the outcomes were a surprise. Regardless, the U.S. Navy apparently has decided that it is an indomitable force that can go wherever it pleases and no one can stand in its way. Such hubris and arrogance are one of the reasons why it is in such poor shape today. The other reason must surely be attributed to a military industrial complex that has sold the service on an expensive pipe dream of wonder weapons that have failed to live up to their hype. All to the tune of huge profits. The following are the most egregious examples:
The Littoral Combat Ship (LCS)
Based on a flawed concept from the start, of a small surface combatant that could make use of modularity to tailor it to specific tasks as opposed to a traditional multi-purpose design, the Littoral Combat Ship (LCS) was largely doomed for a number of reasons. Two different designs were awarded contracts, the trimaran Independence Class designed by General Dynamics, and the mono-hull Freedom Class designed by Lockheed Martin. The decision to produce two different designs to meet the needs of a single class should have been seen as problematic. Here the Navy accepted the responsibility and costs associated with maintaining two different platforms, with separate maintenance needs and schedules, not to mention two separate training programs for LCS crews.
The concept of the LCS was also divergent in many respects, and quite frankly, too much was expected of a ship that was smaller in size than a conventional frigate. The U.S. Navy expected the vessels to marry significant striking power, with modularity tailored to just about every form of modern naval warfare, and new networking and information technologies that would reduce the required crew to a minimum. What resulted was what those serving in the force would begrudgingly coin the “Little Crappy Ship”. The aluminum and composite (Independence Class) and lightweight steel (Freedom Class) hulls of the ships provide little armored protection, offensive striking power is far from adequate for either surface warfare or fire support for forces deployed inland, the platform has yet to meet anti-submarine requirements, and the reduced crew size has been determined to be unmanageable.
This image of the construction of USS Independence LCS-2, clearly illustrates the aluminum structure of the hull. Aluminum offers little armored protection, burns vigorously at high temperature, and led to increased corrosion of steal propulsion components in areas where the dissimilar metals were in close proximity below the waterline.
As a result of its overwhelming failure to meet the expectations of the U.S. Navy or Congressional oversight, the total fleet size of LCS vessels has been reduced from the original 50 planned down to 32. Project cost overruns, a number of high profile system failures, and the smaller fleet size have resulted in a total cost of $12.4 billion USD for the first 26 vessels. The U.S. Congress capped the per-unit cost at $480 million per ship, bringing the theoretical total cost to $15.5 billion USD. All for a ship that has a minimal chance of surviving most modern naval combat scenarios. There is little wonder why the U.S. Navy has decided to start building a multi-purpose frigate, dubbed the FFG(X), to pick up where the LCS has failed.
DDG 1000 Zumwalt Class
If the LCS was not a huge and unequivocal disappointment, then the much vaunted stealth destroyer, the DDG-1000 Zumwalt Class was a total embarrassment and unmitigated failure. Envisioned as a high-tech game changer, the DDG-1000 was supposed to make use of powerful new technologies, overwhelming firepower, and massive power generation, all wrapped in stealth that would render it invisible. Although designed as a multi-mission surface combatant, added emphasis was put on naval surface fire support (NSFS) while operating in littoral waters. Due to a number of factors, mostly the exorbitant cost of the program, the Navy is now trying to find a role for the Zumwaltclass vessels.
Originally, the Navy intended to build 32 of these stealth destroyers, yet the exorbitant initial cost plus huge cost overruns led the Navy and the U.S. Congress to reduce the fleet to 24, then 16, then 7, and finally to only 3 vessels. Correspondingly, the cost per vessel increased tremendously, as did the cost of all class-specific systems including weapons systems, power generation and propulsion systems. Cost per vessel stands at over $7.5 billion USD.
The 155mm Mark 51 advanced gun system (AGS) deck guns designed specifically for the DDG 1000s were made to fire guided rounds over a range in excess of 80 nautical miles, with a circular error probable (CEP) of just 50 meters (160ft.). Each DDG 1000 is equipped with two AGS on the forward deck. These guns were designed to strike shore targets accurately from coastal waters in support of allied ground forces and amphibious landing forces. Lockheed Martin and BAE Systems developed the Long Range Land Attack Projectile (LRLAP) for use in the AGS, but due to the now 3 vessel fleet, the per unit cost of each LRLAP had risen to over $800,000 USD. The Navy had already procured 90 rounds before the decision was made to cease purchasing the rounds due to the prohibitive costs.
The DDG-1000 utilizes the same MT-30 Rolls Royce gas turbine engines as the Freedom Class LCS vessels; however, in the case of the destroyers the gas turbine is linked to a massive electrical grid that not only powers the electric motors that propel the vessel, but just about every other system onboard, including the weapons systems. The arrangement is proving problematic, as the first two vessels in class have both experienced main engine failures and damages. The USS Michael Monsoor DDG-1001 suffered damage to the turbine blades of one of its main engines during sea trials in February of this year. The MT-30 engine will have to be replaced at the cost of $20 million USD. The USS Zumwalt DDG-1000 famously broke down during its transit from Maine to San Diego and had to be towed from the Panama Canal to its new home port.
The U.S. Navy is now struggling to find a new niche for the DDG-1000s. Now that its NSFS mission is a non-starter, it is being adapted as a platform to strike inland targets with land-attack cruise missiles (LACM) and engage other surface ships with an anti-ship cruise missile (ASCM) that has yet to be accepted into the service. The DDG-1000s lack a strong anti-air warfare (AAW) capability, and would thus be tied to other fleet components such as the Arleigh Burke Class DDG-51s and Ticonderoga Class CGs which have strong AAW capabilities. In an attempt to utilize the USS Zumwalt, the Navy has added legacy weapons systems, radars and communications antennas to the stealthy superstructure, undoubtedly negating its minimal radar signature. It remains to be seen what munitions will be provided for the two AGS turrets, as no munitions other than the cost prohibitive LRLAP exist.
The latest revision of the DDG-1000 Zumwalt Class lead vessel’s once smooth and unblemished superstructure is now marred by various external sensory and communications arrays. Two rear deck guns for close-in defense have also been added.
CVN-78 Gerald R. Ford Class
As if the U.S. Navy was not content with wasting $38 billion USD on the failed LCS and DDG-1000 programs, an even more grandiose undertaking was envisioned for the service that would revolutionize the all too important and largely obsolete “super carrier”. It is a widely accepted fact that the U.S. Navy has been obsessed with the aircraft carrier since World War II and the pivotal naval battles between the U.S. Navy and the Imperial Japanese Navy. This obsession is alive and well to this day, seemingly immune to the realities of modern missile technology, especially in regard to guidance, speed, range, and the advent of armed and semi-autonomous unmanned aerial vehicles (UAV) of increasing lethality.
The U.S. Navy embarked on a program to replace the existing Nimitz Class nuclear-powered aircraft carriers currently comprising the central component of the aircraft carrier strike groups (ASG), of which the service operates 10 (with the additional CVN-65 Enterprise in reserve), in 2005 with the advanced construction of CVN-78. In 2008 the U.S. Navy signed a contract with Northrop Grumman Shipbuilding worth approximately $5.1 billion USD to build the first in a series of four such carriers. The goal is to build each carrier in four year periods under the current funding schedule. The Gerald R. Ford Class was supposed to take advantage of a number of new technologies and experience significantly improved efficiencies in aircraft carrier operations over the preceding Nimitz Class.
While the initial cost estimate for CVN-78 was around $10 billion USD (U.S. Congress had caped it at $10.5 billion USD in 2007), the total cost for the vessel has exceeded $13 billion USD as of May of this year when it was revealed that the Advanced Weapons Elevator and a main thrust bearing had suffered damage in sea trials and required repair. The CVN-78 is by far the most expensive warship ever constructed. In a controversial move, it was decided to try and incorporate a number of new, unproven systems in the new design. In retrospect, this decision was bound to result in cost overruns and a more problematic breaking-in period. New systems integrated into the Gerald R. Fordinclude an electro-magnetic launching system (EMALS), advanced aircraft arresting system, advanced weapons elevator system, dual band radar (DBR), and a more powerful nuclear reactor.
There was much discussion in the Navy regarding the wisdom of introducing so many new technologies in a single platform. Many senior officers argued that there were bound to be serious delays in working through both the foreseeable and unforeseeable problems associated with rendering so many new technologies operational. This opinion turned out to be of merit, as the Gerald R. Ford immediately experienced problems with just about all of its new systems. The vessel has experienced two main propulsion malfunctions over the past year, the advanced arresting gear has proven unreliable, and the EMALS (as well as other “critical systems”) has displayed “poor or unknown reliability” according to the Navy Operational and Test Evaluation Force. In early testing, the EMALS was unable to launch F-18 strike aircraft at weights even close to a full combat load. All of these problems or shortcomings were revealed during sea trials and the vessel returned to shipyard in Newport News, Virginian on July 15th, 2018 to undergo extensive repairs and improvements.
In should have been of little surprise to most naval architects, engineers, and naval line officers who have held vessel commands, that the above mentioned problems were inevitable. The big question is why the leadership of the Navy decided upon such a platform at all. What is the point of investing so much money and effort into such a large and advanced vessel, regardless of the unproven nature of many of the critical systems, when aircraft carriers have become so vulnerable to modern anti-ship missiles? Of even greater significance, why invest so much in a new carrier and not invest in increasing the range and striking power of the carrier air wing? An aircraft carrier is worthless without a powerful and flexible air wing element.
Carrier Air Wing Vulnerabilities
As much as President Trump and various administration officials and Senators tout the power of the U.S. military, often citing an increasing defense budget as an indicator of strength, efficiency and effectiveness, there is little doubt that U.S. naval aviation has atrophied over decades of misuse, neglect and poor decision making at the highest levels. U.S. naval aviation is arguably in its worse state since the opening days of the Pacific Theatre of operations during the Second World War. Not only is it in disrepair, but it is ill-equipped for a fight against a peer adversary.
Let us address the first issue, the ever shrinking air wing with its shrinking range. In the last decade of Cold War naval competition between The U.S. and the U.S.S.R., the Nimitz Class aircraft carriers deployed with nine, or even ten squadrons of fixed-wing aircraft. Today, that has been reduced to six. Of greater importance, the only aircraft utilized for combat operations is the F/A-18 Hornet and Super Hornet with all of its inherent shortcomings, most importantly its limited operational range of 370 nautical miles (full strike combat weapons load and fuel). The aircraft it replaced, the A-7 Corsair II and A-4 Skyhawk in the Navy and the F-4 Phantom in the USMC, all had much longer operational ranges and all but the A-4 had greater weapons payload capacity. The F/A-18 is a jack of all trades and a master of none. In an attempt to lower costs (although few combat aircraft has ever operated at lower cost than the A-4 Skyhawk) by using one airframes for all roles, the U.S. Navy has put all of its eggs in one basket, and that basket is not up to the task. This is not to say that the F/A-18 Hornet and F-/A-18E/F Super Hornet are poor aircraft. The plane merely cannot do all of the things asked of it as well as many other aircraft. What has resulted, is an aircraft carrier air wing that is less capable in all respects, and cannot compete and excel in a future conflict with a peer adversary.
This image clearly illustrates the ordinance payload capacity of the A-4 Skyhawk. It could carry 9,900lbs. of munitions on 5 external hardpoints. It had an effective combat radius from an aircraft carrier of over 700 miles, and a maximum range of 2,000 miles.
Although the improved F/A-18E/F Super Hornet is significantly larger than its predecessor, and gains about 100 nautical miles in range due to larger internal fuel capacity, it still lacks the required range needed to protect its carrier. Not surprisingly, even though there was a better option, the Navy decided to use F/A-18s for aerial refueling duties as well. The S-3 Viking had been kept in service as a carrier borne aerial tanker, having given up its original role as an ASW aircraft, and was superior to the F/A-18 in this respect. Although most S-3s in service still have approximately 12,000 hours of service life left on their airframes, the Navy pushed ahead with their retirement in 2009. With a much greater range than the F/A-18 and a fuel capacity of 16,000 lbs., the S-3 was a better and far cheaper solution. The fact that it was a far cheaper option was probably its downfall. Profit drives the U.S. military industrial complex, not efficiency or performance.
The only fixed wing aircraft that operate from U.S. Navy aircraft carriers today are the F/A-18 Hornet, F/A-18E Super Hornet and E-2C and E2-D Hawkeye AEW&C aircraft.
The second issue, which is perhaps more damning, is the fact that the F/A-18 squadrons that the Navy relies on to conduct almost all carrier air wing duties including attack/strike missions, air superiority, fleet defense, buddy refueling, anti-submarine warfare (ASW) and surveillance, are in an alarming state of disrepair. The Navy announced in February of 2017, that two thirds, or 62% of all F/A-18 Hornets and Super Hornets were unserviceable due to maintenance issues. Twenty-seven percent of these aircraft were undergoing major maintenance depot work, not minor or preventive maintenance. Of the 542 total F/A-18 and E/F-18 Hornets, only 170 were mission capable. Fast forward one year and a new and increased defense budget, and the Navy is still a long way from solving the shortfall in available replacement parts just to meet normal maintenance requirements. The decision was also made to take 140 of the oldest single seat Hornets (A/C variants) in the Navy and either cannibalize them for parts or transfer them to USMC squadrons that are experiencing similar maintenance issues. In the case of the USMC, they have been waiting so long for new F-35Bs that their legacy F-18s are falling into disrepair.
Maintenance crews performing repairs on an F/A-18 aboard a carrier. The U.S. Navy and Marine Corps must address the maintenance crisis plaguing the services, yet the problem cannot be remedied at this level. Only a reduction in the tempo of deployments, flight operations or the provision of added funding will alleviate the issue which will be determined by the White House and Congress.
Has anyone asked the question, “What good is an advanced, gigantic aircraft carrier with an air wing that is limited in range and capability?” If the U.S. Navy does manage to get the first three Gerald R. Ford Class carriers in service, how many F/A-18E Super Hornets will be mission capable to fly from them? Will the F-35C and F35B Joint Strike Fighters meant to complete the complement of strike and fighter aircraft going to finally be available for deployment? Seeing that the F-35 does not close the “missile gap” that threatens U.S. aircraft carriers in general, is the Navy soliciting the defense industry to produce a carrier-borne aircraft, whether manned or unmanned, to correct this obvious weakness? Russian and Chinese anti-ship ballistic missiles and hypersonic cruise missiles can strike U.S. CSGs long before their aircraft can get within range of striking the territories of either of these near peer adversaries. This “missile gap” will not be rectified anytime soon.
The One-Size-Fits-All Fighter Aircraft
After a short review of the Navy’s decision to settle on a single airframe to fill all of the roles of the carrier air wing, it should come of little surprise that the Pentagon would come to a similar decision on a much broader scale. A cursory study of combat aviation history has proven that there is no one-size- fits-all solution to the many combat functions performed by military aviation. It appears that the decision to introduce a multi-role fighter making use of many new technologies and heavily reliant on stealth to be effective in modern aerial warfare for the U.S. Air Force, Navy and USMC was more about making huge profits for the defense industry and providing jobs to American workers than it was about providing the U.S. military with a superior tool.
The story of the development of the Joint Strike Fighter (JSF) is a cautionary tale of a weapons development program that was ill conceived and soon spiraled out of control. Perhaps the most controversial and scandalous of any such program, the JSF is the costliest weapons program in world history. Newly revised estimates from the Pentagon put the cost of development and procurement of the 2,056 fighters that the DOD wants at $406.1 billion USD. The total cost to procure these aircraft and maintain them over the 20 year life span of the aircraft exceeds $1.5 trillion USD.
While the F-35A first flew in 2006, the only U.S. military branch to declare the F-35 operation and to use it in combat is the USMC. The F-35 was developed from the outset for export to allied nations, and Israel has used the F-35 for strikes against targets in Syria. It is important to note that Israel has relied heavily on its decades old squadrons of F-15 and F-16 multi-role aircraft to bear the brunt of most combat missions. Approximately 300 units of all versions have been produced so far for both the U.S. military and foreign militaries, yet only Israel and the USMC have declared the aircraft combat ready. A major issue facing the program is the fact that aircraft manufacturing began years before the plane was deemed fit for operational deployment, largely because so many deficiencies have been identified and have had to be rectified. This was the result of concurrency, a procurement process that allowed for production of the aircraft prior to final approval of the design. It was agreed that all deficiencies identified would eventually be addressed and rectified in airframes already manufactured at a later date in order to bring them up to the latest standard.
Not only has the F-35 not attained wide operational status seventeen years after its first flight, but it has pulled an exorbitant amount of funding from existing, combat proven aircraft. What could have been done to maintain and improve existing squadrons of F-15 Eagles, F-16 Fighting Falcons, A-10 Thunderbolt IIs, and F/A-18 Hornets currently in varying states of disrepair and serviceability? The idea of replacing all of these front line aircraft with the F-35 is laughable. What kind of imperial hubris and institutional tunnel vision could have led to such an ill-advised decision? The answer is the institutionalized corruption and waste of the U.S. military industrial complex. It continues to leave the United States less protected, and sends American soldiers, marines, sailors and airmen into combat with increasingly less capable weapons.
Atrophy and Exhaustion
The U.S. military has been engaged in counterinsurgency warfare in Afghanistan for over seventeen years. The disastrous invasion of Iraq, the destruction of Libya, and counterinsurgency operations in a host of nations including, but not limited to Yemen, Somalia, Niger and Nigeria, have all taken a toll on the U.S. military. Not only has a great deal of military hardware been destroyed, but a great deal of equipment has been worn out and essentially must be retired from service. More importantly, the constant deployments have undermined the personnel needs of all services, with thousands of men having been killed or physically and psychologically maimed for life. Tens of thousands of the most skilled commissioned and non-commissioned officers have left the services, many of them having served multiple combat deployments.
The fact that 62% of U.S. Navy’s F-18s are not mission capable is not an anomaly. In 2017, approximately 72% of all U.S. Air Force aircraft were not flight worthy. Many of the airframes are quite old, yet well within their engineered service life, but most are in need of maintenance. Both the Navy and Air Force claim that there is not enough money in their respective budgets to procure the needed spare parts to keep these aircraft flying. One would wonder that if this is the case, why tens of billions of dollars are being poured into new aircraft when existing fleets are being left in disrepair. The decisions being made in the upper echelon of the DOD are quite perplexing for the thousands of soldiers, sailors and airmen struggling to keep weapons and vehicles ready for action.
The U.S. Army finds itself looking for buyers of surplus MRAPs, vehicles of little utility in a major conventional war with a peer adversary, while at the same time lacking spare parts and munitions for armored vehicles and artillery systems. While the Army has made some progress in procuring the first of the 49,099 JLTVs it wants, it is far behind in all other armored vehicle procurement and development programs. BAE has delivered the first batch of 29 AMPVs to the U.S. Army for extensive testing before the decision can be made to start low rate initial production (LRIP). Once the LRIP begins, it is estimated that BAE will be able to produce approximately 262 units annually, unless the company’s main manufacturing facility in Pennsylvania is expanded. The initial contract is worth $1.6 billion USD. The Army wants at least 3,000 AMPVs of six different main variants to replace the thousands of M113 armored vehicles still in service. The M113 first saw service in 1962 and a replacement for the venerable vehicle has been required for decades.
Defense Secretary James Mattis made it crystal clear in his National Defense Strategy that the U.S. must rebuild its conventional warfare capabilities. The U.S. Army’s proposed 2019 budget lays bare the new priorities of a service facing a major transition in priorities. Procurement of tracked combat vehicles, as well as artillery rounds, rockets and missiles account for much of this latest budget request. Procurement is up by 18.4% over the previous year, with procurement of weapons and tracked vehicles up 84% over the previous year. Although upgrading of the M109 Paladin self-propelled howitzer to the M109A7 level is down by 56% compared to 2018, procurement of 155mm artillery rounds is up a whopping 800%.
The percentage of total procurement directed toward weapons and tracked combat vehicles in the 2019 proposed budget denotes that the U.S. Army recognizes its weakness in conventional warfighting capability.
This chart clearly shows the desire on the part of the U.S. Army to upgrade and rearm conventional capabilities. 155mm artillery rounds and Army Tactical Missile System upgrades to the M207 MLRS are at the top of the list, followed by MBT upgrades and acquisition of new AMPV vehicles.
As the U.S. Army attempts to rebuild its aged and depleted armored brigade combat teams and conventional and rocket artillery, the U.S. Navy and Air Force are facing their own challenges. The Navy finds itself in a position that is far from enviable, but was very easy to predict. Having dumped $38 billion USD into two failed new classes of warships and a further $13 billion into a new aircraft carrier that will likely not become operational until 2022, the service is currently in the process of realigning its priorities. The service is struggling to procure the new VirginiaClass SSN and Columbia Class SSBNs that are required to ensure the viability of the nation’s nuclear deterrent triad well into the foreseeable future. These defensive weapons programs, which are integral to U.S. national security, could have benefitted greatly from the $50 billion wasted on the LCS, DDG-1000 and Gerald R. Ford programs. Russia and China have spent the same time wasted by the U.S. Navy on updating and modernizing their own submarine forces, chiefly their ballistic missile submarines.
Institutional Corruption
If one had to identify the main reason behind the utter failure of the U.S. political establishment and military leadership, both civilian and in uniform, to identify and prioritize weapons programs and procurement that was truly in line with the national defense needs of the country, it would be the institutional corruption of the U.S. military industrial complex. This is not a fault of one party, but is the inevitable outcome of a thoroughly corrupted system that both generates and wastes great wealth at the expense of the many for the benefit of the few.
Massive defense budgets do not lead to powerful military forces nor sound national defense strategy. The United States is the most glaring example of how a nation’s treasure can be wasted, its citizens robbed for generations, and its political processes undermined by an industry bent on maximizing profitability by encouraging and exacerbating conflict. At this point it is questionable that the United States’ could remain economically viable without war, so much of its GDP is connected in some way to the pursuit of conflict.
There is no doubt that the War Department was renamed the Department of Defense in an Orwellian sleight of hand in 1947, just a few years after end of World War II. The military industrial complex grew into a monolith during the war, and the only way to justify the expansion of the complex, was by finding a new enemy to justify the new reality of a massive standing military, something that the U.S. Constitution expressly forbids. This unlawful state of affairs has persisted and expanded into a rotten, bloated edifice of waste. Wasted effort, wasted wealth and the wasted lives of millions of people spanning every corner of the planet. Tens of thousands of brave men and women in uniform, and millions of civilians of so many nations, have been tossed into the blades of this immoral meat grinder for generations.
President Donald Trump was very proud to announce the largest U.S. military budget in the nation’s history last year. The United States spent (or more accurately, borrowed from generations yet to come) no less than $874.4 billion USD. The declared base budget for 2017 was $523.2 billion USD, yet there are also the Overseas Contingency Operations and Support budgets that have to be considered in determining the total cost. The total DOD annual costs have doubled from 2003 to the present. Yet, what has the DOD really accomplished with so much money and effort? Very little of benefit to the U.S. tax payer for sure, and paradoxically the exorbitant waste of the past fifteen years have left every branch of the U.S. military weaker.
The U.S. Congress has the duty and responsibility of reigning in the military adventurism of the executive branch. They have the sole authority to declare war, but more importantly, the sole authority to approve the budget requests of the military. It is laughable to think that the U.S. Congress will do anything to reign in military spending. The Congress and the Senate are as equally guilty as the Executive in promoting and benefitting from the military industrial complex. Envisioned as a bulwark against executive power, the U.S. Congress has become an integral component of that complex. No Senator or Representative would dare to go against the industry that employs so many constituents within their state, or pass up on the benefits afforded them through the legalized insider-trading exclusive to them, or the lucrative jobs that await them in the defense industry and the many think tanks that promote continued prosecution of war.
Possible Reforms
It would be quite simple for the U.S. Department of Defense to rectify the current endemic problems that have rendered it weaker and less prepared for a major conventional conflict with a peer adversary. The greater challenge is transforming the relationship between the federal and state governments back to the constitutionally intended one, and to dissolve the powers of the now allied executive, legislative and judicial branches of the federal government. This would undermine the ability of the military industrial complex to coerce the nation into working against the interests of the states and the citizenry. The military industrial complex and the Deep State that serves it can only exist when power is greatly concentrated in a federal system.
For the sake of argument, if the political will could be found to work against the military industrial complex in the interests of true national defense and fiscal responsibility, the following steps could be taken immediately to rectify the many problems facing the military services of the United States:
The U.S. Army
Abandon the obsession with counterinsurgency and occupation and realign the focus of the Army on the defense of the homeland and a handful of historical allies. Rebuild the Army as a lean and well-equipped conventional fighting force. The most highly trained and experienced cadres of special operations forces should be retained, with other members dispersed to more conventional infantry, airborne and reconnaissance units. Most of these men would be moved to reserve status. Personnel should be cut by at least 25%, the majority retained moved to reserve status, and many overseas bases and operations ceased. The focus should be on defense of the nation’s own territories, while also safeguarding the economic interests and maritime trade lanes that are the lifeblood of any nation.
All legacy systems that have proven capable and efficient on the modern battlefield should be refurbished and upgraded to the most modern standard. The M2 Bradley modernization program should be continued, and the AMPV program given increased priority so that the thousands of M113 vehicles can finally end their 56 year tour of duty. MRAP inventories should be reduced to the very minimum and all surplus units sold off to recoup some of the expense incurred in their procurement and the money directed into offsetting procurement costs of new AMPVs and JLTVs.
The JLTV platform is a modular, easily upgradable light tactical vehicle that can be tailored to fit the mission. Although most units should be the basic utility variant, many will need to be acquired to fill the roles of light armored reconnaissance, armored security, convoy security, and light special operations vehicles. An air-droppable airborne armored fighting vehicle should be developed based on the JLTV. The U.S. airborne forces have lacked any real armored fighting vehicle that can accompany them in parachute operations since the M551 was retired in 1996. An up-armored JLTV equipped with a 30mm autocannon would serve as a good stopgap until a purpose built tracked vehicle could be designed. The venerable and ubiquitous HMMWV should maintain its utility role in all non-combat formations, as well as the basis for the Avenger light anti-aircraft missile system for years to come.
Of greatest importance is the rejuvenation of the armored and mechanized units of the U.S. Army. The M1126 Stryker family of wheeled armored vehicles cannot bear the weight of a conventional conflict with either Russia or China. The M1A2SepV3 MBT upgrade, including the addition of the Trophy APS should be afforded adequate funding, yet the greatest need of the Army is the replacement of the M113 in combat units. The U.S. Army’s proposed 3,000 unit procurement of AMPVs is a good start.
The artillery arm of the U.S. Army must gain the attention it has lacked since the dissolving of the Soviet Union and the success of Operation Desert Storm. U.S. military planners and the leadership of the DOD must realize the continued importance of both conventional and rocket artillery on the modern battlefield. The U.S. Army only operates two self-propelled artillery systems, the M109 Paladin and M270 MLRS. This is not necessarily a bad thing as long as both systems are maintained, upgraded and fielded in sufficient number. The M109A7 upgrade program must gain greater funding in the immediate future.
The U.S. Navy
The LCS and DDG-1000 programs are a national disgrace and should be declared as such. The two existing DDG-1000s should be used as test beds for future engineering and weapons systems. The third vessel should be cancelled immediately. As for the LCS, the existing fleet should be used for littoral patrol duties, and all units currently under construction or planned should be cancelled. Enough money has been wasted on these horribly conceived and even more horribly manifested examples of the monumental corruption and waste so integral to the U.S. defense industry.
Freedom Class LCS (background) and Independence Class LCS (foreground). Arguably two of the most monumental failures of warship design in modern history. A cautionary tale of waste and ineptitude.
The FFG(X) program to design a modern yet conventional multi-purpose frigate for the U.S. Navy should be fully embraced. The new frigate should adhere to the traditional naval warfare duties of a frigate and should be designed to sufficiently fulfill a balance of AAW, ASW, and surface warfare missions. In conjunction, priority should be given to procurement of the new DDG-51 Arleigh Burke Flight III. The Arleigh Burke has been the backbone of the U.S. Navy since it entered service. It is a well-designed, balanced, flexible and powerful naval combatant of significant displacement. It puts the LCS and the Zumwalt to shame in every respect, and has existed as a symbol of U.S. Navy power and presence across the length and breadth of the globe since 1991.
It is almost unconscionable that with the richest and most accomplished history of aircraft carrier aviation under its belt, that the U.S. Navy could not come up with a better design for the next generation of CVNs than the Gerald R. Ford Class. Perhaps the namesake of the lead vessel in the class was well chosen, as President Ford was far from a memorable performer; however, the wisdom of the entire program from its very inception must be questioned. The U.S. Navy must outgrow the “super carrier” fixation. There is a future for aircraft carriers, yet on a far different pattern than what the U.S. Navy has operated for the past 50 years.
The greatest area of concern for the U.S. Navy is the weakness of the carrier air wing, a weakness that will not be fundamentally corrected by the introduction of the F-35 in U.S. Navy and USMC service aboard U.S. carriers. A new, longer range fleet defense aircraft akin to a modern F-14 Tomcat must be developed. In addition, a new attack aircraft must be developed with a range that exceeds that of the F-18 Super Hornet by a factor of 100%. It is hard to believe that the F-4 Skyhawk had an operational combat radius exceeding 700 miles (2,000 mile maximum range), twice that of a Super Hornet. Additionally, the S-3 Viking must be re-tasked as a carrier borne aerial tanker, and the many airframes now mothballed, yet with thousands of hours of use left, need to be repurposed to this task. The current carrier air wing as it stands, even with the introduction of the F-35, is of little utility against a peer adversary such as Russia or China.
S-3 Viking in use as a carrier borne aerial refueling tanker. Even without significant modification, this stout little aircraft can carry 16,000 lbs. of fuel. The US Navy has 108 of these aircraft sitting in storage at a military aircraft storage facility in Arizona.
The United States must acquire both an SSN and SSBN to replace the Los Angeles and Ohio Class vessels that are approaching the end of their service lives. There is no greater defensive role for the U.S. Navy in ensuring the security of the nation than the continued operation of its attack and ballistic missile submarine forces. Both Russia and China understand this, and have greatly modernized their own submarine forces. Much of the success they have achieved in pushing the envelope of submarine design was due to their intense competition with a U.S. Navy submarine force that was always at the cutting edge of sub-surface warfare.
Conclusion
The United States stands at a crossroads in many respects, and the nation’s military equally so. All empires experience a period of over-expansion, military, economic and political over-reach and imbalance. The United States has followed in the wake of the many imperialist endeavors before it, with apparently little lessons having been learned. Imperialism is the inevitable result of power devoid of wisdom and humility. A nation borne out of a revolution against empire and absolutism has itself devolved into a much more dangerous and immoral avatar of its former oppressor. This must change.
While Defense Secretary Mattis clearly acknowledged the need to transform the U.S. military and realign it in a direction more focused on fighting and winning a conventional conflict with the near peer adversaries he identified as Russia and China, one can only hope that he realizes how the U.S. military that he served in for decades, got to the deplorable state that it now finds itself in. The greatest enemy that the U.S. military has fought for the past seventy years is undoubtedly the military industrial complex that it is an integral component of. The Soviet Union, North Korea, Vietnam, Yugoslavia, Iraq, Somalia, Afghanistan, Yemen, Libya, and Syria were never as much of a threat to the U.S. Armed Services as the corrupt military industrial complex and the Deep State that serves as its guardian.
The United States military is in the weakest state of material strength and readiness since the conclusion of the Cold War. The conventional ground forces of the Army have been transformed into a force bent on occupation and counterinsurgency. Its heavy armored formations are in a state of disrepair and material inferiority vis-a-vis its most capable theoretical adversaries. The cornerstone of American power projection and intimidation, the aircraft carrier strike groups, are a sad shadow of their former self. The carrier air wing, the entire reason that an aircraft carrier exists in the first place, has devolved into a tool of increasingly limited utility, with an ever diminishing reach.
The corrupt military industrial system that permeates every facet of American economic, political and even cultural life has sucked the very lifeblood from the nation, eroded its morality, bankrupt its economic future, and stolen a generation of its most patriotic and selfless sons and daughters. While James Mattis acknowledges the challenges facing the national security of the United States, he clearly misattributes the blame and misidentifies the very real adversary. Russia and China are not existential threats to the continued welfare of the American state. James Mattis need only look in the mirror to see the real threat, for he has come to represent the cabal of special interests that enslaves the nation and constitution he has pledged to serve, and holds the remainder of the world equally hostage.
There is very little chance that the reforms mentioned in this analysis will be adopted, or that the United States will move in a direction that brings it back to its inception as a constitutional republic. The interests of the military industrial complex in promoting conflict, and maximizing financial profit will continue to steer the United States military, and the nation as a whole, on an unsustainable and self-destructive path. There is little doubt that if the Deep State pushes the nation to war against Russia or China, and likely an alliance of the two, that the United States military has ever been in a weaker position. Such a conflict would be of no benefit to any of the nations concerned, yet many potential flash points exist that could lead to a conflict, including the South China Sea, Syria or Ukraine. As the United States plays catch-up after decades of military adventurism, China and Russia have spent that same time patiently and judiciously gathering their strength. The scenario of a one-sided victory in favor of the United States is pure fantasy, existing only in the daydreams of the emperor who wears no clothes.
- "How Central Bankers Rigged The World": An Interview With Nomi Prins
Former Goldman managing director, Nomi Prins, join Chris Blasi on The Great Reset Opportunity Report to discuss her new release Collusion, as well as current geopolitical and macroeconomic issues.
In this interview Nomi makes the case that central bankers have been rigging markets for the sake of the bankers at the expense of regular citizens, and will continue to do so. Nomi further shares her conclusion that should the ongoing machinations of the central bankers lead us into another global financial crisis they have no plan B.
The details supporting Nomi’s thesis and conclusions can be heard here along with her personal investing strategy
- Will The "Taiwan Question" Give Rise To A World War III Scenario?
Authored by Darius Shahtamasebi, op-ed via RT.com,
The United States and China are set to go head-to-head over disputes in relation to Taiwan and the South China Sea, with deadly consequences on the immediate horizon.
You wouldn’t know it with all the media hype over the US mid-term elections, but the US and China are on a deadly collision path in the South China Sea and Taiwan Strait. In the last two months, the US military has flown B-52 bombers and carried out its so-called “freedom of navigation” operations in the South China Sea. There have also been instances of US warships sailing through the Taiwan Strait in support of Taiwan, an island which China considers to be a rogue part of Chinese territory.
On a side note, it is amazing to say the least that the US believes it should have the “freedom to navigate” in the South China Sea, yet seems to get up in arms when Iranian ships expect the same kind of freedom in the Persian Gulf.
Near-collisions in the South China Sea
Last September, US and Chinese warships almost collided when sailing near an islet claimed by Beijing in the Spratly Islands. Reportedly, the Chinese warship threatened the US Destroyer that it would “suffer consequences” if it did not move, as it sailed within 45 yards of the American vessel.
In a last-ditch effort to avert this collision course, US Secretary of State Mike Pompeo and Secretary of Defence James Mattis will host their Chinese counterparts Yang Jiechi and China’s Defence Minister Wei Fenghe this Friday for talks on reducing tensions. However, I think we can say with some confidence that these talks will be absolutely meaningless. Firstly, China already canceled the first round of talks set for September due to their frustration over US-enforced sanctions. Secondly, Chief of US Naval Operations Adm. John Richardson just recently, and quite openly stated that the US and China “will meet each other more and more on the high seas”; with Jim “Mad Dog” Mattis saying in Mid-October that the US and its allies would “continue to fly, sail, and operate wherever international law allows and our national interests demand.”
And of course we know how much the US loves to travel even well beyond the realms of international law, so we can expect to take Mattis at his word quite literally.
Barely a few days ago, Pompeo for his part also warned China that it should “behave like a normal nation on commerce and with respect to the rules of international law” – whatever that means.
The Taiwan question
Since the near-collision in September, a US Navy research ship has also visited Taiwan and two US warships have sailed through the Taiwan Strait. According to Stratfor, the US is possibly attempting to standardize patrols in the area, even potentially paving the way for an aircraft carrier group to transit through.
At the end of October, China strengthened its resolve to protect its interests in Taiwan, vowing to never give up an inch of its territory. Incidentally, it was Wei Fenghe who stated that “if someone tries to separate Taiwan from China, the Chinese armed forces will take action at any price.” He also vowed the same regarding China’s interests in the South China Sea, where it has heavily fortified at least seven islands or reefs, loading them with military bases, airfields, and advanced weapons systems.
Wei’s remarks echoed the Chinese President Xi Jinping’s comments in a speech to the 19th Party Congress last year, when he said that “we have firm will, full confidence, and sufficient capability to defeat any form of Taiwan independence secession plot” adding that China “will never allow any person, any organization or any political party to split any part of the Chinese territory from China at any time or in any form.”
Supposedly, China intends to be ready to carry out a full-scale resumption of hostilities against Taiwan by 2020. Naturally, such hostilities will likely draw in some other notable players on the world stage. At the end of October, retired Lieutenant-General Ben Hodges warned that it was likely the US and China will be at war within 15 years.
Speaking about the near collisions referred to above, Hodges made the remarks, stating that: “you’re going to see us … permanently assign forces for the eventuality that in 10 or 15 years we’re going to be having to fight in the Pacific.”
In similar fashion, the Chinese president recently told the military region responsible for monitoring the South China Sea and Taiwan to “prepare for war.”
Just this week, Taiwanese Defense Minister Yen Teh-fa told legislators that his government was considering allowing the US Navy access to Taiping Island if Washington requested such access for humanitarian or regional security operations, but only if Washington’s interests were aligned with Taiwan’s. Taiping Island bears incredible strategic importance thanks to its location and resources. Allowing the US access to Taiping would give the US the mobility in the South China Sea that it has been hoping for, as well as giving Washington greater leverage over countries like Vietnam and the Philippines who incidentally, also find themselves in a territorial dispute with Beijing.
A World War III scenario
According to Foreign Policy’s T. Greer, a recent study by political scientist Michael Beckley and another one by Ian Easton, a fellow at the Project 2049 Institute showed that any war with China and Taiwan, even without US involvement, would be nothing short of a long, drawn-out catastrophe. A Chinese invasion would require the largest amphibious operation in human history with tens of thousands of vessels, incessant rocket and missile attacks, and at least one million Chinese troops. If a Chinese victory does not occur swiftly, it will have some 2.5 million Taiwan reservists to contend with, not to mention the likely pending Japanese and/or American counter-attack.
Despite this grim reality, a recent poll found that the majority of Taiwanese people think its military cannot defend against a Chinese invasion, with less than half of respondents confident that the US would send troops to help defend Taiwan.
A 2018 report by the US Department of Defense argued that China now possessed “the world’s largest and most capable maritime militia.” The Chinese People’s Liberation Army Navy (PLAN) has over 300 surface combatants, submarines, amphibious ships, patrol craft and specialized types, making it the largest navy force in the Indo-Pacific region (comparatively, the US has some 282 deployable battle force ships).
Regardless, Taiwan and the US are reportedly pushing ahead with their plans to repel any alleged Chinese invasion, with military drills set for the end of November between the two already in the works. Funnily enough, the drills will most likely take place in the area around Taiping Island. Taiwan’s military is also hoping to purchase MQ-8 Fire Scout uncrewed helicopters and MK-62 Quickstrike mines from the US. Taiwan may also seek to lay these mines in its waters close to Taipei as well as other key ports and bases, a plan which eerily echoes that of Greer’s report in Foreign Policy above.
People don’t need to be well-versed in international politics to see and feel the warning signs. A recent Military Times poll of active-duty troops showed that 46 percent of US troops believe the US will be drawn into a major war soon, with a focus on Russia and China in particular. Only 5 percent said the same thing in a similar poll conducted approximately a year ago.
In September, the Pentagon released a 146-page document entitled “Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States” which appeared to show that the US is preparing for a large, long-term war effort against Russia and China.
All the signs are there, and some countries are taking the issue more seriously than others. At the end of last month, Australia walked away from plans for a free trade agreement with Taiwan after China warned of repercussions between Canberra and Beijing. The fact that Australia was prepared to walk away should be quite telling of how important the Taiwan question is to China, with very few countries willing to challenge China on this position.
One can only hope that cooler heads will prevail but for those of us who understand what’s at stake, eventually, someone will have to back down in order for there to be any chance of averting a third world war scenario. When one of those countries is the United States, the likelihood of that nation backing down and pursuing a peaceful path of diplomacy instead grows thinner and thinner.
As American socialist Eugene V. Debs once said: “sooner or later every war of trade becomes a war of blood.”
- Millennial Congresswoman Says She Can't Afford A Washington Apartment
Here’s a problem that will make Alexandria Ocasio Cortez infinitely more relatable to her base of “Democratic socialist” millennials.
Cortez – who became the youngest woman ever elected to the House on Tuesday – is preparing to take her seat as the representative for New York’s 14th Congressional district. But first, she needs to find an apartment that she can afford.
In a fawning interview with the New York Times, where Ocasio-Cortez discussed how she’s planning to balance the pressures of satisfying her progressive base with the internal pressures to conform to the Democratic Party’s agenda, the Congresswoman-elect offhandedly shared that she still hasn’t figured out “the logistics” of moving to Washington – “logistics” like finding an apartment, a task that is being made more difficult by the fact that she won’t start drawing a salary until she’s sworn in early next year.
Her situation is unusual since, before embarking on the primary campaign that led to her historic upset of Democratic leader Joe Crowley, Ocasio-Cortez had been working as a bartender at a Union Square restaurant, and, like many millennials, has been struggling to pay back her student loans.
But fortunately, Ocasio-Cortez said that she and her partner had been “squirreling away” some savings to help her smoothly transition to Washington.
Ms. Ocasio-Cortez said the transition period will be “very unusual, because I can’t really take a salary. I have three months without a salary before I’m a member of Congress. So, how do I get an apartment? Those little things are very real.” She said she saved money before leaving her job at the restaurant, and planned accordingly with her partner. “We’re kind of just dealing with the logistics of it day by day, but I’ve really been just kind of squirreling away and then hoping that gets me to January.”
Ms. Ocasio-Cortez said she will skip a popular postelection meeting, which begins Friday, that draws many New York Democratic politicians to Puerto Rico because it conflicts with an orientation for new congressional members. And, as she put it, “I need a minute.”
In the meantime, she’s focused on meeting with constituents, managing her twitter account and juggling the massive influx of media requests.
Campaign aides are focused on closely managing Ms. Ocasio-Cortez’s time, in response to the enormous amounts of media obligations she’s had the past few months.
She’s also had a regular presence on social media, where she has more than a million followers. That’s likely to continue, along with all her appearances in Queens and in the Bronx. Ms. Ocasio-Cortez said it’s vital to meet people in person, for handshakes, selfies and conversations.
“It’s not just about a photo-op,” she said. “People tell you things. And they tell you what they believe. And they tell you what they want for themselves, for you, they tell you their stories.”
While Ocasio-Cortez hasn’t committed to backing Nancy Pelosi in the Democratic leader’s bid for speaker, many of her supporters will be watching to see if Ocasio-Cortez falls in line with the Democratic leadership and backs Pelosi, or instead throws her support behind a progressive challenger.
Regardless, hopefully, by that time, she’ll have found a place to crash.
- Superbugs Pose A Very Real Threat To Humanity
Authored by Mac Slavo via SHTFplan.com,
Superbugs, those pesky bacteria that have evolved to become resistant to antibiotics, are on the rise and pose a very real threat to humanity. Antimicrobial resistance is a large and growing problem, with the potential for enormous health and economic consequences for the United States and the rest of the world.
According to CNBC, the media outlet which reported on a new OECD (Organization for Economic Cooperation and Development) report, released Wednesday, superbug infections could cost the lives of about 2.4 million people in North America, Europe, and Australia over the next 30 years unless more is done to stem antibiotic resistance, which is already high across the globe.
Resistance is also projected to grow even more rapidly in low- and middle-income countries. In Brazil, Indonesia, and Russia, for example, between 40 percent and 60 percent of infections are already resistant, compared to an average of 17 percent in OECD countries. In these countries, the growth of antimicrobial resistance rates is forecast to be 4 to 7 times higher than in OECD countries between now and 2050.
About 29,500 persons die each year on average in the United States from infections related to eight drug-resistant bacteria. By 2050, that number is expected to rise sharply. It is estimated that antimicrobial resistance will kill about 1 million people in the United States, in just over 30 years.
The economic toll of this superbug crisis is huge: In the United States alone the health-care costs dealing with antimicrobial resistance could reach $65 billion by 2050, according to the OECD report. That is more than the flu, HIV, and tuberculosis. If projections are correct, resistance to backup antibiotics will be 70 percent higher in 2030 compared to 2005 in OECD countries. In the same period, resistance to third-line treatments will double across EU countries. –CNBC
Earlier this year, the U.S. Centers for Disease Control and Prevention (CDC) warned it had detected 221 strains of a rare breed of “nightmare bacteria.” This bacteria is virtually untreatable by antibiotics and have special genes that enable them to spread their resistance to other germs. Nightmare bacteria is particularly deadly in the elderly and people with chronic illnesses. The probability of developing a resistant infection is also significantly higher for children up to 12 months of age, and men are also more likely to develop resistant infections than women. Nearly half of the resulting infections prove fatal.
The best thing to do right now is educating on antibiotic-resistant superbugs and how to prevent them. As with the HIV epidemic, knowing how to prevent infection is tantamount to getting these superbugs under control. It’s also something that can be done on your own without anyone else’s help. Promoting better hygiene and sanitation among health-care workers, ending the overprescription of antibiotics, testing patients more quickly to determine whether they have viral or bacterial infections, delaying antibiotic prescriptions by three days, and creating more public awareness campaigns could all help counter one of the biggest threats to humanity.
- Watch China Show Off Its Newest Stealth Jet In Dazzling Flight Demo
Beijing’s fifth-generation stealth jets displayed a dazzling fifteen-minute performance earlier this week at Airshow China 2018. The jets wowed more than 20,000 spectators by performing combat maneuvers in Zhuhai, South China’s Guangdong Province, said People’s Daily Online.
The J-20 stealth jets were first unveiled to the public at Airshow China 2016.
Wei Dongxu, a Beijing-based military expert, told the Global Times on Tuesday that the J-20s sported a new camouflage look for improved stealth capability.
The J-20’s longer flight demo this year shows that the People’s Liberation Army Air Force is now confident that China has mastered fifth-generation flight technology, Wei said.
Yang Wei, the jet’s chief designer, said the plane’s superior “flight performance is quite obvious.” He also said the full capability of the stealth fighters would only be known during a war.
China’s newly domestic-built J-20 #stealth fighter has been unveiled to the public for the first time at China’s International Aviation and Aerospace Exhibition. pic.twitter.com/YKzUN3fYHd
— China Daily (@ChinaDaily) November 7, 2018
Wei made the comments at a press conference hosted by his employer, the Aviation Industry Corporation of China, the manufacturer of the J-20.
J-20 stealth fighter jets take to the sky at Airshow China in Zhuhai.#J20 #Airshow pic.twitter.com/7UcCXX11QD
— China Xinhua News (@XHNews) November 6, 2018
People’s Daily Online also said some of the stealth jets were outfitted with a new engine and thrust vectoring control nozzle during the airshow. That allowed the planes to make advanced air combat maneuvers, including the J-turn, the Cobra, and the Falling Like A Leaf moves.
“In the past, the engine was a well-known weakness of Chinese fighter jets, since we relied heavily on imports, but the J-10B proves that China can build first-class, thrust-vectoring engines to power our advanced fighters,” a People’s Liberation Army Air Force lieutenant colonel told the Global Times, adding that this new engine technology could give China an advantage in close-combat dogfights.
The J-20 stealth fighter jets, one of China’s most advanced jets, looked like ballerinas as they performed over the exhibition hall of the #AirshowChina 2018. pic.twitter.com/9fc5ZSnpxq
— Global Times (@globaltimesnews) November 6, 2018
Zhou Chenming, a military expert in Beijing, told the South China Morning Post that the “J-10 is finally able to show its real fighting capability after being equipped with the new engines.”
Another Chinese military expert, Song Zhongping, told the Global Times that the engine would likely result in the development of the next iteration of the J-20 stealth fighter, called the J-20A.
It seems that China’s fifth-generation stealth capabilities could be on par with the US. This threat will certainly not going unanswered by the West. China is preparing for war with new stealth technology, as a trade war between both countries is spiraling out of control. When trade stops, that is when a hot conflict could develop over the South China Sea.
- Russian State-Owned Bank VTB Funded Rosneft Stake Sale To Qatari Fund
Authored by Irina Slav via Oilprice.com,
Russian VTB, a state-owned bank, funded a significant portion of the Qatar Investment Authority’s acquisition of a stake in oil giant Rosneft, Reuters reports, quoting nine unnamed sources familiar with the deal.
VTB, however, has denied to Reuters taking any part in the deal.
“VTB has not issued and is not planning to issue a loan to QIA to finance the acquisition,” the bank said in response for a request for comment.
The Reuters sources, however, claim VTB provided a US$6 billion loan to the Qatar sovereign wealth fund that teamed up with Swiss Glencore to acquire 19.5 percent in Rosneft last year.
Reuters cites data regarding VTB’s activity issued by the Russian central bank that shows VTB lent US$6.7 billion (434 billion rubles) to unnamed foreign entities and the loan followed another loan of US$5.20 billion (350 billion rubles) from the same central bank.
The news first made headlines in December, taking markets by surprise, as Rosneft’s partial privatization was expected by most to be limited to Russian investors. The price tag on the stake was around US$11.57 billion (692 billion rubles), of which Glencore agreed to contribute US$324 million. The remainder was forked over by the Qatar Investment Authority, as well as non-recourse bank financing.
Russia’s budget received about US$10.55 billion (710.8 billion rubles) from the deal, including US$ 270 million (18 billion rubles) in extra dividends. Rosneft, for its part, got an indirect stake in Glencore of 0.54 percent.
Later, it emerged that QIA and Glencore planned to sell the majority of the stake they had acquired in Rosneft to China’s energy conglomerate CEFC, but the deal fell through after Beijing set its sights on CEFC and launched an investigation that saw the removal of its chief executive. The investigation was reportedly part of a wide crackdown on illicit business practices on the part of private Chinese companies favored by Beijing.
- Chinese Auto Sales Suffer Historic Collapse; Set For First Annual Decline In 30 Years
China was supposed to be the saving grace of the global auto market, pitched by auto makers and analysts as an endless area of opportunity and growth. Instead, China’s October auto sales numbers have been another disaster, a harbinger for an accelerating global slowdown for the industry. Automobile sales were down 12% y/y in October, sliding to 2.38 million, according to the Wall Street Journal. And with this dreadful annual comp, 2018 has now turned negative for overall Chinese auto market.
A quick breakdown: passenger car sales fell 13% in the month to 2.05 million, down 8% for the third quarter. Passenger car sales were off 1% for the first 10 months of the year. That puts them down 1% for the first 10 months of the year, on course for their first yearly decline in nearly three decades.
Sales of commercial vehicles were down 3% last month to 333,000, but at least remain slightly positive, up 5.5% for the year.
The silver lining were electric vehicles: they were the sole area of growth last month, posting a gain of 51%. For the first 10 months of the year, sales were up 76% to 860,000 fueled by government subsidies and favorable policies, as well as still prevailing novelty. However, keep in mind the sample size is still small enough to barely register.
This 12% drop for China follows a similar drop in September and a 4% decline in both July and August. It was the steepest drop since late 2012, which also marked the fourth consecutive month of declines at the time.
Yao Jie, vice secretary general of CAAM (the China Association of Automobile Manufacturers) commented at a press conference in Beijing: “Maintaining positive growth to the end of the year won’t be easy. There could be negative growth.” As noted above, if that happens, it would be the first time since at least the early 1990s that annual car sales in China have contracted.
CAAM had originally forecast a 3% rise for the year, in line with last year’s growth, though sharply down from a 13.7% gain in 2016.
What is remarkable, is that unlike many other slowdowns the Chinese government has so far refused to intervene and stimulate the market. In the past, during periods of sharp slowdown, Beijing has proceeded with tax cuts, and while some analysts still believe that this is possible even despite the ongoing trade war with United States, the Chinese manufacturers association doesn’t think that a tax cut is the answer.
Shi Jianhua, the association’s deputy secretary-general, told the Wall Street Journal, “We do not advocate short-term stimulus measures. We support long-term policies that can help the industry to grow at a slow and steady pace.”
As a result, China has now conceded that 2018 vehicle sales, in total, will fall short of the 28.8 million that were sold last year.
Further weighing on the auto industry is the ongoing stubborn bear market in Chinese stock prices leaving citizens with less disposable income.
China could wind up a huge (and somewhat unexpected) contributor to a major global pull back in the automotive sector because it has widely been seen over the last decade as an opportunistic spot for growth by auto makers. For instance, companies like Tesla (of course) have recently cited China as a way to gain a bigger slice of the global auto market. Auto sales in the United States and Europe have already started to plateau or fall, but China was widely seen as a remaining area for opportunity. Obviously, that changes now.
Just weeks ago, we noted that China was mentioned very cautiously by automakers, many of whom were offered pessimistic forecasts for the remainder of this year. Renault recently blamed its poor numbers on a global slowdown in sales in places like China and Europe, as well new emissions standards. Volkswagen also recently cut its sales forecast for China, citing a slowdown in the country as well as the looming trade war with the United States.
China’s slowdown has also hit names like General Motors which last month reported a 15% drop in China deliveries for the three months ended Sept. 30, the first quarterly report since the trade tensions with the U.S. began escalating in July.
When we last looked at the Chinese auto sector last month we quoted Bloomberg Intelligence analyst Steve Man who said that “the slump may be the biggest that auto manufacturers have ever experienced in China.” And just like in the US, weaker brands will be hit disproportionately, forcing price cuts to boost sales, Man said. Some carmakers may also be forced to shutter factories to reduce inventories and lower costs. The end result could be another deflationary wave coupled with China’s biggest nightmare: mass layoffs.
- Politics: The Cancer That Must Be Eradicated Once And For All
Authored by Paul Kindlon via TheDuran.com,
In the United States two political parties have now divided the nation with the kind of violent partisan rhetoric that erupted just before the Civil War…
The 2016 election of Donald Trump as president set off a tidal wave of anger and resentment that has divided America into two bitterly opposed camps. Those on the left consider Trump to be the embodiment of evil whereas many on the right see him as a “disrupter” and champion of the common man. The recent mid-term elections revealed that this conflict between pro-Trump and anti-Trump forces continues unabated.
The political divide in America now is characterized by revenge-minded Democrats who are determined to remove Trump from office and those who will fight to prevent this from happening. As a result, the country will be mired in a lengthy political power struggle while important issues affecting the lives of millions will be neglected. America – sad to say – is currently a nation in crisis.
If a team of scientific crisis management experts were assembled to assess the cause of this problem they would surely arrive at the conclusion that it is “politics” pure and simple. The solution, therefore, would be the abolition of all political parties.
This is actually not a new idea. The French philosopher Simone Weil made this suggestion more than seventy years ago. This seemingly radical proposal has been resurrected and supported by the award-winning Canadian journalist Andrew Nikiforuk. As he pointed out this past summer:
“In the United States two political parties have now divided the nation with the kind of violent partisan rhetoric that erupted just before the Civil War. Across the Western world, political parties have turned parliaments into digital circuses, provoking waves of contempt among ordinary people…by actively preventing party members from speaking for truth or justice, modern political parties cultivate mendacity the way cell phones archive selfies. Party politics demand that politicians must, on a daily basis, lie to the party, lie to the public and lie to themselves.”
This is a damning indictment of politics not just political parties. And it should be clear to any clear-thinking citizen that the time has come to abandon this morally bankrupt system that has mismanaged our affairs through influence peddling and legal bribery innocuously labeled “campaign contributions”.
Weil and Nikiforuk are not anarchists and they are not proposing some form of extreme libertarianism requiring the dismantlement of government. Governing should be left to capable administrators and professional managers who are not beholden to wealthy donors or special interest groups. Rather than being “elected” they should be hired, paid a decent salary and evaluated for performance by a non-partisan committee of informed citizens.
If we fail to take this step then we are doomed to repeat the same mistakes of the past – suffering from a deeply flawed system that only produces corruption, conflict and economic woe.
We must declare total independence from the tyranny of politics before we are crushed under its weight. To borrow the immortal words of Thomas Paine: “The blood of the slain, the weeping voice of nature cries: ‘tis time to part”.
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