What impact may these developments have on the defense industry?
There's a massive amount of money going into defense industry in 2023 and probably in 2024 or 2025. And across the defense sector, there is intense effort in scaling up production of a wide range of systems. That's very difficult because of the pre-war configuration of the Western Defense Industrial Base, which has been designed over many years now to produce small numbers of extremely expensive weapons systems.
In this respect, the Russian defense industry is at an advantage: its ability to churn out artillery shells, and also new and/or refurbished tanks is very, very high.
In addition, in the field of hyper-sonic weapons, certain aspects of missile technology, Russia's considerably ahead, surprisingly. The Western defense industry is changing very rapidly, but I'm not sure it's changing fast enough. And ultimately, third part the answer is that all of the things that I've just talked about relate back, as everything in war, to the underlying strength of the society that is supporting the war. And the fact of the matter in my view is that the Russia-Ukraine War is a colossal blunder for the West. We have propelled Russia and China into a strategic compact that they would not have achieved independently because of their mutual antagonisms. This is a development in geopolitics that has the potential to be of importance for a century. Secondly, we've poured massive amounts of money, largely in the form of borrowed money, into the war directly, which will not get back. Thirdly, through the sanctions regime, the viability of the West European industrial economy has been torpedoed. We've caused ourselves massive injury, economic injury which can only be counted in the hundreds of billions of euros and that is a cost which will continue as long as the war does until cheap energy is turned back on.
How will cheap energy be turned back on, you may ask. Is there a single politician in the West who is prepared to expend the political capital to do that. I don't think so. You can imagine how massively humiliating that act is going to be, it will be described essentially as a surrender and probably rightly because that's effectively what it will be.





















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