Gunmaker To The World

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From Boston.com:

NO ONE is minding the missile mart, and the world is on a spending spree. In June, the Stockholm International Peace Research Institute said global military expenditures rose 45 percent between 1998 and 2007, to $1.3 trillion. American firms, including Massachusetts-based Raytheon, occupied five of the top six spots on the list of sellers. This week, The New York Times reported that the Defense Department made $32 billion in foreign weapons and military equipment deals this year, compared to $12 billion in 2005. The United States now provides 52 percent of the world's arms, more than twice the share of second-place Russia.

The Pentagon says such sales create more security at a time of terrorism and tricky relations. But the lines at the American arms checkout counter are unprecedented. Saudi Arabia has purchased $8.8 billion in weapons since 2006. The United Arab Emirates is eyeing $16 billion. This will likely make Israel buy more arms. Not to mention the nearly $16 billion for weapons to fragile Iraq and Afghanistan since 2006.

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My Comment: With China and Russia now starting an arms race in Asia, I expect countries like India, Taiwan, and Japan, to significantly boost their military spending. In the Middle East, Iran's threats are having a profound impact on the military postures for most of the countries in the region. Iraq alone will probably be spending tens of billions in the next few years .... and they all will probably be buying American.

Hugo Chavez's militarization of the America's will also have the same impact. Brazil is reviewing their military structures, and I would not be surprised if they will make the decision to assume a regional power status to counter the growing militancy in countries like Venezuela, Bolivia, and Ecuador. American weapon systems will probably be the weapons of choice for most of these countries (if they can afford it).