Saturday, September 13, 2014

Who Stands to Make Big Bucks From the War on ISIS

Fortune reports:
“The drone builders are going to have a field day,” says Dov Zakheim, who served as Pentagon Comptroller during the George W. Bush administration. That could mean a tidy profit for privately held General Atomics, maker of the Predator drone, the granddaddy in the category and still widely in use, as well as the second-generation Reaper, designed to carry 3,000 pounds worth of bombs. And to help survey vast expanses of desert, the military will rely on the Global Hawk, made by Northrop Grumman to hover at altitudes as high as 50,000 feet for up to four days at a time. Those vehicles will likely be making use of the Gorgon Stare. This sensor, developed by privately held Sierra Nevada, is capable of scoping a 4-kilometer diameter by filming with nine cameras...

Smaller players in the space will also get in on the action: Zakheim called out AeroVironment  , which manufactures unmanned aerial vehicles small enough to be launched by hand—including the Nano Hummingbird, made to look like its namesake and similarly diminutive, weighing less than a couple of double A batteries. And Jason Gursky, an analyst who covers the industry for Citigroup, identified DigitalGlobe  DGI -1.52% , a satellite company whose biggest business is selling non-classified digital imagery to federal agencies. The military will use that range of surveillance capability to pinpoint targets as it broadens its mission.

It is the munitions makers, however, who stand to reap the biggest windfall, especially in the short term. Topping that list is Lockheed Martin , producer of the Hellfire missile, a precision weapon that can be launched from multiple platforms, including Predator drones. Raytheon , which makes the Tomahawk, a long-range missile launched from the sea, and General Dynamics, which also has a munitions business, are also well-positioned, analysts say....

American military operations targeting ISIS have cost some $600 million since mid-June, with the U.S. now spending more than $7.5 million a day on the conflict by the Pentagon’s own accounting. Zakheim estimates that this figure could conceivably double as the operations intensify and the theater widens to Syria, with a significant chunk of the expenditures going to munitions.

1 comment:

  1. Highly decorated former USMC general Smedley Butler around 80 years ago:
    I spent thirty- three years and four months in active military service as a member of this country's most agile military force, the Marine Corps. I served in all commissioned ranks from Second Lieutenant to Major-General. And during that period, I spent most of my time being a high class muscle- man for Big Business, for Wall Street and for the Bankers. In short, I was a racketeer, a gangster for capitalism.

    I helped make Mexico, especially Tampico, safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefits of Wall Street. The record of racketeering is long. I helped purify Nicaragua for the international banking house of Brown Brothers in 1909-1912. I brought light to the Dominican Republic for American sugar interests in 1916. In China I helped to see to it that Standard Oil went its way unmolested.
    During those years, I had, as the boys in the back room would say, a swell racket. Looking back on it, I feel that I could have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents.

    War is just a racket. A racket is best described, I believe, as something that is not what it seems to the majority of people. Only a small inside group knows what it is about. It is conducted for the benefit of the very few at the expense of the masses.
    I believe in adequate defense at the coastline and nothing else. If a nation comes over here to fight, then we'll fight. The trouble with America is that when the dollar only earns 6 percent over here, then it gets restless and goes overseas to get 100 percent. Then the flag follows the dollar and the soldiers follow the flag.
    I wouldn't go to war again as I have done to protect some lousy investment of the bankers. There are only two things we should fight for. One is the defense of our homes and the other is the Bill of Rights. War for any other reason is simply a racket.

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