The warlords in the European elections

The obesity 'pandemic' affects one in eight individuals

March 23 2024

Towards the Europeans. Dario Dongo at a conference on Saturday 13th in Ferrara

April 11 2024

Published by Dario Dongo on April 2 2024

1) BUSINESS

The conflict in Ukraine increased demand for weapons in 2022. Efforts to increase production capacity had also been hampered in many industries by labor shortages, rising costs and supply chain disruptions. Arms production - in 2022, compared to 2021 - is distributed as follows.

USA. The total revenue in arms of the 42 companies in the 'SIPRI Top 100' based in the United States decreased (-7,9%), although they remained in first place with a combined revenue of US$302 billion.

Russia. Only two Russian industries were included in the 100 'SIPRI Top 2022', due to lack of data. Their aggregate arms turnover fell (-12%), to US$20,8 billion.

Asia and Oceania. The overall turnover of the 22 companies in Asia and Oceania in the 'SIPRI Top 100' increased (+3,1%), reaching US$ 134 billion.

Europe. Revenues of the 26 European industries in the 'SIPRI Top 100' increased slightly (+0,9%), to exceed US$ 121 billion.

Middle East. The arms turnover of the 7 companies in the 'SIPRI Top 100' based in the Middle East increased more substantially (+11%), to US$17,9 billion. (1)

1.1) High intensity weapons of war

The war economy triggered by the conflict between the West and Russia, it gave rise to large orders - from the United States and many European countries - of specific categories of weapons intended for high-intensity conflicts. These include air defense systems, munitions, armored vehicles, artillery and missile systems, unmanned aerial vehicles (UAVs) and other unmanned systems.

The industries producing and supplying the US and EU with large volumes of the weapons needed in a war of attrition such as the Ukrainian war have therefore experienced a significant increase in demand, with arms revenues increasing as early as 2022. Turkey's Baykar, which produces UAVs using mostly non-standard components, thus doubled (+94%) its revenues from weapons. (1)

1.2) Industries and investors

Industrial groups specialized in weapons for high intensity conflicts today represent the most profitable investments for those who control the economy, and politics, on a planetary level. Some examples to follow:

– Lockheed Martin (USA), US$ 67,6 billion turnover 2023. The top four shareholders are State Street Corporation (15,6%), Vanguard Fiduciary Trust Co. (9,1%), BlackRock Advisors LLC (6,6%), Charles Schwab Investment Management (2,3%). This was followed by Geode Capital Management LLC (1,7%)

– Raytheon Technologies (USA), US$68,9 billion in revenues in 2023. Once again the top investors are Vanguard Fiduciary Trust Co. (9,3%), State Street Corporation (9,1%), BlackRock Advisors LLC (6,9%), Geode (2,1%)

– General Dynamics Corp (USA), US$ 42,3 turnover in 2023. Vanguard is the first investor, with two funds representing 16% of the shares. Also in the top ten are BlackRock (4,6%) and State Street (3,7%).

– BAE Systems (UK), US$ 29,1 turnover 2023. BlackRock in second place with two funds representing 6,8% of the shares, Vanguard in fifth place (3,4%) after Barclays (4%). The role of Capital Research and Management also stands out (9,8%), also present in all the companies mentioned above

– Thales (France), US$ 18,9 billion in revenues in 2023. French government in first place (26%), followed by Dassault Aviation (in which Airbus participates, with a 10,3% stake) and other French shareholders

– Elbit Systems (Israel), US$ 6 billion in turnover in 2023. Vanguard Fiduciary Trust Co. is the fifth shareholder, albeit with a smaller stake (1,8%)

– Rheinmetall (Germany), US$ 7,2 billion in turnover in 2023. Capital Research and Management, among the leading investors in US industries, is the largest shareholder (5%)

– MBDA (EU). US$4,9 billion in revenue in 2023, with new orders of US$9,9 billion and a total order book of US$28 billion. Golden deals for shareholders Airbus (37,5%), BAE Systems (37,5%) and Gruppo Leonardo (Italy, 25%)

– Israel Aerospace Industries, US$5,3 billion in revenues (2023). The sole shareholder is the State of Israel

– Saab (Sweden). Over 90% of its US$4,5 billion in revenue (2023) is from military sales, with record orders of US$13 billion. Investment funds and Swedish banks are the main shareholders

– Hanwha Aerospace (South Korea). US$7 billion in revenue in 2023, +250% compared to 2022. State Street Corporation is the fifth largest shareholder. (4)

1.3) War, a 'deadly' business

War is extremely profitable for private investors in the 'liberal' and 'democratic' economy, thanks to billion-dollar orders on high-margin goods that drain public resources in the name of 'national security'. Secret deals between politicians and top industrialists, regardless of the need and urgency.

Devastations and genocides in turn allow the burning of fictitious capital, i.e. financial bubbles on the real economy. (5) As well as fuelling new investment flows in the post-conflict economy. The only question that remains is which are the real authors of the belligerent international policies, the politicians or the big investors?

2) EU POLICY

Ursula von der Leyen – after the 'Pfizergate' that now sees her under investigation for the purchase of € 20 billion worth of vaccines, in possible conflict of interest (6,7,8) - has among other things 'rethought' the multi-billion dollar strategy of the 'Green Deal' to direct the public resources of the member states towards new opportunities for remuneration of the would-be masters of the world.

The 'shock doctrine' predicted by Naomi Klein in 2007, it was fully implemented both in the Covid era and in the subsequent one which is still ongoing. The Ukrainian opportunity was seized to first trigger the energy crisis - with giga-speculation and extra profits from the usual suspects (9) - and then the arms race. As always, at the expense of the populations.

2.1) Industry calls, politics answers

The CEOs of the Leonardo and Rheinmetall groups celebrated Easter by invoking the rebirth of the European war complex (10,11). Ursula von der Leyen, moreover, has announced that she intends to reintroduce herself at the helm of the European Commission precisely in the name of a new '2030 horizon'. Which is no longer about the 'Sustainable Development Goals' adopted in 2015 by the United Nations General Assembly, (12) but rather a substantial military commitment.

The European People's Party – in supporting Ursula von der Leyen (combination, former defense minister in Germany) – therefore leads a bellicose electoral program where it is expected to allocate huge public resources to the construction of 'integrated European forces'. The European Union should immediately allocate at least €100 billion, according to Commissioner Thierry Breton, to support the European arms industry. Tanks and missiles instead of aid to farmers and poor people. (13)

The 'Socialists and Democrats' in turn affirm 'the awareness that there is an existential question for the continent, for the EU'. Their Estonian MEP Sven Mikser thus went so far as to declare to Euronews that 'we have collectively discounted the peace dividend for too long'. (13) After all, everyone - 'conservatives' and liberals, Eurosceptics and even environmentalists, with the sole exception of 'The Left' - have so far supported the belligerent proposals of the von der Leyen Commission.

2.2) Peace, Earth and Dignity

What future for our children? Compulsory conscription in Europe to provide new cannon fodder for the warlords? A million dead in two years in the Eastern Oblasts of Ukraine alone is not enough? Do we have to 'give away' hundreds of billions more in arms, to 'defend' the Russian-speaking peoples from the Russians? Or perhaps the real goal is a real big war, with perhaps even only 'tactical' nuclear devices, between Europe and those who saved it from Nazi occupation with the greatest tribute of blood?

#PaceTerraDignità – the movement to which I am a member, running in the European elections of 6-9 June 2024 in the North-Eastern College (Emilia-Romagna, Veneto, Friuli-Venezia Giulia, and the provinces of Trento and Bolzano) - has very clear ideas on what to do. The European Union - already the epicentre of two world wars - must assume a status of absolute neutrality. Stop military investments and public supply of weapons to third countries. Green light to negotiations for lasting peace.

Invest public resources in public goods and services. Healthcare, education, minimum income and decent social pension, social welfare. We want to promote multilateralism and international cooperation, including on the Silk Road. (14) For a shared growth whose first objective is to promote the welfare of all populations and all individuals, no one excluded. We want to invest in research to cure rather than devastate people and ecosystems.

#PeaceEarthDignity. Our program, not for sale

Dario Dongo

Footnotes

(1) Xiao Liang, Lorenzo Scarazzato, Dr Lucie Béraud-Sudreau, Dr Nan Tian, Dr Diego Lopes da Silva, Eero Kristjan Sild.
The SIPRI Top 100 Arms-producing and Military Services Companies, 2022. SIPRI (Stockholm, December, 2023). https://doi.org/10.55163/UJNP6171

(2) Theo Andrew. Bernie Sanders: BlackRock, Vanguard and State Street 'oligarchy' threatens democracy. ETF streams. 2.1.24 https://tinyurl.com/3s8f8k9u

(3) Dario Dongo. The tentacles of finance on food sovereignty and our food. GIFT (Great Italian Food Trade). 31.3.24

(4) Source Market Screener, 30.3.24

(5) Fictitious capital can be defined as the enormous mass of credit securities that is not supported by a production base and by the exchange of goods, in the real economy, capable of valorising the securities themselves.

It is a 'bet on future wealth' which, as it is not anchored to material assets (such as gold, unanchored to the currency after the end of the Bretton Woods agreement), is unable to materialize and therefore tends to lose value. Periodic financial bubbles thus serve the accounting destruction of paper values but wars are much more effective.

The real destruction of capital is in fact the premise for reconstituting it through the production of weapons, first, and subsequent reconstruction works

(6) Cesare Sacchetti. The Pfizer-EU scandal: Did Ursula von der Leyen earn $760 million from vaccines? The eye of the needle. 19.10.23 https://tinyurl.com/29epy42d

(7) Guy Boulianne. Here is an exclusive investigation by Romanian journalist, Adrian Onciu, entitled: “Ursula Von der Liar and her lost memories of her” (censored in Romania and the European Union) https://tinyurl.com/334k7vyd

(8) European prosecutors take over Belgian probe into Pfizergate. Politico. 1.4.24 https://tinyurl.com/3v8mw79s

(9) Dario Dongo. Gas and electricity, an announced crisis. GIFT (Great Italian Food Trade). 20.3.22

(10) “The war risks spreading. It's time to prepare”: words of Roberto Cingolani, the CEO of Leonardo which produces armaments. Il Fatto Quotidiano. 31.3.24 https://tinyurl.com/5x2u95jn

(11) The owner of Rheinmetall calls on the EU to create European defense champions. BFM business. 1.4.24 https://tinyurl.com/3vvrbvt2

(12) Dario Dongo. Sustainable Development Goals, SDGs. The challenge of humanity. Égalité. 5.9.19

(13) Jack Schickler. EU Policy. Von der Leyen's Defense Union dream won't come easy – or cheap. EuroNews. 1.4.24 https://tinyurl.com/y6bcwz3b

(14) Dario Dongo. Italy - China, relations and prospects in the Belt and Road Initiative. GIFT (Great Italian Food Trade). 6.8.23