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Canada moves to 2% GDP end of FY25/26 - PMMC

I am on a LOGFAS course right now and consumption rates are a hot topic.

“When we started fielding some of these systems, we weren’t concerned about thousands of ballistic missiles, particularly from smaller countries,” Meink said.

Whether it’s air-based, ground-to-air, air defense, or offensive action systems, Meink said, “we just never predicted the numbers and scale of what we’re seeing.”


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How far have we come from our Cold War expectations of 72 hr battles and 3 week wars? Much less the end of history and peace dividends?


It is great that we are embracing all this counter-battery, high payload long range stuff, like HIMARS FOM and Mk41 compatible missiles but it seems to me that the urgent requirement, as seen in Ukraine, Russia and now the Gulf, is all the small calibre GBAD/CUAS/LAA guns, bullets and sub 70 mm missiles.

Concerted campaigns of missiles and drones are bad. More economically and politically debilitating is the sporadic attack from both internal and external actors.

The counter-battery stuff may eliminate most of the threats most of the time but it is the possibility that any target, any where can be at risk from anyone that is both novel and concerning.

And the worst part is that that elevate risk demands greater expenditure of time and money even if a single Radio Shack homebuilt never lands.

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Even if Trump and every president before him had not been demanding raising defence spending to 2, 3,5 or 5% the insurance companies would have got us there as actuarial risk increased.
 
I’ve seen quite a bit of video this evening of Iranian ballistic missile attacks with cluster warheads into Israeli. Israeli ambulance services have confirmed two dead today at one scene. Iran seems to certainly still have some dry powder… They’re not out of the fight yet.


I’ve not seen much today about strikes elsewhere in the Gulf; some of the Gulf states have been leaning in pretty hard on censorship of information about strikes, but maybe there just haven’t been many?

Not sure if you guys saw this but (yesterday?) an Iranian aligned militia flew an FOV drone seemingly unhindered through the U.S. embassy compound in Baghdad. The embassy has taken one or more additional hits since… It’s C-RAM system is definitely getting a workout. I fear that if they can fly FPV drones right into the compound low and slow, those higher end defensive systems may be pretty vulnerable to getting picked off once the FPVs are laden with explosives.

FPV recce of the embassy:
C-RAM fails to stop an incoming drone:

Iran appears to be exercising traffic control over the Strait, with some permitted vessels taking a routing through that brings them in close through Iranian waters.


While WTI and Brent Crude are holding steady around $100 a barrel, many Asian markets are seeing major spikes in prices for actual oil delivery; they get much of theirs from the conflict zone. It’s having real economic impacts. Most of the oil commodity prices we see quoted reflect paper trading such as futures. Actual physical delivery costs of Omani crude as one example are now north of $150/bbl.



There are lots of other economic sectors getting hit hard by this, only a few of which I’ve had time or brain cells to read up on. Apparently fertilizer is one to watch; a significant portion of the world’s urea apparently flows through the strait. A jump in fertilizer costs will be a real ‘oh shit’ for many.


So, various stuff that’s caught my eye today as I’ve had moments to read…

 
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