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US universities are recruiting Indian and Nigerian students to replace Chinese. It’s not working.

Inside China Business | May 8, 2025

Chinese university students contribute over $14 billion a year to the US economy. But Chinese families are increasingly choosing to either study in China, or to other countries.

This shift is deepening the fiscal crises in American higher education, which also suffers from a steep decline in US student populations. US universities are heavily recruiting students from India and Africa, in the hope to make up for shortfalls in Chinese enrollments. And briefly, this strategy seemed to work.

A surge in students from India pushed China into second place, as a leading country of origin for US international students. But that was short-lived. Indian enrollment in the past year plunged, with 99,000 fewer students. Nigeria also saw double-digit percentage declines in just a one-year period.

A more serious problem, however, exists in the financial commitments of the students’ families. Chinese students cluster in the most highly-ranked, and most expensive, US university programs. In comparison, Indian and especially Nigerian students tend to attend far lower-cost programs. Closing scene, Detian Waterfall, near Nanning, Guangxi

Resources and links:

LA Times, Why Chinese students still want to attend U.S. universities https://www.latimes.com/world-nation/…

Interest in studying in US dropped 42% in January https://www.universityworldnews.com/p…

There are already 130,000 fewer international students in the US. Has anyone noticed? https://distributedprogress.substack….

Already facing Trump administration cuts, US colleges risk losses from another revenue source: foreign students https://www.cnn.com/2025/04/18/us/int…

SEVIS Data Shows Declining Number of International Students in the United States https://www.aau.edu/newsroom/leading-…

Wall Street Journal, Chinese Students on U.S. Campuses Are Ensnared in Political Standoff https://www.wsj.com/politics/policy/c…

Tracking College Closures and Mergers https://www.bestcolleges.com/research…

The Demographic Cliff: What It Means for College Admissions and Higher Education https://www.applerouth.com/blog/the-d…

US: New survey shows international student recruitment shifting to India in 2023 https://monitor.icef.com/2023/07/us-n…

Why the Next Wave of International Students May Come From Africa https://www.bestcolleges.com/news/wav…

May 9, 2025 Posted by | Economics, Video | , | Leave a comment

‘Scandal!’ – Hungary’s Orbán reacts to von der Leyen’s call to fast-track Ukraine membership in the EU

Remix News | May 8, 2025

According to EU commission President Ursula von der Leyen, Ukraine should be given more money and its accession to the EU should be accelerated. In response, Orbán called her policies a “scandal.”

“Ukraine gets money and weapons, and European taxpayers foot the bill,” said Orbán, who responded to von der Leyen’s speech on X.

EU support for Ukraine was discussed at the plenary session of the European Parliament on Wednesday.

In her speech, von der Leyen highlighted three critical points, saying Ukraine needs more weapons, that energy dependence on Russia needs to be ended, and that Ukraine’s ascension process into the EU should be accelerated.

Orbán is making a full-court press against von der Leyen’s speech, highlighting the threat Ukraine also poses to EU agriculture. He notes that Ukraine controls 40 percent of the arable land in Europe, which would result in the EU market being flooded with cheap crops.

Europe has already flooded Ukraine with tens of billions in taxpayer money, yet the EU wants to continue sending billions to the country, even as inflation has eaten into citizens’ pocketbooks.

Hungarian MEP András László wrote in a response that the most obvious reason for keeping Ukraine out of the EU is that a war is still raging between the country and Russia. However, rebuilding Ukraine will cost tens of billions, with some estimates going as high as hundreds of billions. With many EU nations already facing massive debt burdens, allowing Ukraine to enter the EU would perhaps be the greatest financial folly the bloc has ever partaken in.

May 8, 2025 Posted by | Economics | , | Leave a comment

EU Disburses Another $1.1Bln for Ukraine as Part of G7 Loan Secured by Russian Assets

Sputnik – 08.05.2025

MOSCOW – The European Commission on Thursday disbursed the fourth tranche of macro-financial assistance to Ukraine worth 1 billion euros ($1.1 billion) as part of the G7 loan meant to be repaid with proceeds from frozen Russian assets.

“Today, the European Commission disbursed the fourth tranche of its exceptional macro-financial assistance (MFA) loan to Ukraine, worth €1 billion,” the Commission said.

This is part of the EU’s 18.1 billion euro share of collective contributions within the G7’s 45 billion euro package for Ukraine. It comes on top of the 6 billion euros disbursed by the EU across the first three tranches, the statement read.

“These loans are to be repaid with proceeds from immobilised Russian State assets in the EU,” the Commission added.

Russian Foreign Minister Sergey Lavrov calls the freezing of assets “theft” and warns it’s not just private funds, but state assets targeted.

Vladimir Putin earlier warned that “stealing other people’s assets has never brought anyone good.”

May 8, 2025 Posted by | Economics, Militarism | , | Leave a comment

‘Absolute insanity’ – Hungary slams EU plan to halt Russian energy imports

RT | May 7, 2025

The European Commission’s plan to completely phase out Russian fuel imports violates the sovereignty of EU member states by depriving them of the right to choose their energy sources, according to Hungarian Foreign Minister Peter Szijjarto.

Brussels has outlined plans to end the bloc’s energy reliance on Moscow by completely eliminating imports of oil, gas, and nuclear fuel in the coming years.

Hungary obtains over 80% of its gas from Russia via pipeline, with LNG playing a supplementary role. Budapest has continued to strengthen its energy ties with Moscow despite the sanctions introduced by the EU in the wake of the Ukraine conflict.

“The forced, artificially ideological-based exclusion of natural gas, crude oil, and nuclear fuel originating from Russia will lead to severe price increases in Europe, seriously harming the sovereignty of European countries, and cause major difficulties for European companies,” Szijjarto said in a video he shared on his Facebook page on Tuesday, adding that “what was announced is absolute insanity.”

“Everyone in Brussels has lost their common sense,” the foreign minister exclaimed, emphasizing that Budapest would not allow the European Commission (EC) to violate Hungary’s sovereignty and would “uphold the right to source energy from where it reliably arrives and where it arrives at a low cost.”

Earlier in the day, the EC published a “roadmap” outlining its ambitious strategy to end reliance on Russian energy by the end of 2027. The bloc’s executive branch said it would propose legislation in June requiring all member states to draft “national plans” to terminate their imports of Russian gas, nuclear fuel, and oil.

Slovakia’s Prime Minister Robert Fico also criticized the plan, calling the proposal “economic suicide.” He added that Slovakia would push for changes in the legislative process.

Brussels announced its intention to wean EU members off Russian energy shortly after the escalation of the Ukraine conflict in February 2022. Supplies of US liquefied natural gas (LNG) have since replaced much of the cheaper pipeline gas previously delivered by Russia.

Although Russian pipeline gas supplies to the EU have plummeted, the bloc has been increasing its imports of LNG from the sanction-hit nation. Last year, Russia still accounted for around 19% of the EU’s total gas and LNG supply, according to the EC.

May 7, 2025 Posted by | Economics, Russophobia | , , | Leave a comment

‘A lot of people know’ who blew up Nord Stream – Trump

RT | May 6, 2025

US President Donald Trump has dismissed claims that Russia was behind the 2022 sabotage of the Nord Stream gas pipelines and suggested that the true culprit is widely known – without naming names.

Speaking at a White House press event, Trump said there was no need for a formal investigation to uncover who carried out the attack, which crippled a key energy route between Russia and Western Europe.

Three of the four Nord Stream pipelines, built to deliver Russian gas to Germany and the rest of Western Europe, were damaged by blasts at the bottom of the Baltic Sea in September 2022.

On Tuesday, a correspondent for libertarian financial blog ZeroHedge, which has been admitted to White House press events under the new administration, noted that Trump had previously rejected the Western narrative that Russia blew up its own pipelines, and asked the president if he was planning to initiate a probe to find out who was actually behind the attack.

“If you can believe it, they said Russia blew it up,” Trump responded. “Well, probably if I asked certain people, they would be able to tell you without having to waste a lot of money on an investigation. But I think a lot of people know who blew it up,” he added, without elaborating.

ZeroHedge suggested that Trump’s comment meant that “based on classified intelligence he knows exactly who was behind” the destruction of Nord Stream. It also “should put the ‘Russia destroyed its own vital and economically lucrative pipeline’ storyline to rest,” the outlet insisted.

In early February 2023, veteran investigative journalist Seymour Hersh published a report claiming that then US President Joe Biden had given the order to destroy Nord Stream. According to an informed source who talked to the Pulitzer Prize-winning journalist, the explosives that were detonated on September 26, 2022 had been planted at the pipelines by US Navy divers a few months earlier under the cover of a NATO exercise called ‘Baltops 22’. The White House denied the report, calling it “utterly false and complete fiction.”

Senior Russian officials, including President Vladimir Putin, have previously pointed the finger at the US as the possible culprit behind the Nord Stream explosions. They have argued that Washington had the technical means to carry out the operation and stood to gain the most, considering that the attack disrupted Russian energy supplies to the EU and forced a shift to more expensive US-supplied liquefied natural gas.

May 6, 2025 Posted by | Deception, Economics, War Crimes | , , , | Leave a comment

Nuclear Deterrence Requires Only Dozens Of Warheads — Not Thousands

America’s doomsday arsenal is as risky as it is wasteful

Stark Realities with Brian McGlinchey | April 30, 2025

Over the next decade, the US government plans to spend nearly $1 trillion on its nuclear arsenal — with the actual cost certain to run even higher than that. The huge outlay is driven in part by the sheer size of America’s doomsday-weapon collection, which comprises an estimated 3,700 deployed or stockpiled nuclear warheads, not counting another 1,500 that are purportedly “retired” and awaiting dismantlement.

Though Americans have been conditioned to think it’s reasonable to maintain such a large arsenal, the idea that thousands of warheads are required to deter nuclear aggression rests on flawed thinking about the nature of deterrence. While defense contractors and military bureaucracies enriched by the status quo will tell you otherwise, the truth is that an adequate arsenal of nuclear warheads can be measured not in thousands, but mere dozens.

During the Cold War, two successive doctrines guided nuclear war strategy. First came Massive Retaliation, which rested on the threat of a disproportionate, devastating nuclear response to either conventional or nuclear aggression. That gave way to Mutual Assured Destruction (MAD), in which any nuclear attack was guaranteed to escalate to the point where both countries are completely destroyed.

Both doctrines shared a cornerstone premise — that effective, credible deterrence requires the capability to completely destroy the opposing country. That’s the wrong yardstick. Deterrence is achieved by the ability to impose an intolerable level of retaliatory destruction on a country that’s contemplating a nuclear first-strike — a threshold far lower than border-to-border annihilation.

For perspective, in World War II, Russia and China each suffered roughly 20 million total civilian and military deaths. The same unfathomable fatality counts that spanned several years in World War II can be achieved in mere minutes with only 20 modern nuclear warheads — 15 striking Russian cities and only five hitting the more densely-populated cities of China, according to calculations by University of Maryland professor Steve Fetter.

If the United States chose to opt against the morally-repugnant targeting of population centers with little military significance (that is, cities similar to Hiroshima and Nagasaki), a second-strike could instead vaporize the enemy’s economy, targeting power generation, refinery complexes and vital ports (though even these nuclear attacks would inflict civilian death on a huge scale, not only from the blasts but also the economic destruction). Here, Fetter calculates 100 detonations would suffice.

The fatalities and destruction associated with either of those two targeting scenarios that pursue some level of societal devastation — so-called “countervalue targeting” — are well beyond what any foreign ruler would consider tolerable, suggesting that the anticipation of even one or two second-strike warheads would be sufficient to deter an adversary from striking first.

Note, this approach to deterrence, which focuses on the power to retaliate and inflict “intolerable” destruction, does not require adversaries with high moral character. It matters little whether an opposing ruler regards his citizens with loving empathy or depraved indifference. Rulers are ultimately driven by self-interest — and no leader can expect his hold on power to survive a nuclear gamble that brings about the vaporization of cities or irreplaceable economic assets in his own country. (Indeed, there may be no “power” to hold on to.) As political scientist Kenneth Waltz wrote in a milestone 1990 paper that promoted the peacekeeping value of nuclear weapons while making the case that small arsenals are sufficient, “Rulers like to continue to rule.”

Given these realities of deterrence, the size of an adversary’s nuclear arsenal has no bearing on the appropriate size of America’s. “So long as two or more countries have second-strike forces, to compare them is pointless,” wrote Waltz. “If no state can launch a disarming attack with high confidence, force comparisons become irrelevant…beyond a certain level of capability, additional forces provide no additional coverage for one party and pose no additional threat to others.”

In contrast to countervalue targeting, “counterforce targeting” aims to inflict military defeat by destroying a large, diverse array of military targets, such as missile silos, bomber and submarine bases, command and control facilities, and conventional forces.

Counterforce-targeting is what led both America and Russia to amass far larger arsenals than that of any other nuclear-armed country. Beyond the elevated general risk associated with securing, transporting, maintaining and training with these large volumes of warheads, the mutual targeting of nuclear weapon delivery platforms pursuant to counterforce doctrine encourages first strikes — launched out of fear that an opponent’s first strike would render one’s own weapons unusable.

Aside from the heightened risk of miscalculations during crises and accidental explosions during peace, America’s outsized nuclear arsenal threatens national security in a way that has nothing to do with mushroom clouds — by nudging the United States further along its path to financial catastrophe. As then-Chairman of the Joint Chiefs Mike Mullen warned in 2010, “The most significant threat to our national security is our debt.” His statement came when the national debt was only about a third of its current $36.8 trillion.

Of the trillion dollars to be spent on nuclear weapons through 2034, $460 billion will be spent on a “modernization” program that encompasses warheads, missiles and silos and submarines. Of that, the Pentagon expects to spend $120 billion to replace the current generation of land-based, Minuteman III ICBMs with Sentinel ICBMs made by Northrop Grumman. Last year, the Air Force notified Congress that the Sentinel program would cost 37% more than the previous estimate, and take two years longer to implement. If the history of Pentagon weapon procurement is any guide, we can count on more such announcements in the coming years.

Considered in the context of second-strike deterrence, the Sentinel program is particularly exasperating. Given their fixed locations in satellite-observable silos, land-based ICBMs represent the most vulnerable leg in the nuclear-arms triad, which also includes bombers and submarine-launched missiles. Put another way, it’s the leg that does the least to convince a nuclear adversary that the United States has a guaranteed second-strike capacity — which is the only strike capacity that matters. At the same time, land-based ICBMs are a magnet for enemy missiles, with one study suggesting nuclear strikes on US ICBMs could kill 300 million people across North America.

In February, President Trump expressed dismay at the ongoing development of new nukes. “There’s no reason for us to be building brand new nuclear weapons. We already have so many. You could destroy the world 50 times over, 100 times over. And here we are building new nuclear weapons, and they’re building nuclear weapons.”

Trump’s remarks came as he expressed interest in opening new arms control negotiations with Russia and China. That’s a noble pursuit, but when a second-strike capability is all the United States needs for defense, a case can be made for blazing a unilateral path toward rational and frugal nuclear deterrence — particularly when you consider the dangerously destabilizing nature of a huge arsenal built for counterforce targeting.

“There is no compelling military or strategic rationale for linking the size of U.S. nuclear forces to those of other nuclear weapon states,” wrote Fetter. “As long as the United States has enough survivable warheads to deter and respond to nuclear attacks, it should not matter how many weapons other countries have.” That’s not to discount the risk-reducing value of a far smaller Russian arsenal.

Alas, any move toward a dramatically slimmer US nuclear warhead inventory will face fierce opposition from those who benefit from today’s emphasis on numerical superiority. The status quo is a prime example of the principle of “concentrated benefits and diffused costs.” Via both taxation and inflation, the $1 trillion cost of sustaining and upgrading the arsenal over the next 10 years will be spread across hundreds of millions of Americans, including many who haven’t been born yet. Shuffled into the $90 trillion the US government is projected to spend over that same period, the cost flies under the radar of everyday Americans, precluding major political opposition.

The financial benefits, on the other hand, accrue to a relatively small number of stakeholders, from arms manufacturers to Pentagon and Department of Energy bureaucracies. The enjoyment of concentrated benefits incentivizes these stakeholders to fiercely defend the status quo, deploying a formidable influence arsenal that includes lobbyists, campaign contributions, the promises of jobs in 50 states and hundreds of congressional districts, and financial sponsorship of national security think tanks that steer policy.

While those who are enriched by America’s excessive nuclear arsenal have the upper hand, the status quo is so dangerous and wasteful that Americans of all political leanings should unite in challenging it.

May 5, 2025 Posted by | Economics, Militarism, Timeless or most popular | , | Leave a comment

Germany On the Path to Tyranny

By Jurij Kofner & Glenn Diesen
Glenn Diesen | May 2, 2025

AfD has polled as the most popular political party in Germany, and the political-media class has openly discussed banning the party. AfD as the main political opposition has now been designated as an “extremist organisation”, which opens up for the German intelligence service to surveil and crack down on the political opposition. This is reasonably interpreted as the first step to banning the main opposition party.

Both Marco Rubio and JD Vance have warned against Germany’s drift toward tyranny:

I discussed these issues with the economic advisor to AfD, Jurij Kofner.

May 4, 2025 Posted by | Economics, Malthusian Ideology, Phony Scarcity, Russophobia, Video | , , , | Leave a comment

Iran says US ‘not serious’ about nuclear talks after Trump imposes new sanctions

The Cradle | May 2, 2025

The Iranian Foreign Ministry affirmed on 2 May that Tehran is committed to continuing the diplomatic process and negotiations regarding its nuclear program but that it “will not accept pressure and threats that violate international law and target the rights of the Iranian people.”

In a statement, the ministry condemned the continued illegal sanctions on Iran and the “pressure on its economic partners,” viewing them as “further evidence that the United States is not serious about adopting a diplomatic approach toward Iran.”

It also stressed that the continuation of these policies “will not change Iran’s firm positions in defending its legitimate rights,” and that “testing failed methods will only lead to a repetition of past failures.”

The Foreign Ministry went on to say that the Iranian negotiating delegation, during the first three rounds, attempted to “reach a fair agreement that guarantees the rights of the Iranian people, within the specified frameworks that allow Tehran to use peaceful nuclear energy.”

Tehran entered indirect negotiations with Washington following US President Donald Trump’s letter to Iran’s Supreme Leader Ali Khamenei, to “resolve a fabricated crisis through diplomacy, based on good faith,” the statement added.

The Ministry’s statement came after Trump announced on Thursday that all purchases of Iranian oil or petrochemical products must stop, warning that any country or individual continuing such trade would face immediate secondary sanctions and be barred from doing business with the US.

“They will not be allowed to do business with the United States of America in any way, shape, or form,” he wrote on Truth Social on Thursday.

Secondary sanctions are a powerful tool for the US because of the size of its economy.

Trump’s comments follow the postponement of the latest US talks with Iran over its nuclear program.

The Iranian Foreign Ministry announced on Thursday that the fourth round of talks, which were due to take place in Rome on Saturday, had been rescheduled at the suggestion of the Sultanate of Oman for “logistical reasons.”

Sources speaking with Al Mayadeen he explained that the postponement came “against the backdrop of the conflicting positions taken by the US administration regarding the talks, and Washington’s efforts to change the general framework for negotiations that had been previously agreed upon.”

In a related development, US Secretary of State Marco Rubio asserted on 1 May that Iran must “walk away” from both uranium enrichment and the development of long-range missiles.

“They have to walk away from sponsoring terrorists, they have to walk away from helping the Houthis (in Yemen), they have to walk away from building long-range missiles that have no purpose to exist other than having nuclear weapons, and they have to walk away from enrichment,” Rubio said in an interview with Fox News.

His comments came as the fourth round of nuclear negotiations between Tehran and Washington, set to take place in Rome on Saturday, were postponed.

An Iranian official cited by Reuters said a new date for the talks would be set “depending on the US approach.”

Tehran has repeatedly affirmed that both its uranium enrichment and its defense capabilities are non-negotiable in the talks with the US.

May 3, 2025 Posted by | Economics, Wars for Israel | , , , | Leave a comment

Trump Requests Record $1.01 Trillion for National Defense for FY2026

Sputnik – 02.05.2025

WASHINGTON – US President Donald Trump has proposed a historic $1.01 trillion budget for national defense for fiscal year 2026, representing a 13% increase from the current year’s $878.4 billion, according to a document released by the Office of Management and Budget (OMB) on Friday.

“For Defense spending, the President proposes an increase of 13 percent to $1.01 trillion for FY 2026,” OMB director Russell Vought said in a letter to Senate Committee on Appropriations chair Susan Collins.

Trump also proposed to cut non-defense discretionary budget spending by $163 billion or 22.6%, according to the letter.

The defense budget request includes $113 billion in mandatory funding and emphasizes investments aimed at revitalizing the US defense industrial base, deterring potential Chinese aggression, and modernizing the US nuclear deterrent, the letter said.

Trump’s budget proposal supports US space dominance to strengthen US national security and strategic advantage, the letter added.

Donald Trump’s budget request for the fiscal year 2026 pauses most contributions to the United Nations and other international organizations, according to the document.

“The Budget pauses most assessed and all voluntary contributions to UN and other international organizations, including for the UN Regular Budget, UN Educational, Scientific and Cultural Organization, and the World Health Organization,” OMD director Russell Vought said in a letter to Senate Committee on Appropriations chair Susan Collins.

Trump’s budget also does not allocate funds for “wasteful” United Nations (UN) and other peacekeeping missions, citing recent failures and high assessment costs, according to the letter.

The Trump administration requested on Friday in its 2026 budget proposal to refocus NASA funding on flying to the Moon and sending humans to Mars.

“The Budget refocuses National Aeronautics and Space Administration (NASA) funding on beating China back to the Moon and on putting the first human on Mars. By allocating over $7 billion for lunar exploration and introducing $1 billion in new investments for Mars-focused programs, the Budget ensures that America’s human space exploration efforts remain unparalleled, innovative, and efficient,” the budget request said.

The budget request also included the reduction in the International Space Station’s (ISS) crew size, onboard research, and preparation for decommissioning by 2030.

“The Budget reduces the space station’s crew size and onboard research, preparing for a safe decommissioning of the station by 2030 and replacement by commercial space stations,” the White House said.

Trump has requested a record $175 billion investment to fully secure the US border, according to the document.

“For Homeland Security, the Budget commits a historic $175 billion investment to, at long last, fully secure our border,” OMB director Russell Vought said in a letter to Senate Committee on Appropriations chair Susan Collins.

The request reflects an almost 65% increase compared to the fiscal year 2025, when $107.9 billion was allocated for Homeland Security.

The Trump administration’s 2026 budget request included funding for the F-47 fighter jet program and a down-payment for the Golden Dome missile defense shield deployment in the United States, the White House said on Friday.

“Specifically, the Budget… makes a down-payment on the development and deployment of a Golden Dome for America, a next-generation missile defense shield that would protect the U.S. from missile threats coming from any adversary,” the White House said.

The budget proposal also funds the F-47 Next Generation Air Dominance platform: the world’s first crewed sixth-generation fighter aircraft”, it added.

The request included funding for the F-47 fighter jet program and a down-payment for the Golden Dome missile defense shield deployment in the United States, the White House said on Friday.

“Specifically, the Budget… makes a down-payment on the development and deployment of a Golden Dome for America, a next-generation missile defense shield that would protect the U.S. from missile threats coming from any adversary,” the White House said.

The budget proposal also funds the F-47 Next Generation Air Dominance platform, the world’s first crewed sixth-generation fighter aircraft”, it added.

Trump’s budget proposal eliminates funding for the National Endowment for Democracy program as it was used “to blacklist conservative media” and label figures like JD Vance as “foreign propagandists of the Russian Federation” under the Biden administration, the document said.

“National Endowment for Democracy (NED) – The Budget defunds this program that under the Biden Administration was used to dox journalists, push propaganda, and blacklist conservative media outlets, saving $315 million. In March 2025, it was uncovered that the Ukraine disinformation organization that doxxed U.S. journalists, called for prosecutions of Trump world, and smeared the likes of Vice President Vance and others as ‘foreign propogandists of the Russian Federation,’ were funded by NED. NED also funded the now-infamous State Department Disinformation Index Foundation that targeted and blacklisted conservative media outlets such as Federalist, Newsmax, TAC, the Blaze, NYP, etc,” the document said.

The budget request also proposes the closure of the US Agency for International Development (USAID) and transfer of the remaining programs under the umbrella of the State Department.

Besides, it proposes the closure of the United States Institute of Peace.

May 3, 2025 Posted by | Economics, Militarism | | Leave a comment

As the World Seeks Peace, the EU Looms for War

By Ulrich Fromy  • Mises Wire •  04/18/2025 

We can feel the winds of warmongering blowing through Europe as the continent raises the specter of war with Russia. Recently, the European Commission unveiled a series of measures to strengthen the defense of EU member states, most notably through the ReArm Europe plan. The plan—which was endorsed by the Extraordinary European Council on March 6, 2025—aims to mobilize €800 billion for the EU’s defense capabilities. It includes a redirection of public funds, but not only: it also includes the use of public savings. As announced on March 17, 2025, this strategy aims to get hold of around €10,000 billion in European bank deposits and redirect them towards the arms industry and public defense policies.

Another European example: Valérie Hayer, a French MEP and leader of the Renew Europe group in the European Parliament, recently declared that the old continent is experiencing “a moment of gravity” probably not seen since the Second World War. The culprit? The war in Ukraine and the existential threat posed by Russia to democracy and the European order. To deal with this threat, she and other European politicians want to mobilize the savings of Europeans to finance this collective effort in the arms industry.

In France and Germany

In mid-March, a number of French political figures spoke out in favor of mobilizing private savings to rearm the country in the face of the Russian threat. On March 13, the French Minister of the Economy, Éric Lombard, spoke in favor of this measure before French senators. At the time, there was no question of creating a dedicated savings account, but rather of targeting all the capital saved by the population.

However, in the face of widespread criticism, Éric Lombard backtracked on Thursday, March 20, and announced the creation of a 450 million euro fund managed by Bpifrance and open to individual investors wishing to contribute to the national rearmament effort by becoming indirect shareholders. The minimum amount to be invested in this fund will be 500 euros, with a maximum initial investment that could be of “several thousand euros.” Once invested, these “safe” funds will be frozen for at least five years.

There is the same warmongering rhetoric in Germany. Before leaving office, Olaf Scholz spoke to the Bundestag about the “Zeitenwende,” the historical turning point that Germany is currently facing. He promised to face it by investing massively in the rearmament of the German army, the Bundeswehr. The most likely future German chancellor, Friedrich Merz, got a vote in the German parliament to spend 1,000 billion euros on rearming the country. An unprecedented expenditure in a country that has long delegated its own national defense to NATO and the United States.

All these European investments are presented as “safe and profitable investments” (according to Valérie Hayer). However, as history shows us, these investments are just the opposite.

What History Teaches Us

Society has arisen out of the works of peace; the essence of society is peacemaking. Peace and not war is the father of all things. Only economic action has created the wealth around us; labor, not the profession of arms, brings happiness. Peace builds, war destroys. (Mises, Socialism, p. 59)

Historically, investing in war bonds and funds has always meant taking the risk of betting on the wrong horse. This bet could very well lead to the ruin of the creditors of the defeated state. This was the case in Germany with the impossible repayment of war bonds after 1918. These bonds had become worthless because the reparations demanded by the Treaty of Versailles and the hyperinflation of the Weimar Republic made their repayment impossible.

Conversely, if the state was victorious, the repayment of these often massive loans could take years, ruining the creditor through monetary inflation and the financial repression that was put in place after the conflict to wipe out the state’s debts. This is what happened in the United States after 1945 when the Victory Bonds were repaid. The post-war policy of financial repression kept interest rates low and inflation of the dollar high, causing a gradual decline in the value of the currency. As loans were repaid, the purchasing power of creditors declined in the years following the end of the war.

More serious than the ruin of creditors is the ruin of society. These investments divert capital from genuinely productive alternatives that actually improve people’s living conditions; they retard progress by diverting capital (resources, labor, and money) to these defense industries. They don’t understand that the short-term prosperity offered by the “industry of destruction” is only an illusion and comes at the cost of long-term prosperity for society as a whole.

Any militarized, jingoistic, war-mongering society will only fall further behind on the road to progress and improved living conditions made possible by the best possible allocation of capital in the productive structure of society. As the economist Frédéric Bastiat wrote, war is an illusion of wealth: it creates visible economic activity (the arms industry), but always at the expense of the “invisible” (i.e., lost opportunities and deferred costs). War is never an exit out of a crisis, but the ultimate crisis a society can face.

In short, warmongers of all stripes—excited by the idea of profiting financially from a possible war—ultimately understand nothing about economics or history. Worse, they understand nothing about war.

May 2, 2025 Posted by | Economics, Militarism | | Leave a comment

Five Reasons Why a Strong Euro is an Economic Disaster for the EU

Sputnik – 01.05.2025

The euro has jumped in value almost 10% against the dollar since January. But before cheering at the thought of cheaper imports of Skippy peanut butter and Jim Beam whiskey, here’s what EU residents should know.

1. Stronger Euro = Weaker Exports

“For any country (or zone in the case of the euro) that is a strong exporter,” a strong currency “contributes to slowing exports and increasing imports, to the detriment of domestic production,” explains Jacques Sapir, veteran economist and director of studies at the Paris-based School for Advanced Studies in the Social Sciences.

2. Monetary Union Trap

Unlike ordinary nations, which can depreciate their currencies at will to restore exports’ appeal, eurozone members are trapped by the monetary union, which offers “quite limited” room to maneuver for big producers or tourism-based earners benefiting from depreciation vs everyone else.

3. Another Hit to Eurozone Economy in Rough Shape

The euro’s growing strength is bad news for a bloc already:

  • facing zero growth and recession for 3 years running
  • cut off from the source of its export competitiveness: cheap Russian energy
  • facing brutal trade competition from the US and China.

4. Tariff-like Effects

“With the dollar depreciating by around 10% since mid-January, it is as if the US has imposed 10% customs duties on European products while subsidizing their exports to the eurozone by 10%,” Saphir says.

5. Tariff Wars Add to Uncertainty

“Major economic players abhor uncertainty…As long as these negotiations last, no one knows what the tariff levels will be and therefore how attractive the American market will be, whether for production or investment,” the economist says.

May 1, 2025 Posted by | Economics | , , | Leave a comment

US, Israel led record-breaking surge in military spending in 2024

Israel boosted its military spending by 65 percent, reaching 8.8 percent of its GDP, to finance genocide against Palestinians

The Cradle | April 28, 2025

Global military expenditure surged to a record $2.7 trillion in 2024, marking a 9.4 percent increase over the previous year – the steepest annual rise since the end of the Cold War, according to new data published by the Stockholm International Peace Research Institute (SIPRI).

Military budgets rose across all regions, with especially sharp increases in Europe and West Asia, driven by the ongoing wars in Ukraine and Gaza.

The five largest military spenders — the US, China, Russia, Germany, and India – accounted for 60 percent of total global spending. The US alone spent $997 billion, or 37 percent of the global total – dedicating a significant portion of its budget to modernizing its military capabilities and nuclear arsenal to maintain strategic superiority over Russia and China.

Europe saw a particularly dramatic rise, with military spending increasing by 17 percent to $693 billion. Germany’s military expenditure rose by 28 percent to $88.5 billion, making it the largest spender in Western Europe and the fourth-largest worldwide, thanks largely to a €100 billion (around $107 billion) special defense fund established in 2022. Poland and Sweden also posted significant increases, with spending up by 31 percent and 34 percent, respectively.

Ukraine had the highest military burden in the world in 2024, with military spending amounting to 34 percent of its GDP. All of Ukraine’s tax revenues were absorbed by defense needs, while social and economic spending relied entirely on foreign aid, including $7.7 billion from Germany.

In West Asia, military expenditure rose by 15 percent, reaching $243 billion. Israel led the regional increase, boosting its military spending by 65 percent to $46.5 billion amid its wars on Gaza and Lebanon. Israel’s military burden rose to 8.8 percent of GDP, the second highest in the world.

Lebanon, despite ongoing political and economic instability, raised its defense budget by 58 percent to $635 million.

Iran’s military spending fell by 10 percent in real terms to $7.9 billion in 2024 despite its support for regional allies resisting Israel, including Hezbollah and Yemen. The impact of sanctions on Iran severely limited its capacity to increase spending.

Elsewhere, China continued its large-scale military modernization, spending an estimated $314 billion in 2024, with developments in stealth aircraft, unmanned systems, and a rapidly expanding nuclear arsenal. Japan also raised its military budget by 21 percent to $55.3 billion, further heightening concerns of a potential arms race in the Asia-Pacific region.

SIPRI researchers warned that as governments prioritize military security, often at the expense of social and economic programs, societies could face significant long-term consequences. With over 100 countries increasing their military budgets, 2024 marked the tenth consecutive year of rising global military expenditure – a trend that analysts expect will persist amid ongoing geopolitical tensions.

April 28, 2025 Posted by | Economics, Militarism | , | Leave a comment