When it comes to the UK and U.S. foreign policy, there are no coincidences. This article illustrates facts and trends that everyone should recognise between the military spending of these governments and global markets.

UK Military Spending :

July 13 th , 2015 : “More money should be spent on the SAS and drones to combat the threat of Islamic State extremists, David Cameron has told defence chiefs.” http://www.bbc.com/news/uk-politics-33500006

: “More money should be spent on the SAS and drones to combat the threat of Islamic State extremists, David Cameron has told defence chiefs.” http://www.bbc.com/news/uk-politics-33500006 October 22 nd , 2015 : “David Cameron has said he is “delighted” that tax credit cuts are going ahead as he refused to budge on Government plans to implement the £4.5bn savings next April.” http://www.independent.co.uk/news/uk/politics/david-cameron-says-hes-delighted-tax-credit-cuts-are-going-ahead-a6702741.html

: “David Cameron has said he is “delighted” that tax credit cuts are going ahead as he refused to budge on Government plans to implement the next April.” http://www.independent.co.uk/news/uk/politics/david-cameron-says-hes-delighted-tax-credit-cuts-are-going-ahead-a6702741.html November 16 th , 2015 : “David Cameron announces £2bn extra funding for Special Forces over next five years” http://www.itv.com/news/2015-11-16/david-cameron-announces-2bn-extra-funding-for-special-forces-over-next-five-years/

: “David Cameron announces extra funding for Special Forces over next five years” http://www.itv.com/news/2015-11-16/david-cameron-announces-2bn-extra-funding-for-special-forces-over-next-five-years/ November 16 th , 2015: “Britain must show the same resolve it displayed against Hitler during the Blitz in order to defeat the threat of terrorism, Prime Minister David Cameron has said, as he set out plans for a significant boost in spending on Special Forces.” http://home.bt.com/news/uk-news/david-cameron-pledges-hard-and-soft-power-approach-to-security-11364016962387

“Britain must show the same resolve it displayed against Hitler during the Blitz in order to defeat the threat of terrorism, Prime Minister David Cameron has said, as he set out plans for a significant boost in spending on Special Forces.” http://home.bt.com/news/uk-news/david-cameron-pledges-hard-and-soft-power-approach-to-security-11364016962387 November 17 th , 2015: “Osborne said public spending on cyber security would be almost doubled to a total of £1.9 billion over the period to 2020” – In particular, check out the caveat that the decision had been made prior to the attacks in Paris. I have no doubt that that is the case but the announcement of the decision was well timed don’t you think?? http://uk.reuters.com/article/2015/11/17/uk-britain-security-cybersecurity-idUKKCN0T600920151117

“Osborne said public spending on cyber security would be almost doubled to a total of over the period to 2020” – In particular, check out the caveat that the decision had been made prior to the attacks in Paris. I have no doubt that that is the case but the announcement of the decision was well timed don’t you think?? http://uk.reuters.com/article/2015/11/17/uk-britain-security-cybersecurity-idUKKCN0T600920151117 November 17th, 2015: “Cameron says case for Syria airstrikes strengthened by Paris attacks” http://www.theguardian.com/politics/blog/live/2015/nov/17/corbyn-plp-paris-cameron-statement-corbyn-over-shoot-to-kill-and-terrorists-politics-live

It is pretty clear the £4bn in tax credit cuts are not going towards reducing the deficit!

US Military Spending :

October 20, 2015 : “Lockheed Martin Corp. LMT shares fell 0.9% after the defense contractor said third-quarter profit slipped amid military force reductions and lower demand for certain government support service programs .” http://www.nasdaq.com/article/market-snapshot-stocks-end-slightly-lower-after-mixed-earnings-20151020-01291

: “Lockheed Martin Corp. LMT shares fell 0.9% after the defense contractor said third-quarter profit slipped and .” http://www.nasdaq.com/article/market-snapshot-stocks-end-slightly-lower-after-mixed-earnings-20151020-01291 October 27, 2015 : “Shares of defense companies were trading higher Tuesday after congressional negotiators and the White House unveiled a two-year budget pact that would lift caps for military and domestic spending.” http://www.marketwatch.com/story/defense-company-shares-rise-in-wake-of-budget-deal-2015-10-27

: “Shares of defense companies were trading higher Tuesday after congressional negotiators and the White House unveiled a two-year budget pact that would lift caps for military and domestic spending.” http://www.marketwatch.com/story/defense-company-shares-rise-in-wake-of-budget-deal-2015-10-27 November 16, 2015 : “Now, with the attacks in Paris, defense contractors are gearing up for another round of profit.” http://seekingalpha.com/article/3688766-which-defense-contractors-win-after-french-attacks

: “Now, with the attacks in Paris, defense contractors are gearing up for another round of profit.” http://seekingalpha.com/article/3688766-which-defense-contractors-win-after-french-attacks Or if you like a bit of Fox News sensationalism… http://www.foxbusiness.com/markets/2015/11/16/military-stocks-rally-as-france-declares-war-on-isis/

Similar trends can be seen for other military supplier stock prices

Saudi Arabia and Israeli Military Spending :

Have you ever asked yourself why Saudi Arabia and Israel are such strong allies of the US and the UK, despite the fact Saudi Arabia is run by an oppressive regime and Israel have been persecuting Palestinians for decades? Here’s why:

I am not suggesting I am right about everything but it is important to analyse trends in the behaviour of governments and markets. It is hard to ignore the relationship between both!!





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