The Military Industrial Complex is Expected to Rake in Big Bucks From Israeli Conflict
Jose Nino
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According to a report co-authored by The Guardian and Responsible Statecraft on October 30, 2023, major financial enterprises in the United States are looking for ways to rake in massive profits from the current conflict between Israel and Hamas in Gaza.
“Hamas has created additional demand; we have this $106 billion request from the president,” Cai von Rumohr, managing director and senior research analyst for TD Cowen, said at an earnings call that took place on October 25.
“Can you give us some general color in terms of areas where you think you could see incremental acceleration in demand?” he added, making a reference to the “upside” of the war for General Dynamics, an American weapons manufacturer. Earlier in 2023, a group of Yemeni civilians filed a lawsuit against General Dynamics for “aiding and abetting war crimes and extrajudicial killings.”
TD Cowen Asset Management possesses$16 million in General Dynamics stock.
“You know, the Israel situation obviously is a terrible one, frankly, and one that’s just evolving as we speak,” remarked Jason Aiken, General Dynamic’s executive vice president of technologies and chief financial officer. “But I think if you look at the incremental demand potential coming out of that, the biggest one to highlight, and that really sticks out, is probably on the artillery side.”
The day after the call, the TD Cowen managing director assigned a “buy” rating to General Dynamics’ stock.
In a similar vein, on October 24, Kristine Liwag, the head of aerospace and defense equity research for multinational investment bank Morgan Stanley, question officials from weapons manufacturer RTX – formerly known as Raytheon Technologies – about the potential financial gains that can be made from the US’s fanatic support for Israel’s ethnic cleansing endeavor in Gaza:
“Looking at [the White House’s $106 billion supplemental funding request], you’ve got equipment for Ukraine, air and missile defense for Israel, and replenishment of stockpiles for both. And this seems to fit quite nicely with the Raytheon Defense portfolio […] So how much of this opportunity is addressable to the company, and if the dollars are appropriated, when would be the earliest you could see this convert to revenue?”
Greg Hayes, RTX chairman and executive director, replied: “I think really across the entire Raytheon portfolio, you’re going to see a benefit of this restocking […] on top of what we think is going to be an increase in the [Department of Defense] top line [budget].”
Morgan Stanley holds north of $3 billion in RTX stock, which is the equivalent of 2.1% of the company’s total shares.
The military-industrial complex will always win when it comes to never-ending wars. These entities always look to make a quick buck off conflicts abroad. Moreover, they even try to stoke these tensions.
Like Big Tech companies, defense contractors and weapons manufacturers must be reined by a proper nationalist regime. These private entities are a major threat to US stability and overall world peace. Hence, the need to curtail their pernicious behavior.
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