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UnHerd: Would you move to Mother Russia? Putin is wooing the West’s workers

By Malcom Kyeune, UnHerd, 10/24/24

Last year, Tucker Carlson scandalised America by travelling to Russia and interviewing Vladimir Putin. As US viewers denounced the idea that one ought to speak to an enemy such as Putin, Tucker strolled around Moscow, filming himself taking the subway, buying a burger from the new Russian McDonalds, and going grocery shopping in a Moscow supermarket. Behaving, in fact, like he was in the West.

Back home, Tucker had some good things to say about Putin, as well as some bad things. But it was the streets and shops of Moscow that really “radicalised” him. The West likes to paint Russia as poor, miserable and oppressed, but Tucker described a perfectly ordinary modern society. The discrepancy between what Tucker had been taught to expect and what he actually saw in Russia didn’t just unnerve him — it made him angry.

Of course, one might point out that Moscow and St Petersburg are Potemkin villages of sorts, covering up the reality of deep poverty in much of the rest of the country. But none of this is ultimately a matter of facts. The conflict between the West and Russia today is now seen as ideological and existential, just as the conflict between communism and capitalism once was. To say something nice about the Russian enemy is to take his side; to say something nice about him that also happens to be true is seen as even more treasonous. Communist Russia was rife with stories about American workers being treated like dirt, toiling under truly awful living standards. After all, America was capitalist, and a capitalist society could never be a good place for a worker to live.

When the Soviet Union collapsed, the epic tension that had built up over the decades between the US and Russia fell apart rapidly. Russians queued up to eat at McDonald’s or to buy blue jeans, and they also emigrated to America in droves. Some of them wanted a more stable place to raise their children than the dystopian nightmare that was Nineties Russia, others saw in America a more agreeable form of culture and ideology, and others still just wanted to make money. In 1980, the number of foreign-born Russian speakers in the US numbered less than 200,000. In 2011, that number had hit 900,000.

Since then, however, things have changed a great deal. The US is no longer the Mecca of foreign talent it once was, as it dives deeper into a geopolitical showdown with Russia, China, and the Brics more generally. The West is faltering both militarily and economically; the US empire is overstretched, practically insolvent, and facing growing exhaustion and disillusionment at home. To complicate this, the West’s own ideological tenets about freedom of speech and respect for human rights ring increasingly hollow. Even Westerners are losing faith in the American project.

While Tucker Carlson’s trip to Russia was a one-off, there has been a small but growing trickle of news stories in Western media featuring Americans deciding to brave the Iron Curtain in the other direction. The reasons they give are eerily similar to the ones heard from dissidents in the past: the political system in the West is broken and the politicians have lost the plot; the ruling ideology is out of touch with ordinary people; the standard of living is falling and the cost of living too high. Mostly, the reasons given today have to do with politics rather than economics: in this telling the West is just too “woke”, too materialist, and too sclerotic. Russia, for its part, seems eager to offer “political asylum” to any Westerner with a big enough bone to pick with their home country.

It’s easy to dismiss what’s going on here as an irrelevant fringe phenomenon, but that might turn out to be a very grave mistake in the decade ahead. The ideological angle to these stories — that Russia is engaged in some fanciful or vain project of sheltering the “unwoke” out of some kind of humanitarian concern — is nothing but a fable. It is a velvet glove, hiding a far more calculating economic fist.

The truth of the matter is that Russia — like many other Brics countries now preparing their collective challenge to the West — has been struggling with the question of immigration for quite a long time now. After slowly recovering from the runaway brain-drain that hit it in the Nineties, the Russian state has cautiously moved to reform and rationalise its immigration system, particularly with an eye towards streamlining new channels for highly-skilled migrants. In other words, just the kind of migrants who tend to be in short supply and high demand worldwide. The fact that the Russians are entering into this competition decades late is certainly not lost upon them. During the unipolar moment, the West monopolised the pool of skilled migrants available, while also retaining all the high-value labour created at home. In the dawning multipolar world, however, the West appears not just as a competitor to be bested, but also as a potential goldmine from which an increasing number of migrants can be sourced.

It is only when one understands that the West could potentially become a victim, rather than a beneficiary of future brain drain that recent policy changes within Russia can begin to make sense. To wit, Russia recently announced that anyone living in a Western country “opposed to Russia” shall have access to a special, expedited visa process, exempt from all ordinary immigration requirements. There are no quotas for this kind of immigration, no tests on language skills or knowledge of Russian law, and all the other aspects of this visa process are tailored to be as generous as possible. Applicants only have to demonstrate that they wish to move to Russia due to a disagreement with their home country’s policies that contradict “traditional” Western or Russian values. Even if you’re not interested in Russia, Russia is now interested in you.

“Even if you’re not interested in Russia, Russia is now interested in you.”

Law and consultancy firms that offer help to clients looking to move to Russia aren’t exactly new, and there are a decent number to choose from. This new push toward “Shared Values Visas” from the Russian state, however, is notable in that it coincides with far more sleek and ideologically savvy new ventures into the market. A good example of this trend is “ArkVostok”, the company behind the website movetorussia.com. With the founders having mostly Western educational backgrounds as well as experience working inside Western consultancy firms, the pitch offered here is clearly tailored to appeal precisely to the sort of feelings that Tucker Carlson has recently given voice to. Tired of culture war and DEI? Worried about national debt and unsustainable pension funds? Paranoid about bugs in your burger and GMO-food slowly poisoning your body? Whatever you’re in the market to buy, Russia is in the market to sell.

It is tempting to dismiss this out of hand. What kind of traitor would ever contemplate leaving our glorious Free World ™ to shack up with the enemy, all for the worldly promise of a flat 13% tax rate? Unfortunately, the answer to that question, as history has borne out time and time again, is almost always “more people than you’d think”. While ideology and righteousness are always comforting things to have, consider this quote from Tucker Carlson himself on his experience inside that Moscow supermarket: “Everybody [in the film crew] is from the United States … and we didn’t pay any attention to cost, we just put in the cart what we would actually eat over a week. We all [guessed] around $400 bucks. It was $104 U.S. here. And that’s when you start to realise that ideology doesn’t matter as much as you thought.”

One can say that you can’t put a price on freedom, or morality; that the privilege of living in a free society cannot be measured in something so vulgar as dollars and cents. That’s a nice sentiment, but the reality of the human condition is that these things do have a price. Moreover, this price is often much lower than most of us would like to admit. Communists in the USSR, lest we forget, used to think that no human being would ever abandon socialism just for a pair of blue jeans. If we in the West want to ignore recent history and instead cling to the hope that nobody will ever switch sides just because someone floats an offer of better schools, safer streets, cheaper apartments, and lower taxes, we do so at our own peril.

Besides, to try to minimise the danger presented here by criticising Russia or attacking Putin is to catastrophically miss the point. Though the Shared Values Visa programme tries to present itself as a fairly niche culture war phenomenon, its true nature is not cultural or ideological. It is driven by a ruthless economic logic that is much bigger than Russia itself. Even if Russia’s various attempts at wooing Westerners end up being unsuccessful, it is merely the first vulture to start circling overhead. Many more scavengers are likely to appear before long, each one with a bewitching song of higher real wages, cheaper groceries, and lower taxes.

There are at least two big economic reasons that force this development. First, skilled immigration is simply a good deal. If you can poach a highly educated person of prime working age without paying for his education, you have secured a very expensive and limited resource without having to pay any of the costs involved in training, childcare, and healthcare. This is the main reason that brain drain as a phenomenon has been consistently popular inside the West, even as it has long been hated everywhere else: one side pays all the costs, the other side reaps all the benefits.

The economic logic behind the Shared Values Visa is more ominous, however. It’s often said that Russia has terrible demographics, and in many ways, this is true. Russia’s total fertility rate is around 1.4 children per woman, which is far lower than the replacement rate. Unfortunately, this is actually a completely normal fertility rate in 2024. Very few countries in the EU have fertility rates that are much better than this, and a good number of them are significantly worse. This is not an unknown problem in the West, and the hoped-for solution has long been immigration, preferably of the more highly-skilled kind. Without sufficient immigration, European social welfare systems risk collapsing under the weight of too many old people dependent on taxes levied onto too few young workers.

All this means that Europe is highly vulnerable to the poaching of workers. And indeed, because of how our welfare systems are set up, any outmigration cannot help but trigger a very destructive chain reaction: as people migrate due to high taxes, there’s less workers, meaning taxes will get higher, meaning the push factors to emigrate become even stronger. In this environment of stagnation, an extremely vicious game of musical chairs is likely to dominate, as all countries face the pressure to steal workers from somewhere else, in order to ease the tax burden on the workers that already have citizenship. With an extremely low public debt of around $300 billion and an income tax rate that tops out at 15%, Russia is far better prepared for this kind of competition than most people seem willing to admit. For comparison, America pays three times that amount in annual interest on its whopping $35 trillion debt.

This threat is real, and it is much closer than many think. In fact, the UK in particular is already in a slow-rolling brain-drain crisis. Education is getting increasingly expensive, the population is ageing, and real wages are no longer keeping up with inflation. For now, the main actors trying to poach talent are other countries inside the Western bloc, with America as the principal looter-in-chief. That order of affairs might not last for much longer, however, and America might find itself vulnerable to the same kind of asset-stripping before long. It’s hard to see how brain drain can possibly work out as a net benefit to the West in the years and decades ahead: the great majority of Western countries are now stuck in the same sort of malaise as the UK, with economies entering what now looks like a phase of almost permanent stagnation due to the energy crisis. There is no light at the end of the tunnel: opinion polls instead show an increasingly catastrophic loss of faith among the public in their parties and political institutions.

Brain drain often has ruinous effects on the countries that fall victim to it, even in cases where there’s not a looming demographic crisis threatening to upturn all welfare systems. Russia might be using honeyed words as it tempts people with family values and GMO-free burgers, but those Westerners who now glibly mock the velvet glove might end up bitterly regretting not taking the iron gauntlet hidden underneath more seriously. All of this is strictly business: it is the groundwork being laid in order to loot the West of talent the moment a crisis or moment of weakness strikes, leaving hollowed-out economies and dying communities in its wake. After all, the Russians probably figure, it’s only fair: we did the exact same thing to them.

Mikhail Khodarenok: Trump’s reported Ukraine peace plan is doomed to fail

By Mikhail Khodarenok, RT, 11/11/24

US President-elect Donald Trump and his advisers are apparently considering a new plan to end the conflict between Russia and Ukraine. This was reported by the Wall Street Journal last week.

The proposals allegedly include a freeze on military operations along the front line, the creation of a demilitarized zone, and a guarantee that Kiev won’t join NATO for at least 20 years. At the same time, the West would continue to supply Ukraine with weapons.

According to the newspaper, Trump’s promise to end the war by January’s Inauguration Day now puts him in the position of having to choose between competing proposals from advisers united by a common idea – a complete departure from current President Joe Biden’s plans to transfer arms and military equipment to Kiev for “as long as it takes.”

Throughout his election campaign, Trump sharply criticized Biden’s handling of Ukraine, warning that it brought closer the possibility of World War III, and that Kiev had cheated the US out of billions of dollars in free weapons.

Earlier this year, advisers Keith Kellogg and Fred Fleitz (who worked in Trump’s administration during his first term) presented a plan to reduce the supply of arms and military equipment to Ukraine until Kiev agreed to peace talks with Russia.

According to the Wall Street Journal’s sources, the new proposal to resolve the armed conflict includes several key points. In the most general terms, these boil down to the following:

They assume that hostilities will stop at the current milestones achieved by both sides of the conflict. This means freezing the front line and creating a demilitarized zone along it.

Russia will retain control over part of Ukraine’s claimed territory. For its part, Kiev must promise not to try to join NATO for the next two decades. In return, the US will continue to supply Ukraine with arms and military equipment. At the same time, according to the newspaper’s sources, Trump has not yet approved the final plan for resolving the conflict and intends to continue discussing it with his closest advisers.

What would the demilitarized zone look like?

The new settlement plan, details of which have been obtained by the WSJ, raises many questions. For a start, it is not even clear what the DMZ (demilitarized zone) would look like (at least its geometric dimensions should be specified) or whether it will extend, for example, to all the new regions of Russia (including the Crimean Peninsula).

According to the classic definition of a DMZ, military facilities on this territory must be removed, while the deployment of units and formations of armed forces, the fortification of the terrain, and the conduct of combat and operational training activities on it are prohibited. Most likely, Moscow and Kiev will stumble at the first point of the Trump plan and categorically reject the elimination of their military infrastructure.

Maintaining the security regime in the DMZ in this particular case will require, among other things, the presence of a contingent of peacekeepers (if only to separate the parties’ forces). Washington has already made it clear that the White House does not intend to send US military units to Ukraine for this purpose. Western European countries may then be involved instead. It is not yet possible to give clear answers to the many questions about the composition and size of any peacekeeping contingent, who would be in command and what the legal status of these forces might be.

Therefore, it is not difficult to use the term “demilitarized zone” but it seems to be problematic for the American side to describe how this will be implemented in practice and in detail.

What about legal status and NATO?

The next point in Trump’s plan is that “Russia will retain control over part of Ukrainian territory (sic).” It remains to be clarified which land, exactly, how its legal status could be described, and what is Kiev’s position on this issue (in other words, does Ukraine agree with this assumption in Trump’s plan?). Nothing is clear.

Next. According to the proposals, Ukraine will not try to join NATO for the next 20 years. At the very least, this thesis sounds pretty funny.

In other words, all responsibility in this matter is being shifted not onto Brussels and Washington, but onto Kiev. For example – we ask you not to apply to NATO. In short, “we’ll ask them not to lie, but they will lie.”

Again, why only 20 years? What is the justification for this particular timeframe? Where does it come from? Is it based on the title of Alexandre Dumas’ famous novel 1845 “Twenty Years After?”

And finally, in return, the US will continue to supply Ukraine with arms and military equipment. This is the most important point. Because if Washington stops supplying military equipment to Ukraine, the war will end tomorrow, without any demilitarized zones.

Is it possible to reach an agreement with Kiev?

The most important thing about Trump’s plan is that the authors don’t seem to have coordinated in any way with either Moscow or Kiev. And the Ukrainians will be the main problem, because the chief obstacle to the implementation of any peace initiatives is the absolutely insane and inadequate military-political leadership in Kiev (this can be judged with absolute certainty on the basis of all of their recent actions and steps, including the demands for Tomahawk missiles).

Just one example. Former Ukrainian President Pyotr Poroshenko, after the US elections, outlined five ‘red lines’: no compromise on Ukraine’s independence, no return to “Russia’s zone of influence”; Kiev will never give up territories that have come under Russian control; Ukraine will not agree to ‘limit the capacity of its armed forces’ because they are ‘the most reliable and effective guarantor of the survival of the Ukrainian state’; until the ‘full liberation’ of its territory, Ukraine cannot ‘compromise or agree to lift sanctions.’

In fact, Poroshenko’s statements quite accurately reflect the mood of the Ukrainian political class and fully characterize Kiev’s policy as a set of statements that are absolutely not based on the real capabilities of the state, its forces and means.

That is why the first point of any peace plan by Trump should sound something like this: “First of all, we must bring to power in Kiev a leadership capable of fulfilling contracts. Most importantly, reasonable and appropriate people. Only then will negotiations and discussion of any positions be possible.”

This article was first published by the online newspaper Gazeta.ru and was translated and edited by the RT team:

https://www.gazeta.ru/army/2024/11/07/20041489.shtml

Glenn Diesen: Russia Changes Nuclear Doctrine & Prepares for War

By Glenn Diesen, Substack, 10/24/24

Rumble link here.

I had a conversation with Professor Sergey Karaganov and Alexander Mercouris about Russia changing its nuclear doctrine. Karaganov was an advisor to Brezhnev, Gorbachev, Yeltsin and Putin. He has been the main proponent of lowering Russia’s nuclear threshold. Putin had previously told Karaganov that Russia was not prepared to change the nuclear doctrine, however Putin has reversed his position and is now changing the nuclear doctrine according to Karaganov’s recommendations.

Nuclear weapons are the ultimate deterrent and can therefore be a source of stability and peace by making war between the great powers unacceptable. The irony of the nuclear deterrent is that the immensely destructive power of nuclear weapons, possibly ending human civilisation, can reduce the credibility that an opponent would use them. The nuclear peace therefore requires communicating a credible readiness to destroy the world.

NATO’s escalations in the Ukraine War have convinced the Kremlin that its nuclear deterrent has been severely weakened and must be restored. For example, Biden initially warned against sending F-16s as it would likely trigger World War 3, but then decided later to approve supplying F-16s to Ukraine while NATO countries dismissed Russia’s nuclear deterrence as unacceptable “nuclear blackmail”. On the third year of the war, Ukraine invaded Kursk with NATO weapons and likely US intelligence – which was met with Western support and exuberance.

The dilemma for how Russia can respond has been: 1) retaliate against NATO and risk uncontrolled escalation possibly resulting in nuclear war, or 2) do not to retaliate but then embolden NATO to escalate further and thus risk nuclear war. The plan by the US and UK to supply Ukraine with long-range precision missiles became the final straw for Moscow. This would be considered a direct attack on Russia since these missiles would need to be operated by American or British soldiers and guided by their satellites.

The changes primarily entail 1) allowing the use of nuclear weapons if attacked by a non-nuclear state supported by a nuclear state (to address war through proxy), 2) placing Belarus under the Russian nuclear umbrella to address the possibility of a NATO nuclear attack on Belarus as a step up the escalation ladder. Obama’s national-security team secretly staged a war game in 2016 in which it was recommended to respond to a Russian use of nuclear weapon with a NATO nuclear attack on Belarus – “a nation that had played no role whatsoever in the invasion of the NATO ally but had the misfortune of being a Russian ally”.

Changing the nuclear doctrine does not suggest Russia is planning a nuclear strike as there are still further steps on the escalation ladder:

-Confront and destroy NATO reconnaissance drones over the Black Sea that provide targets to Ukraine

-Use conventional weapons to attack NATO’s military targets that are used to put a blockade on Kaliningrad (if the decision is made)

-Destroy NATO satellites used to guide missiles that attack Russian territory

-Destroy NATO’s critical infrastructure such as underwater cables or through cyber attacks

-Destroy Ukrainian warplanes stationed in Poland and Romania

-Destroy military logistics centres on NATO territory for weapons being sent to Ukraine

-Attacks on US military bases abroad, either through proxies or direct attacks

However, once any of these retaliatory actions are taken against NATO, both sides could lose control of the situation and rapidly head up the escalation ladder.

Anatol Lieven: Putin won’t get any guarantees from a Trump White House

By Anatol Lieven, UnHerd, 11/10/24

The Russian establishment profoundly distrusts Donald Trump. Though usually forgotten in the West, it was his administration — not Barack Obama’s or Joe Biden’s – which began the supply of weapons to Ukraine in 2017. Trump also allowed US intelligence to build up the presence in Ukraine that played an important role in preventing Russian victory in the first months of 2022. In fact, apart from some complimentary remarks about Vladimir Putin, the US President-elect has done little to improve relations with Russia.

Following Trump’s election win this week, the Russian Foreign Ministry declared that it had “no illusions” about him, adding that America’s “ruling political elite adheres to anti-Russia principles and the policy of ‘containing Moscow’” no matter which party is in charge. While Putin himself is more sympathetic, on Thursday hailing Trump’s “desire to restore relations with Russia, to help end the Ukrainian crisis”, these comments can be attributed to a recognition that the Russian President needs to maintain good relations with his American counterpart.

When it comes to negotiations with the Trump administration to end the war in Ukraine, the Kremlin still has one big fear. This, according to members of the Russian establishment with whom I spoke this summer, is a repeat of Trump’s notorious initiative to negotiate a deal with North Korean dictator Kim Jong Un. In that instance, Trump launched into an exercise in personal diplomacy without preparation or any understanding of the other side — or seemingly of his own aims. When the talks failed, Trump responded with furious bluster and left US relations with Pyongyang in even worse shape than before.

Moscow worries that Trump may make Putin a peace offer which he genuinely thinks is a generous and viable one, but which fails to meet minimal Russian conditions, and that if Putin rejects it Trump will turn violently against Russia. There is also fear in the Kremlin that opponents of a deal in the State Department may deliberately set Trump up to fail in this way, and that the President-elect’s immediate team will not see it coming. That’s before factoring in a Ukrainian establishment which is likely to bitterly resist a compromise peace.

Trump’s own advisors are reported to be deeply divided on the subject of Ukraine. And, according to one former aide, “anyone — no matter how senior in Trump’s circle — who claims to have a different view or more detailed window into his plans on Ukraine simply doesn’t know what he or she is talking about.” More than that, in the words of the same aide, they don’t “understand that he makes his own calls on national-security issues, many times in the moment, particularly on an issue as central as this”.

To have a chance of success, formal negotiations will therefore have to be preceded by preparatory talks, preferably in secret. Each side can then explore which of the other’s conditions are basic and non-negotiable, and which are open to compromise. We do not yet know Trump’s choices for secretary of state and national security advisor, or what their attitudes to Russia and Ukraine will be. Yet sheer military reality has seemingly persuaded most of his team that Ukrainian recovery of all its lost territory is now impossible.

As one advisor on the 2024 campaign, Bryan Lanza, told the BBC this week: “if President Zelensky comes to the table and says, ‘well, we can only have peace if we have Crimea’, he shows to us that he’s not serious […] Crimea is gone.” Lanza added that the US plan is “not a vision for winning, but it’s a vision for peace”.

However, the Moscow establishment — and, according to opinion polls, most of the Russian public — cannot countenance withdrawal not just from Crimea but from any of the territory that Russia holds in the five Ukrainian provinces it claims to have annexed. Putin has demanded that Ukraine withdraw from the territory it still holds in these provinces, but this is just as impossible as Kyiv’s demand that Russia withdraw from all the territory it occupies in Ukraine.

These must therefore be understood not as absolute conditions but as initial bargaining positions. It seems probable that a ceasefire along the actually existing battle-line — but without formal recognition of Russia’s annexations — will be a central part of any Trump proposal.

Putin’s insistence that Ukraine sign a treaty of neutrality, and that Nato membership be categorically excluded, is supposedly non-negotiable but could yet be subject to compromise. Russia might accept a lengthy moratorium on Ukraine’s application for Nato membership — for example, 20 years, as reportedly proposed by some members of Trump’s team — but this is a question that can only be clarified in talks.

The question remains as to what will happen in the 73 days until Trump actually takes office. President Joe Biden is already rushing through a major tranche of aid, a smart move geared towards strengthening the US at the negotiating table. The Pentagon is also for the first time officially allowing US military contractors to repair and maintain American weaponry inside Ukraine. Some fear — hopefully without reason — that the Biden administration will go much further and initiate a drastic escalation in an effort to preemptively wreck any talks.

A new crisis may also be initiated from the Russian side. If the Russians know the only territory they will get in Ukraine is that which they actually occupy, then they obviously have a huge incentive to take as much ground as possible before Trump enters office. At the very least, they will want to push Ukrainian troops out of the remaining territory they hold in the Russian province of Kursk. The next few weeks may therefore bring a major Russian offensive, whose outcome could have a significant effect on ensuing peace talks.

Stephen Bryen: Europe can’t be defended against Russian attack: report

By Stephen Bryen, Asia Times, 10/24/24

Germany is paying too much for its military equipment, a recent think tank study shows. Image: Germany Ministry of Defense

The German Kiel Institute has published a disturbing but accurate report on German and European defense. The report suggests that the overall picture for Germany, Europe and the United States is grim.

The bottom line is that despite all the NATO war talk, the alliance (including the United States) is not ready for any conflict with Russia. It also suggests that the pricing of defense equipment is making defense companies rich but not helping the overall cause of security.

The Kiel Institute, founded in 1914, is regarded as Germany’s leading influential think tank. In September, the Institute produced a study called “Fit for war in decades: Europe’s and Germany’s slow rearmament vis-a-vis Russia.” [https://www.ifw-kiel.de/fileadmin/Dateiverwaltung/IfW-Publications/fis-import/1f9c7f5f-15d2-45c4-8b85-9bb550cd449d-Kiel_Report_no1.pdf}

The study is very important: It points out how unprepared Germany and other European countries are should Russia attack them. It also tells a sad tale about how overpriced and insufficient European, specifically German, defense manufacturing has become. 

A great example is Germany’s Caracal air assault vehicle. A Caracal is a kind of wild cat found in Africa, Pakistan, the Middle East and parts of India. The German vehicle, an unarmored gussied-up jeep based on a Mercedes G class chassis, was put together by Rheinmetall, Mercedes-Benz AG and ACS Armored Car Systems GmbH.

The Caracal has no armor on its open sides. Over 3,000 of these vehicles have been provided to Ukraine at a cost of 1.9 billion euros, which works out to 620,000 euros per unit.

You could bolt an antitank gun or machine gun on a four-wheel drive commercial jeep for less than $35,000 per copy. And since Ukraine has no airlift capability, an air assault vehicle dropped onto the battlefield is a non-starter. (The euro now trades at $1.08 to the US dollar.)

An equally appalling example is 30mm ammunition for the German Puma infantry fighting vehicle. The Puma costs a staggering $5.3 million each, while its 30mm ammunition costs around 1,000 euros per shot!

Puma can fire up to 600 rounds per minute. That compares to a US 30mm High Explosive Dual Purpose round (more specialized than a run-of-the-mill bullet) at $100. So German 30mm ammunition is ten times more expensive than the US’s.

The German army is also buying tactical military headsets for soldiers. Commercially available tactical headsets retail for $299. If features such as noise cancellation are added, the price may go up to $400 but not more. Yet German headsets cost a whopping 2,700 euros each.

The bottom line is that people and companies are making a lot of money supplying European armies or sending stuff to Ukraine. Some might say it is outright corruption since governments are complicit in these deals. Mind that the Kiel Institute only goes as far as to say these purchases are uber-expensive, no more.

The Kiel report has a lot to say about defense industrial output in Russia (which is a lot), by the fact that the Russians are not going to run out of weapons anytime soon and that North Korea now augments supplies in the form of artillery rounds and missiles.

North Korea, it seems, has been grinding out weapons well in excess of anything it can use, and until now, it did not export them. The Russian deal with North Korea sustains the Kim Jong Un dictatorship, of course, by providing cash or the equivalent and underwriting jobs.

All of this helps show, in part, that Germany’s investments in defense are corrupted (I think that is the right word) by excessively expensive hardware.

Even if Germany actually meets the NATO target of 2.1% of GDP for defense spending, what the German army ends up getting is extremely overpriced, not to mention that a lot of it is ending up in Ukraine and only slowly, if at all, replaced on the home front.

Even with adequate spending, what money is spent on boggles the mind. Very little, for example, is going into air defense, something that is vital for Germany’s future defense needs.

Overall, NATO-supplied air defenses have done a mediocre to abysmal job in Ukraine, a harbinger of a deadly future in Europe unless the problem is corrected. An intriguing footnote (page 25) in the report, set in ultra-small type, discusses Ukraine’s ability to shoot down Russian missiles and drones:

Sample interception rates for commonly used Russian missiles in 2024: 50% for the older Kalibr subsonic cruise missiles, 22% for modern subsonic cruise missiles (e.g. Kh-69), 4% for modern ballistic missiles (e.g. Iskander-M), 0.6% for S-300/400 supersonic long-range SAM, and 0.55% for the Kh-22 supersonic anti-ship missile.

Data on interception rates of hypersonic missiles is scarce: Ukraine claims a 25% interception rate for hypersonic Kinzhal and Zircon missiles, but Ukrainian sources also indicate such interceptions require salvo firing all 32 launchers in a US-style Patriot battery to have any chance to shoot down a single hypersonic missile. By comparison, German Patriot batteries have 16 launchers, and Germany has 72 launchers in total.

Take note that interceptor missiles for Patriot are in ultra-short supply. These missiles take a long time to manufacture and gearing up to make them has proven challenging. A shortage of critical components is also bolloxing production lines.

While US defense contractor Lockheed Martin is the main producer, Boeing provides key parts for the seeker the missile uses to strike its target (when it works). Boeing won’t solve that problem, at the earliest, until 2027. Meanwhile, Boeing faces a massive industrial strike and an internal crisis still far from a solution.

But there are big questions about air defenses. The US has sold the Patriot and other systems to Ukraine. The Russians spend a lot of effort destroying them, but even when they function, their intercept rate is below par. Europe has supplied IRIS-T, NSAMS and other systems that, so far as can be determined, are roughly equivalent to the Patriot.

On the whole, Israeli systems are better, but they are not deployed in Ukraine. What is regarded as the top US system for air defense, AEGIS (in the form of AEGIS Ashore), is not in Ukraine. The systems are deployed in Poland and Romania.

Europe has very little in the way of home-deployed air defense (Britain essentially has none). The US is not much better off. Some systems, especially the Ground-Based Mid-Course Interceptor based in Alaska, are a mixed bag.

The Pentagon is now looking for new interceptor missiles that work better than what it has. Despite several tests that were optimized to try and assure success, the 40 or so missiles in inventory only work about half the time.

The future is also concerning as hypersonic weapons arrive on the battlefield, seen in Ukraine in the form of Russia’s Kinzhal and Zircon. Systems like the Patriot or Iris-T or any of the other NATO air defense systems hardly stand a chance against hypersonic attack missiles.

The picture also isn’t pretty when it comes to drones, which are being fired off by the thousands by the Ukrainians and Russians. They are hard to kill and systems like the Russian Lancet drone can destroy modern battle tanks and infantry fighting vehicles.

No one so far, including Israel, has come up with an efficient way to destroy swarms of drones or even some lesser attacks that get through.

Above all, the Kiel report puts a new and important perspective on Europe’s security situation and, by extension, the US, which is pledged by treaty to help defend Europe.

Instead of constantly expanding NATO and creating angst in Europe and Russia, it is time to step back and see if a credible defense of Europe is possible. Right now, judging by the Kiel report, the answer is no.