With no full-fledged war in Syria or North Korea imminent, the Military Industrial Complex is beginning to panic. If the Big 4 U.S. defense contractors don’t immediately figure out a way to justify their $228.35 billion increase in enterprise value since 2013, despite deplorable revenue growth of only $12.14 billion – their share prices are likely to crash between now and year-end!
Historically, the Big 4 defense contractors of Lockheed Martin (LMT), Boeing (BA), General Dynamics (GD), and Northrop Grumman (NOC) have averaged an Enterprise Value of only 0.87X revenues. However, since 2013, their combined Enterprise Value has increased by 18.8X more than their total revenues – causing their Enterprise Value/Revenue Ratio to rise to a new all-time high of 2.01, which is a stunning 3 standard deviations above normal!
You have probably noticed how in recent weeks, the U.S. Military Industrial Complex has been desperately trying to gain control of the Trump Administration and push the U.S. towards war with numerous countries at once. President Trump successfully held off the Deep State from pushing him into a full-fledged invasion of the Syrian Capital, Damascus, based on a false flag chemical weapons attack.
In April, after U.S. Ambassador to the United Nations Nikki Haley and Secretary of State Rex Tillerson both made it clear that the U.S. was focused on destroying Isis in Syria and would no longer support a violent overthrow of the Assad regime, many career CIA officers became alarmed. In recent years, the CIA’s largest project by budget size has been the overthrow of Assad in Syria – causing many CIA officers to plan their careers around Syrian regime change.
By the Trump Administration publicly disclosing a major change to U.S. foreign policy, it was unknowingly throwing a wrench into the retirement plans of the CIA’s highest ranking officers. Most of them have no desire to stay in government for much longer. They want Assad removed from power ASAP, which would allow them all to flow through the revolving door into the private sector – and immediately begin earning millions of dollars per year by joining the management teams of private contractors, using their CIA credentials to help them secure multi-billion dollar Syrian intelligence contracts.
The chemical weapons attack was most likely funded by the CIA through a private contractor and conducted by a rebel terrorist group – for the purpose of discouraging Trump from changing foreign policy. After U.S. intelligence “confirmed” to Trump their conclusion that Assad was behind the attack and the media showed pictures of dead children while condemning Assad and refusing to consider any other suspects, Trump took the aggressive action of bombing Syria’s airbase – to the delight of the mainstream media. By raising hopes that he will consider a full-fledged campaign to remove Assad from power, the Big 4 U.S. defense contractors saw their combined market cap as share of the total U.S. stock market rise to a new all-time high of 1.32%, which is more than two standard deviations above the long-term average of 0.92%.
In recent weeks, despite intense pressure on Trump to proceed with a full scale operation to remove Assad in Syria, Trump has shown no interest in doing so. This caused the Deep State to shift its focus onto North Korea. Prior to August, all media reports estimated that North Korea was five years away from producing a miniature nuclear warhead that can fit inside of a missile capable of reaching the U.S. Suddenly, the media changed its narrative this month – quoting anonymous intelligence officials who confirm that North Korea has now produced nuclear weapons for ballistic missile delivery including ICBM-class missiles capable of reaching America.
However, with China taking a stand against the U.S. attacking North Korea, and Kim Jung Un backing down from threats to fire four missiles towards the U.S. territory of Guam – a war with North Korea is also looking to be out of the picture for the immediate future. Desperate to prevent a massive crash of their artificially high market valuations, the Deep State appears to have worked out a deal with Trump. Suddenly, Trump has backed down from removing U.S. troops from Afghanistan and supports a continuation of the 16-year war that has already wasted $1 trillion with absolutely nothing to show from it, but the Deep State controlled mainstream media has finally stopped attacking Trump with phony/fake conspiracies about Russia!
Source: Inflation US