Does anything bother investors anymore?
To celebrate day 97 in office, President Trump told Reuters "There is a chance that we could end up having a major, major conflict with North Korea. Absolutely." Remember, this is the same Donald Trump that said during the campaign "Why can’t we use nuclear weapons" and, when asked by Chris Matthews why he would say such a thing, Trump replied: "Then why are we making them? Why do we make them?"
Oh sure, it was just a one-time thing. Except it wasn't. That was March 30th. The next day, Fox's Eric Bolling tried to get Donald off the hook by having him clarify, saying: "I understand they are not taking the cards off the table for ISIS or Islamic terror. But when Chris (Matthews) expanded to Europe, what about that?"
And, of course, you want your President to say "Of course not, that would be insane" but our President-to-be said: "Europe is a big place. I’m not going to take cards off the table. We have nuclear capability… I’m not going to take it off the table. And I said it yesterday. And I stay with it."
As I've noted yesterday, we're long on Oil Futures (/CL) as well as the Oil ETF (USO), which is now at $10.25 for both the normal summer bump and also because Bush's misguided wars against Iraq and Afghanistan consumed 1.5M barrels per day for the armed forces operations (tank milage is measured in gallons per mile) and an escalation of Troops on that end of the Wold will be just as expensive. Good thing we boosted our military budget by $54Bn – looks like we're going to need it.
$54Bn is just a drop in the bucket compared to the $350Bn increase in military spending we had under Bush II, peaking at $750Bn before Obama took control and brought us back down under $600Bn but it took Bush 8 years to push $350Bn to his Defense donors and that's only $44Bn a year, Trump is ahead of him already in just 98 days!