Shattered by their vulnerability and perceived US unreliability during the Iran conflict, Gulf states are poised for a defense spending spree. Rather than relying solely on the US, they are likely to diversify their military suppliers to include Europe and South Korea, aiming for a more independent, 'armed neutrality' posture.

PGIM's Daleep Singh argues that the risk of mutually assured destruction prevents direct military conflict between nuclear powers. This channels confrontation into the economic sphere, using tools like sanctions and trade policy as primary weapons of statecraft.

Anduril was founded on the thesis that great power conflict was inevitable. The founder argues you cannot wait for war to start before developing defense technology. By then, it's too late for deterrence, and you can only participate in fighting the war, not preventing it.

A nation that can no longer get cooperation through seduction and shared values must resort to coercion. Trump's proposed $1.5 trillion military budget is a symptom of this decline, reflecting an empire that must use force or the threat of it to enforce its will on the world stage.

Nuclear deterrence works because the weapons provide a "crystal ball effect." Unlike WWI leaders who couldn't foresee 1918's carnage, modern leaders have a stark, pessimistic view of a nuclear war's outcome. This shared vision of guaranteed calamity creates enormous incentives to avoid starting such a conflict.

While Trump's tough stance successfully induces allies to increase defense spending, this gain in capability is offset by a catastrophic loss of trust. An alliance's strength is based on both capability and will. By making the U.S. commitment (like Article 5) conditional and unreliable, overall deterrence against adversaries like Russia is weakened, making war more likely.

European rhetoric about 'strategic autonomy' is ultimately hollow. For decades, Europe's security has been guaranteed by the U.S. nuclear umbrella, a public good it cannot afford or politically agree to replicate. This fundamental dependency ensures Europe cannot truly break from U.S. foreign policy, regardless of leadership style.

The common belief that a large weapons stockpile deters adversaries is flawed. The war in Ukraine demonstrated that the true measure of deterrence is a nation's industrial capacity—the factory's ability to rapidly regenerate and replace assets consumed in conflict.

Countries are rapidly increasing defense spending due to global instability and the US's shifting role. Massive backlogs for US equipment, like a reported 15-year wait for Patriot missiles, are forcing allies to invest in domestic production and R&D for assured supply.