Washington, it seems, is a hostage to its own imperative need to generate a world of hostile relations in order to justify its rampant militarism, which is, in turn, fundamental to its capitalist economy.
The lamentable, even criminal, danger of this strategy is that it foments unnecessary tensions and animosity in world relations.
Why have CTAs, Risk Parity Funds and Balanced mutual funds suffered by so much more?
A simultaneous selloff of equities, bonds and commodities is the worst possible backdrop for multi asset investors such as risk parity and balanced mutual funds.
It is clear from reading the 74-page document that Russia and China are the main source of security concern for the Pentagon albeit the reasons for the concern are far from convincing. Washington accuses Russia and China of pursuing nuclear weapons development which is threatening.
It accuses Russia in particular of violating arms controls treaties and threatening American allies with its nuclear arsenal.
That can be taken as a warning that Washington is, in effect, lowering its threshold for deploying nuclear weapons.
It overtly states that it will consider use of nuclear weapons to defend American interests and allies from nuclear and conventional threats. It talks about inflicting incalculable and intolerable costs on adversaries.
These so-called mini-nukes will again lower the threshold for possible deployment of nuclear warheads in the misplaced belief that such deployment will not escalate to strategic weapons.
Whats disturbing is that the US is evidently moving toward a policyof greater reliance on nuclear force to underpin its internationalpower objectives.
Balanced mutual funds also suffered a heavy loss, more than erasing their previous January gain.