Connect with us

International

GOP Leader McCarthy Unveils ‘Commitment To America’ Plan

GOP Leader McCarthy Unveils ‘Commitment To America’ Plan

Authored by Joseph Lord via The Epoch Times,

House Minority Leader Kevin McCarthy (R-Calif.)…

Published

on

GOP Leader McCarthy Unveils 'Commitment To America' Plan

Authored by Joseph Lord via The Epoch Times,

House Minority Leader Kevin McCarthy (R-Calif.) on Sept. 23 unveiled Republicans’ “Commitment to America” plan, which includes a litany of policy promises on various issues.

While the race for the Senate is generally considered slightly favorable for Democrats, in the House it’s widely expected that Republicans will be in control next year.

If they do take the lower chamber, McCarthy is on track to become speaker of the House.

‘A Plan for a New Direction’

McCarthy on Sept. 23 sat down with “Capitol Report” on NTD to discuss the plan, which he called “a plan for a new direction.”

He said that the plan is about “the American public, not about the politicians in Washington."

“For last year and a half, we’ve gone across the nation listening to Americans,” he continued. “And they’re fearful. They wonder whether they can afford it—can they afford to fill up their gas, can they go to the grocery store again which now costs more?”

Adding to these worries, McCarthy noted, is rapidly-rising inflation, which over the past year has broken record after record.

“Now [Americans’] take-home pay is less,” he said. “They only get 11 months, they lost one month of their wages, because the Democrats have caused inflation. And so what we think you should do is actually have a plan for a new direction.”

“That’s what the commitment to America is—a plan for a new direction where we’ll have an economy that’s strong, we take away this runaway spending [by] Democrats, we make America energy independent, so your price of gas goes lower, more money in your pocket, inflation gets slowed down.”

House Minority Leader Kevin McCarthy (R-Calif.), speaks during the Congressional Gold Medal Ceremony to honor the merchant mariners of World War II in Washington May 18, 2022. (Oliver Contreras/Getty Images)

Stop ‘Runaway Spending,’ Address Inflation

The key pillars of the plan re-articulate oft-repeated GOP criticisms of the current regime.

One such position is a promise to stop Democrats’ “runaway spending.” Since they thinly took the majority of both chambers, Democrats have spent a staggering amount of money, and the cost of consumer essentials has risen by over eight percent on average.

In March 2021, the party used the partisan reconciliation process to pass a $1.9 trillion COVID relief bill dubbed the American Rescue Plan with no GOP support or input. Later, the majority party was joined by a handful of Republicans in each chamber to pass a $1.2 trillion infrastructure bill.

At the same time, the party pushed for an even more expensive reconciliation, the Build Back Better Act. In its first draft, the 2,000-page bill would have cost $3.5 trillion. Later, in an effort to win the crucial support of Sens. Joe Manchin (D-W. Va.) and Kyrsten Sinema (D-Ariz.), that figure was dropped to $1.75 trillion, but this bill also failed when Manchin announced that he would not support the package at all.

Most recently, the party again turned to the reconciliation process to pass the Inflation Reduction Act, a bill that carried over some key elements of Build Back Better and which will cost taxpayers over $700 billion.

President Joe Biden signs the Inflation Reduction Act as Democrat lawmakers look on at the White House in Washington, on Aug. 16, 2022. (Drew Angerer/Getty Images)

In total, these three bills alone come out to well over $3.8 trillion spent by the majority party over the course of only a few short years.

Republicans have been highly critical of this pattern of spending, which they argue is the largest factor behind soaring inflation that has reduced the spending power of the dollar by almost 10 percent. McCarthy made just this point.

“If you watch, how did inflation start, it wasn’t just Republicans warning the Democrats because remember, only Democrats voted for the American Rescue Plan,” McCarthy said.

McCarthy also noted that the GOP position was influential among even many Democrat economists.

“Larry Summers, a Democrat, [and] former Secretary of the Treasury warned them not to do it, you cause inflation,” McCarthy said. “Steve Rattner, an economic adviser to [President Barack Obama] calls it ‘the original sin of inflation.'”

“We’ve got to stop that runaway spending,” the California Republican added.

Restore US Energy Independence

Republicans will also seek to restore American energy independence if they take the House, McCarthy said.

Under President Donald Trump, the United States became energy independent for the first time in decades. But when he took office, President Joe Biden, citing the so-called “climate crisis,” significantly cut U.S. energy capacity by shuttering the long-debated Keystone XL Pipeline and by declaring a moratorium on new oil and natural gas leases on federal lands.

At the time, critics warned that these policies would substantially raise gas prices. When the predicted price spikes came about, Biden pulled millions of barrels of oil from the Strategic Petroleum Reserve rather than reversing his energy policies. Republicans joined by Joe Manchin unanimously opposed the move, calling on Biden to reverse his policies rather than pulling from U.S. reserves, which were intended to be used in case of global or financial crises.

If they take the House, McCarthy said that Republicans will work to restore America’s energy sector.

A person uses the keypad on a pump at a gas station in Arlington, Va., on July 29, 2022. (Olivier Douliery/AFP via Getty Images)

Beyond Democrats’ spending, McCarthy noted that the rising costs of energy have had a substantial impact in worsening inflation.

“Another cause of inflation is the rise of energy costs,” he said. “So we’re going to make America energy independent, create more American jobs, but lower the price. The energy cost goes in every product and good.

“We’re going to make a sound economy with sound money policies,” he added. “That’s a start to get us under control.”

‘A Nation That’s Safe’

McCarthy also said that Republicans will work to reduce crime rates.

Over the past two years, cities across the U.S. have begun to see higher and higher rates of violent crime, with many cities breaking past records for homicide rates.

Republicans have blamed the situation in part on the “soft-on-crime” attitude of Democrats and liberals in the criminal justice system.

Following the death of George Floyd in 2020, anti-police sentiments spiked among liberals, and in several major cities prosecutors and district attorneys have refused to enforce several laws.

Speaking on this issue, McCarthy said, “We believe in a nation that’s safe.”

“We watch the Democrats defund the police and crime rises—from Portland to Philadelphia, it’s the highest it’s been in 20 years,” he continued. “So we … will make sure we don’t defund the police. We’ll actually bring 200,000 more police officers, we put the accountability to these prosecutors and [district attorneys] to uphold the law fairly and equally.”

House Minority Leader Kevin McCarthy (R-Calif.) speaks with U.S. Capitol Police Officers after arriving on a bicycle to an event at the National Law Enforcement Officers Memorial as part of the “Back The Blue” bike ride in Washington, on May 12, 2022. (Anna Moneymaker/Getty Images)

After largely evading the issue during most of the 117th Congress, Democrats on Sept. 22 finally tried to address rising crime rates with a series of policing bills that passed through the House along broadly party lines. The move, coming as it does only weeks out from a midterm election, raised eyebrows among observers after two years of largely anti-police sentiments among many Democrats.

‘A Future That’s Built on Freedom’

McCarthy also vowed that Republicans will address ongoing controversies in public schools about parents’ rights.

Schools in several major cities have faced scrutiny for the content being taught to children, which has included controversial topics like homosexuality, critical race theory, and graphic representations of nudity or sexual intercourse sometimes shown to children as young as primary school age. In turn, many parents in school districts across the United States have turned up to school board meetings to challenge the material being taught to their children.

If Republicans take the House, McCarthy promised a long-touted “parents bill of rights,” which McCarthy said would ensure that “parents have a say in their children’s education.”

The issue has increasingly become a rallying cry for Republicans.

Republican Glenn Youngkin made the issue the central pillar of his 2021 gubernatorial race in Virginia, which he later won by margins far wider than observers had predicted.

A local mother at a rally outside the Loudoun County Public Schools administration building in Ashburn, Va., on Sept. 13, 2022. (Terri Wu/The Epoch Times)

Florida Governor Ron DeSantis has also put focus on the issue, lobbying and successfully passing a bill that forbids schools from teaching young children about issues like sex, gender identity, or sexual orientation. Though critics dubbed the legislation the “don’t say gay” bill, polls on it have generally shown that most Americans support the move.

The role of parents in determining what schools teach their children has largely become a mainstream issue only in the past year or two, and it remains to be seen whether the issue can rally new voters to the GOP’s banner in November.

Investigations to ‘Hold the Government Accountable’

McCarthy also vowed that Republicans would look into a series of controversial issues and decisions by the current administration through new probes and investigative panels.

The current rules of the lower chamber give the speaker of the House substantially broad authority over the creation of new committees and probes, meaning that Republicans have largely been unable to use the full force of Congress to investigate things they find potentially concerning.

Under Republicans, McCarthy said, the government is “going to be held accountable.”

“We’re … going to look from the aspects of holding government accountable, as well as the DOJ going after parents,” McCarthy added, referencing a controversial decision from the Department of Justice to pursue parents attending school board meetings to protest their children’s curriculum.

McCarthy also promised accountability from China through a probe into the origins of the COVID-19 virus, which is now widely recognized to have likely leaked from a biological research facility in Wuhan, China.

“Why don’t we find out where the origin of COVID started,” he said.

McCarthy said that he’d also create a select committee on China that would look at ways to have U.S. industries, that were shipped there, return to America.

Workers inside the P4 laboratory in Wuhan, capital of China’s Hubei Province, on Feb. 23, 2017. (Johannes Eisele/AFP via Getty Images)

Republicans have also suggested probes into Dr. Anthony Fauci’s ties to the Wuhan facility, the role of Speaker of the House Nancy Pelosi (D-Calif.) in leaving the Capitol building unprepared on Jan. 6, and the recent raid by the FBI of Trump’s Mar-a-Lago home.

Undoing Democrats’ IRS Expansion

McCarthy said that if they take the House, Republicans will also work to undo Democrats’ recent expansion of the IRS.

Specifically, the expansion was included as part of the Inflation Reduction Act, which sextupled the IRS’ current budget overnight.

The IRS provisions of the Inflation Reduction Act were among its most controversial.

The $80 billion allocated to the agency by the bill sextuples its budget, and Republican critics have warned that the bulked-up IRS could hire as many as 87,000 new agents. These agents, in turn, critics have said, will be let loose against middle-class Americans and small businesses, despite Democrats’ claims about the expansion that nobody making less than $400,000 per year will see their tax bill increase.

Proponents of the bill suggest that, in addition to the new tax code changes, a bulkier IRS will bring in an additional $124 billion annually through enforcement efforts.

The funding for the IRS will go toward “necessary expenses for tax enforcement activities … to determine and collect owed taxes, to provide legal and litigation support, to conduct criminal investigations (including investigative technology), to provide digital asset monitoring and compliance activities, to enforce criminal statutes related to violations of internal revenue laws and other financial crimes … and to provide other services.”

The Internal Revenue Service headquarters building in Washington is seen in a file photo. (Chip Somodevilla/Getty Images)

Preston Brashers, a senior tax policy analyst at the Heritage Foundation, told The Epoch Times that contrary to Democrat claims, the IRS expansion will almost certainly mean more audits, and in turn more taxes, for middle-class families and small businesses.

“On the very first day, [we’re going to] repeal 87,000 IRS agents,” McCarthy said.

However, this promise may be impossible for McCarthy to keep, particularly if Democrats retain the Senate. Because the Inflation Reduction Act was passed using the filibuster-immune reconciliation process, Republicans theoretically could repeal the expansion of the IRS if they take both chambers of Congress. But even in this case, the measure would need the signature of President Biden, who’s likely to oppose any such move.

Limitations

Despite the broad range of promises and proposals discussed by McCarthy, Republicans will likely face many limitations on how much they can do, particularly if they only take the House.

Currently, Republicans seem to be on track to reenter the House majority after four years in the minority, but the Senate is less certain. Though Senate races in several states remain nail-bitingly tight, observers currently peg the fight for the Senate as leaning heavily in Democrats’ favor.

Right now, FiveThirtyEight gives Republicans a 71 in 100 chance of retaking the House after four years in the minority. But FiveThirtyEight also gives Republicans only a 29 in 100 chance of reclaiming the upper chamber.

If these projections pan out, Senate Democrats would find their scope heavily limited by the Republican House, while the Republican House would find its scope severely limited by the Senate. If the race does end in a divided government, it is likely that McCarthy will face substantial hurdles to rolling out the policy proposals in the Commitment to America plan.

On the other hand, House Republicans would have the benefit of Manchin’s swing vote, which could help them get some budget reconciliation legislation over the finish line in the Senate.

Nevertheless, even in the best case for Republicans—control of both chambers of Congress—the White House will still be occupied by a Democrat, meaning that a fully Republican Congress’s most ambitious goals would be difficult or impossible to carry out.

Tyler Durden Sun, 09/25/2022 - 16:30

Read More

Continue Reading

International

MIPIM 2024 Reflects Mixed Feelings on CRE Recovery

Reportedly, concerns at the forefront include the plunging commercial real estate market (CRE). During the pandemic, many offices were vacated by staff,…

Published

on

Reportedly, concerns at the forefront include the plunging commercial real estate market (CRE). During the pandemic, many offices were vacated by staff, and businesses established remote work practices. Since then, the market never fully recovered.

Based on Reuters information, the 20,000 attendees include property giants such as LaSalle, Greystar, AEW, Patrizia and Federated Hermes (FHI.N). Some representatives were cautiously optimistic and said there are tentative indications of CRE recovery.

Others, such as the head of Europe at LaSalle Investment Management, Philip La Pierre, could have been more positive. He reportedly said:

There’s a lot of hot air being pushed through the Croisette. So you’ve got to navigate that quite carefully.

Rising borrowing costs and post-pandemic open offices cast a shadow on property investments. Reuters reported that year-on-year European commercial capital values dropped by 13.9% in the last quarter of 2023. La Pierre opined that about 30% of European office space is a waste.


Don’t miss out the latest news, subscribe to LeapRate’s newsletter


The US commercial property sector mirrored the European situation. An 11 March 2024 MSCI report indicated that deteriorating office prices placed a yoke on the performance of the entire property market. This report did, however, note the uptick in the European hotel market.

The post MIPIM 2024 Reflects Mixed Feelings on CRE Recovery appeared first on LeapRate.

Read More

Continue Reading

International

Net Zero, The Digital Panopticon, & The Future Of Food

Net Zero, The Digital Panopticon, & The Future Of Food

Authored by Colin Todhunter via Off-Guardian.org,

The food transition, the energy…

Published

on

Net Zero, The Digital Panopticon, & The Future Of Food

Authored by Colin Todhunter via Off-Guardian.org,

The food transition, the energy transition, net-zero ideology, programmable central bank digital currencies, the censorship of free speech and clampdowns on protest. What’s it all about? To understand these processes, we need to first locate what is essentially a social and economic reset within the context of a collapsing financial system.

Writer Ted Reece notes that the general rate of profit has trended downwards from an estimated 43% in the 1870s to 17% in the 2000s. By late 2019, many companies could not generate enough profit. Falling turnover, squeezed margins, limited cashflows and highly leveraged balance sheets were prevalent.

Professor Fabio Vighi of Cardiff University has described how closing down the global economy in early 2020 under the guise of fighting a supposedly new and novel pathogen allowed the US Federal Reserve to flood collapsing financial markets (COVID relief) with freshly printed money without causing hyperinflation. Lockdowns curtailed economic activity, thereby removing demand for the newly printed money (credit) in the physical economy and preventing ‘contagion’.

According to investigative journalist Michael Byrant, €1.5 trillion was needed to deal with the crisis in Europe alone. The financial collapse staring European central bankers in the face came to a head in 2019. The appearance of a ‘novel virus’ provided a convenient cover story.

The European Central Bank agreed to a €1.31 trillion bailout of banks followed by the EU agreeing to a €750 billion recovery fund for European states and corporations. This package of long-term, ultra-cheap credit to hundreds of banks was sold to the public as a necessary programme to cushion the impact of the pandemic on businesses and workers.

In response to a collapsing neoliberalism, we are now seeing the rollout of an authoritarian great reset — an agenda that intends to reshape the economy and change how we live.

SHIFT TO AUTHORITARIANISM

The new economy is to be dominated by a handful of tech giants, global conglomerates and e-commerce platforms, and new markets will also be created through the financialisation of nature, which is to be colonised, commodified and traded under the notion of protecting the environment.

In recent years, we have witnessed an overaccumulation of capital, and the creation of such markets will provide fresh investment opportunities (including dodgy carbon offsetting Ponzi schemes)  for the super-rich to park their wealth and prosper.

This great reset envisages a transformation of Western societies, resulting in permanent restrictions on fundamental liberties and mass surveillance. Being rolled out under the benign term of a ‘Fourth Industrial Revolution’, the World Economic Forum (WEF) says the public will eventually ‘rent’ everything they require (remember the WEF video ‘you will own nothing and be happy’?): stripping the right of ownership under the guise of a ‘green economy’ and underpinned by the rhetoric of ‘sustainable consumption’ and ‘climate emergency’.

Climate alarmism and the mantra of sustainability are about promoting money-making schemes. But they also serve another purpose: social control.

Neoliberalism has run its course, resulting in the impoverishment of large sections of the population. But to dampen dissent and lower expectations, the levels of personal freedom we have been used to will not be tolerated. This means that the wider population will be subjected to the discipline of an emerging surveillance state.

To push back against any dissent, ordinary people are being told that they must sacrifice personal liberty in order to protect public health, societal security (those terrible Russians, Islamic extremists or that Sunak-designated bogeyman George Galloway) or the climate. Unlike in the old normal of neoliberalism, an ideological shift is occurring whereby personal freedoms are increasingly depicted as being dangerous because they run counter to the collective good.

The real reason for this ideological shift is to ensure that the masses get used to lower living standards and accept them. Consider, for instance, the Bank of England’s chief economist Huw Pill saying that people should ‘accept’ being poorer. And then there is Rob Kapito of the world’s biggest asset management firm BlackRock, who says that a “very entitled” generation must deal with scarcity for the first time in their lives.

At the same time, to muddy the waters, the message is that lower living standards are the result of the conflict in Ukraine and supply shocks that both the war and ‘the virus’ have caused.

The net-zero carbon emissions agenda will help legitimise lower living standards (reducing your carbon footprint) while reinforcing the notion that our rights must be sacrificed for the greater good. You will own nothing, not because the rich and their neoliberal agenda made you poor but because you will be instructed to stop being irresponsible and must act to protect the planet.

NET-ZERO AGENDA

But what of this shift towards net-zero greenhouse gas emissions and the plan to slash our carbon footprints? Is it even feasible or necessary?

Gordon Hughes, a former World Bank economist and current professor of economics at the University of Edinburgh, says in a new report that current UK and European net-zero policies will likely lead to further economic ruin.

Apparently, the only viable way to raise the cash for sufficient new capital expenditure (on wind and solar infrastructure) would be a two decades-long reduction in private consumption of up to 10 per cent. Such a shock has never occurred in the last century outside war; even then, never for more than a decade.

But this agenda will also cause serious environmental degradation. So says Andrew Nikiforuk in the article The Rising Chorus of Renewable Energy Skeptics, which outlines how the green techno-dream is vastly destructive.

He lists the devastating environmental impacts of an even more mineral-intensive system based on renewables and warns:

“The whole process of replacing a declining system with a more complex mining-based enterprise is now supposed to take place with a fragile banking system, dysfunctional democracies, broken supply chains, critical mineral shortages and hostile geopolitics.”

All of this assumes that global warming is real and anthropogenic. Not everyone agrees. In the article Global warming and the confrontation between the West and the rest of the world, journalist Thierry Meyssan argues that net zero is based on political ideology rather than science. But to state such things has become heresy in the Western countries and shouted down with accusations of ‘climate science denial’.

Regardless of such concerns, the march towards net zero continues, and key to this is the United Nations Agenda 2030 for Sustainable Development Goals.

Today, almost every business or corporate report, website or brochure includes a multitude of references to ‘carbon footprints’, ‘sustainability’, ‘net zero’ or ‘climate neutrality’ and how a company or organisation intends to achieve its sustainability targets. Green profiling, green bonds and green investments go hand in hand with displaying ‘green’ credentials and ambitions wherever and whenever possible.

It seems anyone and everyone in business is planting their corporate flag on the summit of sustainability. Take Sainsbury’s, for instance. It is one of the ‘big six’ food retail supermarkets in the UK and has a vision for the future of food that it published in 2019.

Here’s a quote from it:

“Personalised Optimisation is a trend that could see people chipped and connected like never before. A significant step on from wearable tech used today, the advent of personal microchips and neural laces has the potential to see all of our genetic, health and situational data recorded, stored and analysed by algorithms which could work out exactly what we need to support us at a particular time in our life. Retailers, such as Sainsbury’s could play a critical role to support this, arranging delivery of the needed food within thirty minutes — perhaps by drone.”

Tracked, traced and chipped — for your own benefit. Corporations accessing all of our personal data, right down to our DNA. The report is littered with references to sustainability and the climate or environment, and it is difficult not to get the impression that it is written so as to leave the reader awestruck by the technological possibilities.

However, the promotion of a brave new world of technological innovation that has nothing to say about power — who determines policies that have led to massive inequalities, poverty, malnutrition, food insecurity and hunger and who is responsible for the degradation of the environment in the first place — is nothing new.

The essence of power is conveniently glossed over, not least because those behind the prevailing food regime are also shaping the techno-utopian fairytale where everyone lives happily ever after eating bugs and synthetic food while living in a digital panopticon.

FAKE GREEN

The type of ‘green’ agenda being pushed is a multi-trillion market opportunity for lining the pockets of rich investors and subsidy-sucking green infrastructure firms and also part of a strategy required to secure compliance required for the ‘new normal’.

It is, furthermore, a type of green that plans to cover much of the countryside with wind farms and solar panels with most farmers no longer farming. A recipe for food insecurity.

Those investing in the ‘green’ agenda care first and foremost about profit. The supremely influential BlackRock invests in the current food system that is responsible for polluted waterways, degraded soils, the displacement of smallholder farmers, a spiralling public health crisis, malnutrition and much more.

It also invests in healthcare — an industry that thrives on the illnesses and conditions created by eating the substandard food that the current system produces. Did Larry Fink, the top man at BlackRock, suddenly develop a conscience and become an environmentalist who cares about the planet and ordinary people? Of course not.

Any serious deliberations on the future of food would surely consider issues like food sovereignty, the role of agroecology and the strengthening of family farms — the backbone of current global food production.

The aforementioned article by Andrew Nikiforuk concludes that, if we are really serious about our impacts on the environment, we must scale back our needs and simplify society.

In terms of food, the solution rests on a low-input approach that strengthens rural communities and local markets and prioritises smallholder farms and small independent enterprises and retailers, localised democratic food systems and a concept of food sovereignty based on self-sufficiency, agroecological principles and regenerative agriculture.

It would involve facilitating the right to culturally appropriate food that is nutritionally dense due to diverse cropping patterns and free from toxic chemicals while ensuring local ownership and stewardship of common resources like land, water, soil and seeds.

That’s where genuine environmentalism and the future of food begins.

Tyler Durden Thu, 03/14/2024 - 02:00

Read More

Continue Reading

Government

Five Aerospace Investments to Buy as Wars Worsen Copy

Five aerospace investments to buy as wars worsen give investors a chance to acquire shares of companies focused on fortifying national defense. The five…

Published

on

Five aerospace investments to buy as wars worsen give investors a chance to acquire shares of companies focused on fortifying national defense.

The five aerospace investments to buy provide military products to help protect freedom amid Russia’s ongoing onslaught against Ukraine that began in February 2022, as well as supply arms in the Middle East used after Hamas militants attacked and murdered civilians in Israel on Oct. 7. Even though the S&P 500 recently reached all-time highs, these five aerospace investments have remained reasonably priced and rated as recommendations by seasoned analysts and a pension fund chairman.

State television broadcasts in Russia show the country’s soldiers advancing further into Ukrainian territory, but protests have occurred involving family members of those serving in perilous conditions in the invasion of their neighboring nation to be brought home. Even though hundreds of thousands of Russians also have fled to other countries to avoid compulsory military service, the aggressor’s President Vladimir Putin has vowed to continue to send additional soldiers into the fierce fighting.

While Russia’s land-grab of Crimea and other parts of Ukraine show no end in sight, Israel’s war with Hamas likely will last for at least additional months, according to the latest reports. United Nations’ leaders expressed alarm on Dec. 26 about intensifying Israeli attacks that killed more than 100 Palestinians over two days in part of the Gaza Strip, when 15 members of the Israel Defense Force (IDF) also lost their lives.

Five Aerospace Investments to Buy as Wars Worsen: General Dynamics

One of the five aerospace investments to buy as wars worsen is General Dynamics (NYSE: GD), a Reston, Virginia-based aerospace company with more than 100,000 employees in 70-plus countries. A key business unit of General Dynamics is Gulfstream Aerospace Corporation, a manufacturer of business aircraft. Other segments of General Dynamics focus on making military products such as Abrams tanks, Stryker fighting vehicles, ASCOD fighting vehicles like the Spanish PIZARRO and British AJAX, LAV-25 Light Armored Vehicles and Flyer-60 lightweight tactical vehicles.

For the U.S. Navy and other allied armed forces, General Dynamics builds Virginia-class attack submarines, Columbia-class ballistic missile submarines, Arleigh Burke-class guided missile destroyers, Expeditionary Sea Base ships, fleet logistics ships, commercial cargo ships, aircraft and naval gun systems, Hydra-70 rockets, military radios and command and control systems. In addition, the company provides radio and optical telescopes, secure mobile phones, PIRANHA and PANDUR wheeled armored vehicles and mobile bridge systems.

Chicago-based investment firm William Blair & Co. is among those recommending General Dynamics. The Chicago firm gave an “outperform” rating to General Dynamics in a Dec. 21 research note.

Gulfstream is seeking G700 FAA certification by the end of 2023, suggesting potentially positive news in the next 10 days, William Blair wrote in its recent research note. The investment firm projected that General Dynamics would trade upward upward upon the G700’s certification.

“General Dynamics’ 2023 aircraft delivery guidance of approximately 134 planes assumes that 19 G700s are delivered in the fourth quarter,” wrote William Blair’s aerospace and defense analyst Louie DiPalma. “Even if deliveries fall short of this target, we believe investors will take a glass-half-full approach upon receipt of the certification.”

Chart courtesy of www.stockcharts.com.

Five Aerospace Investments to Buy as Wars Worsen: GD Outlook

The G700 is a major focus area for investors because it is Gulfstream’s most significant aircraft introduction since the iconic G650 in 2012, DiPalma wrote. Gulfstream has the highest market share in the long-range jet segment of the private aircraft market, the highest profit margin of aircraft peers and the most premium business aviation brand, he added.

“The aircraft remains immensely popular today with corporations and high-net-worth individuals,” Di Palma wrote. “Elon Musk has reportedly placed an order for a G700 to go along with his existing G650. Qatar Airways announced at the Paris Air Show that 10 G700 aircraft will become part of its fleet.”

G700 deliveries and subsequent G800 deliveries are expected to be the cornerstone of Gulfstream’s growth and margin expansion for the next decade, DiPalma wrote. This should lead to a rebound in the stock price as the margins for the G700 and G800 are very attractive, he added.

Management’s guidance is for the aerospace operating margin to increase from about 13.2% in 2022 to roughly 14.0% in 2023 and 15.8% in 2024. Longer term, a high-teens profit margin appears within reach, DiPalma projected.

In other General Dynamics business segments, William Blair expects several yet-unannounced large contract awards for General Dynamics IT, to go along with C$1.7 billion, or US$1.29 billion, in General Dynamics Mission Systems contracts announced on Dec. 20 for the Canadian Army. General Dynamics shares are poised to have a strong 2024, William Blair wrote.

Five Aerospace Investments to Buy as Wars Worsen: VSE Corporation

Alexandria, Virginia-based VSE Corporation’s (NASDAQ: VSEC) price-to-earnings (P/E) valuation multiple of 22 received support when AAR Corp. (NYSE: AIR), a Wood Dale, Illinois, provider of aviation services, announced on Dec. 21 that it would acquire the product support business of Triumph Group (NYSE: TGI), a Berwyn, Pennsylvania, supplier of aerospace services, structures and systems. AAR’s purchase price of $725 million reflects confidence in a continued post-pandemic aerospace rebound.

VSE, a provider of aftermarket distribution and repair services for land, sea and air transportation assets used by government and commercial markets, is rated “outperform” by William Blair. The company’s core services include maintenance, repair and operations (MRO), parts distribution, supply chain management and logistics, engineering support, as well as consulting and training for global commercial, federal, military and defense customers.

“Robust consumer travel demand and aging aircraft fleets have driven elevated maintenance visits,” William Blair’s DiPalma wrote in a Dec. 21 research note. “The AAR–Triumph deal is valued at a premium 13-times 2024 EBITDA multiple, which was in line with the valuation multiple that Heico (NYSE: HEI) paid for Wencor over the summer.”

VSE currently trades at a discounted 9.5 times consensus 2024 earnings before interest, taxes, depreciation and amortization (EBITDA) estimates, as well as 11.6 times consensus 2023 EBITDA.

Five Aerospace Investments to Buy as Wars Worsen: VSE Undervalued?

“We expect that VSE shares will trend higher as investors process this deal,” DiPalma wrote. “VSE shares trade at 9.5 times consensus 2024 adjusted EBITDA, compared with peers and M&A comps in the 10-to-14-times range. We think that VSE’s multiple will expand as it closes the divestiture of its federal and defense business and makes strategic acquisitions. We see consistent 15% annual upside for shares as VSE continues to take share in the $110 billion aviation aftermarket industry.”

William Blair reaffirmed its “outperform” rating for VSE on Dec. 21. The main risk to VSE shares is lumpiness associated with its aviation services margins, Di Palma wrote. However, he raised 2024 estimates to further reflect commentary from VSE’s analysts’ day in November.

Chart courtesy of www.stockcharts.com.

Five Aerospace Investments to Buy as Wars Worsen: HEICO Corporation

HEICO Corporation (NYSEL: HEI), is a Hollywood, Florida-based technology-driven aerospace, industrial, defense and electronics company that also is ranked as an “outperform” investment by William Blair’s DiPalma. The aerospace aftermarket parts provider recently reported fourth-quarter financials above consensus analysts’ estimates, driven by 20% organic growth in HEICO’s flight support group.

HEICO’s management indicated that the performance of recently acquired Wencor is exceeding expectations. However, HEICO leaders offered color on 2024 organic growth and margin expectations that forecast reduced gains. Even though consensus estimates already assumed slowing growth, it is still not a positive for HEICO, DiPalma wrote.

William Blair forecasts 15% annual upside to HEICO’s shares, based on EBITDA growth. HEICO’s management cited a host of reasons for its quarterly outperformance, highlighted by the continued commercial air travel recovery. The company also referenced new product introductions and efficiency initiatives.

HEICO’s defense product sales increased by 26% sequentially, marking the third consecutive sequential increase in defense product revenue. The company’s leaders conveyed that defense in general is moving in the right direction to enhance financial performance.

Chart courtesy of www.stockcharts.com.

Five Dividend-paying Defense and Aerospace Investments to Purchase: XAR

A fourth way to obtain exposure to defense and aerospace investments is through SPDR S&P Aerospace and Defense ETF (XAR). That exchange-traded fund  tracks the S&P Aerospace & Defense Select Industry Index. The fund is overweight in industrials and underweight in technology and consumer cyclicals, said Bob Carlson, a pension fund chairman who heads the Retirement Watch investment newsletter.

Bob Carlson, who heads Retirement Watch, answers questions from Paul Dykewicz.

XAR has 34 securities, and 44.2% of the fund is in the 10 largest positions. The fund is up 25.82% in the last 12 months, 22.03% in the past three months and 7.92% for the last month. Its dividend yield recently measured 0.38%.

The largest positions in the fund recently were Axon Enterprise (NASDAQ: AXON), Boeing (NYSE: BA), L3Harris Technologies (NYSE: LHX), Spirit Aerosystems (NYSE: SPR) and Virgin Galactic (NYSE: SPCE).

Chart courtesy of www.stockcharts.com

Five Dividend-paying Defense and Aerospace Investments to Purchase: PPA

The second fund recommended by Carlson is Invesco Aerospace & Defense ETF (PPA), which tracks the SPADE Defense Index. It has the same underweighting and overweighting as XAR, he said.

PPA recently held 52 securities and 53.2% of the fund was in its 10 largest positions. With so many holdings, the fund offers much reduced risk compared to buying individual stocks. The largest positions in the fund recently were Boeing (NYSE: BA), RTX Corp. (NYSE: RTX), Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC) and General Electric (NYSE:GE).

The fund is up 19.07% for the past year, 50.34% in the last three months and 5.30% during the past month. The dividend yield recently touched 0.69%.

Chart courtesy of www.stockcharts.com

Other Fans of Aerospace

Two fans of aerospace stocks are Mark Skousen, PhD, and seasoned stock picker Jim Woods. The pair team up to head the Fast Money Alert advisory service They already are profitable in their recent recommendation of Lockheed Martin (NYSE: LMT) in Fast Money Alert.

Mark Skousen, a scion of Ben Franklin, meets with Paul Dykewicz.


Jim Woods, a former U.S. Army paratrooper, co-heads Fast Money Alert.

Bryan Perry, who heads the Cash Machine investment newsletter and the Micro-Cap Stock Trader advisory service, recommends satellite services provider Globalstar (NYSE American: GSAT), of Covington, Louisiana, that has jumped 50.00% since he advised buying it two months ago. Perry is averaging a dividend yield of 11.14% in his Cash Machine newsletter but is breaking out with the red-hot recommendation of Globalstar in his Micro-Cap Stock Trader advisory service.


Bryan Perry heads Cash Machine, averaging an 11.14% dividend yield.

Military Equipment Demand Soars amid Multiple Wars

The U.S. military faces an acute need to adopt innovation, to expedite implementation of technological gains, to tap into the talents of people in various industries and to step-up collaboration with private industry and international partners to enhance effectiveness, U.S. Joint Chiefs of Staff Gen. Charles Q. Brown Jr. told attendees on Nov 16 at a national security conference. Prime examples of the need are showed by multiple raging wars, including the Middle East and Ukraine. A cold war involves China and its increasingly strained relationships with Taiwan and other Asian nations.

The shocking Oct. 7 attack by Hamas on Israel touched off an ongoing war in the Middle East, coupled with Russia’s February 2022 invasion and continuing assault of neighboring Ukraine. Those brutal military conflicts show the fragility of peace when determined aggressors are willing to use any means necessary to achieve their goals. To fend off such attacks, rapid and effective response is required.

“The Department of Defense is doing more than ever before to deter, defend, and, if necessary, defeat aggression,” Gen. Brown said at the National Security Innovation Forum at the Johns Hopkins University Bloomberg Center in Washington, D.C.

One of Russia’s war ships, the 360-foot-long Novocherkassk, was damaged on Dec. 26 by a Ukrainian attack on the Black Sea port of Feodosia in Crimea. This video of an explosion at the port that reportedly shows a section of the ship hit by aircraft-guided missiles.


Chairman Joint Chiefs of Staff Gen. Charles Q. Brown, Jr.
Photo By: Benjamin Applebaum

National security threats can compel immediate action, Gen. Brown said he quickly learned since taking his post on Oct. 1.

 

“We may not have much warning when the next fight begins,” Gen. Brown said. “We need to be ready.”

 

In a pre-recorded speech at the national security conference, Michael R. Bloomberg, founder of Bloomberg LP, told the John Hopkins national security conference attendees about the critical need for collaboration between government and industry.

 

“Building enduring technological advances for the U.S. military will help our service members and allies defend freedom across the globe,” Bloomberg said.

 

The “horrific terrorist attacks” against Israel and civilians living there on Oct. 7 underscore the importance of that mission, Bloomberg added.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street JournalInvestor’s Business DailyUSA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Attention Holiday Gift Buyers! Consider purchasing Paul’s inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The uplifting book is great gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for special pricing on multiple-book purchases or autographed copies! Follow Paul on Twitter @PaulDykewicz. He is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper, after writing for the Baltimore Business Journal and Crain Communications.

The post Five Aerospace Investments to Buy as Wars Worsen Copy appeared first on Stock Investor.

Read More

Continue Reading

Trending