thank you for doing this...i am starting to see some posts about the amount of ammunition that is being used in Bahkmut is outragious and the US is not going to be able to keep up with supply. i can believe this so what are the implications of this...China, Iran and Saudi....i dont trust that for a minute...Cant imagine what conversations are going on in Isreal...
So, ammunition usage is something to keep an eye on, but the West is focusing on production and the U.S. and all NATO countries have plenty of artillery rounds in storage. We're just running out of ammo to share without going into some kind of war-time production levels ouselves.
Also, it's worth remembering that artillery is always what you fire most and at the highest volume.
You don't want the enemy getting too close, so you shoot a lot at them in the distance, which takes more rounds for correction.
But ultimately, had you not fired those rounds, there are other weapons systems that can take care of the enemy at closer range. (Mortars, machine guns, rifle fire.)
The Ukrainians can slow down their usage if they have to, but they don't want to. And I get their desire to not want to reduce that usage. So, it's mostly a kind of a gray area as far as my concern.
Thank you for always adding the motivation. Curious your thoughts on the banking closures and do you feel it might affect in other countries because of it. (I havnt done my research on it so thought I’d ask you). Thanks!
I think it's too soon to know for sure. I went from being not too worried late last week and the first part of the weekend, to becoming more worried as panic (an overreaction, in my view) spread.
But you can never know how a largely uninformed public will react to events. I'm back to feeling like it's going to work out okay and that it was a good warning other banks out there to tighten things up now.
Here's a good updated article on the matter from about a half-hour ago.
It appears that SVB was insolvent and closed by regulators due to a run by depositors. This is a problem of liquidity, NOT a problem of bankruptcy. Any bank will become insolvent if enough depositors withdraw their funds in a short amount of time. It seems probable that the remaining SVB depositors will be made whole once the assets are liquidated. In the meantime, the customers are locked out.
I haven’t learned enough about Signature Bank to see if it was in the same situation, but it appears that it too was subject to a run by depositors.
These are mainly confidence issues and once confidence in the system is restored, things will settle down. Treasury and FDIC seem to be trying to address the confidence problem but it may take some time. Everyone is now looking at their local banks and asking “are you okay”?
thank you for doing this...i am starting to see some posts about the amount of ammunition that is being used in Bahkmut is outragious and the US is not going to be able to keep up with supply. i can believe this so what are the implications of this...China, Iran and Saudi....i dont trust that for a minute...Cant imagine what conversations are going on in Isreal...
Hi Aida! Thanks for the comment!
So, ammunition usage is something to keep an eye on, but the West is focusing on production and the U.S. and all NATO countries have plenty of artillery rounds in storage. We're just running out of ammo to share without going into some kind of war-time production levels ouselves.
Also, it's worth remembering that artillery is always what you fire most and at the highest volume.
You don't want the enemy getting too close, so you shoot a lot at them in the distance, which takes more rounds for correction.
But ultimately, had you not fired those rounds, there are other weapons systems that can take care of the enemy at closer range. (Mortars, machine guns, rifle fire.)
The Ukrainians can slow down their usage if they have to, but they don't want to. And I get their desire to not want to reduce that usage. So, it's mostly a kind of a gray area as far as my concern.
Thank you for always adding the motivation. Curious your thoughts on the banking closures and do you feel it might affect in other countries because of it. (I havnt done my research on it so thought I’d ask you). Thanks!
I think it's too soon to know for sure. I went from being not too worried late last week and the first part of the weekend, to becoming more worried as panic (an overreaction, in my view) spread.
But you can never know how a largely uninformed public will react to events. I'm back to feeling like it's going to work out okay and that it was a good warning other banks out there to tighten things up now.
Here's a good updated article on the matter from about a half-hour ago.
Will the government’s moves to stabilize banks work? https://apnews.com/article/banks-federal-reserve-silicon-valley-lending-rescue-a04875a164165b50e971ff4576bf4e27?utm_source=homepage&utm_medium=TopNews&utm_campaign=position_01
It appears that SVB was insolvent and closed by regulators due to a run by depositors. This is a problem of liquidity, NOT a problem of bankruptcy. Any bank will become insolvent if enough depositors withdraw their funds in a short amount of time. It seems probable that the remaining SVB depositors will be made whole once the assets are liquidated. In the meantime, the customers are locked out.
I haven’t learned enough about Signature Bank to see if it was in the same situation, but it appears that it too was subject to a run by depositors.
These are mainly confidence issues and once confidence in the system is restored, things will settle down. Treasury and FDIC seem to be trying to address the confidence problem but it may take some time. Everyone is now looking at their local banks and asking “are you okay”?