The White House (via OMB) strongly protests Congressional efforts within the FY 2027 NDAA to prohibit the purchase of warships from foreign shipyards. The Administration argues that these restrictions undermine national security by limiting flexibility and hindering its strategy of leveraging allied yards, such as in the 'Finland model,' to drive investment into U.S. shipbuilding capacity. This signals a significant policy shift toward integrating international partners into advanced naval construction, suggesting the Pentagon is prepared to bypass traditional domestic build requirements for future combat vessels.
The Gulf Goes Backward
English Summary
The article argues that Iran's pattern of limited, calibrated hostilities in the region is breaking down following the US-Israel conflict. Previously, Iran restricted its attacks to proxies or US/Israeli installations; however, it has dramatically expanded the battlefield by directly targeting vital infrastructure in neighboring Gulf states. This escalation suggests a rapid deterioration of regional stability and signals a move away from controlled deterrence. Policymakers must anticipate a significantly higher risk of a full-scale regional conflagration, necessitating immediate reassessment of deterrence strategies and security cooperation.
中文摘要
本文指出,在美國與以色列衝突之後,伊朗在該地區採取有限、可控的敵對行動的模式正在瓦解。過去,伊朗曾將其攻擊限制於代理人或美國/以色列的設施;然而,它已透過直接攻擊鄰近海灣國家的關鍵基礎設施,極大地擴大了戰場。這種升級顯示區域穩定性正在迅速惡化,並標誌著其偏離了受控威懾的模式。政策制定者必須預期全面區域戰火的風險顯著提高,這要求立即重新評估威懾戰略和安全合作。
Related Entries
-
1.
-
2.
The Western Pacific remains a highly active theater defined by sustained U.S.-led military exercises and escalating great power competition. Key evidence includes continuous joint operations, such as RIMPAC 2026 in Hawaii and the deployment of CSGs into the South China Sea, juxtaposed with increased naval activity from both China (PLAN task groups) and Russia near Japan's critical straits. These movements underscore a strategic push by non-allied powers to assert presence and challenge regional norms. Policy implications dictate that allied nations must maintain robust multilateral cooperation and interoperability to safeguard freedom of navigation and manage escalating tensions in the Indo-Pacific.
-
3.
The article argues that the post-Cold War era of U.S. unipolarity, established by the perceived invincibility demonstrated during the Gulf War, has ended. This decline is driven by globalization and technological diffusion, which have democratized advanced military capabilities, allowing regional actors to challenge major powers. Consequently, policymakers must prepare for a more volatile international order marked by frequent crises, heightened costs for securing global trade chokepoints, and reduced predictability from American power. The new rules dictate that great powers can no longer effortlessly impose their will through force.
-
4.
The article argues that current market borrowing costs are rising independently of the Federal Reserve's policy stance, challenging the assumption that the Fed controls all rates. Evidence shows significant increases in key rates—such as 2-year Treasuries and mortgages—even while the effective federal funds rate remains steady. This divergence occurs because market rates reflect complex factors like inflation expectations, credit risk, and geopolitical volatility, which are outside the central bank's direct control. Policymakers should therefore recognize that sustainable rate moderation requires credible disinflation and disciplined government budgets, rather than relying solely on Fed intervention.
-
5.
Despite recent trade setbacks, the U.S. retains fundamental structural economic leverage over China, particularly in high-tech sectors and intermediate goods. While Beijing can temporarily weaponize specific resources like rare earths, these chokepoints are vulnerable to diversification efforts by the West. The article argues that the most effective strategy is not unilateral action but coordinated multilateral pressure from U.S. allies across Asia and Europe. Washington must therefore coordinate its economic statecraft with partners to maximize damage to China’s export-dependent model.