Trump’s Defense Spending Plans Make these ETFs Buys Again
A rising defense budget will lift these ETF plays higher
Source: Zacks Investment Research
http://investorplace.com/2017/03/trumps ... MBj4vl96M8
Trump vowed to expand the number of carriers the United States fields from 10 to 12.
And he promised to bring down the cost of building three “super-carriers,” which has ballooned by a third over the last decade from $27 to $36 billion.
The Gerald R. Ford alone is $2.5 billion over budget and three years behind schedule, military officials say.
The second Ford-class carrier, the John F. Kennedy, is running five years late.
All told, since the early 1980s, U.S. and British carriers have been sunk at least 14 times in so-called “free play” war games meant to simulate real battle, according to think tanks, foreign navies and press accounts. Th
The U.S. fleet of 10 active carriers is 10 times as big as those deployed by its primary military rivals, Russia and China, who field one active carrier each.
Trump has said he will make good on his campaign promise to increase the Navy's fleet to 350 ships.
The Navy currently has 277 deployable ships. The cost of a single new, Ford-class carrier – $10.5 billion without cost overruns – would consume nearly 20 percent of Trump’s proposed $54 billion increase in next year's defense budget.
In order to be relatively safe, a carrier would have to stand off by 1,300 nautical miles, or 2,300 kilometers – out of range of the Dong Feng missiles.
And the F-18s have a range of only 400 nautical miles (equal to 460 statute miles or 740 kilometers) to a target with enough fuel to return.
The F-18s are to be replaced by 2020 with new F-35C Lightning IIs, but these have only a marginally better range of 650 nautical miles.
Each carrier usually has an escort of at least five warships, a mixture of destroyers and cruisers, at least one submarine and a combined ammunition-supply ship and helicopters designed to detect subs.
When close enough to shore, carriers are also protected by new, land-based P-8 Poseidon jets, designed to detect and destroy subs.
Yue said an ideal place to install the Chinese equipment was on the Shandong peninsula on the country’s east coast, opposite South Korea.
Fu Qianshao, an aviation equipment expert with the PLA Air Force, said China could also send planes – manned or unmanned – to fly close to THAAD to interfere with its radar signals. All the country’s armed forces had the capacity to interfere with radar signals, Fu said.
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