Market Talk – April 30, 2024
ASIA: The major Asian stock markets had a mixed day today: NIKKEI 225 increased 470.90 points or 1.24% to 38,405.66 Shanghai decreased 8.22 points or -0.26% to 3,104.82 [...]
Does America Need NATO?
Former President Donald Trump has recently reiterated his stance that the United States is unfairly carrying the financial burden of the NATO alliance. He has criticized other NATO members for not meeting their defense spending targets and believes that the US should not protect allies who fail to meet these targets. Trump threatened to withdraw from NATO during his presidency as this has been a longtime grudge. So, who is contributing their fair share?
NATO nations have agreed to pay 2% of GDP toward the alliance in 2014 in the wake of the Crimea annexation. Unfortunately, written agreements carry no weight in politics as of recent years. Trump believes anyone failing to pay their bills should become the target as they do not deserve the protection of the US after years of failing to meet their obligations. Trump would “encourage them [Russia] to do whatever the hell they want” to the 18 nations who are not meeting the 2% target.
Only three NATO nations besides the US were committing to the agreement when Trump was sworn into office in 2017 (Greece, Poland, the UK). NATO members increased their contributions after Trump threatened to withdraw. Still, as of today, only seven of those members besides the US are paying their fair share (the UK, Greece, Poland, Latvia, Estonia, Croatia, and Lithuania). Newly added Romania, Hungary, Finland, and Slovakia are so grateful to be part of the alliance that they are paying over 2%.
Europe arguably has more to lose in this war, so why is the United States bankrolling NATO? Does America actually need NATO for protection? No. But they do need NATO to create and amplify wars. Even European economic powerhouses like Germany (1.57%) and France (1.9%) have failed to meet their 2014 agreement.
Trump’s comments have sparked anger within the alliance, with NATO Secretary General Jens Stoltenberg saying Trump’s comments threaten global security. While encouraging an attack on any nation is counterproductive, the numbers clearly indicate that NATO is taking full advantage of America, which is propping up the entire alliance by providing over 70% of overall funding. No one is helping America to secure its borders, but America is expected to act as a global police force, abandon all domestic interests, and interfere whenever another nation’s borders are in jeopardy. America does not need NATO; NATO needs America.
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