The United Nations Is Going BankruptÂ
Once upon a time, two world wars saw a bunch of stuff get blown up, and millions die. After the dust settled, countries decided it might be a better idea to meet and talk about their differences, instead of fighting. They called their meeting the ‘United Nations,’ and it was a thumping success. For the most part, world peace is one less thing to worry about for investors, with 193 nations now voting at the UN for changes they want to see in the world.Â
The UN’s P-word is peace, not profit, but it does need money to survive, and it does charge a couple billion for entry at the door. Every member has to chip in, but predictably, some aren’t! The UN’s finance man, Antonio Guterres, is losing sleep over 64 nations that won’t cough up, a 30% underfunded budget, and the US being fed up with pulling the slack.
The UN isn’t magically funded out of goodwill. It’s never been paid a penny for disarming dictators, driving climate reform, or sanctioning international bad apples. The UN can’t pay for what it can’t afford, which is now staff wages. The United Nations is on the verge, people, and stock pickers are looking at war-driven defense stocks like Raytheon, BAE Systems, and Northrop Grumman as the world’s police threaten to go bust!
If Syria will pay, then why won’t Saudi Arabia? It’s a divided world for a united group of nations. Some countries probably have more to lose in the short-term from it than they do to gain. On the other hand, don’t be surprised if the Saudis suddenly find an extra couple billion under the sofa if war breaks out! By that time, most market players will have cashed out on their defense stocks anyway!
