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Home World

The Number Of Weapons In The World Is Increasing How Does This Affect The Economy?

Gezim Osmani by Gezim Osmani
4 March 2023
in World
Reading Time: 3 mins read
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The Number Of Weapons In The World Is Increasing How Does This Affect The Economy?

Global society is becoming increasingly militarized. The global economy continues to struggle with 21st century crises, such as the Great Recession (2007-2009) and the war between Russia and Ukraine, which have had varying effects around the world. The Covid 19 pandemic should also be mentioned. 

Table of Contents

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  • Putin Suspends Disarmament Treaty
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    • 5% of Brazil’s Reserves in Bitcoin? Here’s Why That Could Reshape Crypto History
  • What Are The Intentions Of Iran And North Korea?
  • What Impact Will The Arms Race Have On The Economy?

Putin Suspends Disarmament Treaty

Putin announced the suspension of the New START disarmament treaty, which entered into force in 2011. This was the last disarmament treaty between the U.S. and Russia. It expires in February 2026. As a consequence of the treaty’s suspension, the Russian Foreign Ministry stated that Moscow does not intend to use nuclear weapons outside the treaty’s borders.

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In late January, a drone strike near the Iranian city of Isfahan drew world attention to Iran’s proliferation activities. North Korea has recently conducted six nuclear tests. Now Russia’s behavior is also escalating tensions. 

What Are The Intentions Of Iran And North Korea?

The nuclear weapons strategies of Iran and North Korea have long been known. After the deterioration of U.S.-Russian relations and Russia’s withdrawal from the New Start treaty, China’s military policy is viewed differently. China is pursuing an arms buildup similar to that of the United States and Russia. In addition, Iran and North Korea are seen as threats to the entire world. 

The Number Of Weapons In The World Is Increasing How Does This Affect The Economy?

Moreover, these developments have also mobilized Japan. Japan will increase its defense spending to 2 percent of its gross domestic product. Japan argues that the increase in regional armaments is unprecedented. Japan’s defense spending is this high for the first time since the 1950s, and that has a frightening effect. 

What Impact Will The Arms Race Have On The Economy?

The United States plans to spend 3.29 percent of its GDP on defense starting in 2021. In contrast, China has earmarked 1.23 percent. China accounts for 43% of total defense spending in the region.

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The pace of global rearmament does not necessarily lead to violent conflict. The history of international relations is replete with examples in which the arms race was used as a strategy, but the buildup did not lead to violent conflict.

On February 24, the first year of the Russian-Ukrainian war ended. The arms buildup described above and the Russian invasion of Ukraine are the result of international political and economic power struggles in the recent past. However, at another point in these processes, the Russian-Ukrainian war proved to be the event with the greatest impact on global political and economic balances.

As a result of the Russia-Ukraine war, the supply chain disruptions caused by the Covid crisis, particularly in the energy and food sectors, have worsened significantly. At times, the disruptions can reach proportions that completely call into question the security of supply. The problem of global hyperinflation therefore seems difficult to solve. The longer the conflict between Russia and Ukraine continues and the greater its impact on the global economy, the less support some countries will give to the anti-Russian coalition.

It may get your attention: Digital Twins Technology: From NASA to Our Homes

Tags: economyweaponsworld
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Gezim Osmani

Gezim Osmani

Senior Journalist, Content editor Hi there! My name is Gezim, and I'm a Senior Journalist covering crypto and fintech. I have a passion for technology and finance, and I've spent years following the latest trends in the industry. My goal is to make complex financial concepts accessible to my readers. I strive to provide insightful analysis and explain the latest developments in the world of crypto and fintech in a way that is easy to understand. I believe that knowledge is power, and I want to empower my readers to make informed decisions about their finances. In addition to my professional pursuits, I also love to take photos. I find that photography allows me to capture moments and emotions in a way that words cannot. Whether I'm traveling to a new city or exploring the great outdoors, I always have my camera with me. Photography is a way for me to express my creativity and connect with the world around me. When I'm not working or taking photos, I also enjoy hiking and spending time in nature. There's something about being outside and surrounded by natural beauty that brings me peace and clarity. I also love to read, and I'm always seeking out new books and articles to expand my knowledge. Overall, I'm driven by a desire to help people understand the complex world of finance and technology. Through my writing, photography, and other pursuits, I'm committed to creating content that inspires and informs my readers. I believe that everyone has the potential to achieve financial success, and I'm here to help them along the way. I would love to connect and see how we can work together to shape the future of crypto anf fintech. Let's connect and see where our shared interests and expertise can take us!

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