President Barack Obama commenced his Asia Tour this week ready to hold conversations about economic relations between the United States and the region; only to be upstaged by renewed geopolitical threats from North Korea and a constant flow of questions regarding troop levels in Afghanistan.
Now the president is forced into dealing with difficult security issues, which may jeopardize achieving his objective for the trip.
Upon leaving Washington, White House press secretary Robert Gibbs was quick to point out that no announcement on troop levels would occur until the president returns to D.C. next Thursday. Still, the president decided to address the issue in route to Asia.
While stopping temporarily to see troops at Elmendorf Air Force Base in Alaska, President Obama said he would never hesitate to use force to protect the American people but made them this promise: “I will not risk your lives unless it is necessary to America’s vital interests. And if it is necessary the United States of America will have your back.”
The president’s comments are viewed as a slight commitment the administration will approve an increase in troop levels, despite resistance he is receiving from his Asian counterparts. Regardless, increases in violence in the Afghan region will most likely force the hand of the president to add troops due to his comments about saving lives.
As a sign the administration is ready to announce an increase, Oshkosh Corp. (OSK:NYSE) quietly announced an order for an additional 1,000 trucks, pushing Oshkosh’s order volume above the anticipated limit of about 5,200 trucks. The additional order is valued at $438 million for the Wisconsin defense contractor.
As CNNMoney reports:
With fighting in Afghanistan intensifying and an increase in U.S. troop levels becoming increasingly likely, Oshkosh’s orders for what the military calls M-ATVs (for mine-resistant, all-terrain vehicles) could eventually approach 10,000 trucks, some analysts predict.
“I’d be surprised if this is the last M-ATV order the company gets,” said Charles Brady, an analyst for BMO Capital Markets in Boston, told CNN. “Presumably, if you put another 30,000 to 40,000 soldiers in Afghanistan, you probably do get closer to an 8,000 or 10,000-unit volume number.”
Afghanistan isn’t the only topic when it comes to military conversation. Reuters reports that just as the president arrived in Japan, “North Korea’s military warned the South that it was ready for battle over a disputed sea border,” issuing a new threat the president would have to deal with.
President Obama commented on the new threat by saying in an interview that “North Korea’s nuclear and missile programs posed a grave threat to Asian security and Pyongyang should return to dormant disarmament talks.”
North Korea’s actions will continue to fuel the debate about national security and what the administration plans to do to help combat these threats. But, the true benefactors involved will be the defense contractors, such as Oshkosh.
Per CNNMoney:
The company, which also makes fire trucks, cement mixers and aerial construction platforms, expects M-ATV production to reach 1,000 units a month starting in December. At that rate, the company would be able to accommodate additional orders by next spring, analysts said. Oshkosh also recently scored a five-year contract to build up to 23,000 medium-sized transport trucks for the U.S. military. The initial phase of that contract calls for Oshkosh to deliver 2,568 trucks starting next year.
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written by T Spiegel, November 13, 2009







http://www.counterpunch.com/mitchell11132009.html