Since I know some of you will not read the entire transcript -- some key takeaways to “salt the oats”:

On the security | policy fronts:

• Deterrence has clearly failed -- particularly the credibility of the United States Navy
• Strategy of the Adversaries is to degrade | exhaust | and overwhelm the resources of the “collective West” over time
• This long-term strategy is primarily undertaken in the financial markets | economic | and influence domains
• However in the short run, cyber-kinetic effects are the top area of current concern
• For the US -- defense of the broader, properly defined supply chain remains the #1 vulnerability [by a wide margin]
• For Europe and the NATO+ alliance -- fiscal space will be unlocked through materially higher levels of structural defense spend [and at the expense | tradeoff to social welfare programs]

On the markets front:

• Marginal product of capital is now much higher than pre-pandemic consensus estimates
• Which results in higher multiples | higher valuations | and higher productivity [eg, note the divergence between equity vs rate-FX volatility]
• Since any productivity gains translate ~1:1 into the neutral equilibrium interest rate
• Therefore much of the fixed income complex remains expensive
• And biases long US-Japan-DM equities vs emerging markets

• Maritime sensors and autonomy
• Nanoscale energy and efficiency
• Hyperscale cybersecurity
• Supercapacitors

Ultimately, “blood in the streets” -- is when you want to be there.