The European Union just sent another €3.9 billion to Ukraine to buy drones. This is not humanitarian aid. This is war financing. Reuters reported that the latest transfer is part of the EU’s new €90 billion loan program designed to keep Kyiv funded through 2026 and 2027. The money is being directed toward Ukraine’s drone procurement, meaning European taxpayers are now openly financing the weapons system that has become central to this war.
Do not let anyone pretend Europe is a neutral party. The EU Council itself says support for Ukraine has reached €211.3 billion since the war began. That figure includes military, financial, humanitarian, and refugee-related support. Now Brussels is adding a €90 billion loan on top of that to cover Ukraine’s budget and defense needs for the next two years. This is not charity. This is Europe admitting it intends to keep the war going because Ukraine cannot finance it on its own.
The EU sent nearly €2.8 billion earlier in June, Reuters reported another €3.2 billion tranche under the broader loan structure, and now another €3.9 billion is being pushed out for drones. Ukraine’s reconstruction costs are estimated at $588 billion over the next decade, while Kyiv is signing more than 160 recovery agreements worth over €10 billion. Europe is no longer merely supporting Ukraine. It is building the financial architecture for a permanent war economy.
This is precisely what I have warned about with the War Cycle. Governments buried under sovereign debt always need an external enemy. Europe cannot pay for its welfare state, its green agenda, its migrant crisis, its collapsing pensions, and now a permanent military commitment to Ukraine. Yet Brussels keeps borrowing, spending, and pretending this is sustainable. It is not. Debt becomes the weapon. War becomes the excuse.
They told the people this was about defending democracy. Then they censored dissent. They told taxpayers this would be temporary. Now they are financing Ukraine through 2027. They told everyone sanctions would collapse Russia. Instead, Europe entered depressionary conditions while Russia adapted. Now they are funding drones because the battlefield has shifted into a technological meat grinder.
The most disturbing part is that Europe is already acting as if it is at war. It is restricting Ukrainian men of military age from receiving new refugee protections, increasing defense spending, discussing conscription, and financing weapons production. The European Commission wants temporary protection extended until March 2028, but newly arriving Ukrainian men of military age without authorization from Kyiv may be excluded.
Europe is not trying to end this war. It is funding the next phase. The computer has warned that 2026 is a Panic Cycle, 2027 carries the serious risk of broader war, and 2028 brings the economic consequences. This latest €3.9 billion is not just another payment. It is another step down the road to a conflict Europe’s leaders seem determined to create.
Politicians continue insisting that mass migration carries no economic consequences. Anyone who questions the policy is immediately accused of being anti-immigrant. That has always been the tactic. Rather than debate the economics, they attack the person asking the question. Yet reality eventually catches up with political slogans, and now even economists are beginning to quantify what common sense should have told us years ago.
A new working paper from economists at the Federal Reserve Bank of Dallas examined the unprecedented surge in unauthorized immigration between 2021 and 2024. The researchers estimate that unauthorized immigrant workers accounted for roughly 30% of employment growth in the average metropolitan area during that period. More importantly, they found that in markets where housing supply could not expand quickly enough, a 1% increase in unauthorized worker inflows was associated with approximately a 2.2% increase in home prices and about a 1.4% increase in rents.
When population rises rapidly while housing construction fails to keep pace, prices climb. More people competing for a limited number of homes means higher prices. Demand rises faster than supply. The laws of supply and demand do not disappear because politicians prefer open borders. The Federal Reserve researchers also noted that housing construction did not expand sufficiently to absorb the additional demand, leaving existing residents competing for the same inventory. This is basic economics that governments have chosen to ignore.
The numbers illustrate just how severe the housing shortage has become. Freddie Mac estimates the United States remains short roughly 3.7 million housing units. The National Association of Realtors has repeatedly reported that existing home inventory remains well below historical norms, while the median existing-home price reached another record high during 2025. Meanwhile, mortgage rates have remained around 6% to 7% for much of the past two years, dramatically increasing monthly payments and pushing homeownership further out of reach for younger Americans. The result has been exactly what our computer projected years ago, employed adults increasingly remaining with their parents because housing has become unaffordable.
Politicians will inevitably try to blame investors, landlords, or speculators. Those factors exist, but they are only part of a much larger picture. Housing costs have also been driven higher by inflation, elevated interest rates, soaring insurance premiums, rising construction costs, zoning restrictions, and years of underbuilding following the 2008 financial crisis. Mass immigration adds another layer of demand on top of an already constrained market.
Civil unrest rises whenever governments ignore economic reality. Housing affordability has become one of the defining issues across the Western world, not just in the United States but throughout Canada, Britain, Australia, and much of Europe. You cannot continue adding demand while restricting supply and expect prices to remain stable.
Military strategists are still fighting the last war while the battlefield has already changed. Every major conflict throughout history has been defined by a technological revolution. Gunpowder ended the age of castles. Tanks transformed World War II. Precision missiles reshaped modern warfare. Now we have entered the age of the drone. The military that cannot dominate the skies with unmanned systems will lose, regardless of how many tanks, aircraft, or soldiers it possesses.
South Korea has reached the same conclusion. Its Defense Ministry announced that it will train approximately 500,000 soldiers, sailors, airmen, and marines as “drone warriors.” Defense Minister Ahn Gyu-back said every service member should become as proficient with drones as they are with their personal weapons. The plan calls for procuring 11,000 commercial drones by the end of 2026, expanding to 60,000 training drones by 2029, while also acquiring more than 20,000 low-cost combat drones by 2030. Seoul is accelerating production of loitering munitions, AI-enabled drone swarms, laser weapons, and microwave systems designed to destroy incoming drones.
They are responding to the lessons of Ukraine, where inexpensive FPV drones costing only hundreds or thousands of dollars routinely destroy tanks worth millions. The battlefield has become saturated with unmanned aircraft. Ukraine plans to manufacture roughly 7 million military drones in 2026 after producing about 4 million in 2025. According to Ukrainian officials, drones now account for the overwhelming majority of battlefield strikes, fundamentally changing military doctrine. Entire branches of both the Ukrainian and Russian militaries are now dedicated solely to unmanned systems.
A modern drone operator can eliminate armor, artillery, supply convoys, or individual soldiers from miles away while sitting in relative safety. Fiber-optic drones have largely defeated electronic jamming. AI-assisted targeting is reducing operator workload. Swarm attacks can overwhelm traditional air defenses that were designed to intercept aircraft, not hundreds of inexpensive autonomous systems arriving simultaneously. Ukraine has even developed interceptor drones whose sole mission is to hunt other drones, creating an entirely new layer of aerial combat.
South Korea is not alone. Russia formally established its Unmanned Systems Forces, with Ukrainian military estimates claiming the branch could expand from roughly 80,000 personnel today to more than 165,000 during 2026 and perhaps over 200,000 by 2030. NATO countries are pouring billions into drone production, counter-drone technologies, autonomous weapons, and electronic warfare. The United States, China, Israel, Turkey, and Europe are all racing to build domestic drone industries because they understand the next war will not be won by the side with the largest army. It will be won by the side that can produce, replace, and innovate faster than its opponent.
This is precisely why I have warned that the War Cycle is changing the global economy. Wars no longer require decades to build fleets of battleships or thousands of heavy tanks. A nation with sufficient manufacturing capacity can produce tens of thousands of drones every month. The barriers to entry have collapsed. Software updates now matter as much as ammunition. Engineers have become as important as infantry.
The defense industry is no longer limited to traditional contractors producing aircraft carriers and fighter jets. Semiconductor manufacturers, AI companies, battery producers, optics firms, communications specialists, robotics companies, and rare-earth miners have all become part of the defense sector. This is why governments are scrambling to secure critical minerals, expand chip production, and protect supply chains. They are preparing for a world where industrial capacity determines military survival.
Our computer has consistently projected that 2026 marks the acceleration of the international War Cycle. The military transformation unfolding before our eyes confirms that forecast. The next great conflict will not resemble Iraq, Afghanistan, or even the opening stages of Ukraine. It will be fought by autonomous systems, artificial intelligence, electronic warfare, and millions of inexpensive drones operating continuously across every battlefield. The drone has become what the machine gun was in World War I and what the tank became in World War II. Anyone who fails to recognize that reality is preparing for a war that no longer exists.
She wrote:
“Dear American journalists and social media ‘influencers’: for days, some of you have been criticising and making fun of Paris because the city does not have A/C in every room…OMG, this is so rich!”
“As the second-largest emitter of greenhouse gas emissions in the world, you bear a significant amount of responsibility for global warming and the consequences we, in France, are experiencing. Your cities, which are 90 per cent air conditioned, are not unrelated to this.”
Categories:France
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