Drone Attack Shows Russia to Be Desperate — and Dangerous

Russia is losing a war to a supposedly inferior enemy thanks in large part to the financial and military assistance being provided by the United States and its allies. [Energy and Capital Header] Practical Investment Analysis for the New Energy Economy Drone Attack Shows Russia to Be Desperate — and Dangerous Jason Simpkins | Mar 26, 2023 The U.S. military has the most extensive reach of any military in the world. We can get anywhere at any time. We also routinely conduct aerial surveillance operations and freedom of navigation missions around the globe, even — or rather, especially — in contested territory. It’s a projection of strength and resolve, and it often yields vital information and data. Of course, that also means U.S. forces are harassed on a fairly routine basis. For example, as far back as 2020, the Pentagon estimated that roughly 90% of U.S. reconnaissance flights over the Black Sea were being intercepted by Russian jets. However, what’s discomforting about last week’s confrontation is that the MQ-9 Reaper drone being harassed was knocked out of commission and crashed into the Black Sea. That much is fairly certain, because last Thursday the Pentagon released declassified footage of the incident corroborating their claims. What’s not clear is whether or not the collision was intentional. On the one hand, it may not have been… Yes, the Russian pilots were obviously dispatched to harass the Reaper. That’s something they accomplished by dumping gallons of fuel on it. But they weren’t necessarily meant to disable it. That might have been the accidental result of human error — a drunk Russian pilot just getting a little too close, you know? Elon Musk Is BEGGING for One Resource (NOT Lithium) Every electric vehicle manufacturer is scrambling for one battery resource... A crucial ingredient that makes up 80% of a lithium-ion battery — and it’s NOT lithium! But America is currently 100% dependent on China for its supply of this unique, essential raw material. That’s why Elon Musk just signed a four-year supply deal with one tiny mining company outside of China... [A company that’s set to become the No. 1 supplier of this resource for the entire EV industry.]( Or maybe they did mean to do it. After all, Russia is losing a war to a supposedly inferior enemy thanks in large part to the financial and military assistance being provided by the United States and its allies. Of course they’re pissed — pissed and desperate. But rather than straightforwardly shoot the drone down, creating an even bigger incident and further antagonizing the United States, it makes more sense to “accidentally” bump into it. In that context, even if it were a mistake, it’s one Vladimir Putin would probably term a “happy accident”... Especially when you consider Russian forces immediately raced to the area of the crash in an effort to recover the wreckage.  Or they attempted to, anyway. There’s no sign yet that they’ve been successful in that endeavor, and if their vessels loiter too long 70 miles off the coast of Crimea, they could become targets for Ukrainian forces. Speaking of which, the highly hyped Russian counteroffensive that was supposed to come this spring has so far been a dud. After months of bloody battles, Russian forces have still been unable to capture the Ukrainian city of Bakhmut, which isn’t even an especially vital stronghold. Russia’s mercenary group Wagner has been throwing waves of bodies at the city but Ukrainian forces claim to be killing them at a ratio of 5-to-1. Now, with the effort waning, Wagner Group founder Yevgeny Prigozhin is accusing Russia’s regular army and officials in Moscow of sabotaging his group by withholding information. At this point, the only thing that could salvage the battle for Russia is Ukrainian forces running out of ammunition. And that’s the direct result of Putin’s willingness to forfeit so many soldiers’ lives — a policy that is equally as unsustainable as nonstop artillery barrages. [QUIZ] 46 BILLION Barrels of Oil?! A massive $5.9 trillion oil boom is about to take place. Three tiny companies just acquired the rights to mine an untapped patch holding 46 billion barrels of oil in a mystery location... And it even has the potential to reach $9 trillion in value if prices reach $200 per barrel! So which country do you think will lead this upcoming oil surge? - Venezuela - Saudi Arabia - Canada - Russia Think you know the answer? [See if you’re right!]( More than 200,000 Russians are estimated to have been wounded or killed since the start of the war. The Wagner Group in Bakhmut consists largely of convicts drawn from the prison population and promised pardons in exchange for their service. But elsewhere, poorly equipped and under-trained Russian conscripts are being mowed down by the dozens... and their loved ones back home are getting increasingly vocal. Putin’s regime doesn’t tolerate protests, but with so many Russians dying in such a questionable mission, it’s hard to keep the outrage muted. Of course, Putin himself is unlikely to be moved by such protests or accept the fact that his misguided attempt to cement his legacy as a conqueror and reunifier of Russian lands has failed. So he’s more likely to put more pressure on his generals and advisers and to take more drastic measures to win some kind of face-saving victory. Lost in the uproar over the downed Reaper drone was news that Russia deployed advanced and powerful hypersonic missiles to destroy a Ukrainian power plant. The missiles are long-range, highly maneuverable, and fly as fast as Mach 5, which is more than a mile per second. These missiles are difficult to detect because they move so quickly that typical air defense systems are useless against them. In fact, they’re so advanced that the United States doesn’t have any that match them. And that’s why the Pentagon has launched a multibillion-dollar effort to get our armed forces up to speed. One company in particular is poised to profit handsomely from that endeavor. [And you can find out more about that here.]( Fight on, [Jason Simpkins Signature] Jason Simpkins [follow basic]([@OCSimpkins on Twitter]( Jason Simpkins is Assistant Managing Editor of the Outsider Club and Investment Director of Wall Street's Proving Ground, a financial advisory focused on security companies and defense contractors. For more on Jason, check out his editor's [page](. [Fb]( [Li]( [Tw]( This email was sent to {EMAIL}. You can manage your subscription and get our privacy policy [here](. Energy and Capital, Copyright © 3 East Read Street, Baltimore, MD 21202. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info [here]( including our privacy policy and information on how to manage your subscription. 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