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Donald Trump revives ideas of a Star Wars-like missile shield 

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IN THE LATE 1980s Edward Teller, the father of the hydrogen bomb, and Lowell Wood, an astrophysicist, proposed a seemingly bizarre scheme to defend America against missile attack. The “Brilliant Pebbles” system envisaged thousands of small satellites in low-Earth orbit, each housing heat-seeking missiles to take out incoming Soviet nukes long before they released their warheads. The idea faded, not least because the technology seemed distant. Now Donald Trump is resuscitating it.

On the campaign trail Mr Trump promised to build an “Iron Dome” for America, referring to an Israeli missile-defence system. The name is a misnomer. The Israeli system is designed to take out short-range rockets. What Mr Trump meant, and spelt out in an executive order published on January 27th, was a more ambitious effort to detect and counter intercontinental ballistic missiles (ICBMs) and the like. America already has a system designed to do that, known as Ground-Based Midcourse Defence (GMD), which relies on interceptors in Alaska and California.

Mr Trump’s proposal differs in important respects. One is its scope. GMD was intended to parry limited attacks involving a small number of ballistic missiles, such as might occur in an attack by North Korea. Mr Trump’s shield is supposed to block “any foreign aerial attack”, which would imply not only both cruise and ballistic missiles, but also a full-scale strategic attack by Russia or China involving many hundreds of missiles at once.

Critics of missile defence say this is folly, because it is generally cheaper to build additional offensive systems than interceptors to stop them. Russia and China—which are building missile shields of their own—have also argued that American defences risk undermining nuclear deterrence, because they might one day allow America to strike enemies without fearing retaliation. Advocates retort that the missile threat has changed: long-range non-nuclear missiles could now paralyse military facilities in the continental United States, allowing enemies to coerce America into staying out of a distant war.

In any case, Mr Trump’s favoured design is also noteworthy. GMD targets incoming missiles when they are in mid-flight. In theory it is easier to take out a missile in its “boost phase” (as it is taking off), when it is moving more slowly. The problem is that this is a fleeting moment—three to five minutes for ICBMs.  The new order calls for “proliferated space-based interceptors capable of boost-phase intercept”. That amounts to a Brilliant Pebbles-like system: a lot of small, armed satellites, some of which would be above Russia, China and other foes at all times.

The cost of building tiny computers and putting thousands of them into orbit is far lower than it was in Mr Teller’s days—partly thanks to Elon Musk. But it is still eye-wateringly expensive, and liable to hoover up a good chunk of the defence budget. America would require 500 satellites in total to have just three to four interceptors in range of North Korean launchpads, estimates Bleddyn Bowen of Durham University; hundreds more than that would probably be needed, he says.

A key technical challenge will be building space sensors with “fire-control-quality tracking”—good enough at spotting and tracking enemy missiles to guide interceptors to them—says Tom Karako of CSIS, a think-tank. But if the technology proves mature, the implications could go beyond missile defence. “We will see the emergence, gradual understanding, and eventually acceptance of ‘space fires’,” says Mr Karako, which could include satellites capable of targeting, with both explosive and electronic means, targets on the ground, those in the air and other satellites in orbit.

There are many doubters. Mr Trump aired similar ideas in his first term but failed to back them with hard cash. Spending for an American Iron Dome will compete with a string of other priorities, from a bigger navy to more nuclear weapons. “It’s always a budget question,” says Mr Karako. “Show me your budget for missile defence, and I’ll tell you what your ‘Iron Dome for America’ is.”

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Economics

Abortion becomes more common in some US states that outlawed it

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ANGEL FOSTER has a vision of a patient. “Imagine you’re a 23-year-old woman in rural Texas”, the doctor and public-health researcher says. This patient is pregnant and wants an abortion. For years, she’s been told that it is illegal in her state, with almost no exceptions. But then, with a bit of Googling, “you find out that there’s this group of people in Massachusetts that will send you FDA-approved medications in the mail.” The ordeal will be over in a few days and will cost $5. “It sounds absolutely bananas, right?” she asks “How could it be legal? How could it be safe?”

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Economics

Will the Supreme Court empower Trump to sack the Fed’s boss?

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OVER 14 seasons of “The Apprentice”, Donald Trump gleefully dispatched more than 200 contestants for botching a task or ruffling the wrong feather. In his second term as president, Mr Trump is discovering that axing federal-agency heads protected by “for-cause” removal statutes may require more than an imperious finger-point. In the latest of a series of emergency applications to the Supreme Court, he is asking the justices to grant him the unfettered power he once wielded on reality TV.

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Economics

Fed Governor Waller sees tariff inflation as ‘transitory’ in ‘Tush Push’ comparison

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Federal Reserve Governor Christopher Waller speaks during The Clearing House Annual Conference in New York City, U.S. November 12, 2024. 

Brendan Mcdermid | Reuters

Federal Reserve Governor Christopher Waller said Monday he expects the impacts of President Donald Trump’s tariffs on prices to be “transitory,” embracing a term that got the central bank in trouble during the last bout of inflation.

“I can hear the howls already that this must be a mistake given what happened in 2021 and 2022. But just because it didn’t work out once does not mean you should never think that way again,” Waller said in remarks for a policy speech in St. Louis that compared his inflation view to the controversial “Tush Push” football play.

Laying out two scenarios for what the duties eventually will look like, Waller said larger and longer-lasting tariffs would bring a larger inflation spike initially to a 4%-5% range that eventually would ebb as growth slowed and unemployment increased. In the smaller-tariff scenario, inflation would hit around 3% and then fall off.

Either case would still see the Fed cutting interest rates, with timing being the only question, he said. Larger tariffs might force a cut to support growth, while smaller duties might allow a “good news” cut later this year, Waller added.

“Yes, I am saying that I expect that elevated inflation would be temporary, and ‘temporary’ is another word for transitory,'” he said. “Despite the fact that the last surge of inflation beginning in 2021 lasted longer than I and other policymakers initially expected, my best judgment is that higher inflation from tariffs will be temporary.”

The “transitory” term harkens back to the inflation spike in 2021 that Fed officials and many economists expected to ease after supply chain and demand factors related to the Covid pandemic normalized.

However, prices continued to rise, hitting their highest since the early 1980s and necessitating a series of dramatic rate hikes. While inflation has pulled back substantially since the Fed started raising in 2022, it remains above the central bank’s 2% target. The Fed cut its benchmark borrowing rate by a full percentage point in late 2024 but has not cut further this year.

A Trump appointee during the president’s first term, Waller used a football analogy to explain his views on “transitory” inflation. He cited the Philadelphia Eagles’ famed “Tush Push” play that the team has used to great effect on short-yardage and goal line situations.

“You are the Philadelphia Eagles and it is fourth down and a few inches from the goal line. You call for the Tush Push but fail to convert by running the ball,” he said. “Since it didn’t work out the way you expected, does that mean that you shouldn’t call for the Tush Push the next time you face a similar situation? I don’t think so.”

Waller estimated that Trump has either of two goals from the tariffs: to keep the levies high and remake the economy, or use them as negotiating tactics. In the first case, he sees growth slowing “to a crawl” while the unemployment rate rises “significantly.” If the tariffs are negotiated down, he sees the impact on inflation to be “significantly smaller.”

In the other case, he said “one of the biggest shocks to affect the U.S. economy in many decades” is making forecasting and policymaking difficult. Fed officials will need to “remain flexible” in deciding the future path.

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