The American taxpayer might be forgiven for thinking their hard-earned dollars are being spent on earthly defence. Yet this week’s release of declassified UFO reports reveals a different kind of threat: unidentified aerial phenomena swarming in all directions. As a financial editor, I am less concerned with little green men than with the quantum of expenditure required to address this unknown.
The Pentagon has allocated millions for the All-domain Anomaly Resolution Office. But what is the return on that investment? When markets dislike uncertainty, they sell.
Gilt yields in the UK have been sensitive to any hint of geopolitical instability. If these reports erode public trust, the fiscal fallout could be significant. Capital flight from safe havens is a real risk if the narrative turns to ‘unknown unknowns’.
The Bank of England should be watching this story, not for aliens, but for its impact on monetary stability. In a world where inflation is already sticky, an extra premium on defence spending could push yields higher. This is the bottom line: whether the objects are Chinese drones or extraterrestrial probes, the market will price in the risk.
And that price will be paid by the average saver. The report mentions orbs ‘swarming in all directions’. That is a perfect metaphor for the current regulatory environment: fragmented, unpredictable, and costly.
The government’s response must be fiscally responsible. We cannot afford to chase every shadow without a cost-benefit analysis. The burden of proof should fall on those demanding new expenditure.
Until then, I remain sceptical of the hype. The only thing flying under the radar here is the true cost of this distraction.
