A warning by Russian President Vladimir Putin that Moscow could retaliate if plans for the installation of a US missile system in Eastern Europe go ahead drew a strong response Monday from western countries. Besides money spent on fighting terrorists, we could be heading towards a new arms race with Russia. The defense contractors will be busy for a while.

No more peace dividend since the end of the last Cold War.

A war tends to be good for the economy, creating a lot of demand for goods and services.

Putin said that he could be aiming missiles at Europe.