How many of you remember the "Peace Dividend"?  Global tensions were fading, Bill Clinton was President and economists were extrapolating what a small decrease in the economic waste of war and strife on total global growth and how Countries could spend those funds on improving the quality of life on domestic infrastructure. 

The US has come to another nuclear weapons reduction with Russia.  The Chinese President is coming to Washington, D.C. to discuss Iran.  Iraq has held an election and is on its way to self-rule. 

Given all this good news on a global tensions, is it premature to discuss the economic impacts of a global reduction in hostilities?  While some sectors will suffer, over-all economic performance will be substantially superior with less hostility. 

How much of the 2001 market bubble was the "Peace Dividend" premium?  If peace was to break-out over the world, what market premium would you put on stocks now?

Given the state many sovereigns balance sheets, it is time to seriously consider creating a peace dividend, by reducing the total global expenditures on hostilities and let the planet rebuild its balance sheets and we might learn how to get along during the period of decreased aggressions.