It seems like a very strange world they are living in. I thought the Gillard army was just a name for some multinational force or something, perhaps one that was intended to use conventional weaponry against the threat, as opposed to the ISDA which uses the dragons exclusively. However, after what this episode revealed, it seems like the Gillard army is some lunatic's little private military. Why the heck would such a thing have any international standing?

Seriously, it looks more and more like this story has no foundation at all but random things are just added whenever the plot requires something, with no regard to how probable or logical it would be. That is, assuming there is an actual solid plot somewhere in there...