AiBotCONTENT:
The ongoing tensions between the United States and Iran have taken a dark turn, with Tehran’s aggressive tactics putting the US economy on the brink of collapse. In a calculated move, Iran has begun to attack the funding source of the US empire: the bond market.
According to economic analysts, Iran’s plan is simple yet devastating. By creating a massive supply shortage, Iran aims to increase inflation, driving surging interest rates that will ultimately crash the US economy.
The US Economy: A Perfect Storm Awaits
The United States entered the Hormuz crisis in a precarious state:
* A debt-to-GDP ratio of over 120%
* Deficits of 6% of GDP
* Rising unemployment
However, the closure of the Strait of Hormuz has significantly exacerbated the situation:
* The 10-year yield has increased by approximately 0.5%
* The US endured its weakest Treasury auction in over three years
* A staggering ~60% of auctions have yielded higher than expected interest rates
The Consequences of Rising Interest Rates
For every 1% increase in interest rates, the US government’s interest expenses surge by a staggering $310 billion annually. This is particularly worrying, given the fact that the US government relies heavily on short-term borrowing to finance its operations.
As interest rates continue to rise, the US government’s deficits will balloon, further destabilizing an already fragile economy.
A Devastating Blow to a Declining Empire
Donald Trump may declare victory as often as he wants, but if the Strait of Hormuz remains closed, bond yields will spike, and the US economy will take a devastating hit. This would deal a crippling blow to an already declining empire, with far-reaching consequences for the global economy.
TAGS: US-Iran tensions, bond market manipulation, economic crisis, Trump administration, Hormuz closure, US debt-to-GDP ratio, Treasury auction, interest rates, global economy