Source: The American Conservative
by Philip Pilkington
“Treasury bonds are not just any old asset. For one, they are the debt of the U.S. government. If they become uninvestable, the capacity for Washington to live beyond its means through debt issuance is open to question. Treasuries are also the benchmark asset for the entire global dollar system that has allowed the U.S. to run enormous deficits for decades. If this asset starts ‘trading like a meme stock’ and generating awful returns, foreigners will opt for something else. … The Trump administration has become fixated on the Strait of Hormuz, seeing it as a decisive battlefield on which the U.S. can win the war. But the Strait is merely a means to an end. For Iran, that end is to slowly demolish the American economy and financial system until the pressure becomes too much and the U.S. backs off.” (10/09/26)
https://www.theamericanconservative.com/hormuz-and-the-looming-economic-catastrophe/