We know what’s coming and we are prepared.
🇺🇸🇮🇷🏦 - Iran is attacking the funding source of the US empire… the bond market
Their plan is quite simple: create a massive supply shortage, which will increase inflation and, as a result, drive surging interest rates that crash the US economy.
The US went into the war in pretty bad shape:
- Debt-to-GDP of over 120%
- Deficits of 6% of GDP
- Rising unemployment
But 1 month of Hormuz being closed made it worse:
- 10-year yield is up ~0.5%
- US endured the weakest Treasury auction in over 3 years
- With ~60% of auctions having a higher than expected yield
For every 1% increase in interest rates, interest expenses surge by ~$310B annually. And because the US government is mainly financed on the short end, interest rate increases directly translate into higher deficits.
Trump can declare victory as often as he wants, but if Hormuz remains closed, bond yields will spike and crush the US economy… dealing a devastating blow to an already declining empire.
🔗 Lukas Ekwueme
@CIG_telegram
🛢 How Long Can Demand Destruction Keep a Lid on Oil Prices?
In a somewhat puzzling market development, oil prices haven't spiked yet to record highs amid the worst supply disruption in history.
That's because the market still hopes for a quick resolution to the Strait of Hormuz crisis (for more than three months now), global inventories have offered a supply buffer, the world's top crude importer, China, is staying away from spot purchases, and last but not least, demand destruction is accelerating amid the high prices.
The oversupply with which the market faced the beginning of the Iran war has helped to ease the upward pressure on oil prices as the conflict enters its fourth month. But global stocks, except in China, are being depleted at a record pace, suggesting that the buffer is stretching thin and the true magnitude of the supply loss will hit the market very soon.
Excluding China, which has accumulated large buffer stocks of more than 1.2 billion barrels over the past year, the rest of the ...
🇺🇸🚜🛢 Biggest Diesel Shock Since 2022 Deals Another Blow to US Farmers
While US farmers brace for higher fertilizer and chemical bills tied to turmoil in the Middle East, another expense is already taking a bite out of razor-thin margins: diesel fuel.
Prices for the fuel that powers tractors, combines and grain trucks have surged as the war in Iran disrupted global oil flows, catching many producers who expected lower energy costs this year off guard. In Illinois, the top US soybean-producing state, farm diesel averaged a record $5.41 a gallon at the start of May, nearly double the price a year earlier.
Current costs, which have moderated some in recent weeks amid prospects for a US-Iran peace deal, still rival levels last seen in 2022 after Russia’s invasion of Ukraine, adding a fresh burden for farmers already facing weak crop prices and mounting financial pressure.
Marty Richardson, who grows corn and soybeans and raises cattle in Missouri, experienced the sticker shock ...
Maryland’s Democrat Governor Just Signed a Law Banning the Most Popular Handgun in the United States
https://www.thegatewaypundit.com/2026/05/marylands-democrat-governor-just-signed-law-banning-most/
