Hard to see what corner of the economy will not be impacted by these policies. How consumer spending continues is unclear and represents most of the economy. Just the expansion of military spending will suck the oxygen out of the economy.
EconomistWithaD on
I think a closer analogue to the impact of today than the 1970’s is 2022, especially given that we are relatively more sheltered from energy shocks for a variety of reasons.
We will see food inflation nearing double digits, and general inflation above 8%. It’s going to be a kiss of death on a labor market that is showing a little bit of life after absurdly poor 2025 numbers (<10,000 jobs added per month).
However, the longer this goes on (and more specifically a 3 quarter Hormuz closure), the closer we get to doomsday.
DeRpY_CUCUMBER on
Its soo funny to me to see the conservatives that used to be loud as hell all over social media whining and complaing about WW3 or fuel prices when Biden was president, have now disappeared.
They are sheltered in their safe spaces, where no one but conservatives can comment and the threads are highly censored, posting about some random democrat no ones ever even heard of. LOL
This is the biggest embarrassment the US has ever suffered. Iran has the American president begging for a deal, while he’s up at 2 AM stressing out, typing gibberish tirades on truth social, making threats that no one takes seriously.
It’s already a given that Iran will be collecting tolls in the straight of hormuz, no matter what deal is made. Economists are estimating it will give Iran a trillion or more in income over the next 10 years.
Meaning sanctions against them will be meaningless from now on, and they will come out of the war richer than before. While Trump will be lucky to get the same deal as the one the Obama admin already negotiated.
3 Comments
Hard to see what corner of the economy will not be impacted by these policies. How consumer spending continues is unclear and represents most of the economy. Just the expansion of military spending will suck the oxygen out of the economy.
I think a closer analogue to the impact of today than the 1970’s is 2022, especially given that we are relatively more sheltered from energy shocks for a variety of reasons.
We will see food inflation nearing double digits, and general inflation above 8%. It’s going to be a kiss of death on a labor market that is showing a little bit of life after absurdly poor 2025 numbers (<10,000 jobs added per month).
However, the longer this goes on (and more specifically a 3 quarter Hormuz closure), the closer we get to doomsday.
Its soo funny to me to see the conservatives that used to be loud as hell all over social media whining and complaing about WW3 or fuel prices when Biden was president, have now disappeared.
They are sheltered in their safe spaces, where no one but conservatives can comment and the threads are highly censored, posting about some random democrat no ones ever even heard of. LOL
This is the biggest embarrassment the US has ever suffered. Iran has the American president begging for a deal, while he’s up at 2 AM stressing out, typing gibberish tirades on truth social, making threats that no one takes seriously.
It’s already a given that Iran will be collecting tolls in the straight of hormuz, no matter what deal is made. Economists are estimating it will give Iran a trillion or more in income over the next 10 years.
Meaning sanctions against them will be meaningless from now on, and they will come out of the war richer than before. While Trump will be lucky to get the same deal as the one the Obama admin already negotiated.