Iran Week 8
“All I wanna do is go the distance. Nobody’s ever gone the distance with Iran, and if I can go that distance, you see, and that bell rings, and I’m still standing, I’m gonna know for the first time in my life, see, that I wasn’t just another bum from New York.” - Donny “The Dealmaker” Trump
The Strait is closed back up; the real action is happening elsewhere. Trump is slowly transitioning the US to become the world’s largest energy exporter, thereby strengthening our cash flow, reducing our trade deficit, growing our economy, increasing our GDP, and decreasing our debt-to-GDP ratio.
Australia, the UK, India, the EU, and China are all being starved of oil. The chart below provides an overview of the strategic reserve and existing commercial inventory available in key regions worldwide.
With ~20% of the world’s petroleum being cut off through the Strait, these regions above will need a stable importer and boat to the United States for fuel. This has already begun.
Globally and domestically, energy prices will remain elevated. This will lead to even higher prices, and the Government knows this. Their goal isn’t to quell prices; it’s to fix the US financially.
How this plays out could fall into two scenarios.
Energy importers are forced to use $USD, creating/extending demand for our currency. This continues the petrodollar path where the USD is the global reserve currency backed by energy security and the military. Exponential money printing would continue to service debt obligations, the value of the dollar would continue to plummet, and the stock market would continue up and to the right.
Trump destroys more global energy infrastructure, furthering the demand for US energy. Then, instead of forcing a $USD settlement of oil, Trump demands Gold.
This would coincide with a revaluation of Gold and allow the US to grow its coffers, similar to during WWI. As gold flows into the county, yes, prices rise, but overall, there is significant growth and prosperity.
Both scenarios are beneficial for the US and are what “I” believe to be occurring in the Middle East. Trump has always brought up growing us out of the debt issue, and these two scenarios align with that precisely. The issue with scenario one is that the math on the debt will eventually catch up, so this only extends it for a few cycles. With Scenario 2, this would allow significant prosperity for decades or even centuries until countries find ways to be self-sufficient for energy (unlikely).
Don’t expect this scenario to end soon or cleanly. These changes are part of a global restructuring towards resources.
Will they use it as a reason to insert CBDCs?