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Top Economists Warn: The U.S. Could Face Trillion-Dollar War Bills, and the Federal Reserve Will Surely "Print Money Like Crazy" to Bail Out!
As militarization of the Strait of Hormuz continues to escalate, Iran's Foreign Minister issued a stern warning that global energy shortages will reach unprecedented levels and could trigger a devastating "inflation tsunami." Meanwhile, American economists predict that the escalating geopolitical conflicts could cost U.S. taxpayers up to $1 trillion, with the global economy hanging on the edge of danger.
Iranian Foreign Minister Seyed Abbas Araghchi posted on social media Tuesday that the global markets are facing "the most severe shortages in history." He pointed out that due to the current blockade of the Strait of Hormuz, the world could face a daily loss of up to 20 million barrels of oil supply. This gap is "larger than the combined impact of the 1973 Arab oil embargo, the Iranian Islamic Revolution, and the Kuwait War."
Araghchi also directly targeted the United States: "U.S. officials are manipulating the markets by spreading false news, but this cannot protect them from the backlash of the inflation tsunami they are imposing on the American people."
While Iran issues stern warnings, panic is also spreading through the U.S. financial sector. Currently, joint military actions by the U.S. and Israel against Iran have already sparked concerns about severe economic repercussions.
Renowned economist Peter Schiff warned that prolonged conflict will force the U.S. government to borrow heavily, causing a heavy blow to consumers. "The cost of this war could easily reach hundreds of billions of dollars, even surpassing $1 trillion, which would cause the already high inflation rate to spiral out of control."
Schiff sharply pointed out that to pay for the war, the Federal Reserve will inevitably print大量 money to bail out, which is the root cause of triggering a new round of vicious inflation.
From the latest geopolitical developments, the situation remains tense. Iran has launched missiles at U.S. military bases in five Middle Eastern countries. Additionally, the UK Maritime Agency reported that a cargo ship was hit by an unidentified projectile in the Strait of Hormuz and caught fire, with crew members evacuated urgently.
Israeli Prime Minister Benjamin Netanyahu directly addressed the "Iranian people" on social media, urging them to overthrow the current regime. On the other hand, U.S. President Donald Trump hinted that military actions against Iran might be nearing completion, claiming Tehran's military capabilities have been severely damaged. However, he also warned Iran not to lay mines in the Strait of Hormuz, or face devastating military consequences.
The tangible impact of the conflict has already begun to shake international markets. What worries the markets even more is that this energy crisis is rapidly spreading to other real economic sectors. Due to Iran's drone attacks, the world's largest natural gas export facility—Ras Laffan in Qatar—has been forced to shut down. This sudden event not only pushed up fertilizer costs but also severely disrupted the global agricultural supply chain.
In a chain reaction, European natural gas prices surged 68% in just one week, hitting a three-year high. Renowned economist Mohamed El-Erian issued a serious warning: the current global production system is extremely fragile, and the worldwide cross-border supply chains cannot withstand such a sudden "braking" shock.