REGIS TREMBLAY March 12th
Sylvia Demarest joins me to explain the catastrophic collapse of a highly integrated global system that will be felt by nations, corporations, and every person on the planet as a result of this US Israeli war against Iran. Has the US bombed its last country?
The Economic Cost
The military cost to the US is in the billions if not trillions. Aside from the cost of the current war, the US spent decades and billions to build a string of bases across the Middle East, protected by a string of sophisticated radar facilities.
The effective closure of the Strait of Hormuz by Iran has created an unprecedented economic and logistical crisis for the five Gulf states, UAE, Qatar, Kuwait, Oman and Bahrain. This strain is not just from the lack of earnings but also from the fact that these countries must import 90% of the food they consume and would be uninhabitable without electricity.
But the economic issues go well beyond the Gulf and this war also has the potential to impact the economy of the US and world. Craig Tindale wrote a very important essay discussing the potential economic impact of this war and the closing of the Strait of Hormuz on the global economy. His essay: Systemic Risk: A 12-Order Cascading Analysis of a Zero-Flow Strait of Hormuz Closure is a must read.
“The modern world order, having organized itself around efficiency, cost minimization, and logistical precision, has created a machinery of dependence so extreme that the interruption of one narrow corridor can propagate outward into a general crisis of civilization.”
