Source: Fortune
Summary
The US is engaged in a costly war with Iran, dubbed Operation Epic Fury, which is estimated to cost nearly $1 billion per day. The war is exacerbating the country’s already fragile fiscal situation, with the national debt having surged past $38 trillion. Economists and defense analysts are concerned about the macroeconomic scenarios of a conflict with no clear endgame. The war is also affecting the global economy, with oil prices experiencing their most volatile trading day in history. The Federal Reserve may be forced to delay interest rate cuts or even cut rates aggressively to rescue faltering economic activity.
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The numbers tell one story.
The US is spending nearly $1 trillion annually on interest payments, more than it spends on defense and Medicaid. The war with Iran is adding to the national debt at a breakneck speed, with the daily price tag driven by massive air and naval deployments. The conflict is also affecting the global economy, with oil prices surging and the Federal Reserve facing a precarious balancing act. President Trump’s sensitivity to market sell-offs may prevent a protracted conflict, but the debt explosion and ongoing war pose a significant threat to the US economy.
The war is already threatening to impact American wellbeing two years from now.
Author: Evan Null
