8/20/26: Trump Bond Crisis Worsens, North Korea Humiliates Trump With Missile Launch

The Treasury is using short-term debt to buy long-term debt, which is borrowing from Peter to pay Paul.

The intervention is a panic response to a debt spiral that will worsen as the U.S. loses its reserve currency status.

The U.S. will impose unprecedented economic warfare and secondary sanctions on any country providing a lifeline to Iran.

Sanctions are ineffective because Russia survived them and China will likely ignore U.S. demands.

Iran views the UAE's trade cutoff as part of a broader U.S. program of economic strangulation.

North Korea's missile launch humiliates Trump and proves its nuclear strategy is vindicated.

North Korea will never give up its nuclear weapons because it has never been more strategically vindicated.

South Korea is a freeloader that refused to help with an easy military operation in Iran despite U.S. protection.

South Korea is decoupling from U.S. reliance because it has been repeatedly burned by tariffs, broken security guarantees, and ICE raids.

South Korea's response shows allies are looking out for themselves because they recognize the limits of U.S. power.

Continued elevated inflation could affect inflation expectations and wage-price setting decisions.

High interest rates are becoming de facto policy, which will crush housing affordability and small business expansion.

High interest rates disproportionately hurt average small business owners and personal debt holders, not tech companies.