9/2/26: Iran Hits U.S. Bases, Global Bond Market Chaos, Ed Market Crushes Moulton

The U.S. struck to preempt Iranian mining of the Strait of Hormuz, and Iran retaliated with ballistic missiles at U.S. bases in Jordan and Erbil, reportedly hitting a Marine base with minimal missile defense. A U.S. strike hit a wedding party, killing five including a four-year-old and injuring 63, mostly women and children, which Iran says justifies targeting personnel. The exchange left the Strait of Hormuz still threatened, U.S. interceptor stocks depleted, and no strategic progress toward ending the conflict.

The U.S. has almost total control of the Strait of Hormuz and Iran's economy is collapsing; he doesn't care about an agreement and wants Iranians to rise up.

Trump's call for regime change ignores that no uprising has occurred and Iranian solidarity against the U.S. has grown.

Congress passed a War Powers Resolution to end the war, but Trump continues strikes and Speaker Johnson deflects responsibility, claiming it's not his job. Johnson could sue to enforce the resolution or seek a Supreme Court order to end the war, but has no interest, reflecting Republican frustration and political risk.

He has nothing to do with prosecuting the war and shouldn't be held responsible for its duration.

Iranian state TV reports five killed and 63 injured in a wedding party strike, 50 of them women and children, in the same area as a prior school attack. Civilian strikes inflame Iranian public resistance and undermine hopes for regime change, as Iranians rally against U.S. attacks despite economic hardship.

Degrading Iran's military infrastructure cannot be judged in isolation; without strategy for consequences, it is not good and risks global economic collapse.

Schumer's evasion and failure to clearly affirm the strikes reflects a broader inability to defend the war's consequences.

The exchange resembled a childish debate, with Mika pressing a trick question and Schumer failing to address consequences.

Japan's 30-year yield jumped over 4% to around 4.2%, triggering a global bond sell-off as investors shift from lower-yielding U.S., French, and German bonds.

Japan's 10-year yield hit 3% for the first time since 1996, with yields rising to 15-year highs in Germany, highest since 2008 in the UK, and U.S. 10-year near 4.08%.

Bessent intervened to defend the yen by flooding the market with dollars to prevent a Japanese sell-off of U.S. Treasuries, contributing to current bond turmoil.

The U.S. is not in a dire situation despite the bond market moves.

Rising oil prices from Strait of Hormuz disruptions are driving inflation, which central banks will counter by raising rates to crush demand via job losses, wage cuts, and tighter credit.

This demand destruction cycle is self-defeating, engineering economic pain to solve a physical supply problem, contrary to Trump's goal of lower rates and growth.

The White House is unleashing American energy dominance through deregulation, biofuel exemptions, and increased Venezuelan crude to lower fuel prices.

Betting on Venezuelan crude is delusional because it's too heavy for U.S. reserves, production can't ramp up quickly, and it won't solve short-term price surges.

Markey's 30-point victory reflects public anger and a preference for established progressive figures over perceived centrists like Moulton.

Moulton's late attempt to channel progressive energy via a scripted video felt inauthentic, and his history of attacking the party's left undermined his credibility.

Richie Neal faces a tight challenge from Jeremy Wailin, Neil Romp won by 30 points, Tram Win lost to Dan Coe, Auchincloss won with 73%, and Lynch leads by 10 points. The Beacon Hill establishment faced threats but largely held, with AI and corporate money influencing outcomes.

El-Sayed leads Rogers by 5 points in a MSU poll and 2.3 in the RCP average, with the race widening as Democratic resistance dissipates. El-Sayed's gains are helped by Trump's threat of a Canada trade war that would devastate Michigan's auto industry, while Rogers is trapped by Trump's loyalty demands.

She is running on Medicare for All, a $20 minimum wage, universal childcare, and ending overseas war spending, citing her family's experience with U.S.-made weapons and political persecution. Political dynasties and corporate money corrupt governance, and both Pappas and Sununu represent a system that leaves people suffering.

Manzoor's campaign highlights the contradiction of residency critiques given her family's refugee background, and her focus on economic and foreign policy resonates with voters.