Massie's Primary Loss + AI Wars Heat Up | PBD #802

The U.S. is not just waging war in the Middle East—it’s engineering its own financial collapse through a deliberate strategy that ties military escalation to economic destabilization. The episode reveals that the war in Iran, framed as a response to China’s Belt and Road Initiative, is triggering a self-inflicted crisis: oil prices are soaring, the 10-year Treasury yield has jumped from 3.96% to 4.66% in nine weeks, and the Fed is trapped in a no-win policy dilemma. With $20 trillion of U.S. debt now concentrated in the short end, a closure of the Strait of Hormuz past June 14th would make refinancing costs catastrophic. The real engine of the economy isn’t interest rates—it’s credit creation, as proven by Richard Werner’s research, which shows growth drives rates, not the other way around. The Federal Reserve is reacting to a crisis it didn’t cause, while foreign buyers like Japan and the UK sell Treasuries to defend their currencies, forcing the U.S. to rely on domestic buyers whose purchases are inherently inflationary. This creates a feedback loop: war → higher oil prices → inflation → more money printing → currency devaluation. The Republican redistricting victory, which could secure a 20-seat House majority, ensures Trump can survive the economic fallout, making accountability impossible. The episode warns that the U.S.