🇮🇷 The Iranian rial is approaching 2 million to the dollar, and the financial system holding this war together is cracking in ways that have nothing to do with Iran.
Economist Philip Pilkington joins me to break down what is actually happening beneath the headlines:
Primary sanctions on Iran are already maxed out, having been at effective maximum pressure since 2012, which is why the real question is secondary sanctions and whether Trump will actually impose them on China.
If he does, China will not comply, because folding on Iran would destroy their entire credibility as an alternative to the American-led order.
And the economic blowback on the U.S. would be SEVERE: rare earths cut off, the AI bubble popped, treasury markets further destabilized...
The rial at 2 million to the dollar is a SYMPTOM.
The 'disease' is a global financial system under simultaneous pressure from war, sanctions, currency crises, and a U.S. bond market nobody fully controls anymore.
Pleasure as always, @philippilk
