🇸🇦🇺🇸🇮🇷 MBS may have just stopped World War 3 with a phone call, and the economics behind that phone call are more alarming than anyone is reporting...
Johns Hopkins Prof. Steve Hanke, one of the most followed economics voices on X, came on to discuss.
The rumor from the Saudi camp is that MBS implied he would DUMP U.S. Treasuries if Trump hit Iranian energy infrastructure and Saudi was hit in response.
Hanke says that rumor is entirely plausible, given what bond markets are already doing.
10-year yields are already elevated from 3 simultaneous pressures: the inflation genie out of the bottle, Trump's tariffs, and the war itself.
A Saudi Treasury selloff with China potentially jumping on the bandwagon would send yields to levels that could genuinely destabilize the U.S. fiscal picture.
His total cost estimate for this war: $1 TRILLION, using the Brown University methodology of multiplying initial Pentagon estimates by 25...
The same formula that turned Iraq's $200 billion estimate into a multi-trillion dollar reality.
Thank you to @steve_hanke and @WeTheBrandon
