Worldwide economic disruption could lead to famine and pestilence. We're going to need a bigger ballroom
Trump is both an incredibly ignorant person and incredibly dishonest person. As a result, when he claims ignorance of an obvious fact it is difficult to tell whether he really is as ignorant as he claims or he’s just lying.Such is the case with Trump’s claim that he didn’t know Iran might attack its
neighbors and close the Strait of Hormuz in response to his joint attack with
Israel. Trump insisted that none of the experts thought this possible when in
effect just about every expert thought it was both possible and likely.
Given Trump’s ignorance and propensity to lie, it is not
easy to know whether Trump actually went to war totally unaware of the most
likely consequences, or instead went to war anyhow, deciding that he didn’t
care about the damage it would cause. Whatever the real story, the consequences
are enormous and sure to get worse as the Strait remains closed longer.
The most immediate and obvious consequence is the higher
price for oil and
natural gas. People in the United States see
this at the gas station every time they fill their tank. Paying a dollar or so
more for a gallon of gas is an annoyance for everyone. It is very bad news for
low- and moderate-income households, especially those who need a car for work.
But this is just the beginning of the story. Diesel prices are up by close to $2.00 a gallon. Diesel fuel prices have risen by far more than regular gas because there is more limited refining capacity. This means when some refiners lose access to their supply of oil, their production cannot be easily replaced. Also, there is less ability for users to cut back their demand.








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