The U.S. Treasury will likely have borrowed more than $2 trillion by the end of the fiscal year, according to the latest estimates out of the Executive Office of the president.

That is $166 billion every month. This is worrying some onlookers because the milestone marks a shift where $2 trillion deficits—once reserved for major global emergencies like the 2008 financial crisis or the COVID-19 pandemic—have become the structural norm.

The strait of Hormuz crisis could begin to impact both AI and consumer spending which is the lifeline of the American economy in 2026. This is not a booming economy for the United States, majority of jobs created over the past couple of years have been in healthcare only.

So why is all of this bad for the affordability crisis? Estimates from Brown University indicate that Americans have paid over $35 billion extra in fuel costs alone. This averages out to roughly $268 per household—the equivalent of a full week’s groceries for many families.

American gross debt is approaching 39 Trillion. Gross debt to GDP is approaching 125%. This is way higher than world War II that I think peaked around 106%.

The Iran War might be the feather that breaks the camel's back for America's relationship with debt and a future crisis. It could be a stagflationary drag on GDP for years to come. With more severe and significant secondary effects than we are experiencing today.