Washington Is Fighting Everyone Except Its Own Arithmetic

Start with the facts. US national debt passed 40 trillion dollars this week. The July deficit alone was 432 billion, worsened by courts striking down tariffs and forcing refunds. Thirty-year Treasury yields hit a 19-year high, meaning investors now demand more to lend America money, and the Treasury has doubled its bond buybacks to calm the market.

Here is why that matters. American borrowing has always rested on the world’s need for dollars, built on oil priced in dollars since the 1970s. But sanctions and Hormuz disruption are pushing more energy trade toward yuan and non-dollar channels. Less dollar demand means higher borrowing costs for a country that already spends more on interest than on health insurance.

Into this, Washington launches a 50 percent trade war against Canada, its closest trading partner. That is not strategy.