AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
US Capacity and Fiscal Dominance
National security experts discuss the US capacity to support Ukraine, Israel, and Taiwan in a conflict scenario, concluding that there is not enough capacity and leading to fiscal dominance. They explore the lack of price insensitive buyers, the dynamics of the Federal Reserve's reaction function, and the recent attack on Israel's effect on bond markets. The chapter also discusses the disagreement over sending $6 billion to Tehran and the cautiousness of Israel in blaming Iran directly for funding Hamas.