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Critical

The Iran War may turn out to be a key marker in history of America’s fiscal overstretch

Modern wars are economic battles on balance sheets. The Iran conflict exposes the US's deepening economic vulnerability, burdened by record debt, high deficits, and rising interest rates. Compounding shocks from energy prices and increased defense spending strain the economy, leading to slower growth and persistent inflation. Developed nations, once deemed safe, now face fiscal instability and limited policy flexibility. The author emphasizes that economic strength underpins geopolitical power, warning that many countries' ambitions exceed their financial resilience, creating a critical global divide where stability is challenged by fiscal weakness.

LiveMint · Abhinav Jindal, Tarunika Jain Agrawal · Aug 10, 2026 at 7:16 AM

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