by Brian ShilhavyWhile the U.S. economy has not crashed (yet) due to Trump’s complete failure to reopen the Strait of Hormuz, it is collapsing the economies of the (formerly) rich Gulf States, who are now begging Trump’s administration to bail them out.
Just a reminder, Dubai was the richest and most modern city in the world prior to the Iran war, as it was built as the playground for the Epstein billionaires. See my previous coverage on this: Iran is Destroying Dubai – The Billionaire’s Paradise and Financial Center in the Middle East Built by Epstein
Treasury Secretary Scott Bessent testified on Capitol Hill today that the U.S. was planning on bailing out the UAE, along with other countries in the Gulf and around Asia, due to rising fuel costs from the closure of the Strait of Hormuz. These bailouts would come out of the U.S. Treasury.
From the Wall Street Journal:
Emirati officials speak with Treasury Secretary Scott Bessent about accessing dollars if Middle East conflict drags on
Excerpts:
The United Arab Emirates has opened talks with the U.S. about obtaining a financial backstop in case the Iran war plunges the oil-rich Persian Gulf state into a deeper crisis, U.S. officials said.
U.A.E. Central Bank Gov. Khaled Mohamed Balama raised the idea of a currency-swap line with Treasury Secretary Scott Bessent and Treasury and Federal Reserve officials in meetings in Washington last week, the officials said.
The Emiratis emphasized that they had so far avoided the worst economic effects of the conflict but might still need a financial lifeline, the officials said.
From the New York Times:
Bessent Backs Financial Support for Oil-Rich U.A.E.
Excerpts:
Treasury Secretary Scott Bessent said on Wednesday that he backed the idea of providing economic support in the form of a currency swap to the United Arab Emirates, an oil-rich ally that has been contending with economic fallout from the war in Iran.
Speaking at a Senate hearing, Mr. Bessent said that the Emirates, along with several other countries in the Persian Gulf and Asia, had inquired about the possibility of a swap. He said such a maneuver would prevent the disorderly sale of U.S. assets as nations look to secure access to dollars.
The war in Iran has damaged oil and gas infrastructure throughout the Middle East, dealing a blow to economies such as the Emirates that rely on the Strait of Hormuz to transport crude around the world.
The Treasury secretary said that providing a currency swap to the Emirates could benefit the United States by stabilizing foreign exchange markets and protecting American assets around the world. He added that it could be provided by the Federal Reserve or by the Treasury Department, which can deploy its Exchange Stabilization Fund to buy another nation’s currency.
“Swap lines, whether it’s from the Federal Reserve or the Treasury, are to maintain order in the dollar funding markets and to prevent the sale of the U.S. assets in a disorderly way,” Mr. Bessent said.
Senator Chris Van Hollen, a Maryland Democrat, questioned the idea of providing economic support for the Emirates and pointed out that President Trump and his family have personal financial ties to the nation.
The Trump administration has been facing criticism over the cost of the conflict in Iran, which many view as unnecessary.
“The war in Iran has already cost us dearly,” Mr. Van Hollen said.
“In my view, it’s been a huge mistake, made us less safe and a lot worse off.”
The Trump administration is also apparently going to try and bail out the U.S. airline industry, if not take it over completely, due to the rapid increase in jet fuel.
From NBC News:
Spirit Airlines nears deal with Trump administration for $500 million rescue package
The struggling discount carrier has filed for bankruptcy twice, and now it’s under pressure from higher jet fuel costs due to the Iran war.
Excerpts:
The Trump administration on Wednesday neared a rescue deal for struggling Spirit Airlines, in a rare move to support a single air carrier.
The deal, which has not yet been finalized, would offer $500 million to the discount airline, according to a person familiar with the matter. It would give the airline additional liquidity as it works toward emerging from bankruptcy and grapples with elevated fuel costs due to the war with Iran.
The deal would also aim to create a durable well-funded airline. After Spirit emerges from bankruptcy, the U.S. government could own up to 90% of the airline, the source also said.
Here are some more news stories that I have posted on our Telegram Channel:
Trump in a quandary after ‘embarrassment’ over Iran talks
From Al Jazeera:
We’ve spoken to US foreign policy expert Barbara Slavin about Trump’s announcement that a ceasefire with Iran will be extended until its “seriously fractured” leadership presents a unified proposal.
Slavin said the statement is “a way to cover the embarrassment that the US was prepared to send the vice president to Pakistan and Iran was not ready to do so”.
Now, Trump finds himself “clearly in a quandary”.
“This war hasn’t gone the way he expected from the very beginning, and Iran has discovered new leverage in its control of the Strait of Hormuz,” Slavin said.
The US should “relinquish its maximalist demands” and offer Iran “some sort of gesture that it is serious in seeking a resolution”, she added.
US civil rights group moves to sue White House over mass destruction in Lebanon
Please remember that 30% of the population in Lebanon are Christians. Not that it matters, as ALL lives are precious, and the lives of U.S. citizens living there are protected by U.S. Law, no matter what their political or religious affiliations are.
I hope more lawsuits like this are filed.
From The Cradle:
Excerpts:
The Arab American Civil Rights League (ACRL) announced on 20 April that it is preparing a class-action lawsuit against the US government, citing harm to US citizens whose homes and families in Lebanon were impacted by Israel’s indiscriminate attacks.
“This is not abstract. This is not political rhetoric. This is real. This is loss,” ACRL Chairman Nasser Beydoun said.
The legal action is expected to target the US State Department, including Secretary of State Marco Rubio, as well as weapons manufacturers accused of supplying arms used in the strikes.
Organizers said the case is being built on behalf of US citizens who lost homes, land, and relatives in Lebanon.
ACRL founder Nabih Ayad said US officials knowingly enabled destruction. “They knew that their weapons are going to be used to destroy innocent people’s homes, not military action, but yet they keep supplying these individuals,” he stated.
Speakers described widespread destruction to family properties, particularly in southern Lebanon, where Israeli forces have reduced entire towns and villages to rubble and displaced over one million people.
Israel Continues Relentless Attacks in Gaza, Killing Seven Palestinians in 24 Hours
From AntiWar.com:
Gaza’s Health Ministry on Tuesday said that Israeli forces killed at least seven Palestinians and wounded 21 over the previous 24 hours as the IDF continues its relentless attacks and constant violations of the US-backed ceasefire deal.
Attacks in Gaza over the past day included an overnight bombing in Khan Younis, southern Gaza, that killed three Palestinians.
According to the Palestinian news agency WAFA, one of the victims, a man named Darwish al-Attal, had been married just a few days earlier. Middle East Eye reported that the strike targeted a police checkpoint.
Israeli warships on Tuesday targeted tents in Beit Lahia, northern Gaza, killing at least one woman. Al Jazeera reported that at least one person was killed by an Israeli attack in Gaza City’s Zeitoun neighborhood, and Israeli drones dropped explosives on tents in the Shujayea area, setting the camp on fire.
Also on Tuesday, a child who was wounded in a previous Israeli attack succumbed to his wounds. According to Al Jazeera, the child, Abdullah Dawas, was shot in the head near Jabalia, northern Gaza, about 10 days ago.
Gaza’s Health Ministry said that since the ceasefire deal was signed in early October, the IDF has killed at least 784 Palestinians in Gaza and wounded 2,214, nearly 3,000 total Palestinians casualties.
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The Most Revolutionary Act 