This Week in the World Affairs Brief

BESSENT SHORING UP THE YEN TO PROTECT TREASURY BONDS

This week, I’ll lead off with an economic analysis of the shaky bond market, whose interest rate yields are rising to new levels because of inflationary monetary policy in Japan. My economist brother, Mark Skousen, and Steve Henke of John Hopkins University will explain why US Treasury bonds are tied so closely to Japan and its low interest rates. As the US under Trump continues to create huge new spending deficits, which must be financed by bond sales and new money creation, rising interest rates and bond yields threaten to raise the total interest burden within the US budget to unsustainable levels. Interest on the $40 trillion dollar debt will consume over a trillion dollars in 2026—about 12% of Trump $8T budget for Fiscal Year 2027, equaling the Defense and Medicare portion, and bested only by Social Security. The US budget first crossed the 1 trillion dollar mark in 1987, and is now 8 times that size, showing how out of control government spending is. It’s also a reflection of the real rate of inflation. To receive a free, one-time sample of the Brief, along with options on how to subscribe, click on Request a sample on the left.

Also:
  • Iran Vows to Fight Trump’s Economic War
  • Who is Mike Pence, Really?
  • The Accreditation Fight

Daily News

Trump Mulling New 'Limited' Strike Package, After Iranian Attack On Jordan Base

ZeroHedge

Trump vows retaliation, mulls more 'limited' strikes after Iran's own 'retaliatory' missile attacks on US bases in Jordan. Eight Iranian missiles were intercepted by Jordan amid the first major tit-for-tat military strikes in a month. US forces struck Iranian missile launchers on Larak Island, reportedly killing two people. Iran threatens further retaliation, while regional tensions reignite across UAE, Qatar and Red Sea. Global oil prices rose Monday in wake of the overnight renewed fighting.

CA Politician Busted After FBI Finds $62,900 Buried In His Backyard

ZeroHedge

A Southern California corruption case unraveled in dramatic fashion after federal agents discovered tens of thousands of dollars hidden underground at the home of a longtime local politician, according to the NY Post. Ricardo Pacheco, a former Baldwin Park councilman, was sentenced to 18 months in prison for taking bribes while in office. Investigators recovered $62,900 buried in his backyard, part of more than $83,000 ultimately seized from him. Federal prosecutors said Pacheco used his position to help private interests win favorable treatment from the city. Much of the misconduct involved companies seeking approval to operate marijuana businesses in Baldwin Park.

Book Sellers Alarmed as AI Giants Shred Millions of Books

The Epoch Times

One book store owner noticed a sudden spike in book sales in April—between double and triple the weekly sales tally.... The practice of what has been dubbed AI "book shredding" burst onto the scene after a 2025 court document revealed that AI tech giant Anthropic purchased millions of printed books, removed their bindings, then scanned each page into digital datasets. Afterward, Anthropic shredded and discarded the originals. It was revealed that the project was part of an ongoing expansion of Anthropic's central library, which has an aim to collect "all the books in the world" and retain them "forever." The undertaking was called Project Panama.

What Do “Capitalism” and “Socialism” Really Mean?

Mises.org

actual attempts to realize socialism, however well-intentioned they were originally, only delivered totalitarian tyranny and mass impoverishment. Since then, schools haven’t been so keen on teaching younger generations that a system based on individual liberty constrained only by peacefully-acquired private ownership rights is what delivers the goods and what enables competent adults to function as morally- and intellectually-autonomous individuals. Neither do they teach that politically-generated handouts, subsidies, privileges, and immunities, nor governmental fiat money creation or unrealistic governmental promises of future economic security are at the root of many of the worsening problems afflicting the productive classes in our society today. Instead, young people have been indoctrinated with a belief that “capitalist” private profit-seeking and the cultural and religious traditions spontaneously propagated in an individualistic culture are to blame for all of society’s ills and injustices. They are taught that only by instituting “socialism” to overthrow capitalism and forcibly re-engineer America’s culture to “woke” specifications can such problems be solved.

50 Survival Lessons From the Great Depression

John Walter

2. Follow the harvest. Migrant farm work was the artery that kept many alive. Cotton in Texas, apples in Washington, wheat in Kansas—each crop had its season, its hunger for hands. A family could stitch together nine or ten months of labor by chasing ripeness across state lines, living in tents that leaked when it rained. 3. Ask not what the job is; ask only if it exists. Pride was a luxury item, quickly pawned. Men who had managed offices took up shovels. Women who had worn silk now scrubbed floors. The work itself mattered less than the doing of it, the exchange of sweat for coins.

Russia Hits Kiev Ammo Dump Next To Homes; Ukraine Admits 90% Of Retail Food Logistics Wrecked

ZeroHedge

Ukraine Agriculture Minister Taras Vysotskyi told reporters that, "roughly speaking," about 90% of the food-logistics infrastructure used by major retail chains (large distribution centers serving networks such as Fora, Silpo, NOVUS, and Varus) has been destroyed. That said, Vysotskyi insists this won't result in famine - as chains are switching to more expensive direct-from-producer "on wheels" deliveries. Yet, stores in Kiev are reporting empty shelves for produce, dairy, and staples.

Russia has destroyed 90% of Ukraine’s modern commercial storage capacity. Retail logistics are being reshaped

Russia has increasingly targeted Ukraine’s civilian commercial and logistics infrastructure in recent weeks, striking warehouses, distribution centers, hypermarkets, postal terminals and other facilities that keep goods moving through the country. The campaign has damaged supply chains and forced businesses to find more expensive and vulnerable ways to store and deliver products.

Russia’s New Iskander-1000 Extended Range Ballistic Missile Sees First Ever Combat Test

Military Watch

Russia has reportedly used a newly upgraded ballistic missile, provisionally known as the Iskander-1000, for the first time in combat, with Ukraine’s Main Directorate of Intelligence reporting that it struck a target in the capital Kiev on August 27. The 9M723-2 ballistic missile used is reportedly an upgraded derivative of the 9M723-1 missile used by the older Iskander-M system, and can achieve a 1,000 kilometre range, where the Iskander-M system was previously limited to a 500 kilometre range.

Watch: Russian Military Conducts Test Of Huge Mobile ICBM

ZeroHedge

The Kura test range lies about 4,160 miles to the east of where the Arkhangelsk region launch occurred, making for an impressively distant flight across Russia. The military confirmed that the "tactical, technical and flight characteristics of the missile system" were monitored and analyzed, and that the flight went off flawlessly.

Trump Takes A Cleaver To "Big Meat" Monopoly, Moves To Let Mom-And-Pop Ranchers Process Own Meat

ZeroHedge

President Trump's move to dismantle what Republican Sen. Josh Hawley has called the "modern-day monopoly" in U.S. beef processing reflects growing concern that industry concentration has become a food-security vulnerability. Four corporations, JBS, Tyson Foods, Cargill and National Beef, dominate cattle purchasing and processing, creating single points of failure across the nation's beef supply chain. This consolidation has reduced local processing capacity, weakened regional food supply chains and shifted pricing power away from independent ranchers and farmers.

Trump Stuns By Outright Dismissing Notion Putin Preparing To Attack A NATO State

ZeroHedge

Media accounts which seek to explain the nature of his meeting with top Kremlin intelligence officials, while apparently being snubbed by Putin in terms of a direct interaction, have shifted in days since the visit. The early 'consensus' was that he delivered a stern warning for Russia not to attack any NATO state. But President Trump has poured cold water on this explanation, appearing to dismiss it outright in his latest comments.

Top economist on Trump’s ‘deadly cocktail’ for the bond market—and how the bond vigilantes have crossed Scott Bessent’s ‘red line’

Fortune

“It’s a deadly cocktail,” Hanke offered. He said “the bond vigilantes have come out of hibernation” in reference to the investors that have served as the scourge of administrations for decades, selling government debt en masse to punish what they see as reckless fiscal or monetary policy, ultimately driving yields higher until policymakers change course. The term was coined by economist Ed Yardeni in a 1983 paper, where he wrote that if fiscal and monetary authorities wouldn’t regulate the economy, “the bond investors will.”

North Korea offers major support for Russia as all-out world war fears grow

UK Express

The number of troops from the pariah state has crept up to 8,500 fighting in Ukraine after Vladimir Putin and Kim Jong-Un signed a mutual defense agreement two years ago. According to Major General Vadym Skibitskiy, Deputy Head of Ukrainian Defense Intelligence, Putin may request up to 50,000 more soldiers from North Korea next month.

From Ceasefire to Permanent Control: Netanyahu’s Expanding Security Zone Doctrine

Elijah Magnier

Benjamin Netanyahu has removed much of the ambiguity surrounding Israel’s territorial intentions in Gaza, the occupied West Bank, southern Lebanon and Syria. His government is no longer presenting Israeli military control merely as a temporary response to immediate threats. It is articulating a broader doctrine under which Israel reserves the right to remain inside neighbouring territory until every organisation it considers a danger has been disarmed or eliminated. Because Israel alone determines whether that condition has been satisfied, the proposed security arrangements have no fixed geographical limit, timetable or clearly defined endpoint.

Doctors Call on RFK Jr. to Withdraw Moderna mRNA Flu Vaccine After Review of FDA Data Shows Risks Outweigh Benefits

Moderna’s mRNA flu vaccine showed abysmal efficacy in preventing hospitalization. It also showed a higher risk of adverse events, including death, compared with a non-mRNA standard-dose flu vaccine, according to a reanalysis of the FDA’s clinical data. The authors of the reanalysis, including Dr. Peter McCullough and Nicolas Hulscher, urged U.S. Health Secretary Robert F. Kennedy Jr. to halt distribution of the shots.

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