FOX Business host Larry Kudlow discusses Iran’s economic problems amid the Middle East conflict on ‘Kudlow.’
If any Iranian thugs from the Islamic Revolutionary Guard Corps think that a small increase in fuel prices will kill the American economy, and force President Trump to withdraw our troops and make a watered-down Obama-Biden deal, those thugs had better think twice. Not only will Mr. Trump not back down on his key demands to denuclearize Iran, and transfer enriched uranium to the United States from Iran, and stop state-sponsored terrorism, and the development of long-range missiles, but the economic reality is that the American economy is doing very well even though fuel prices are skyrocketing.
Iran’s economy is sinking and will continue to sink due to the blockade by the United States Navy, which is draining Iran’s finances and the ability to pay for its IRGC forces. The IRGC controls about a third of Iran’s economy. And about half of energy income. They have been stealing and robbing Iranians for decades. It’s like a mafia operation. And Mr. Trump and Treasury man Scott Bessent are ending it. Secretary Besent spoke with me last night about Operation Economic Fury.
Former Army special ops analyst Brett Velicovich and Fox News contributor Marc Thiessen discuss the effectiveness of the US military blockade of the Strait of Hormuz against Iran on ‘Kudlow.’
“The president gave the operation, he gave the command of the campaign of great pressure more than last year,” said Mr. Bessent. “It was that pressure that brought Iran’s economy to a standstill,” and “the biggest bank in Iran collapsed. The central bank had to make money on credit, and that caused massive inflation.” He added that “their currency is down about 60 or 70 percent against the US Dollar, so they’re in the middle of a currency crisis. And what we’re doing now is that we’ve been in a long race and we’re running to the finish line.”
Now, about the American economy. Lots of good economic numbers today and a record breaking stock market. This past year, real GDP increased by 2.7 percent. If the Democrats hadn’t shut down the economy last winter, we would have grown more than 3 percent. Yet within that number the One, Big, Beautiful Bill and its 100 percent cost generated an incredible investment boom. It was up 17 percent in the first quarter and up 10 percent last year. It’s big. And don’t forget the record-breaking tax refunds from the One, Big, Beautiful Bill used by more than 50 million Americans, which offset short-term gas price increases, and where spending is doing better than you think, up about 2.5 percent last year.
Economist Art Laffer and American Action Forum president Douglas Holtz-Eakin discuss the recovery of the US economy amid the Iran conflict over ‘Kudlow.’
And most recently in April, Redbook’s year-over-year consumer sales in April were up nearly 7 percent. Our energy monopoly produces record-breaking oil, diesel and petroleum fuels. Here at home we are setting oil production records.
Here’s another thing, the inflation numbers came in a little on the high side today, but I called it skeptical, the Cleveland Fed’s average consumer price index rose only 2.7 percent last year. And its cut rate of 16 percent, the most recent measure of inflation, rose 2.6 percent. Labor costs increased by 2.4 percent. And the big, big issue is profit, the mother’s milk of the stock and the health of the economy. Profit drives business, and business drives the economy. Profits and estimated profits are breaking records, working 15 percent or more, and that’s driving productivity. And that produces an economy that is the envy of the world.
When the world gets back to normal, the American economy will grow faster, and the rate of inflation will decrease even more. Remember this, however, it is America’s strong economy that creates the resources to destroy horrible Nazi-like regimes like Iran. Never bet against a Trumpian America First economy.
