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Trump Expresses Desire for Collapse of Iran's Financial System

In response to a question about Iran's inflation reaching 50% and the collapse of its sovereign wealth fund, Trump clearly stated that he hopes for the collapse of Iran's financial system, as "this is exactly what we are making happen," with the goal of "winning."

Trump emphasized that current sanctions and pressure policies against Iran are effectively weakening its economy and stated that he would not prevent its further collapse.

Funds are rapidly flowing out of Iran-related assets and lira-denominated instruments, with safe-haven investments pouring into the dollar, U.S. Treasuries, and gold. U.S. energy exporters and the defense sector benefit, while the Iranian regime and entities reliant on its oil exports are under pressure.

Source: Public Information

ABAB AI Insight

Trump implemented a "maximum pressure" policy during his first term from 2018 to 2020, reducing Iran's oil exports from 2.5 million barrels per day to nearly zero by withdrawing from the Iran nuclear deal and imposing layered sanctions. This statement continues his approach of economically strangling opponents, having previously stated multiple times that he wants to bring Iran's economy to "zero."

On the capital front, the U.S. cuts off Iran's foreign exchange income through financial sanctions and energy market interventions. Strategically, Trump amplifies external pressure by exploiting Iran's internal economic difficulties, aiming to force concessions on nuclear issues and regional proxy actions while creating premium space for U.S. allies' energy exports.

Similar to the sanctions from 2018-2020 that led to the lira's collapse and uncontrollable inflation, or the economic isolation of Venezuela and the Maduro regime, the current geopolitical conflict in the Middle East is transitioning from military confrontation to an economy-strangling phase, with the U.S. significantly enhancing its control over Iran's financial system.

Essentially, this represents capital concentration: extreme economic pressure accelerates the transfer of domestic wealth in Iran to foreign currencies and hard assets, as sanctions sever its connection to the global financial system, shifting pricing power from the Iranian regime to the U.S.-led sanctions network, and accelerating the concentration of regional capital towards U.S. ally oil-producing countries and dollar assets.

ABAB News · Cognitive Law

The harsher the sanctions, the faster the opponent's economy collapses; "winning" has always been the highest priority. When the enemy's financial system is brought to zero, the energy premium for one's own allies increases, and pressure translates into wealth transfer. The more a regime relies on petrodollars, the easier external strangulation becomes; economic warfare is always cheaper and more enduring than military conflict.

White House

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·ABAB News
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2 min read
·8d ago
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