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Naked Capitalismanalysis

Coffee Break: Armed Madhouse – America’s Coming Suez Moment

Naked Capitalism
Tuesday, February 24, 2026 at 7:00 PM
~4 min read

Original Report

In 1956, Britain’s Suez campaign collapsed not because its forces were defeated, but because sterling could not withstand financial pressure. The episode revealed a structural truth: military...

In 1956, Britain’s Suez campaign collapsed not because its forces were defeated, but because sterling could not withstand financial pressure. The episode revealed a structural truth: military capability is subordinate to monetary autonomy. Today the United States is not Britain under Bretton Woods, but it faces expanding global commitments alongside rising debt, elevated interest costs, and industrial constraints. This article examines how financial markets, rather than battlefields, may ultimately define the limits of American power. A single geopolitical shock is manageable. A sequence of them may not be. History may not repeat—but it can rhyme.

Glass House Analysis

International economic policy has concrete impacts far beyond diplomatic circles. Tariffs show up in the price of goods at stores, supply chain disruptions affect whether products are on shelves, and trade tensions can mean job losses in export-dependent industries. The globalized economy means that decisions made abroad can affect workers and consumers domestically.

Inflation is the silent tax that erodes purchasing power, hitting hardest those who can least afford it. When grocery bills rise faster than wages, families face impossible choices between food, medicine, and rent. Unlike market volatility that mainly affects investors, inflation touches everyone who buys groceries, fills a gas tank, or pays rent.

The implications extend beyond the immediate news cycle. Every economic development creates ripples that affect employment, prices, and opportunities in ways that may not be immediately visible but are deeply felt. By tracking these connections, we can better understand how the economy truly works—not as an abstract machine, but as a human system shaped by and shaping the lives of millions.

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