Ron Paul Liberty Report - Will the Dollar be a Casualty of the Iran War?
Aired: 2026-03-09
Duration: 04:42


=== Iran War Drives Up Costs (03:30) ===

[00:00:02]  Will the dollar be a casualty of the Iran war?
[00:00:07]  President Trump's unconstitutional and unjust war against Iran is setting back his affordability agenda.
[00:00:18]  The war has caused a big rise in gasoline prices.
[00:00:22]  Among the related concerns is the hindering of the movement of oil through the Straits of Hermuz, the only available passage for ships to transport oil from the Persian Gulf.
[00:00:36]  The increased costs will do more than raise prices at the pump.
[00:00:41]  And increasing gas prices brings increased transportation costs that will be passed along to the consumers.
[00:00:50]  Prices are a variety of goods, including food, will increase.
[00:00:56]  No wonder Energy Secretary Chris Wright, White House Chief of Staff Susan Wiles, and other Trump administration officials are frantically working to develop policies to lower gas prices.
[00:01:12]  One possibility under consideration is deploying U.S. troops to try to ensure ships can pass through the Straits of Hermuz.
[00:01:22]  This could turn into a permanent deployment of U.S. troops.
[00:01:28]  According to the Center for Strategic and International Studies, the U.S. government is spending about $891.4 million a day on the Iran war.
[00:01:42]  These costs are likely to increase as the war drags on and the U.S. increases its military presence, possibly even putting boots on the ground in Iran.
[00:01:55]  According to numerous media reports, the Trump administration is preparing a $50 billion supplemental funding request for the Iran war.
[00:02:08]  This request will soon be sent to Congress.
[00:02:11]  This funding would be added on top of the defense budget.
[00:02:17]  The supplemental bill is likely to pass with overwhelming bipartisan support.
[00:02:24]  The Trump administration's $50 billion price tag is a floor, not a ceiling.
[00:02:32]  Senators and representatives will seek to add their spending priorities to this must-pass legislation, while corporate lobbyists are no doubt already preparing wish lists to present to lawmakers.
[00:02:50]  The cost of the Iran war will further increase the already over $38 trillion in rising national debt.
[00:03:00]  The rate of increases will be greater as long as the government is spending almost a billion dollars a day or more on a regime change war in Iran.
[00:03:12]  The cost of this war will put added pressure on the Federal Reserve to keep interest rates low and increase its purchase of Treasury bonds in order to monetize the federal debt.
[00:03:25]  The pressure on the Fed will also increase as other countries reduce their purchase of U.S. debt.

=== Dollar Crisis: The End of Reserve Status (01:09) ===

[00:03:32]  These reductions will be motivated by concerns over the economic instability caused by the U.S. government's out-of-control spending and by resentment over the U.S. government's hyper-interventionist foreign policy.
[00:03:49]  These factors could also accelerate the increasing rejection of the dollar's world reserve currency status.
[00:03:59]  A loss of the reserve currency status will cause a dollar crisis, leading to an economic crash worse than the Great Depression.
[00:04:10]  This crash will likely result in the end of the welfare warfare fiat monetary system.
[00:04:18]  Whether this system is replaced by an even more authoritarian one or by a system of limited government and much More freedom depends on whether those of us who know the truth do our best to spread the message that the key to peace and prosperity is a system of free markets,