Glenn Diesen - Greater Eurasia Podcast Richard Wolff: Iran War Destroys Global Economy & U.S. Empire
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Mar 25, 2026 
Richard Wolff, economist and professor known for his analysis of capitalism, weighs in on the global fallout of the war on Iran. He outlines how fiscal strain, rising interest rates and stagflation risks threaten the U.S. economy. He also examines geopolitical shifts as Russia and China back Iran, energy shocks reshape markets, and political instability at home limits U.S. options.
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War Outcome Depends On Iranian Civilian Resolve
- Prolonged war outcomes hinge on Iranian popular tolerance for bombing and damage.
- If Iranian solidarity holds, U.S. desperation could escalate because political defeat at home is intolerable for its leaders.
Iran War Risks Pushing U.S. Over A Fiscal Cliff
- U.S. faces an acute fiscal crunch as deficits exceed $1 trillion and credit ratings fell from AAA to AA.
- Trump sought massive defense hikes plus $200bn for war while revenue sources like tariffs were legally undermined, forcing heavier borrowing.
Markets Now Expect Interest Rate Hikes Not Cuts
- Higher borrowing needs amid lower creditworthiness will push U.S. interest rates up, not down.
- Markets shifted from pricing cuts to ~26% odds of Fed rate hikes as war-driven inflation risks rose.