March 24, 2025
In an article published on March 24, 2025, by The Atlantic, editor-in-chief Jeffrey Goldberg recounts how he was inadvertently included in a Signal group chat where senior officials of the Trump administration were coordinating imminent military strikes against Houthi targets in Yemen. The group chat, titled "Houthi PC small group," was established by National Security Advisor Michael Waltz and included high-ranking officials such as Vice President JD Vance, Secretary of Defense Pete Hegseth, and Secretary of State Marco Rubio. The chat detailed specific operational plans, including weapons packages, targets, and timing.
Trump has initiated airstrikes in Yemen primarily targeting the Houthi rebel group, an Iran-backed faction that has gained control over significant portions of the country. These military actions are a response to the Houthis' persistent attacks on maritime vessels in the Red Sea, which have threatened international shipping lanes and regional stability.
Is Trump's defense of the Red Sea aligned to America First policies? Are we making America great again, or doing Saudi Arabia's dirty laundry to the benefit of China?
Background of the Conflict:
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Maritime Threats: The Houthis have conducted numerous assaults on commercial and military ships transiting the Red Sea. Since 2023, they have launched missiles and drones at U.S. warships over 170 times and targeted commercial vessels 145 times, disrupting vital maritime routes and endangering lives.
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Regional Instability: Beyond maritime threats, the Houthis have extended their aggression by firing ballistic missiles toward Israel and engaging in activities that exacerbate tensions in the Middle East.
U.S. Military Response:
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Airstrike Campaign: Commencing on March 15, 2025, the U.S. launched a series of airstrikes targeting Houthi-controlled areas in Yemen. These strikes aimed to dismantle the Houthis' military capabilities, including their leadership structures, communication hubs, weapons factories, and drone production facilities.
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Deployment of Naval Forces: To bolster its military presence and ensure the security of maritime navigation, the U.S. deployed a second aircraft carrier, the USS Carl Vinson, to the Middle East. This move underscores the seriousness of the U.S. commitment to countering Houthi threats in the region.
Objectives and Statements:
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Defense of Interests: U.S. officials have articulated that these operations are designed to defend American interests, deter adversaries, and restore freedom of navigation in the Red Sea. Defense Secretary Pete Hegseth emphasized an "unrelenting" campaign against Houthi targets, asserting that "peace through strength is back."
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Strategic Goals: The overarching goal of these military actions is to degrade the Houthis' ability to conduct attacks that threaten international shipping and regional allies, thereby contributing to broader efforts aimed at stabilizing the Middle East.
In summary, the U.S. is conducting airstrikes in Yemen to neutralize the Houthi rebel group, which has been responsible for attacks on maritime vessels and actions that destabilize the region. These operations reflect a strategic initiative to safeguard international waterways and promote regional security.
Is the Red Sea Important to Globalization?
The Red Sea is extremely important to the global economy, especially due to its role in international trade and energy transport.
🌍 1. Key Trade Route: Suez Canal Connection
- The Red Sea connects to the Mediterranean via the Suez Canal, one of the busiest and most strategic waterways in the world.
- About 12% to 15% of global trade passes through the Suez Canal — that’s billions of dollars in goods every day.
- The Red Sea is the only direct sea route between Europe and Asia, making it vital for fast, efficient shipping.
🛢️ 2. Major Energy Transit Corridor
- Roughly 8–10% of the world’s seaborne oil and liquefied natural gas (LNG) passes through the Bab el-Mandeb Strait at the southern end of the Red Sea.
- Disruptions here can cause oil prices to spike globally, as ships would otherwise have to reroute thousands of miles around Africa (Cape of Good Hope), adding time and cost.
🚢 3. Strategic for Global Supply Chains
- The Red Sea is used by container ships carrying everything from electronics to clothing to raw materials.
- Delays or insecurity in this region can clog supply chains, raise shipping costs, and even trigger inflation in global markets.
🔥 Recent Relevance (2023–2025)
- The Houthi attacks on commercial vessels in the Red Sea have already caused some shipping companies to reroute, which increases delivery times and costs.
- These attacks highlight the vulnerability of this route — and how any instability can have immediate ripple effects on the global economy.
The Red Sea is like an economic artery — block it or threaten it, and the global economy feels it.
🇺🇸 How the U.S. Benefits from Red Sea Trade
1. Exports & Imports
- The U.S. ships a lot of goods to and from Asia, the Middle East, and East Africa — often through the Red Sea and Suez Canal.
- U.S. exports (like machinery, vehicles, food, and chemicals) use this route to reach key markets.
- Imports (especially from India and Southeast Asia) also transit the Red Sea on their way to American ports — particularly on the East Coast.
2. Global Supply Chains
- Many U.S. companies rely on just-in-time global supply chains. Disruptions in the Red Sea slow down shipments of:
- Consumer goods (e.g., electronics, clothing)
- Industrial components and raw materials
- Even if the U.S. isn’t the direct buyer or seller, delays can impact costs, availability, and inflation back home.
3. Oil and Gas Prices
- Since a lot of oil and LNG moves through the Red Sea, any threat there can spike global energy prices.
- The U.S. economy, like others, is sensitive to oil price volatility, even though the U.S. produces a lot of our own energy.
4. Shipping & Insurance Companies
- U.S.-based companies in shipping, logistics, and marine insurance profit from global trade — including traffic through the Red Sea.
- Disruptions can mean higher premiums and freight rates, which may be a profit opportunity in some sectors (though also a risk).
🇪🇺 Europe’s Stakes Are Higher Geographically
- Europe trades heavily with Asia and Africa through the Red Sea–Suez route. For many EU countries, it’s the most direct lifeline for imports and exports.
- Disruptions mean longer, costlier routes around Africa, hurting European economies more immediately.
- Europe is getting our military service for free.
🔗 Why the U.S. Cares Strategically
Even if not the biggest direct economic loser from Red Sea instability, the U.S. sees it as a global economic chokepoint:
- Keeps prices and markets stable
- Protects allies’ interests
- Preserves freedom of navigation (a long-standing U.S. military principle)
Bottom line: The U.S. definitely profits from Red Sea commerce — not just directly through trade, but also by keeping the global system (which it depends on and helps lead) running smoothly. In other words, the Red Sea is a main artery of the globalization that America First is supposed to end.
Is Protecting the Red Sea making America great again or Enriching China?
What If America Let the Red Sea Burn?
Defending the Red Sea Protects Chinese Globalization—Not American Workers
Don't you love this angle? It's bold, provocative, and digs into the contradictions at the heart of U.S. global strategy.
While U.S. warships patrol the Red Sea, launching missiles to protect Chinese and Asian container ships filled with foreign-made goods, a question rarely asked in Washington deserves serious attention: Why are we defending a trade route that undermines our own economy and the America First objectives?
If Trump's America is serious about an “America First” doctrine—if we truly want to bring back jobs, factories, and promote self-reliance—then perhaps the best strategy is to stop defending globalization’s arteries.
A Chokepoint of Globalization
The Red Sea and Suez Canal serve as the beating heart of modern trade. Roughly 12% of global commerce flows through these narrow waters, including massive volumes of cheap goods from China, India, and Southeast Asia.
Every drone strike the U.S. launches against Houthi rebels to “defend shipping lanes” is, in effect, a subsidy—not for American workers, but for the global supply chains that replaced them.
Who Actually Benefits?
Let’s be honest: the beneficiaries of an open Red Sea are multinational corporations, offshoring manufacturers, China and foreign governments more reliant on global trade than we are. American tech companies can get cheap components. Big box stores can stock their shelves. Wall Street stays calm. China keeps winning.
But the American worker? The one whose factory moved overseas in the first place? We gain nothing from Red Sea patrols.
Reshoring Through Strategic Neglect?
What if the U.S. didn’t defend the Red Sea? Would shipping costs rise? Yes. Would delivery times stretch? Definitely. Would multinationals panic? Probably.
But those shocks might finally do what decades of political promises have failed to: make reshoring manufacturing economically viable again. If building things in America became cheaper—or at least more stable—than relying on fragile overseas networks, the calculus would change overnight.
It would be the market, not regulation, that brought industry back home. We would not need to play the tariff game so heavily anymore.
National Security or Corporate Security?
U.S. officials insist this is about “freedom of navigation.” But freedom for whom? And at what cost?
Deploying aircraft carriers, launching missile strikes, and risking American lives to ensure Walmart’s supply chain doesn’t hiccup in Q2—this isn't national defense. It’s corporate risk management with a Pentagon budget.
A Foreign Policy Ripe for Rethinking
The Red Sea crisis exposes a deeper contradiction: America First rhetoric backed by China First military actions.
If we truly want to rebuild American industry, we should stop acting as the global trade police. Let the Chinese dominated global trade system feel its own fragility. Let CEOs re-evaluate just how “efficient” global supply chains really are when nobody’s guarding the gates for free.
The Courage to Step Back
The idea isn’t chaos for chaos’s sake. It’s strategic discipline. Let others bear the cost of globalization’s fragility for once. America has the resources, the labor, and the innovation to rebuild. What we lack is the political will to stop propping up the very system that hollowed us out.
Sometimes, the boldest move isn’t to launch another strike—it’s to walk away from the fight altogether.
Tesla: the Bubble that Keeps Giving.
Tesla's stock soared 12% today on March 24, 2025, to close at $278.39. This surge significantly outpaced the broader market, with the NASDAQ Composite Index rising by 2.3% and the Dow Jones Industrial Average increasing by 1.4% on the same day. Beneath this impressive rally lies a complex narrative of inflated valuations, speculative trading, and potential instability of a bubble that will pop sooner or later.
The Valuation Conundrum
Tesla's current price-to-earnings (P/E) ratio stands at a staggering 136.47, calculated by dividing its share price of $278.39 by its trailing twelve-month earnings per share (EPS) of $2.04. Tesla is by far the most expensive stock in the S&P 500 based on price to earnings (P/E) ratio.
Tesla P/E ratio dwarfs the P/E ratios of traditional automakers
Tesla's P/E also dwarfs the valuation of technology and communications companies
There is nothing, absolutely nothing, warranting Tesla's super lofty and completely insane P/E ratio of 136. This valuation suggests that institutional investors are pricing in exceptionally high future growth and profitability for Tesla. This the type of hype created by Elon Musk, the richest primate in the world. Sooner or later, reality will hit the fan and gravity will take Tesla down.
Drivers Behind the Surge
Several factors have contributed to Tesla's recent stock price surge:
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Tariff Speculations: Reports indicate that the Trump administration might reduce the scope of impending tariffs, fueling optimism among investors and contributing to broader market gains.
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Retail Investor Influx: The Trump administration urged retail investors, every day Fox News watchers, to buy Tesla stock. This was followed by an unexpected all-hands meeting led by CEO Elon Musk, where he emphasized Tesla's promising ventures in robotics and autonomous vehicles. Over the past two weeks, amateur investors and fools have poured approximately $7.3 billion into Tesla stock, viewing the recent price dip as a buying opportunity.
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Algorithmic Trading Dynamics: The rise of algorithmic trading has introduced a new layer of complexity to stock price movements. These automated systems, driven by predefined criteria and devoid of human judgment, can amplify price swings by executing large volumes of trades in response to market signals, often without regard to underlying fundamentals.
The Bubble Risk is Real
Tesla's elevated valuation metrics, combined with speculative trading behaviors, raise concerns about a potential market bubble. The stock's susceptibility to rapid price fluctuations, driven by news events and algorithms, underscores the volatility inherent in its current market position. As history has shown, such bubbles can deflate swiftly, leading to significant losses for investors caught in the downturn.
Conclusion
While Tesla's recent stock performance may seem like a testament to its potential, it also serves as a cautionary tale about the perils of speculative investing and the disconnect between market valuations and economic fundamentals. Investors should exercise due diligence, critically assess the factors driving stock price movements, and remain vigilant to the risks of market bubbles in an era increasingly influenced by automated trading systems.
For those of us who love making money shorting Tesla the current price increase and the many more potentially to come before the collapse are prime money-making opportunities. Let the Tesla bubble keep inflating. The pop will make some short sellers a fortune. Bet on it.
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MAGA is not free: economic contraction is here
Recent economic data and analyses suggest that the U.S. economy may be facing a contraction.
GDP Growth Trends:
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In the fourth quarter of 2024, real GDP increased at an annual rate of 2.3%, down from 3.1% in the third quarter.
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The Atlanta Federal Reserve's GDPNow tracker recently shifted from projecting 2.3% growth to indicating a potential 1.5% contraction for the first quarter of 2025.
Business Activity and Sentiment:
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In March 2025, U.S. business activity saw modest growth, with the S&P Global Composite PMI rising to 53.5, driven by the services sector. However, manufacturing slipped back into contraction territory at 49.8.
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Business leaders express concerns over potential trade wars and government spending cuts, which could dampen economic momentum.
Leading Economic Indicators:
- The Conference Board's Coincident Economic Index (CEI) for the U.S. increased by 0.3% in February 2025, suggesting some growth. However, the Lagging Economic Index (LAG) also rose by 0.4%, indicating potential future challenges.
Inflation and Consumer Spending:
- Inflation has risen, with the consumer price index reaching 2.8% in February 2025, potentially impacting consumer spending.
Expert Opinions:
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Economists are increasingly alarmed about the potential for a recession, with several key indicators flashing warnings. Goldman Sachs recently raised the likelihood of a recession within the next year to 20%.
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New York Federal Reserve President John Williams forecasts slower GDP growth for 2025, attributing the anticipated slowdown to reduced labor-force growth driven by lower immigration rates.
What is Shrinking the U.S. Economy?
Racism and the war against diversity, equity, and inclusion (DEI) in the ideological war of making America white again is shrinking the size of the economy. Immigrants increase population size and contribute to economic growth. DEI programs expanded the economy to include women and nonwhite men.
Taking America back to the "great" white men led economy of the past will cost a lot of money in opportunity costs. Let's say that we go back to a 1950s economic model. Let's compare the size of the U.S. economy in the 1950s vs. the 2020s. Let's see how immigration and DEI in the past 70+ years contributed to a great economy.
🇺🇸 U.S. Economy in the 1950s
- Nominal GDP (1950): ~$300 billion
- Adjusted for Inflation (2023 dollars): ~$3.5 trillion
- Population (1950): ~152 million
- GDP per capita (2023 dollars): ~$23,000
- Economic context:
- Dominated by manufacturing, steel, autos, and defense
- Strong post-WWII boom — suburban expansion, infrastructure, and consumer goods
- U.S. accounted for ~27% of global GDP, largely due to Europe and Asia recovering from WWII
🇺🇸 U.S. Economy in the 2020s
- Nominal GDP (2023): ~$26.8 trillion
- Projected GDP (2025): ~$27.5 trillion (barring recession)
- Population (2023): ~334 million
- GDP per capita: ~$80,000
- Economic context:
- Shifted toward services, tech, healthcare, and finance
- Manufacturing as % of GDP has declined significantly (from ~25% in 1950s to ~11% today)
- Still ~25% of global GDP, but now in a multipolar world (China, EU, etc.)
🧮 Key Growth Stats (1950 → 2023):
| Metric | 1950 | 2023 | Growth |
|---|---|---|---|
| Nominal GDP | $300B | $26.8T | ~89x increase |
| Real GDP (adjusted) | $3.5T | $26.8T | ~7.7x increase |
| Population | 152M | 334M | ~2.2x increase |
| GDP per capita | ~$23,000 | ~$80,000 | ~3.5x increase |
🧠 What Changed?
- Immigration and DEI
- Globalization
- Shift from manufacturing to services
- Diverse technologies and diversified investments
Bottom line:
The U.S. economy is nearly 8 times larger in real terms today under a DEI led economy versus the "merit-based" economy of the 1950s. The population is significantly more educated and wealthier on a per capita basis. Together, women and nonwhite men were the key to success along with globalization and shifting away from manufacturing and into services. As we move back to a 1950s economic model, we will face a significant economic contraction. China will become the largest economy in the world, followed by the European Union. If we are lucky, we can battle Japan for the third place.
www.creatix.one
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