The Hidden Variable in Inflation: Foreign Expenditures and the Cost of Endless Conflict

By Scotty Reid - BTR News In a recent segment titled "Eggs, Car Insurance SKYROCKET Inflation Numbers Ahead Of Trump," Breaking Points contributors Ryan and Saagar delved into the troubling rise in car insurance rates and its connection to broader inflationary trends reporting that in the month of November 2024 inflation rose 2.7%. While the segment offered valuable insights, it failed to address a crucial yet often overlooked factor contributing to inflation: the United States' extensive foreign expenditures and perpetual state of military conflict. The Cost of Constant Conflict For decades, the U.S. has maintained a policy of global military engagement, spending vast sums on wars, military aid, and clandestine operations. This pattern is not only a moral and political issue but also an economic one with direct implications for inflation. Consider recent events: Military Aid to Israel and Ukraine: In November alone, the Biden administration announced multi-billion-dollar aid packages to support Israel’s military actions and Ukraine’s ongoing war with Russia. New Pledges in Syria: Amid escalating tensions and the reported overthrow of the Syrian government, the U.S. pledged additional billions to opposition forces. Clandestine Operations: Beyond the publicized aid, a significant portion of U.S. foreign expenditures is hidden under classified budgets, funding covert activities that never make headlines. These expenditures are financed largely through borrowing, adding to the national debt and putting upward pressure on inflation. Yet, discussions of inflation in mainstream media rarely connect these dots, focusing instead on domestic variables like supply chain disruptions or corporate price gouging. The Dollar's Diminishing Dominance Foreign expenditures also weaken the dollar’s position as the world’s reserve currency, another driver of inflation. The U.S. uses its financial dominance to impose economic sanctions, a form of economic warfare that has pushed nations like Russia, China, and others to seek alternatives to the dollar in global trade. This shift has manifested in the growing influence of BRICS (Brazil, Russia, India, China, and South Africa), which aims to establish a trade system independent of the dollar. As more countries move away from the dollar, the U.S. faces reduced demand for its currency, weakening its value. A weaker dollar makes imports more expensive for American consumers, fueling inflation. The ripple effects of U.S. military and economic policies abroad thus reach right into the pockets of everyday Americans, driving up prices not just for car insurance but also for food, fuel, and housing. The Missing Discussion in Media Breaking Points’ omission of these foreign expenditures reflects a broader trend in mainstream and alternative media alike: a failure to connect the economic impact of America’s global military footprint to domestic inflation. While analysts dissect the price of eggs or car insurance, the elephant in the room—the cost of endless war—goes largely unmentioned. This oversight does a disservice to the public. Understanding inflation requires looking beyond consumer trends to the structural forces at play. Military spending consumes a significant portion of the federal budget, funded through borrowing that increases the national debt and weakens the dollar. When this dynamic is ignored, the public is left with an incomplete picture of why their cost of living continues to rise. A Call for Deeper Analysis As inflation remains a top concern for Americans, it is imperative that media outlets expand their analysis to include the role of foreign expenditures. The cost of endless war and global dominance is not just a geopolitical issue; it’s an economic one that affects everyone. Breaking Points and other outlets have a responsibility to explore these connections and offer the public a more comprehensive understanding of the forces driving inflation.