“Because of the Ukraine war, you know, we don’t have the surplus of military supplies that we used to, and we haven’t really ramped up production,” said Gulf Bank and Trust President Guy Williams. “So, in effect, we have two wars going on at once where we’re trying to support people.”
That’s because the U.S. is one of Israel’s main allies, and the country was shocked by a large-scale surprise attack from Hamas this weekend. So far, the death toll has far exceeded the Sept. 11, 2001 terrorist attacks here in the states, Williams told WWL’s Newell Normand.
He also noted that some may argue that our nation’s hands are a “little bloody” regarding the attack in Israel. As part of a hostage negotiation deal, the U.S. agreed to give Iran, which funds Hamas, access to $6 billion.
“We really need a more comprehensive foreign policy,” said Williams of the move.
While the U.S. was quick to send aid to Israel after its Prime Minister Benjamin Netanyahu declared war on the Palestinian terrorist organization, Williams noted that a prolonged war in the Middle East may put even more strain on the U.S. economy. It seems like that’s exactly what might happen near Gaza.
Budget issues were also at the heart of GOP infighting that recently brought the government to the brink of a shutdown – and not for the first time in recent memory. Tension in the Republican party got so high that they ousted their own Speaker of the House, Rep. Kevin McCarthy of California, this week.
At the same time, Americans have been dealing with high inflation and high interest rates for over a year. Although the Federal Reserve Bank increased the interest rates in an effort to tame inflation, that approach hasn’t been working, according to Williams.
“They’re making it more difficult for the U.S. to finance its deficit, which is writ large and growing,” he explained. “And we’re really in a very difficult situation there, because after COVID, the laws that were passed in the middle of COVID reset the deficit on a higher trajectory than it was before.”
According to Williams, the Congressional Budget Office said the economic situation isn’t expected to change for the better anytime soon.
“That really pushes the Fed in a lot of different directions. You know, like, how do you slow the economy? If you raise interest rates, you’re going to increase the deficit even more,” said Williams. “And that doesn’t even discuss the turmoil that we have in Washington, D.C., trying to deal with all this.”
It also doesn’t touch another expense that eats into Americans’ wallets: gas prices. With a new war in the Middle East, prices at the pump are expected to go up.
“This sort of chaos is not good for the global markets in any sense,” Williams said.
Listen to Williams’ full conversation with Normand here.