The real problem with deterrence is that it requires your adversary to believe you will actually follow through. And historically, the United States has had a credibility problem — we draw red lines and then don't enforce them, which is an invitation for adversaries to probe and push.
It's the most extraordinary thing that the most critical issue facing American financial markets is whether to believe the American president or the Iranian leaders about what the Americans are doing.
3mo ago
Underscored — save the words that stop you in your tracks.
