Chuck Holton
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Chuck Holton is an American war correspondent, published author, and motivational speaker.
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Tonight: Answering Idiots on Israel

I'll be talking about Scott Ritter's new interview out today in which he claims that Israel has lost the war and "its economy is in tatters." Here is the real truth of the matter:

The Economic Impact of War: Israel vs. US in 2024

As Israel navigates the economic challenges of wartime, comparing its financial standing with a non-wartime economy like the United States offers valuable insights into Israel's resilience and the broader implications of conflict on national finances.

Economic Growth: Slowing but Steady

Despite the ongoing conflict in Gaza, Israel's economy is showing remarkable resilience. The International Monetary Fund (IMF) projects Israel's growth at 1.6% for 2024, down from 2% in 2023. While this represents a slowdown, it's noteworthy that the economy continues to expand under challenging circumstances.

In contrast, the US economy, free from direct military conflicts on its soil, is expected to grow at 2.1% in 2024. This slight edge in growth demonstrates the economic drag of war, but also highlights Israel's ability to maintain positive growth despite adversity.

Government Spending and Deficits

The war has inevitably led to increased government spending in Israel. The fiscal deficit is projected to rise to about 6% on average from 2023-2025, up significantly from previous estimates. This increase reflects the immediate costs of military operations and domestic support measures.

The US, while not at war, also runs a substantial deficit, projected at 5.3% of GDP for fiscal year 2024. This comparison shows that even in peacetime, major economies often operate with significant budget gaps.

Debt Levels: A Key Differentiator

One of Israel's economic strengths is its relatively low public debt, standing at about 67% of GDP. This is slightly below the average for OECD countries and provides Israel with financial flexibility during these challenging times.

The US, on the other hand, carries a much heavier debt burden, at approximately 123% of GDP. This stark difference underscores Israel's prudent pre-war financial management, which now serves as a buffer against economic shocks.

The Power of Reserves

Israel's substantial foreign exchange reserves, exceeding $200 billion, have proved crucial during this period. The Bank of Israel's decision to release $30 billion to support the currency demonstrates the strategic importance of these reserves. This move has helped maintain currency stability, a critical factor for economic confidence during wartime.

The US, given its unique position as the issuer of the world's primary reserve currency, doesn't maintain foreign exchange reserves in the same way. Instead, it relies on the inherent strength and global demand for the US dollar.

Concluding Thoughts

Israel's economy, while undoubtedly affected by the ongoing conflict, shows remarkable resilience. The country's strong fiscal position before the war, characterized by manageable debt and substantial reserves, has provided a crucial buffer against economic shocks.

When compared to the US, Israel's economy naturally shows signs of war-related stress, particularly in terms of slower growth and increased deficit spending. However, its lower debt levels and strategic use of reserves demonstrate effective economic management in challenging times.

As the situation evolves, Israel's economic performance will remain a testament to the importance of sound financial planning and the resilience of a diversified, modern economy in the face of geopolitical challenges.

To compare Israel's financial state to the US, let's examine the key economic indicators mentioned:

Economic Growth

• Israel: Expected to grow by 1.6% in 2024, down from 2% in 2023.
• US: The IMF projects US growth at 2.1% for 2024, slightly higher than Israel's forecast.

Fiscal Deficit

• Israel: Projected to increase to about 6% on average in 2023-25.
• US: The Congressional Budget Office projects a federal budget deficit of 5.3% of GDP for fiscal year 2024.

Public Debt

• Israel: About 67% of GDP.
• US: The US public debt is significantly higher, at approximately 123% of GDP.

Foreign Exchange Reserves

• Israel: More than $200 billion, with $30 billion released to support the currency.
• US: As the world's reserve currency, the US doesn't maintain foreign exchange reserves in the same way. Instead, it has gold reserves worth about $11 billion.

Comparative Analysis

1. Growth: While both countries are experiencing slower growth, the US is projected to outpace Israel slightly in 2024.

2. Fiscal Deficit: Israel's projected deficit is slightly higher than the US, indicating more fiscal pressure.

3. Public Debt: The US has a significantly higher public debt-to-GDP ratio, which could be a long-term concern.

4. Reserves: Israel's substantial foreign exchange reserves provide a strong buffer against economic shocks, especially relative to its size.

5. Economic Resilience: Despite the war's impact, Israel's economy shows resilience, maintaining stable growth and manageable debt levels.

6. Currency Stability: Israel's ability to support its currency with reserves demonstrates financial strength, while the US dollar's global reserve status provides inherent stability.

Overall, while Israel faces immediate challenges due to the conflict, its economic fundamentals remain relatively strong. The US, despite higher growth projections, faces long-term concerns with its significantly higher public debt.

Citations:
[1] https://www.iemed.org/publication/economic-impact-of-the-gaza-war/
[2] https://tradingeconomics.com/israel/gdp
[3] https://en.wikipedia.org/wiki/Economic_history_of_Israel
[4] https://www.undp.org/sites/g/files/zskgke326/files/2024-05/2400257e-gaza_war-_expected_socioeconomic_impacts-pb.pdf
[5] https://www.cfr.org/article/us-aid-israel-four-charts
[6] https://www.middleeastmonitor.com/20240605-israels-economy-is-creaking-under-the-effects-of-its-assault-on-gaza/
[7] https://www.pbs.org/newshour/world/as-israels-economy-struggles-leading-economists-say-ending-the-war-in-gaza-would-help
[8] https://www.bbc.com/news/world-middle-east-68884729

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In this interview with CBN News, former Army Ranger and war correspondent Chuck Holton argues that America's greatest crisis isn't a future apocalypse—it's the quiet breakdown already happening in communities today. Drawing from his book RED Teams, Holton says the real signs of collapse are loneliness, fractured families, neglected widows and the elderly, and churches that have become spectators instead of community leaders.

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There are different aspects of salvation. For instance, in Acts 2:40, Peter exhorts the people to be saved from their wicked generation. Seven verses later, it is written that believers were being saved day by day (Acts 2:47). Because the word "saved" here is in the present tense—following Peter's previous exhortation—this aspect of salvation is directly related to being saved from the evil influence of that wicked generation. It is crucial when dealing with words like "salvation" or "perishing" that we carefully interpret their meaning according to the context of the passage and in light of other clear biblical teachings, instead of just jumping to the conclusion that such words are always a heaven-or-hell issue.

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The Threat Against Trump Is Worse Than We Knew
An Iranian plot, a dramatic Air Force One deception, and America’s dangerous race to catch up on drone defense

The threat environment around President Donald Trump has reached a level I have never seen before—and new reporting about what happened during his trip to Turkey shows just how serious it has become.

When Trump left Ankara after meeting with NATO leaders on July 8, the public was initially told that he had used an older Air Force One for nostalgic reasons. Then we heard that the newer aircraft was unavailable. After that, reports suggested that security concerns had influenced the decision.

Now we are learning that the situation was much more dramatic.

According to new reporting, American and Israeli intelligence had picked up a credible Iranian threat against the president’s aircraft. The danger was considered serious enough that the Secret Service and the military carried out the kind of deception you would expect to see in a Hollywood thriller.

Trump boarded the older Air Force One with members of the press pool and his staff. Everyone aboard was reportedly instructed to close the window shades. A catering truck then pulled alongside the aircraft as though it were delivering food.

Instead, the president got into the truck.

The vehicle carried him across the tarmac to a smaller, less conspicuous government aircraft—a C-32A—which then flew him out of Ankara. Many of the people traveling with him apparently did not know what was happening until later.

Think about that for a moment. The president of the United States had to slip off Air Force One in a catering vehicle and leave a NATO summit aboard a smaller decoy aircraft because the Iranian threat was considered credible enough that officials feared his plane could be attacked.

That tells us at least two things. First, Iran’s threats against President Trump cannot be dismissed as empty propaganda. Second, the United States cannot afford to assume that every NATO ally can provide a secure operating environment simply because its flag appears on the right list in Washington.

Israel reportedly helped identify the threat. If that intelligence contributed to getting the president home alive, Americans ought to remember it.

Why Are Missile Batteries Guarding a Golf Course?

The extraordinary precautions did not end in Turkey.

Recent images from Trump’s golf club in Bedminster, New Jersey, show Avenger short-range air-defense systems positioned nearby and surrounded by concertina wire. These Humvee-mounted systems carry Stinger missiles and a .50-caliber machine gun.

That is not normal golf-course scenery.

The Avenger is designed to protect troops and critical assets from low-flying aircraft, helicopters, and other aerial threats. If officials are deploying that kind of equipment while the president plays golf, they are not worried only about a hobbyist accidentally flying a DJI drone into restricted airspace.

They are preparing for the possibility of a deliberate attack.

The obvious threat is a small commercial or homemade drone modified to carry explosives. These aircraft can fly low, move quickly, and approach from directions that make them difficult to detect. They are also cheap. That creates an ugly economic problem: firing a Stinger missile costing hundreds of thousands of dollars at a drone worth a few hundred or a few thousand dollars is wildly inefficient.

But if that drone is headed toward the president, nobody is going to worry about the price of the missile.

The harder problem is engagement range. A small drone can be difficult to detect and hit before it gets close enough for an explosion—or even falling debris—to injure the person being protected. A manually aimed machine gun is not an ideal answer to a dinner-plate-sized target moving at highway speed. Missiles also have practical limitations at very short distances.

That is why presidential protection now requires a layered counter-drone system: radar and other sensors to detect the aircraft, electronic systems to disrupt or seize control of it, directed-energy weapons to damage its electronics, and kinetic weapons as the final line of defense.

After the assassination attempt in Butler, Pennsylvania—where the attacker had reportedly flown a drone over the venue before climbing onto a roof—the Secret Service accelerated its counter-drone efforts. That was necessary, but it also revealed how far behind the United States had allowed itself to fall.

The Drone War Is Already Here

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When Charity Becomes Self-Destructive: Spain’s Border Crisis Is a Warning to the West When Charity Becomes Self-Destructive: Spain’s Border Crisis Is a Warning to the West

A large and sudden influx of migrants into Spain’s North African enclave of Ceuta has created a situation that should be understood as a broader warning to Western nations that attempt to separate compassion from enforcement, borders, and consequences. Ceuta, a Spanish territory located on the northern coast of Africa and directly adjacent to Morocco, has historically maintained a population of roughly 80,000 people, yet local authorities now report that tens of thousands of migrants have arrived in an extremely short period, with some estimates suggesting the number may exceed 60,000.

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This crisis is not an isolated development but part of a long-established migration pattern that I have previously reported on in the region. The geography of Ceuta and Melilla, Spain’s two enclaves on the North African coast, creates a uniquely accessible entry point into Europe, where migrants can reach Spanish jurisdiction not only by sea but also by crossing land barriers that separate the enclaves from Morocco.

During earlier reporting in the region, I encountered individuals who had repeatedly attempted entry despite deportation, including one Algerian migrant who described multiple crossings and returns, driven by the economic disparity between North Africa and Europe. His explanation was straightforward: the opportunity available on the European side of the border represented a level of income and stability that was otherwise unattainable in his country of origin.

This economic imbalance is central to understanding the persistence of migration flows, as individuals from lower-income regions will naturally seek access to higher-income economies when physical proximity makes such movement feasible. While it is important to recognize the human motivations involved, it is equally important to acknowledge that these flows are shaped by policy decisions that determine how easily entry is achieved and how consistently immigration rules are enforced.

Spain’s approach, which has increasingly allowed irregular entrants to remain and eventually regularize their status, creates a system in which initial illegal entry can lead to long-term residence and access to broader European mobility. As a result, Ceuta functions not merely as a local issue but as a gateway into a wider continental migration system.

Migration as a Strategic Tool

There is also a geopolitical dimension to these events that cannot be ignored, as migration flows have at times been influenced by state behavior and used as leverage in diplomatic disputes. In previous incidents involving Spain and Morocco, border enforcement patterns appeared to shift in ways that coincided with political tensions, resulting in sudden surges of crossings that placed immediate pressure on Spanish authorities.

This dynamic reflects a broader reality in which migration can be used as an instrument of statecraft, not through direct military confrontation but through the manipulation of border permeability. Unlike conventional conflict, this form of pressure exploits legal and humanitarian frameworks that make it difficult for receiving countries to respond with force, even when the scale of entry overwhelms administrative capacity.

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To read the rest of this article and access other paid content, you must be a supporter
Read full Article
post photo preview
When Charity Becomes Self-Destructive: Spain’s Border Crisis Is a Warning to the West When Charity Becomes Self-Destructive: Spain’s Border Crisis Is a Warning to the West

A large and sudden influx of migrants into Spain’s North African enclave of Ceuta has created a situation that should be understood as a broader warning to Western nations that attempt to separate compassion from enforcement, borders, and consequences. Ceuta, a Spanish territory located on the northern coast of Africa and directly adjacent to Morocco, has historically maintained a population of roughly 80,000 people, yet local authorities now report that tens of thousands of migrants have arrived in an extremely short period, with some estimates suggesting the number may exceed 60,000.

The scale of this demographic shock is difficult to overstate, as it effectively places a population nearly equal to the city’s own residents into a confined urban space without adequate preparation for housing, screening, or public order. Reports from the ground describe migrants entering through gaps in border fencing, bypassing coastal defenses, and in some cases swimming into Spanish territory, with footage showing both celebratory scenes upon arrival and confrontations with security forces overwhelmed by the volume of crossings.

Local officials in Ceuta have called for emergency national intervention, including military deployment and reinforced border control, as they confront a situation that has rapidly exceeded municipal capacity. National political discourse, however, continues to emphasize themes of solidarity and inclusion, language that appears increasingly disconnected from the operational reality faced by those responsible for maintaining order on the ground.

This crisis is not an isolated development but part of a long-established migration pattern that I have previously reported on in the region. The geography of Ceuta and Melilla, Spain’s two enclaves on the North African coast, creates a uniquely accessible entry point into Europe, where migrants can reach Spanish jurisdiction not only by sea but also by crossing land barriers that separate the enclaves from Morocco.

During earlier reporting in the region, I encountered individuals who had repeatedly attempted entry despite deportation, including one Algerian migrant who described multiple crossings and returns, driven by the economic disparity between North Africa and Europe. His explanation was straightforward: the opportunity available on the European side of the border represented a level of income and stability that was otherwise unattainable in his country of origin.

This economic imbalance is central to understanding the persistence of migration flows, as individuals from lower-income regions will naturally seek access to higher-income economies when physical proximity makes such movement feasible. While it is important to recognize the human motivations involved, it is equally important to acknowledge that these flows are shaped by policy decisions that determine how easily entry is achieved and how consistently immigration rules are enforced.

Spain’s approach, which has increasingly allowed irregular entrants to remain and eventually regularize their status, creates a system in which initial illegal entry can lead to long-term residence and access to broader European mobility. As a result, Ceuta functions not merely as a local issue but as a gateway into a wider continental migration system.

Migration as a Strategic Tool

There is also a geopolitical dimension to these events that cannot be ignored, as migration flows have at times been influenced by state behavior and used as leverage in diplomatic disputes. In previous incidents involving Spain and Morocco, border enforcement patterns appeared to shift in ways that coincided with political tensions, resulting in sudden surges of crossings that placed immediate pressure on Spanish authorities.

This dynamic reflects a broader reality in which migration can be used as an instrument of statecraft, not through direct military confrontation but through the manipulation of border permeability. Unlike conventional conflict, this form of pressure exploits legal and humanitarian frameworks that make it difficult for receiving countries to respond with force, even when the scale of entry overwhelms administrative capacity.

Only for Supporters
To read the rest of this article and access other paid content, you must be a supporter
Read full Article
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