The American household did not take a traditional pay cut. It took something Wall Street should understand even better: an 81% margin cut.
Since the initiation of the geopolitical conflict with Iran and the subsequent closure of the Strait of Hormuz in late February 2026, the global economic narrative has been fixated on headline inflation, central bank interest rates, and disrupted supply chains. Markets are treating the current environment as a traditional inflation story. It is not.
