What actual effect does the Signalgate attacks have on the global economy?

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Trump and his officials were involved in a Signal group chat that seems to have accidentally shared highly sensitive information about a planned U.S. military strike in Yemen. There is no easy way out of the high and sworn mighty MAGA. The global economy will suffer yet another hit, not from tariffs but from Trump’s administration’s carelessness, which will lead to a shipping crisis.

The “Signalgate” crisis is still going strong in Washington, DC, as the White House tries to explain how top Trump administration officials were involved in one of the worst attacks on U.S. national security in recent memory.

The best way to describe the situation is as a massive violation of the intelligence community’s most basic rules. Military heads don’t just talk about targets with anyone who doesn’t need to know; they don’t spill the times and plans for upcoming attacks.

On top of that, it’s not expected that generals talk about military matters at all on commercial messaging services in an informal chat group with a bunch of government officials and invite a well-known journalist to join in. And you never have official government meetings on a communications system that deletes the record after four weeks.

Makes one wonder: What was the journalist doing on that chat? Who authorized the access or does Trump simply have enemies amongst his most trusted generals? Or is the leak of these texts a Trojan horse? If so who is the targeted enemy?

What does the end look like? Three or four people might be fired, or there will soon be a much bigger scandal for lack of competency. Can you imagine Trump carrying the word incompetence with him? 

The supposed economic impact stemming from the war plan

The Houthis in Yemen and the US are at war near one of the most important shipping lanes in the world.

Therefore, a long-term closure of the waterway that connects to the Suez Canal could slow down global supply chains and raise the prices of manufactured goods. This is happening at a very important time in the fight against inflation. The Suez Canal handles 10-15% of world trade, which includes oil exports and 30% of all container shipping.

In fact, analysts don’t expect sharp gains in oil prices to be sustained in the current environment. According to a BMI analyst, “While the market is suffering under extreme uncertainties, we are holding to our forecast for Brent crude to average $76 per barrel in 2025, down from $80 per barrel in 2024.” 

Because of the Houthi attacks, much of that trade has had to take a much longer and more expensive path around Africa’s southern coast. This has caused insurance rates to rise and inflation rates to change around the world.

According to PortWatch, a database run by the IMF and Oxford University, the number of ships passing through the Suez Canal each day dropped from about 80 in October 2023 to 29 on average in mid-September 2024 because of the same issue.

At the same time, PortWatch says the average daily trade amount dropped from 4.89 million metric tonnes to 1.36 million metric tonnes. Trump’s tariffs have already made things bad, and this situation could make things worse.

What is the Signalgate attack about?

According to Monday reports, the US National Security Advisor Mike Waltz accidentally put magazine editor-in-chief Jeffrey Goldberg on a text chain where they talked about plans to attack Houthi rebels in Yemen with military strikes. 

There were more than a dozen other high-ranking officials in the group chat, the likes of Vice President J.D. Vance, Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, Treasury Secretary Scott Bessent, and White House special representative Steve Witkoff.

America is the bedrock of free speech and exclusive scoops. That journalist was not going to keep his mouth shut. However, Goldberg was worried about national security. Therefore, he purposely left out the first report part of the conversation, in which Hegseth talked about the operational details of forthcoming strikes in Yemen. 

This includes targets, weapons the US would be using, and the order of the attacks.

CIA Director John Ratcliffe and Director of National Intelligence Tulsi Gabbard told the Senate Intelligence Committee on Tuesday under oath that the chat did not contain any classified information. 

On Wednesday, Goldberg was done being quiet and made the full details of the chat in which he was in public. 

Hegseth texted the group on March 15, before the military operation in Yemen, “TIME NOW (1144et): Weather is FAVORABLE. Just CONFIRMED w/CENTCOM we are a GO for mission launch.” This mission killed 53 people.

Trump and his officials explain

President Donald Trump bills himself as a straight shooter who tells it like it is. However, Trump rarely admits mistakes. Many of his allies said Wednesday that’s exactly what the White House needed to do and that it was undermining trust by refusing to acknowledge reality.

Trump said that Mike Waltz, Trump’s top national security adviser, is not to blame but his staff members for including Goldberg. But Waltz later denied that on national TV, saying, “A staffer wasn’t responsible.”

At another time, Waltz said he had never met Goldberg. This was hours before a reporter found a picture of the two men standing next to each other at an event at the French Embassy in 2021. 

Waltz again said, “I take full responsibility. I built the group […] “I can tell you for 100% I don’t know this guy […] I know him by his horrible reputation… And I know him in the sense that he hates the president, but I don’t text him. He wasn’t on my phone. And we’re going to figure out how this happened.”

See, all of them are telling a different story. Trump has made it clear that Mike Waltz will not be fired. One thing is for sure: Hegseth was the one who sent the message with the sensitive information. This makes it unclear how thorough the Defense secretary’s self-assessment would be.

What happened in Yemen? Iraq warns the US to leave Yemen alone

Yemeni media and sources say that US strikes in Yemen on Saturday night hurt and killed more than 100 people. The Houthis said they would respond on a US warship on Sunday night. After that, the US bombed Yemen again.

The US attacked Sanaa and the areas around it, as well as the northern governorate of Sa’adah and the port of Hodeidah.

According to Nick Brumfield, an independent Yemen analyst, “[Trump’s] strikes were very clearly going after Houthi leadership, and didn’t seem to care if any civilians got in the way […] The strikes in Sanaa targeted a residential neighbourhood known to house a lot of Houthi leaders.”

The US has said it will bomb Yemen until the Houthis stop. President Trump said the Houthis had targeted US Troops and Allies. Together with his defense secretary, Pete Hegseth, they have also said that Iran is behind what the Houthis are doing and that Iran is now “on notice.”

However, Iran’s Foreign Minister Abbas Araghchi said the US government “has no authority, or business, dictating Iranian foreign policy […] End support for Israeli genocide and terrorism […] Stop killing of Yemeni people.”

US Secretary of State Marco Rubio said that he and Sergey Lavrov, his Russian colleague, had planned the attacks on Yemen. 

In response, the Houthis said they attacked the US aircraft carrier USS Harry S. Truman and its side ships twice. However, officials from the US who spoke to the media without giving their names denied that there was an attack.

Reports from the BBC say that the Houthis blamed the US and the UK, which did not actually bomb but did help with refueling. Also, Houthi leaders promised to fight back against the US strikes.

Democrats call out Trump’s administration for being careless and incompetent

Just two months in, and the opposition has their hands on something to use against Trump, his supporters and allies. Of course, Dems will not let this one go. According to them, Trump is careless and incompetent and is putting their lives at risk. They are ready to go as far as a petition for Hegseth to resign.

In a new letter, Senate Democratic Leader Chuck Schumer (D-N.Y.) and top Senate Democrats on national security committees asked Trump to answer 10 questions about the chat. The questions included a full list of the people who were there and whether any of them used personal devices.

They also wrote, “We are aware that the Director of National Intelligence, and possibly others, appears to have been overseas while this group chat was active, making the entire discussion more vulnerable to interception by foreign adversaries”

Top Democrats are using Signalgate to raise money for their campaigns. This shows how the party thinks the effects of the national security issue will be felt beyond Washington, D.C. Sen. Kirsten Gillibrand even asked, “Do you feel safe under the Trump administration?” 

Some republicans are also not supporting Trump on this one. Rep. Don Bacon, a Nebraska Republican and former Air Force officer said, “The White House is in denial that this was not classified or sensitive data […] They should just own up to it and preserve credibility.”

However, other Republicans say that the Dems have no right to call out anyone. Why? The Biden administration completely failed with the Afghanistan withdrawal. Not one complaint or call for an investigation by Dems. 

According to them, Hegseth’s plan was a successful mission that meant no one needed to be fired.





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