Interviews 02
Interviews 02
May 11, 2026

Larry Johnson: "Totally Unacceptable" – Then Iran Does the UNTHINKABLE (Hezbollah Blasts Iron Dome)

YouTube · jwxh_MCOzVk

Quick Read

US and Israeli military actions in the Middle East have backfired, strengthening Iran and accelerating a global power shift towards a Russia-China-Iran axis, while exposing Western economic and military vulnerabilities.
Iran's leadership is more unified, and its people are rallied against US/Israel.
China and Russia are building a new, US-displacing security architecture in the Persian Gulf.
Israel faces internal military breakdown, drone vulnerability, and eroding US support.

Summary

Larry Johnson analyzes the current geopolitical landscape, arguing that US and Israeli military interventions against Iran have been an "unmitigated disaster." Instead of weakening Iran, these actions have unified its leadership and people, diminished US military presence in the Gulf, and led to the shutdown of the Strait of Hormuz, threatening global stagflation. Johnson highlights China's robust economic position and strategic resilience, contrasting it with the US's economic vulnerabilities and incoherent foreign policy. He details how Russia and China are leveraging this instability to forge a new security architecture in the Persian Gulf, fostering collaborative relationships with key GCC states like Saudi Arabia and Qatar, while isolating others like the UAE. The discussion also covers Israel's deteriorating military situation, including a reported breakdown within the IDF, vulnerability to drone attacks, and a growing erosion of US support, suggesting Israel is failing to achieve its objectives and is increasingly isolated. Europe is deemed militarily and economically irrelevant in this new global order.
This analysis reveals a critical juncture in global power dynamics, where traditional Western dominance is rapidly eroding. It underscores how military interventions can have severe unintended consequences, strengthening adversaries and accelerating the formation of new geopolitical alliances. For businesses, the potential for global stagflation due to energy disruptions and the rise of alternative financial systems (like China's CIPS) signal significant economic shifts and risks. For policymakers, it highlights the urgent need to reassess foreign policy strategies, acknowledge the limitations of military power, and understand the growing influence of non-Western powers. For the public, it challenges prevailing narratives about US and Israeli military effectiveness and economic strength, urging a more realistic understanding of global affairs.

Takeaways

  • US and Israeli actions have strengthened Iran's leadership and unified its people, contrary to their goals.
  • The Strait of Hormuz shutdown is crippling the global economy and likely causing stagflation in the West.
  • Russia and China are creating a new security architecture in the Persian Gulf, displacing the US.
  • China's economic strength, low debt, and alternative financial systems position it strongly against a vulnerable US.
  • Israel's military is experiencing a moral breakdown and is unprepared for modern drone warfare, leading to heavy casualties.
  • Erosion of US public and congressional support for Israel is accelerating due to its actions and perceived genocidal state.
  • Europe is militarily and economically irrelevant, unable to provide meaningful support or influence.

Insights

1US/Israel's Actions Strengthened Iran

Larry Johnson argues that US and Israeli military actions, intended to weaken Iran, have instead strengthened its leadership, unified its people, and diminished US influence in the Gulf. This includes the killing of one layer of Iranian leadership, leading to a more unified government of combat veterans.

Instead of weakening Iran, they've strengthened Iran and and through it, Iran has strengthened its relations with Russia and China.

2Economic Consequences of Strait of Hormuz Closure

The speaker highlights the shutdown of the Strait of Hormuz as a major accomplishment for Iran, crippling the global economy and likely leading to serious stagflation in the US and Europe.

They achieved the shutdown of the straight of Hormuz, the crippling of the global economy and the likelihood that the United States and Europe will be faced with serious stagflation.

3Shifting Global Power Dynamics

The conflict has allowed Russia and China to seize the initiative, creating a new international security architecture in the Persian Gulf that displaces the United States.

Russia and China have seized this opening, seized the initiative to be moving forward with creating a new international security architecture in the Persian Gulf. One that displaces the United States and leaves the United States weaker.

4China's Economic Strength and Resilience

Contrary to Western perceptions of weakness, China possesses significant economic strength, evidenced by a central government debt-to-GDP ratio of 29% (vs. US 123%), owning the top four global banks, divesting US treasuries, buying gold/silver, and establishing alternative payment systems like CIPS.

China's debt to GDP ratio is 29%. That what what is that of the United States? 123%... China has got the the four largest banks... it's starting to unload US treasuries... it's buying up gold and silver. Uh it's setting up an alternative payment system to Swift called SIPs, crossber interbank payment system.

5Iran's Supply Chain Resilience

The notion of "bottling up" Iran is dismissed, as Iran maintains robust trade routes through the Caspian Sea (via Russia), overland railroads (via China through Tashkent), and seven overland routes from Pakistan.

Meanwhile, Russia can supply food, whatever, you know, whatever material that Ron needs through the Caspian. Uh the Chinese provided through the railroad line that runs through Tashkant and the Pakistanis provided over seven seven overland routes out of Pakistan.

6Israeli Military Breakdown and Drone Vulnerability

Reports from the Hebrew press indicate a moral and disciplinary breakdown within the IDF, with claims of victory being illusions. Israel is unprepared for drone warfare, suffering significant casualties and equipment losses in Southern Lebanon, which will likely compel a withdrawal.

Senior military commentator Alon bin de David Davided on the moral and disciplinary breakdown permeating the IDF the near total dysfunction of public systems and Israel's moral breakdown... drones are changing the nature of the war. something that Israel is completely unprepared for despite having watched four year for the last four years what's been going on in in Ukraine.

7Erosion of US Support for Israel

Increasing attacks on Christianity by Israel and its perceived genocidal actions are turning more US Christians against Israel, leading to an erosion of congressional support and funding.

The recent attacks on Christianity and Christians in both uh Israel and in Lebanon has is is turning, you know, more and more Christians in the United States against Israel. They see it as just a vicious genocidal state.

8GCC Division and New Security Architecture

GCC countries are divided, with Saudi Arabia, Oman, and Qatar engaging with Iran, while UAE, Kuwait, and Bahrain remain distant. Russia and China are actively building a new, collaborative security architecture in the Persian Gulf, replacing the US-imposed conflict-based model.

There were six phone calls between Iran and Saudi Arabia since the war started. Five phone calls between Iran and Oman, two meetings... in Qatar, it was five phone calls between Iran and Katar. But when it comes to UAE, Kuwait and Bahrain, you see no phone calls... Russia and China I think they're making some significant progress on creating a new security architecture for uh the Persian Gulf.

Bottom Line

The US and Europe are depleting essential weapon systems and relying on China for rare earth minerals to rebuild, while China is actively divesting US treasuries and accumulating gold.

So What?

This creates a critical dependency for Western military industrial complexes on a geopolitical rival, undermining long-term strategic autonomy and financial stability.

Impact

Companies involved in rare earth mineral extraction, processing, and alternative material science outside of Chinese control could see significant strategic investment and growth.

Iran's resilience to blockades is bolstered by diverse overland and sea routes through Russia, China, and Pakistan, rendering traditional naval containment strategies ineffective.

So What?

Western assumptions about isolating adversaries through maritime control are outdated, requiring a fundamental re-evaluation of blockade effectiveness and military strategy.

Impact

Investment in alternative logistics and trade infrastructure that bypass traditional maritime chokepoints, particularly in Eurasia, could become increasingly valuable for global supply chain resilience.

The reported moral and disciplinary breakdown within the IDF, coupled with Israel's unpreparedness for drone warfare, indicates a significant degradation of a once-feared military force.

So What?

This suggests a potential shift in regional military balance, where non-state actors and smaller nations employing asymmetric drone tactics can effectively challenge advanced conventional militaries.

Impact

Development and deployment of advanced counter-drone technologies, AI-driven defensive systems, and adaptive military training programs focused on asymmetric threats are critical for national security and defense industries.

Key Concepts

Unintended Consequences

Actions taken to achieve a specific outcome (e.g., weakening Iran) often produce unforeseen and contrary results (e.g., strengthening Iran, uniting its people, empowering rivals).

Shifting Alliances and Power Blocs

Global power is not static; perceived weaknesses or missteps by dominant powers create opportunities for new alliances and security architectures to emerge, challenging the established order.

Economic Leverage as Geopolitical Power

Economic strength, debt-to-GDP ratios, control over critical resources, and alternative financial systems are increasingly potent tools in international relations, often outweighing traditional military might.

Lessons

  • Re-evaluate geopolitical risk assessments, particularly concerning energy security and trade routes, given the instability in the Middle East and the potential for prolonged Strait of Hormuz closure.
  • Monitor the development of alternative financial systems like China's CIPS and the increasing use of gold/silver by non-Western powers, as these signal a shift away from dollar dominance.
  • For investors, consider diversifying portfolios to account for potential global stagflation and the economic resilience of countries like China, while reassessing exposure to regions heavily reliant on traditional Western security guarantees.

Notable Moments

Hezbollah footage showing a drone hitting an Israeli Iron Dome battery, demonstrating the vulnerability of advanced defense systems to asymmetric drone attacks.

This visual evidence directly contradicts narratives of Israeli military invincibility and highlights the changing nature of warfare, where sophisticated air defense systems can be bypassed or overwhelmed by cheaper, more numerous drones.

Quotes

"

"This is an unmitigated disaster for the United States and Israel. Instead of weakening Iran, they've strengthened Iran..."

Larry Johnson
"

"The Trump foreign policy is it's being operated on artificial intelligence... there's no coordinated coherent strategy at all."

Larry Johnson
"

"The United States is acting like China is an economic basket case and you know we're we're like we're like the guy who's a a meth heroin addict going to talk to somebody about their drug addiction that they have a problem."

Larry Johnson
"

"Chinese are in a very very strong position and Trump has no trump cards to play."

Larry Johnson
"

"Israel is in trouble and uh maybe there's an sort of a metaphor at work here because here is BB Netanyahu. You know, his his appearance on 60 Minutes. He looks terrible. He's losing weight. He's becoming more gaunt... that's attributable to the fact that he has prostate cancer."

Larry Johnson
"

"The one who really is violently opposed to Christianity are the are the Jews or these Israel the Zionists."

Larry Johnson
"

"Europe's a nobody now... it's no longer relevant. It can be a nuisance and it can make threats, but in terms of actual having industrial production to produce anything for Israel, good luck with that."

Larry Johnson

Q&A

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