CONTENTS THE JOHN BATCHELOR SHOW, 8-25-2026 COVER OF FANTASTIC MAGAZINE OCTOBER 1961 Liz Peek, columnist for The Hill and Fox News, discusses the surprising resilience of the American economy, noting that small businesses are reporting strong hiring and profitability growth based on broad National Federation of Independent Business and Bank of America data. While consumer spending remains robust, recent data reveals a K-shaped economy, where higher-income homeowners spend extensively on renovations while lower-income consumers trade down at Walmart. Rising interest rates present a critical challenge, slamming the housing market and significantly increasing interest payments on the massive national debt. Lastly, the administration's tariff conflict with Canada is criticized as a major, highly unfortunate, and economically damaging political mistake. (1) Jonathan Schanzer, Executive Director of the Foundation for Defense of Democracies, evaluates the Treasury's initial tranches of secondary sanctions targeting entities trading with Iran, including firms in China and the UAE. Although these measures stop short of targeting major Chinese banks, they provide President Trump with leverage ahead of his Washington summit with Xi Jinping. Within the Middle East, Schanzer warns that regional powers are hedging their bets. Saudi Arabia may be negotiating a separate peace with the Houthis and Iran, which could undermine US sanctions. Additionally, the US controversially rescinded Syria's state sponsor of terror status following the rapid rise of former al-Qaeda commander Ahmed al-Shara. (2) Mary Kissel, Senior Fellow at the Hudson Institute and former Senior Advisor to the Secretary of State, analyzes Trump's "maximum pressure" campaign against Iran, asserting that its success relies on penalizing large Chinesefinancial institutions. However, Beijing holds significant economic and military leverage over the US, including export controls on critical minerals. Regarding North America, Kissel describes the escalating trade war with Canada as a "loser's game" driven by domestic politics. She stresses that the 50% tariffs on essential materials like Canadianaluminum and auto parts disrupt deeply integrated supply chains. Consequently, this trade conflict severely harms ordinary consumers and threatens Republican control of key Senate seats in critical border states of Maine and Michigan. (3) Colonel Jeff McCausland, US Army (Retired) and Visiting Professor at Dickinson College, warns that the US foreign policy process has collapsed under President Trump, who relies on personal loyalty over expert advice. This is illustrated by Trump's sudden decision to reduce joint US-South Korea military exercises without notifying allies. McCausland argues this undercuts South Korea while offering concessions to a nuclear-armed dictator, Kim Jong-un, who actively supplies weapons to Russia for the Ukraine war. Furthermore, he criticizes the "economic D-Day" against Iran as highly insincere given key delays in sanctioning China, and strongly condemns the trade war against Canada, a loyal ally with a rich military history. (4) Gregory Copley, editor of Defense & Foreign Affairs, argues that the US sanctions regime against Iran is strategic signaling that makes Washington look weak, as it ignores China's trade dominance and threatens relations with India. He also views the Canadian trade dispute as a strategic failure that weakens the NORAD treaty and forces Canada to act independently in the Arctic. This unpredictability has alienated European allies, who are now bypassing the US to negotiate directly on Ukraine. Additionally, Copley analyzes post-Petro Colombia, detailing how the energetic new president faces massive domestic security issues, narco-trafficking networks, and the grounding of critical disaster relief aircraft under sanctions. (5) Thaddeus McCotter, former US Representative from Michigan and columnist for American Greatness, details the severe political and economic fallout of Trump's trade war with Canada, noting that insulting rhetoric like the "51st state" remark has politically boosted Canadian Prime Minister Mark Carney. He explains that border states like Michigan and Maine share deep commercial integration, meaning 50% tariffs will directly harm their local economies. This unvetted policy blindsided senior Republican legislators, including Susan Collins, who openly opposed the tariffs and avoided a campaign rally with Vice President Vance. Ultimately, McCotter warns that these tariffs jeopardize critical Senate seats in highly contested swing states, giving rival Democrats a very major campaign advantage. (6) Judy Dempsey, Senior Scholar in Berlin for the Carnegie Endowment for International Peace, with co-host Thaddeus McCotter: Dempsey describes European Baltic and Nordic leaders flocking to Kyiv, yet warns that "moral outrage" lacks a cohesive strategic plan to negotiate an end to the war. She highlights the rising prominence of the pro-Russian, far-right Alternative for Germany (AfD) party in state elections. Interestingly, an ideological rift has emerged as radical AfD factions in East Germany sour on MAGA due to Trump's policies on Iran. McCotter delivers a severe critique of the MAGA-AfD relationship, arguing MAGA should never have "played footsies" with neo-Nazis, and asserting the AfD is fundamentally aligned with Vladimir Putin rather than the United States—their temporary embrace of MAGA merely a superficial attraction. Although West Germans have abandoned historical sentiments toward Russiadue to the Ukraine invasion, East Germany remains deeply split, harboring lingering sentimental pro-Russian views and separate post-unification cultural dynamics. (7) Note: segment 7 came with a separate co-host block for McCotter, so I've folded his critique into the single paragraph after Dempsey's material — flag me if you'd rather run his commentary as its own standalone file.
