It could happen that way...though I personally do not think it will. I don't think the bond market is going to collapse until the greenback is inflated a LOT more. And I think the Fed is got a few more QE's to go before that. As for Iran? That is certainly possible. But don't forget - the last time America wanted to bomb Iran, the intelligence agencies got together and publicly derailed it...pissing off the Bush Jr. Admin to no end no doubt. No reason to believe they couldn't do that again. Plus, Iran will just be air strikes. No way (IMO) the American public is going to allow another costly invasion anytime soon. And invading Iraq will look like a cake walk besides Iran - which is far more powerful now then Iraq was in 2003. Also, If the invasion/air strikes are successful (as I am quite sure they would be) - that would be a HUGE boost for Obama (no POTUS has ever been voted out of office during a war). NO WAY the Republicans want that. So I think they will slightly play down Iran until after the election...then go for it no matter who gets in. America's fiat currency and ridiculous Keynesian policies will come crashing down one day. But I think that day is at least a few years away...maybe quite a few more. But we shall see.
in a funny way, by china buying all this american debt you can make the arguement that china is helping to finance all theses foolish wars that america gets involved in!
I would like to think positive too, but the reality is the American public is eaisly manipulated, and they realy have no say in what decisions are made against war. However, it is mre easy for money and influence to get the USA into war than it is to stop it. That's because war is a money maker for some, at the expense of others within the USA. Depends on what side of the money you are that determines whether you pay into it or benifit financially from it. And for politicians this is not a democratic process, it is a financial one for the politician who will make money off it.