VideoBrent Johnson Milkshakes Pod | Investing • FinanceMichael Every

What most people Misunderstand about the Collapse of the Rules Based Order: Featuring Michael Every

The discussion centers on the evolving nature of economic statecraft, highlighting its integration of various policies and the shift from traditional economic strategies. The liberal world order faces significant risks, particularly from American military dependence and potential US-China tensions. Additionally, the emergence of dollar stablecoins is poised to reshape global finance, posing challenges to national sovereignty and altering power dynamics.

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Key Takeaways

Economic statecraft is reshaping global policy by integrating various strategies to achieve geopolitical aims, suggesting a move away from isolated economic policies towards a more cohesive approach to power dynamics.

The existing liberal world order is under threat, primarily due to American military reliance, and a potential divide between the US and China could further exacerbate this instability, influencing global alliances.

The US defense policy is undergoing significant shifts with increased funding aimed at military readiness, alongside a strategic pivot to strengthen influence in regions like Latin America, reviving historical doctrines.

ECONOMIC-STATECRAFT

Integrated Strategy — Economic statecraft integrates various economic policies into a unified strategy, contrasting with traditional approaches that treat them in isolation.

“consider to be, you know, economic statecraft and your framework that you refer to as grand macro strategy.”—

Post-Trump Shift — The transition from economic policy to economic statecraft began following Trump's reelection in 2016.

“if trends continue. So if I spot something going 02/2016 and I know the world blows up at”—

GEOPOLITICAL-STRATEGY

Energy Control — The US aims to control energy supplies in Venezuela and Iran to restrict China's access to these resources.

“you control the Fed and if you control the treasury and if you also have the executive branch”—

Resource Censorship — The US strategy includes physical censorship to prevent adversaries from accessing critical resources.

“The word I've used for it is physical censorship or censorship in the physical realm.”—

LIBERAL-WORLD-ORDER

Collapse Risk — The liberal world order faces a risk of collapse, echoing historical precedents.

“they equate the collapse of the liberal world order with the collapse of The United States.”—

Military Dependence — American military power is the primary support for the current global order, which is jeopardized by economic policies that weaken its industrial base.

“undermines its military power because it doesn't have the factories to build the military goods to maintain that”—

MARKET-OUTLOOK

Manufacturing Revival — The US may witness a manufacturing revival driven by innovation and partnerships with Latin America.

“And so I think if they are able to kind of have a manufacturing renaissance coupled with innovation”—

Economic Leverage — Stablecoins could act as a covert tool for the US, enhancing its global economic influence.

“Yes. Because I think it is literally a stealth weapon that 99% of the people in”—

US-DEFENSE-POLICY

Defense Budget Boost — The Trump administration is projected to increase the defense budget by $500 billion, emphasizing military readiness.

“the defense budget by 500,000,000,000. So you have to understand how to navigate it.”—

Defense Accountability — While increased funding may benefit the defense sector, economic statecraft will require accountability from defense firms regarding pricing and efficiency.

“From a stakeholder perspective, you knock on the door of the defense firm and you say, I want”—

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Important Disclaimers

Not Investment Advice: For education only — not financial, tax or legal advice.

AI-Generated: Made by AI from source transcripts and may contain errors.

No Guarantees: Past performance does not predict future results; investing carries risk.

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