Top Three Videos – February 2, 2024

Geopolitical Impact on Global Economy

• Geopolitical tensions in Ukraine and China’s crisis are impacting the global economy.
• Russia’s strategy of annihilating the enemy without ever attacking is a unique and effective approach to warfare.
• The Patriots anti-missile batteries supplied to Ukraine by the US have been destroyed by Russian Hypersonic missiles, highlighting the vulnerability of these defense systems.
• Russia has about 25% of its reserves in gold, which cannot be touched, making it a secure asset.
• Russia is doing extremely well and is a key part of the BRICS, working together to create a new currency linked to gold.
• The escalatory dynamic of conflict can lead to nuclear war, as escalation can push one side into a corner where they feel they have no choice but to launch a first strike.
• The Cuban Missile Crisis and other historical events show the danger of escalating tensions and the importance of wisdom in deescalating conflicts.
• The presence of nuclear-armed submarines and aircraft carriers in the region adds a significant level of risk to the current geopolitical dynamics.

   

Financial Market Risks and Trends

• The price of oil has gone up 15% in the past month, and this increase will eventually filter through to transportation costs and headline CPI.
• China’s real estate market is imploding, with Ever Grand filing for bankruptcy and the housing market crashing for the past two years.
• “It still looks like a bubble to me, the problem with bubbles is they can go on longer than you think.”
• The Phillips curve idea of a reciprocal relationship between unemployment and inflation is nonsense, as evidenced by the 1970s when high unemployment coincided with high inflation and high interest rates.