There’s a new game in town. And Most people haven’t noticed.
I want to introduce you to what I think is one of the most important geo-political developments of recent years…
… and one that almost nobody is talking about.
What I’m talking about is a behind-the-scenes agreement between the captains of international finance.
That might sound scary. It might sound a bit evil-aliens conspiracy theory. But it’s actually an agenda to make ordinary people wealthier… and you too if you know what you’re doing.
It’s something I call “The Jackson Agenda” – I’ll explain why in a sec.
But the Jackson Agenda is turning 30 years of politics on its head. It’s turning 30 years of monetary policy orthodoxy on its head. It’s an entirely new way of thinking about the economy.
It’s a total gamechanger.
Now some of you might have noticed that there’s a puzzle in global economics right now.
Covid has created a lot of confusion, and it’s exactly this confusion that the global financial elite are using to usher in these changes.
But let me cut through the confusion and spell it out for you.
The puzzle is this.
The economy is back on track. The labour market is back on track. Things are getting back to ‘normal’ (well, how things were pre-Covid, anyway.)
So if they economy is back on track, why is the RBA:
… keeping rates and record lows and promising not to touch them til 2024?
…. Ramming credit into the mortgage market through the Term Funding Facility (TFF)?
…. Promising to keep printing $5bn a week from here until September and probably beyond?
Why are they doing that? Why do they seem intent on running the economy red-hot?
The answer to that is…
… wait for it…
Donald Trump.
No, I’m serious. It’s Donald Trump, or more specifically, the political forces that Trump catalysed and unleashed on the world.
Remember, a lot of the anger that Trump tapped into was aimed at the ‘financial elite’.
The perception, and it was probably fair enough, was that the global economy was being run to benefit big business, and ordinary people were being left behind.
And it wasn’t just that ordinary people weren’t able to buy Teslas.
Ordinary people were dying.
In America, there was an epidemic of drug abuse, alcoholism and suicide. As businesses, and particularly manufacturing “off-shored” it destroyed communities in working class America.
The end result was a surge in so-called “Deaths of Despair” – suicide, drugs (particularly opioids) and alcohol.
What’s more, if you were working class in America (didn’t have a BA degree), your life expectancy was actually going backwards!
That picture tells the story right there.
If you were rich and well-educated, the rise of globalised trade was awesome for you.
But if you were working class in rural America, it was a disaster. Your communities were destroyed, and your life expectancy was actually going backwards.
The most powerful economy on Earth couldn’t stop people dying from deaths of despair on a massive scale.
Something was broken and nobody was talking about it. Anger was brewing and seething under the surface and no one was talking about it.
Both sides of politics were in the pocket of those companies and people that benefited from globalisation, and so no one was talking about it.
And then came Trump.
(Continued tomorrow…)
DB.