The New Pre-Fascist World Order
Mind September/October for a serious stock market correction
The World is developing fast from a post WW2 liberal world order into a Nationalist Pre-Fascist World Order. Unfortunately, the President of the United States has hijacked the GOP and is leading this movement with an evil determination; the US has effectively stopped to be an advocate of human rights, a liberal world order, free speech, and media, strengthening of the rule of law.
This changing US role in the World will have dramatic consequences in the coming years and decades, and we should be prepared that we are heading into a post-democratic age. It gives an excellent pretext for other political leaders/movements to abolish inconvenient democratic standards. And it will have a significant impact on global trade and investment flows. These developments happen slowly but steadily while being blurred by the amount and speed of new scandals and while societies wrongly and dangerously get accustomed to the new normal.
Typical signs of a Pre-Fascist political order (and recent examples) are:
- Undermining the Rule of Law and Independence of Courts
Mueller investigation is a witch hunt, Judges against immigration orders are a shame
- Abuse of Immigrants/Foreigners as Scapegoats
Walls shall be built to friendly neighbors, Mexicans are labeled as drug dealers and rapists
- Use of Aggressive Language and Threats
Un-cooperative nations shall be erased, former allies are labeled as foes
- Bashing of Media/Press
Unpleasant facts become Fake News, Reputable media institutions are the Enemies of the People, journalists are singled out and publicly insulted or humiliated
- Incriminating/Criminalization of Political Opponents
Lock her up chants against Hillary Clinton and other opponents
- Authoritarian Leadership
Promotion of North Korean Public Administration Culture as the new benchmark for the White House
- Promotion of Nationalist Framework
Mega MAGA, US First and Only, Cancellation of Multinational Agreements/Contracts, Undermining WTO, NATO, EU, G7
- Jeopardizing Due Political Processes
Governing by Decrees, Inciting Public Pressure via Twitter
- Direct Communication with Masses
Using agitation of masses to avoid parliamentary/political discourse
This erosion of global democratic norms and safeguards takes place, while the economy is booming – watch out for the looming recession. On a populist foundation, where masses have smelled blood and have been whipped for aggression against media, foreigners, political opponents, worse developments might happen. Pre-Fascist World Order implies that we are on the verge to a Fascist World Order. Unfortunately, the next recession is written on the wall:
- We are approaching the end of a nearly decade-long economic and financial market boom-cycle, fueled by excess liquidity from central banks and historically low interests rates;
- Interest rates are rising across the globe and will pose a real-life stress test to many business and investment models, the liquidity bubble might burst;
- The US has started an extended trade war with China out of a long-term strategic interest to dominate future core technologies;
- Energy prices have risen fast over the last 12 months and might continue to rise on the basis of a potential escalation with Iran;
- Decreasing risk appetite on the basis of stronger US dollar and higher interest rates will deepen a beginning emerging market crisis;
- Record debt levels on Government, corporate and private level might prove unsustainable;
- Energy prices, Tariffs, interest rates will start an inflation cycle, that will require an even faster increase in interests5 rates;
Mind September/October for a serious financial market correction. Cash is king. An un-orderly Brexit caused by an incompetent UK Government and a reckless Tory party will only be an additional footnote in this scenario.
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