Sun Tzu in the art of war says, “Strategy without tactics is the slowest path to victory”, let us not go for the slowest path, let us get some tactics to accelerate towards the goal.
because the ‘globalisation’ is rolling back due to recent events, a lot of businesses will become unviable and a lot of new business will become viable
many economies are experiencing the pain of ‘going back’ to domestic production, their populations have grown so accustomed to luxury they are unwilling to go back to work
hence the 11 million open jobs in the US with no one to take them
this change will generational, while these millennials will live off the savings they inherit from their parents, their kids will have to bear the brunt, the next generation will be similar to the one raised by in the 60’s by largely irresponsible parenting
during this 40 year process, the stagflation will linger on and cause decision fatigue at the worldwide level
theoretically, there is 1 way to accelerate this
anti fragile interest rates
negative interest rates for a period, and 0% interested rates for a period
of course this will wipeout a lot of working capital
this will also wipe out a lot of ’empty capital’ i.e inflation
this will create incentive to get out there and start new businesses
and the next cycle will begin
if this is not done sooner, in the end the middle class will have to take most of the correction
Usman Gondal 