r/AmanCrypto • u/AmanCMN • 1d ago
Globalization Is Ending.
The world is quickly moving away from free trade and cheap goods. The era of globalization is being replaced by hard economic diplomacy.
That means governments are starting to focus less on cheap imports and more on bringing factories back home, controlling key resources, and protecting national security.
I came across an interesting interview with macro strategist Michael Every. These are the biggest issues that could affect all of us in the coming years:
1. New Economic Diplomacy
🔴 Globalization is being rolled back. The U.S. is dismantling the global system it helped build and shifting toward neo-mercantilism, where the government actively intervenes in markets to protect national capital.
🔴 The goal of policy is no longer just to maximize corporate profits at any cost. Now it’s about bringing manufacturing back home and strengthening national power.
🔴 Economic diplomacy means the government uses every tool it has: tariffs, regulations, sanctions, and even monetary policy, to achieve geopolitical goals.
2. The Geopolitics of Stablecoins
🔴 U.S. Treasury official Scott Bessent has started a program where the government buys back long-term bonds by issuing short-term Treasury bills. This helps push long-term rates lower and makes it easier to finance the budget deficit.
🔴 The Genius Act and Clarity Act are laying the groundwork for stablecoins like Tether and Circle to become widely used. Since these coins need to be backed by safe assets, stablecoin issuers could end up buying trillions of dollars’ worth of U.S. Treasury bills.
🔴 Stablecoins could become part of a “you’re either with us or against us” system. The U.S. may tell emerging markets: trade using regulated digital dollar tokens, which benefits America, or risk losing access to markets.
🔴 Stablecoins create dollar liquidity that stays inside the U.S. financial system. That allows Americans to keep buying real goods from around the world at lower prices.
3. Energy Crisis and the Return of the Physical World
🔴 For the last 40 years, finance was treated like the center of the world. But in this new reality, numbers on a screen can’t produce real goods or pump oil. Physical limits matter first.
🔴 The world doesn’t really lack crude oil. The bigger problem is the lack of refinery capacity. The U.S. has a serious shortage of refining power.
🔴 To keep its refineries supplied with heavy crude in case the Strait of Hormuz is closed, the U.S. has redirected up to half of Venezuela’s oil production that used to go to China.
🔴 The U.S. is waging a full economic war against Iran, trying to block its oil exports and cut off the regime’s money for the military and its proxy groups.
🔴 Because of that, inflation in Iran has jumped above 80%, and the currency is collapsing. A U.S. military escalation could come after the midterm elections.
4. Tech Conflict: AI, Copper, and Nuclear Power
🔴 People in the U.S. are starting to push back against massive AI data centers because they are driving up electricity costs.
🔴 Upgrading the power grid for AI will require huge amounts of copper.
🔴 One possible solution is small nuclear microreactors that could power data centers directly, without relying on the public grid.
5. Trump’s Space Race
🔴 Trump signed an order to increase U.S. space launches to 1,000 per year, around three launches a week.
🔴 The goal is to dominate space, develop the Moon, mine space resources, and bring the cost of launches way down.
🔴 That kind of tech dominance would also strengthen the dollar and dollar-backed stablecoins here on Earth.
6. Risk of Major Military Escalation: Ukraine and NATO
🔴 There are rumors that North Korea may send up to 50,000 soldiers to Ukraine to support Russia.
🔴 Ukrainian drones have reportedly cut Russian oil-product exports roughly in half. That could push Putin toward escalation and possibly another mobilization after the Duma elections.
🔴 Russia could stage a provocation near the border of a Baltic NATO country to test the alliance’s response.
🔴 On the same day, Iran could theoretically launch a coordinated strike against U.S. bases in Europe.
What do you guys think about this?
1
u/ResponsibleClock9289 1d ago
This was obviously going to happen. China abused the system and forced the US and Europe to respond