In the age of drones and parallel financial arrangements, there is no longer absolute power or even the perception of absolute power. /Representative image | Str/Xinhua
The nature of warfare is changing and the financial system has been militarized like never before, although it has so far not yielded the expected results, investment research firm Gavekal Research said in a report. .
At this point, investors can take one of two positions: the first could be described as “nothing to do here; move on”, and the second is to accept that the world is changing rapidly and that these changes will have profound consequences and lasting impacts on the financial markets.
Russia’s invasion of Ukraine can tell the world that the unipolar era of modern history is now well and truly over, he said.
As big as the Russian military is and as powerful as the US Treasury may be, the current crisis has demonstrated that neither is powerful enough to impose its will on its perceived enemies.
“This even includes relatively weak enemies; the Ukrainian military was hardly considered formidable, while Russia was supposed to be a financial pygmy,” the report said.
In the age of drones and parallel financial arrangements, there is no longer absolute power or even the perception of absolute power.
“The pot has been called, every player has had to show their cards and all are sitting with failed flushes! The fact that military and financial dominance may be harder to assert in the future opens the door to a much more multipolar world .”
The report goes on to say that for about 25 years, emerging market workers have subsidized consumption in developed markets as emerging market policymakers have kept their currencies undervalued and recycled their current account surpluses into foreign currency. hard”.
If this arrangement ends now, the consumer in developed markets will struggle while the consumer in emerging markets will prosper, he added.
(With contributions from IANS)
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