DJT is actuating everything he said he would and will also act on things he may newly think of and believe he can do.
His actions and the US military's actions in Venezuela are exceptionally important. The success, from his and his coterie's standpoint is absolute. This has now emboldened them, and is the leap that will now fuel the regime to accelerate their leveraged crusades using any means necessary.
What could stop this? Only the people. Venezuelans have been put under silence through fear of immediate imprisonment and/or death. The ICE agents are fear instillers. When populations are fearful and sidelined: war, resistances & revolutions are inevitable and supported by these fearful & distraught populations.
What Does This Mean for Financial Markets?
Wars, propaganda and campaigns cost big money. With all large western and eastern economies already highly indebted externally and within, they will have to accelerate the speed of the print to fund these campaigns.
Natural Resources & Commodities will become an acceptable reason for justifying geo-political aggression. If even one country chooses to resist the US, a conflict can escalate to economic, cyber & kinetic means. All expensive undertakings.
The value of fiat currency will decline sharply. Two evidentiary facts:
- The Department of Defense is officially called the Department of War.
- 2026 budget for the DoW is 1.5 trillion dollars — an 85% increase from 2025's 781 billion.
Price/Earnings multiples of even 25 make no logical sense, because the only assumption is based on the past 17 years of growth and innovation, and that it will continue for the next 25 years.
What value do sovereign bonds have, if the underlying principal has no potentiality to be paid back and/or inflated away?
The money markets are no longer capable of cushioning any black swan events without short-term inflationary repercussions — as was evident through Covid. The only option in case of an earthquake-level event is to print more.
De-Globalisation is well under way. The generational wealth building opportunity is in predicting, procuring & securing what asset classes will hold and/or grow in value, and when.