New World Order
While 2020 has been dominated by Covid-19 it has also been a year when many long-held views have been challenged, and some have been cast aside.
It was not long ago that the government suggested Australia was heading for disaster if we did not have budget surplus. Strangely, now after massive budget deficits we are now told that the Australian government is in a very strong fiscal position and can afford to borrow to support the economy!
In earlier days the belief was that as China’s middle class grew, the opening up of the country’s economy to the Western concept of market forces would inevitably lead to a move towards democracy. We were the lucky country once again and anyone who voiced any concerns was ridiculed. Now we are seeing that the government in China does not necessarily support political and social liberalisation. Rather than courting China, more countries are trying to hold their ground and are prepared to tolerate the short-term pain of displeasing the party.
The Central Banks have well and truly blown almost every taboo. Milton Friedman would be turning in his grave.
It continues to seem inconceivable to most that Trump was ever elected and that he is still a reasonable chance to be re-elected. We know they did not like Hillary and many did not turn up to vote. Biden seems like a nice enough chap and after one term with Trump, they cannot make that choice again, can they?
If they fear the other option, they can. Biden got the nod for the Democrats because they thought he would be less polarising, but Trump is portraying him as weak. The issue is that in private, without the social and media pressure, many American’s are more concerned with what they see as an extremely autocratic, self-righteous and unAmerican left than they are with some obviously horrible stuff on the right. If the Democrats could put forward a strong and positive more central candidate (this is America, the home of eternal optimism), the Trump tale may have gone very differently.
For further information or to discuss how we can help you, please speak to your adviser.