736: Investing on the Brink – Navigating the End Game of Global Capitalism
09-21-2025
PropertInvesting.net team
1 THE FIAT CURSE – A BROKEN MONEY SYSTEM SINCE 1971
“We are all Keynesians now,” Nixon once said, but in 1971 he did something even Keynes would have winced at—he untethered the U.S. dollar from gold, initiating a half-century of fiat currency expansion, debt-fueled consumption, and monetary alchemy.
From Hard Money to Hard Lessons
The Gold Standard acted as a natural brake on government excess. Once removed, central banks and governments gained the unchecked ability to print money. What followed was predictable:
• Exploding sovereign debt
• Asset bubbles in real estate, equities, and bonds
• Endless wars, funded not by taxation, but by inflation
• Social programs and entitlements funded with debt, not productivity
The result? A system where money is no longer a store of value, but a policy lever manipulated for short-term political goals. Since 1971:
• The U.S. dollar has lost over 85% of its purchasing power
• Real wages for the middle class have stagnated
• Asset owners have prospered; the working classes have been left behind
This is the foundation of today’s systemic risk—a fragile economy propped up by printed money and public trust.
2 THE FOURTH TURNING ARRIVES – HISTORY RHYMES LOUDLY
Authors Strauss and Howe warned us in The Fourth Turning: history moves in cycles. We're now deep in the final phase—the Crisis era—where institutions fail, power structures collapse, and new orders rise from the rubble.
East Rising, West Waning
The rise of China is not a surprise—it's a reversion to historical norms. For centuries, China was the world’s largest economy. Now it’s back, with:
• A centrally planned industrial policy
• Dominance in supply chains, rare earths, and EVs
• A military on track to match or exceed U.S. capabilities
In contrast, American exceptionalism has been exposed:
• Political gridlock
• Weaponized money printing
• A military-industrial complex struggling with cost overruns and poor readiness
Taiwan is likely to be the spark in the powder keg—a conflict over semiconductors, sovereignty, and supremacy.
The investment implication? Geopolitical risk is no longer theoretical. Investors need to be positioned for:
• Supply chain bifurcation (East vs West)
• Commodities nationalism
• A rearmament super-cycle
3: AI & THE DEATH OF JOBS – WEALTH GOES VERTICAL
Artificial Intelligence is no longer coming—it’s here. And with it, a radical shift in the labour market. Chatbots, algorithms, and autonomous systems are replacing everything from truck drivers to paralegals to financial analysts.
The Winner-Take-All Economy
The result is hyper-centralization of wealth:
• The top 0.1% control more wealth than the bottom 90%
• Tech firms are now quasi-sovereign entities, richer and more influential than many countries
• Media, communication, and information are now controlled by a handful of Silicon Valley “Tech Bros”, who are unelected and unaccountable.
The economic implications are massive:
• Deflation in wages
• Inflation in assets
• Decoupling of productivity and employment
AI may generate incredible investment returns—but also massive social dislocation. Investors must hedge against both outcomes.
4: A FRACTURED WEST – WHEN POLITICS DEVOURS ITSELF
The cultural glue that once held the West together is dissolving. Right and Left are no longer debating tax rates—they're questioning the legitimacy of the system itself.
Immigration, Identity, and the End of Unity
• The Right blames mass immigration and globalism for economic stagnation and cultural erosion
• The Left sees systemic racism, climate injustice, and inequality as symptoms of capitalism’s failure
The result? Zero-sum politics:
• Every election is existential
• Every protest risks turning violent
• Every institution is now politicized
This breakdown of social cohesion makes long-term policymaking nearly impossible. For investors, this means:
• Higher volatility
• Policy paralysis
• Greater risk of political shock events
5: THE USA VS CHINA – A TECHNOLOGICAL COLD WAR
While America tears itself apart internally, China advances relentlessly under a singular, autocratic vision.
Two Systems, Two Outcomes?
• China: Top-down, authoritarian, and focused on national strategic goals
• USA: Bottom-up, democratic, and increasingly dysfunctional
In science and tech:
• China now produces more STEM graduates than the West combined
• They lead in quantum computing, AI patents, and hypersonics
• The U.S. focuses on ESG narratives and Big Tech stock buybacks
Military R&D, space technology, biotech—these are the battlegrounds of the new Cold War.
Investment in dual-use technologies (military + civilian) will likely surge—much as it did during the Cold War. Think cyber defence, semiconductors, and AI.
6: THE UK – EXPOSED, VULNERABLE, AND DECLINING
Britain, once the world’s leading empire, now struggles with a stagnating economy, crumbling infrastructure, and political inertia.
The End of British Exceptionalism
• North Sea oil is in terminal decline
• The City of London is losing relevance post-Brexit
• The UK is importing low-skilled labour, while exporting high-skilled graduates
• A bloated public sector, burdened by compliance and bureaucracy, is strangling innovation
Meanwhile:
• The Russia threat grows as NATO drags the UK into expensive foreign entanglements
• Housing, healthcare, and pensions are unsustainable under current policies
The UK may face a perfect storm:
• Economic stagnation
• Brain drain
• Civil unrest
• Energy insecurity
Investors with exposure to UK assets should diversify geographically and consider hedges against sterling devaluation and sovereign debt risks.
FINAL THOUGHTS: INVESTING IN THE AGE OF ENDGAMES
When history accelerates, the worst investment is complacency.
Actionable Investment Themes:
• Hard assets: Gold, energy, farmland
• Defence and cybersecurity stocks
• Decentralized finance and crypto Bitcoin – and other coins with caution
• AI and robotics, but carefully selected – for instance Tesla
• Geographic diversification—think Asia, LATAM, commodity-rich nations
The era of “60/40 portfolios and endless QE” is over.
This is the age of disruption, de-globalization, and digital empires.
“There are decades where nothing happens, and weeks where decades happen.” — Vladimir Lenin
Brace for those weeks. They’re here.