Foreign Policy Blogs

Geo-Strategist Warns 'End of the Free Market'

The End of Capitalism..??

The End of Capitalism..??

“I believe we’re nearing the end of the free market, not necessarily here at home, but globally.” [See my earlier post on the same topic, here.]

ian-bremmerThat startling statement kicked off the FPA’s final keynote speaker on Monday afternoon. Author and geopolitical strategist Ian Bremmer, Ph.D. used his time to argue that currency wars, increasing tariffs and reduced global growth are the future. He attributes his reasoning to the fact that anger over the financial crisis, once turned inward towards each country’s political establishment, is now turning outward.  “We have seen three distinct waves since the onset of the crisis,” Bremmer said. “The first, panic, began in September 2008. The second, in mid-April 2009, began with Larry Summers stating that the recession was over. Well, OK, as the panic subsided the insular political fallout began. The third wave, one in which each country blames external sources, is now beginning.”

He believes this will lead to more fights between the state and corporations, more tariffs and lower growth.

“As a consequence,” he explained, “we have to think differently about how we allocate resources, and how politics will increasingly affect economics.  Countries like China and Saudi Arabia, which have manipulated markets for political purposes, are doing better than those that have not. This seemingly validates their approach, which presents problems moving forward.”

ian-bremmer-the-end-of-free-markets

 

 

 

 

 

 

Source:  AdvisorOne Online, written by John Sullivan

 

Author

Elison Elliott

Elison Elliott , a native of Belize, is a professional investment advisor for the Global Wealth and Invesment Management division of a major worldwide financial services firm. His experience in the global financial markets span over 18 years in both the public and private sectors. Elison is a graduate, cum laude, of the City College of New York (CUNY), and completed his Masters-level course requirements in the International Finance & Banking (IFB) program at Columbia University (SIPA). Elison lives in the northern suburbs of New York City. He is an avid student of sovereign risk, global economics and market trends, and enjoys writing, aviation, outdoor adventure, International travel, cultural exploration and world affairs.

Areas of Focus:
Market Trends; International Finance; Global Trade; Economics

Contact