Zimbabwe and Venezuela

70 years of globalization are coming to an end.

In what is now over a decade of publications, I consider today’s one of the most critical I’ve ever written and shared publicly.

It deals with poverty, wars, sickness, and the future in a world of deglobalization, one that many Americans want (and they may not be wrong, as we’ll see) because most of the damage from deglobalization will be felt outside of it.

As Warren Buffett has said numerous times, the U.S. is not to be discounted for many reasons.

It was the clear leader in the age of its mandated globalized economy (1944-1971), the second phase of it (1971-1991), and the past 30 years when its closest rival, the Soviet Union, wasn’t even a contender.

River systems, mostly in Egypt, Iraq, India, and China, led to the prosperity of the first rich civilizations that were able to stop hunting and gathering, settle in one place, grow wheat and grains, and sustain healthy diets.

Transportation on waterways is 92% cheaper than on land. The Nile River, the Indus and Ganges (India), the Yellow River (China), and the Tigris and Euphrates Rivers in Arabia were the lifelines to the cultures that sprung up around them.

When windmills were invented and put to use, the river systems lost their monopolies. Europe began to prosper as well, but the advent of steam, with the discovery of oil and coal, elevated humanity to untold wealth.

Medicine, concrete, cement, pest control, electricity, and transportation suddenly birthed the rise of port cities, such as Lisbon, Amsterdam, and London, and made them immensely rich.

Side by side, America began growing in size and abundance. After World War II, America faced a choice: stick with the Monroe Doctrine of American separatism — not taking interest in what happens outside the Americas and allowing the Soviet Union to rule all of Europe and Asia — or stop communism from taking over the world.

Using politics, economics, and trade agreements sparked the age of American-sponsored wealth, and capitalism spread around the globe. One unintended consequence was the rise of China and the evaporation of America’s middle-class, but the GDP of nations exploded like never before.

The world is reverting back to localism or nationalism. This will lead to more shortages in products and services along with regional wars since American military aid will become sparser.

In this closed world, where domestic economies will only prosper if they have educated youths, great technologies, and strong market systems, as well as water and food security, the U.S. stands to grow larger and wealthier while more stories like Zimbabwe and Venezuela are likely to re-emerge.

Bread lines and poverty, which we’ve become accustomed to thinking of as things of the past in the overflowing globalized economy, will once again surface.

2023 will be another devastating year, and you must think about AUSTERITY — not splurging.

Tighten the belt!

Best Regards,
PortfolioWealthGlobal.com