This report could be about the recent bear market rally, Kanye West’s implosion or UK Prime Minister’s exit after just 44 days in office. But, we would like to divert our readers’ attention to something more fundamentally unsettling.
Ex-President Trump will likely be indicted soon and yet he continues to unleash hatred, pettiness and shameless behavior in his attempt to destroy democratic values. Such behavior is hardly becoming of any educated individual, not to mention the decorum that is expected from an ex-President of the most powerful nation. His relentless lying has left doubt in people’s minds on the legitimacy of elections, the veracity of comments by officials in power, the integrity of the political system – all the basic building blocks of a functioning society and has instead sparked a resurgence in bigotry, racism, anti-semitism and legitimized thuggish behavior from civilians in small towns in Florida to large cities in California.
Across the Pacific, Xi Jinping, this week, shamelessly commandeered his way into an unprecedented third five year term as President, by ignoring the constitutional two term Presidential Term mandate in China. Along the way, those who objected to Xi have simply disappeared, never to be seen again. This includes Politburo (highest level of leadership in China) members who have spent their entire lives working for the government. At the Communist Party Congress last week, just as he was being sworn in for a third term, former President Hu Jintao (who has disagreed with Xi) was forcibly removed from his seat next to Xi Jinping and escorted out of the meeting with no explanation – for the whole world, most importantly other members of the Communist Party, to see and witness Xi’s stronghold over the country. It is unlikely we will see Hu Jintao again in public.
Over the Atlantic, Putin has shown no signs of pulling back in a needless war with Ukraine that has destroyed both countries and its innocent citizens. The war has caused mayhem around the world with high gas prices, sparked a global inflation problem and he is still not done yet. The latest threat to use nuclear weapons has destabilized the global order and decorum that existed amongst nations. While those who oppose Xi in China disappear from view, Putin’s opponents end up dead – falling off a high rise, slipped off a boat, dead in a car crash.
Why is this relevant to investors in the US? For global markets to work, there has to be some basic rules that have to be followed and these three leaders of the most powerful countries have all but wiped out any sense of normalcy.
Future Wealth’s View
Trump has caused irreparable damage in the political landscape of America and is not done yet, Xi Jinping is just getting started and Putin will not go down quietly. In any US corporation, the incompetency shown by these leaders would have led to immediate dismissal. But instead, what do we have?
The twice impeached and soon to be indicted ex-President Trump is the leading Republican candidate for another term as US President in 2024.
Xi, the leader of the country that caused the pandemic that has left millions dead, is rewarded with another term as Chinese President, flouting the constitution.
Putin is basically a leader for life and could care less about the impact of using nuclear weapons and the global chaos his decisions will cause.
There is no doubt that mistakes have been made in putting these people in power but how do we ensure that it does not happen again? The unfortunate answer lies in the fact that despite weekly mass shootings – nothing has changed, despite repeated errors by the FBI/CIA on intelligence – nothing has changed, despite lies to hide and prevent Covid – nothing has changed, despite repeated genocides – nothing has changed and list goes on. Ultimately, we just get used to a lesser standard from our leaders and that permeates through the rest of the population where mass shootings become a way of life, hatred becomes a way of life, lies and denial become a way of life. Eventually, basic civility and courtesy become distant memories.
The markets may get used to this dystopian world and eventually another bull market will begin but it begs the bigger question – what kind of world are we leaving behind for our children when thugs and criminals are put as the people in power where demonizing and making wild and crazy allegations and actions become normal?