Liquidity Train
Macro Perspectives: Thu 22 Oct 2020
We talked yesterday about the significance of the Chinese Communist Party (CCP) in this Presidential election, and the related propaganda wars being run through traditional and social media.
Clearly there are big stakes, and plenty of influence is being peddled, with Trump standing between China and the success of their multi-decade plan to become the economic superpower of the world - Trump has spent the past two years trying to stop and reverse it, using the leverage of tariffs to force China into long-term compliance on "fair trade."
With this in mind, earlier this month we also talked about the two other major forces at work against Trump, which are likely contributors to the propaganda war.
In addition to threatening China's path to global power, Trump has also threatened the careers of D.C. politicians.
After four years in D.C., he remains an outsider - an equal opportunity career destroyer. Democrat or republican, if you're against him, he will destroy you.
As we've discussed, it’s safe to say they will do anything and everything to get rid of Trump.
The other force fighting against a Trump re-election, with everything they have? Climate change activists.
We've discussed here in my daily notes, climate change activists believe that climate change is an existential threat to the world, and the financial backing they have is nearly unlimited. Climate Action 100+ has the most powerful investors in the world (representing $32 trillion in assets under management), additionally they have been dictating how major energy companies are deploying capital on new projects – forcing the pivot to climate responsible initiatives. Major global government entities/cooperatives are also largely behind the activist movement, feeding the effort with cash and subsidies.
The Biden plan will be driven by a multi-trillion clean energy plan that will completely transform the U.S. economy. Many trillions of dollars will follow the government money.
The biggest investors in the world have placed their bets (in on the relative ground floor), and the payoff will be huge - all in, and near the finish line. Standing in the way has been Trump. Trump is viewed as a climate change denier, and therefore has explicitly been called an existential threat to the world.
For those looking for multi-generational investment’s, can you think of a bigger liquidity train to ride on?