Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Eiro-group Review –The power of trading education - 4th Dec 20
Early Investors set to win big as FDA fast-tracks this ancient medicine - 3rd Dec 20
New PC System Switch On, Where's Windows 10 Licence Key? Overclockers UK OEM Review (5) - 3rd Dec 20
Poundland Budget Christmas Decorations Shopping 2020 to Beat the Corona Economic Depression - 3rd Dec 20
What is the right type of insurance for you, and how do you find it? - 3rd Dec 20
What Are the 3 Stocks That Will Benefit from Covid-19? - 3rd Dec 20
Gold & the USDX: Correlations - 2nd Dec 20
How An Ancient Medicine Is Taking On The $16 Trillion Pharmaceutical Industry - 2nd Dec 20
Amazon Black Friday vs Prime Day vs Cyber Monday, Which are Real or Fake Sales - 1st Dec 20
The No.1 Biotech Stock for 2021 - 1st Dec 20
Stocks Bears Last Chance Before Market Rally To SPX 4200 In 2021 - 1st Dec 20
Globalists Poised for a “Great Reset” – Any Role for Gold? - 1st Dec 20
How to Get FREE REAL Christmas Tree 2020! Easy DIY Money Saving - 1st Dec 20
The Truth About “6G” - 30th Nov 20
Ancient Aztec Secret Could Lead To A $6.9 Billion Biotech Breakthrough - 30th Nov 20
AMD Ryzen Zen 3 NO UK MSRP Stock - 5600x, 5800x, 5900x 5950x Selling at DOUBLE FAKE MSRP Prices - 29th Nov 20
Stock Market Short-term Decision Time - 29th Nov 20
Look at These 2 Big Warning Signs for the U.S. Economy - 29th Nov 20
Dow Stock Market Short-term and Long-term Trend Analysis - 28th Nov 20
How To Spot The End Of An Excess Market Trend Phase – Part II - 28th Nov 20
BLOCKCHAIN INVESTMENT PRIMER - 28th Nov 20
The Gold Stocks Correction is Maturing - 28th Nov 20
Biden and Yellen Pushed Gold Price Down to $1,800 - 28th Nov 20
Sheffield Christmas Lights 2020 - Peace Gardens vs 2019 and 2018 - 28th Nov 20
MUST WATCH Before You Waste Money on Buying A New PC Computer System - 27th Nov 20
Gold: Insurance for Prudent Investors, Precious Metals Reduce Risk & Preserve Wealth - 27th Nov 20
How To Spot The End Of An Excess Market Trend Phase - 27th Nov 20
Snow Falling Effect Christmas Lights Outdoor Projector Amazon Review - 27th Nov 20
4 Reasons Why You Shouldn't Put off Your Roof Repairs - 27th Nov 20
Further Clues Reveal Gold’s Weakness - 26th Nov 20
Fun Things to Do this Christmas - 26th Nov 20
Industries that Require Secure Messaging Apps - 26th Nov 20
Dow Stock Market Trend Analysis - 25th Nov 20
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

The World Is Entering a “Localism” Era

Politics / Social Issues Jan 07, 2017 - 05:25 PM GMT

By: John_Mauldin

Politics

BY PATRICK WATSON : Against all odds, we made it through 2016.

I think future historians will call last year the, “Year of Shattered Concepts.” Obvious truths proved false, and unstoppable trends stopped.

Globalization is a prime example.

The idea that free trade and technology would merge the planet into one Giant Happy Global Economy is mortally wounded. The incoming Trump administration may well deliver the coup de grâce.


On that front, President-elect Trump said something profound last month.

Yes, I know, you rarely see “Trump” and “profound” in the same sentence, but this time it fits.

“Local, folks, local”

The above-mentioned profundity occurred at his December 15 appearance in Hershey, Pennsylvania.

From the Financial Times:

For years, the jobs and wealth have been ripped out of your state and ripped out of our country like we’re a bunch of babies,” Mr Trump told the crowd at a stadium where the Hershey Bears ice hockey team plays. “People talk about how we’re living in a globalized world, but the relationships people value most are local—family, city, state, and country. Local, folks, local.”

That one sentence I bolded deftly describes the fault line that is splitting entire nations and continents right now.

Globalization was supposed to make life better for everyone. It certainly helped some people, but many got nothing out of it, and quite a few went backwards.

This is now very obvious, thanks to Trump. Globalists are on the defense, hoping to put down the rebellion.

We’ll discuss that part another time. Today, let’s consider the second half of Trump’s sentence:

“The relationships people value most are local.”

That’s right—and it’s exactly what globalist elites don’t get. They come in different flavors, but none would accept what Trump said in Hershey.

Some are hyper-individualists who think “relationships” are pointless. Others have a kind of congenital wanderlust that keeps them always on the move.

Many see the whole world as “local” because hey, we’re all citizens of the world, right?

That’s a nice vision, but economically, it objectifies everyone. We are all cogs in a machine and must move in the way our superior cogs dictate.

If it means we have to move because our jobs went to China, then we just have to do it.

The globalists truly don’t get why this bothers us. Some even own residences in multiple countries, living in whichever one has the best weather and tax breaks at any given time. To them, the whole concept of “home” has little meaning.

Regular people aren’t like that.

What a de-globalized world will look like

This idea of staying rooted in your local community is gaining momentum. With globalization fading, what could take its place? What will a de-globalized economy look like?

Well, a thriving national economy is really just a collection of thriving local economies that have achieved some measure of self-reliance and identity.

Locally grown food is one sign a place is reaching that status. When you see farmers markets pop-up on weekends, it means two things:

  • People in the area want to grow and sell food
  • Other people in the area prefer local foods over imports

Technology is making the same possible with manufactured goods.

Instead of mass-producing stuff overseas and shipping it here, “additive manufacturing” (the industrial version of 3D printing) lets us make many things in smaller quantities closer to the customer. This technology is only going to improve.

Most of the manufacturing jobs that got shipped to other countries won’t come back, but the manufacturing itself will. The process will create new kinds of jobs that let us stay close to home and still have work opportunities.

Last week, the Wall Street Journal reported surprising growth in single-worker manufacturing businesses, and the numbers are rising.

As an example, the article profiles a man who makes leather products and sells them online for a nice income. He’s in Oregon, but he could be anywhere—a small local business with global reach. It’s possible.

“Local” doesn’t necessarily mean small towns, by the way. Even giant cities like New York have many distinct communities with their own economic identities.

The trend has legs

We don’t know yet how the de-globalization trend will unfold, but I’m pretty sure it will continue.

The US economy is becoming less global and more local. If we’re lucky, it will evolve into a hybrid that retains the best features of both.

This megatrend should inform our investment strategies, too.

Legendary Fidelity fund manager Peter Lynch used to say people should invest in what they know. That’s good advice: Pay attention to what’s happening around you… shop at local businesses… notice what’s working and what isn’t.

You probably can’t buy shares in Bob’s Micro-Widget Factory like you can in, say, General Electric (GE). But if Bob wants to expand and you have capital to invest, maybe the two of you should talk.

Soon, Bob might have listed shares or bonds, too. New crowdfunding and peer-to-peer lending platforms let regular people invest in each other. The capital markets are localizing along with everything else.

Final thoughts 

That doesn’t mean everyone’s daily life will look like a Norman Rockwell painting. Life was never so spotlessly ideal. Even if it were, there’s no going back to it. But we will move forward, toward something unlike what we have now.

The year 2016 was a big, revealing step down that road. 2017 will be another one.

Grab This Free Report to See What Lies Ahead in 2017

Now, for a limited time, you can download this free report from Mauldin Economics detailing the rocky roads that lie ahead for three globally important countries in 2017—and how the economic fallout from their coming crises could affect you. Top 3 Economic Surprises for 2017 is required reading for investors and concerned citizens alike. Get your free copy now.

John Mauldin Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules