Geoeconomics

A Newly Coined Word That Just Fits

Welcome to what’s going to be for me a tedium of bleary-eyed redness coupled with something I look to do daily; learn something new. People used to read. Today they depend upon videos, podcasts and Zoom to communicate but in essence the mission hasn’t changed; moving something from “between my ears” into yours. Nonetheless content remains the priority and as I said, there’s always something new to learn. For me it was a word I’d never seen used before; “geoeconomics” and it makes sense. Let’s go for it, besides you’re going to see it again when I complete a course or two that use it so why not introduce it now, eh?

Geoeconomics simply refers to the intersection of economics and geopolitics, where economic tools and strategies are used to achieve geopolitical objectives. It involves the leveraging of economic power and influence to shape international relations and advance national interests. Economic warfare is a component of geoeconomics that involves the use of economic measures and tactics to gain a competitive advantage or undermine the economic stability and security of other nations. If you read or listen to the news, there’s a lot of that going on around the world these days. Here are but a few key aspects of geoeconomics and economic warfare:

Economic Statecraft: Geoeconomics involves the strategic use of economic policies, such as trade, investment, sanctions, tariffs, and financial regulations, in achieving geopolitical objectives. Governments employ economic statecraft to promote national interests, influence other countries' behavior, all the while seeking to enhance their own economic competitiveness. Current examples include the ongoing meetings in China, “post spy balloon”, where Blinken hopes to open channels of communication, a necessary element in the geoeconomic world. Simultaneously, China, like the United States, continues their outreach worldwide, at times precluding stronger relationships in order to appease the interests of international partnerships they hope to bolster. It’s a “wild wild world” out there, one that shifts on a dime due in part to how quickly the news, “fake” or not disseminates.

Trade Wars and Protectionism: Trade wars are a monetary form of economic warfare where countries impose tariffs, quotas, or other trade barriers in order to protect their own domestic industries, gain trade advantages, or to coerce other nations into policy concessions. Protectionist measures can disrupt global trade flows, impact industries, and create economic tensions between countries. History teaches us that trade wars and associated protectionist practices, while often designed to ameliorate short term “geoeconomic pressures” create a plethora of additional problems in the longer term. Communications between the parties is critical in maintaining, adjusting to and then resolving these elements. In an upcoming article I address issues surrounding “The Great Depression”. I studied this period in time, looking for signals that may arise in future periods, just seeking to be able to predict whether or not “they’re back”. I have my concerns today and will address it probably tomorrow or sometime this week so stay tuned. Whether something of this actual nature materializes or not, it is always good preparation to be just that, prepared, putting yourself in a position to determine the probability of what can or may happen.

Sanctions and Economic Pressure: Governments may impose economic sanctions on other countries as a means of expressing displeasure, deterring undesirable behavior, or achieving specific political outcomes. Sanctions often can restrict trade, financial transactions, or access to resources. Their impact can be significant on the targeted country's economy. International relationship between established and establishing countries and regions often come into play. The networks that have developed often came into existence post these sanctions and economic pressures being enacted. Like trade wars and protectionism, addressing short term problems, without a solid plan to handle subsequent longer term eventualities, can be disastrous. Care must be taken to avoid events that can lead to geoeconomic failures, perhaps even catastrophic wars.

So there you have it, a new “word” gets defined and it fits right in with what we have on our plates today. Communication is key to just about everything we do. In working on the best way to teach, regardless of the topic covered, there will be an element that includes “the written word” complimented naturally with PowerPoint slides, URLs of the many tools used, perhaps even a cartoon or two, sarcastically picked to emphasize a point. It’s going to take me a great deal of time to get it right and your criticism and commentary to guide me is priceless. I’m not doing it for my health; I’m doing it so as to make it easier for you to “deposit” what’s “between my ears” between yours.

I’m just a “young” 68 years old looking to help you become the best damn investor or trader you can possibly be. Everyone learns at their own pace. If you pick everything up the first time through, great but if not email me at david@thetickeredu.com so we can further help. Again, let me know what you want to learn, I’m all ears.

Learning how to be the best damn investor or trader you can be takes time, lots of it. If you think it’s a sprint you’re in the wrong place; it’s a marathon and for many of you it’s just beginning. From The Rolling Stones, “Time Is On My Side”, mine too. Take the time to learn from my taking the time to teach and give back 55+ years of learning.