US manufacturing emerges after decades in slumber and could be a macro trend in its infancy as the Fed pivots is nearing from tightening to loosening monetary policy.
The worst war in Europe since WW2, which shows no signs of de-escalation is not just benefiting the military-industrial complex, it could also be oiling the wider wheels of US manufacturing.
US manufacturing emerges as the winner in a geopolitically unstable world
The challenge to US hegemony in the unipolar world is underway, and in the three-dimensional world where businesses survive by making things, it is becoming crucial to source supply chains domestically. War in Europe, sanctions, and the changing geopolitical climate make global supply chains unstable.
“The worst war in Europe since WW2, which shows no signs of de-escalation is not just benefiting the military-industrial complex, it could also be oiling the wider wheels of US manufacturing”
Europe is deindustrializing as US manufacturing emerges as the winner
US dominance emerged during WW2. The hegemon must always rule over the European continent. Last century’s battle was also over Europe and eventual world domination. Rising power Germany was threatening the hegemon, and the rest is history. After six years of war, 40 million people were killed, and Western Europe’s infrastructure and industrial capacity were decimated.
But US manufacturing not only remained intact throughout the war, it also boomed as it supplied its allies with machine parts, weapons and munitions to its allies. European manufacturing in the immediate aftermath of WW2 was in ruins but with the US emerging unscarved. Manufacturing had no competition, leading to decades of prosperity known as the booming 50s and 60s.
“US dominance emerged during WW2”
Russia’s unwillingness to submit to US hegemony threatens US global domination
One side invests energy and time planning for peace, The Minsk Agreement, so that Ukrainians and Russians coexist peacefully.
The other side pretends to be a serious party to the peace accord. But in fact, it is a charade, as they play for time training and equipping an army to destroy you.
Who was serious about peace, and who wanted war?
The answer is obvious, but what remains unclear is Europe’s willingness to go along with another war that will destroy its continent.
Much progress was made in post-WW2 Europe.
Through trade, Germany and Russia put aside their bloody war past and built a prosperous, mutually beneficial trading relationship.
Natural resource-rich Russia is blessed with an abundant supply of affordable Russian energy, which fuelled Europe’s manufacturing engine, Germany.
But it came to an abrupt end when Nord Stream was blown up.
“The EU, with hundreds of US bases, is not much more than a US colony, occupied by US satellites servile to US foreign policy interests” – Win Investing
The hegemon feared a prosperous Europe pivoting to the East, along the Silk Road, and that would be a threat to USD reserve currency status. Western kingpins decided that the destruction of Europe is the preferred option, so “Fuck the EU” Victoria Nuland was the preferred puppet promoted to undersecretary.
The fact that EU leaders remain mute about the pending destruction of Europe makes us believe they are either compromised puppets, bribed, or just plain stupid.
Great powers and Ant colonies sacrificed their colonies to remain on the throne. The Queen Ant sacrifices her soldier ants to keep supreme status, and similarly, a Great Power sacrifices their satellites to retain its hegemony.
The EU, with hundreds of US bases, is not much more than a US colony, occupied by US satellites servile to US foreign policy interests.
As EU manufacturing collapses, US manufacturing emerges from the clouds in a classic beggar thy neighbour policy
Here are the facts; US manufacturing emerges as the winner;
In January 2021, about $6 billion was invested in building factories.
Since then, CAPEX investment in plant and machinery, spiked 186% over the 30 months in July 2023, according to the Census Bureau.
Investment in factories is up by 148% over the 24 months from July 2021 through July 2023.
“inflation could go higher, but with jobs created in the productive economy, this could give the Fed leeway to continue hiking rates further” – Win Investing
US manufacturing emerges as a new renaissance of made-in-the-US
With the current trend of investing in factories, companies are investing nearly $17 billion per month in building manufacturing plants, or about $203 billion a year!
As US manufacturing emerges, what impact is that likely to have on Fed monetary policy?
As the economy shifts from an economy based primarily on the finance, insurance, and real estate sectors FIRE to a productive economy, factory-related jobs will be created.
The transition from FIRE into production could result in a skill shortage and wage-price inflation. A new generation of factory automation will require a labour force with high-tech skill sets.
In short, inflation could go higher, but with jobs created in the productive economy, this could give the Fed leeway to continue hiking rates further.
As US manufacturing emerges, this is bullish for US assets, particularly companies in the productive sector, with Chip manufacturers at the top of the food chain. Strategic industries are likely to do well in this renaissance of US manufacturing.
Rising geopolitical instability and potentially higher Fed rates could cause a global shortage of US dollars and trigger demand for safe-haven US treasuries.
For this reason, western kingpins want war In Europe.
The US, blessed with natural and human resources within its borders, could close the world off and survive while watching a world collapse.
Few countries are self-sufficient.
As Europe smokes, the USD rocks, invest accordingly.