In Episode 410 of Hidden Forces, Demetri Kofinas speaks with investors Paulo Macro and Le Shrub about the consequences of a breakdown in the international capital and trading system—and what this means for markets and investor portfolios.

The first hour revisits last year’s discussion on “EM-ification,” the breakdown of the rules-based global order, and the urgent search for a new safe asset in a world of deteriorating fiscal balance sheets. Together, Demetri, Paulo, and Le Shrub map out what investors should be paying attention to in the year ahead.

In the second hour, the conversation turns to the implications of a full-blown trade and capital war, including:

The impact on U.S. assets—especially Treasuries and the dollar—if surplus nations redirect their capital flows away from the United States
Resurgent inflation fueled by strategic rearmament and industrial policy
A potential decoupling from—and even a hot war with—China
The abandonment of fiscal restraint in the face of an economic slowdown amid persistently high or rising borrowing costs for the U.S. government
The risk of massive wealth destruction triggered by a dramatic revaluation of the U.S. dollar

Subscribe to our premium content—including our premium feed, episode transcripts, and Intelligence Reports—by visiting HiddenForces.io/subscribe.

If you’d like to join the conversation and become a member of the Hidden Forces Genius community—with benefits like Q&A calls with guests, exclusive research and analysis, in-person events, and dinners—you can also sign up on our subscriber page at HiddenForces.io/subscribe.

If you enjoyed today’s episode of Hidden Forces, please support the show by:

Subscribing on Apple Podcasts, YouTube, Spotify, Stitcher, SoundCloud, CastBox, or via our RSS Feed
Writing us a review on Apple Podcasts & Spotify
Joining our mailing list at https://hiddenforces.io/newsletter/

Producer & Host: Demetri Kofinas
Editor & Engineer: Stylianos Nicolaou

Subscribe and support the podcast at https://hiddenforces.io.
Join the conversation on Facebook, Instagram, and Twitter at @hiddenforcespod

Follow Demetri on Twitter at @Kofinas

Episode Recorded on 04/15/2025

Capital Wars and the Death of Fiscal Illusions | Paulo Macro & Le Shrub

Hidden Forces

Capital Wars and the Death of Fiscal Illusions | Paulo Macro & Le Shrub