MacroVoices #557 Michael Every: The Blue Tsunami Lands on Markets... and Geopolitics

The U.S. midterm election results, characterized by a Democratic sweep of Congress, signal a potential shift toward a more constrained, isolationist foreign policy that threatens to destabilize global power dynamics. Rabobank strategist Michael Every argues that a Congress resistant to military intervention limits the executive branch’s ability to act as a global hegemon, particularly regarding conflicts in Iran and Ukraine. This political gridlock, coupled with data center moratoriums and ongoing energy supply risks, creates significant market volatility. While the stock market has shown resilience, AI infrastructure trades are correcting, and energy prices remain sensitive to refinery strikes and potential shifts in U.S. geopolitical engagement. Ultimately, the traditional reliance on U.S. military and financial power is eroding, forcing a reevaluation of economic statecraft and the necessity of industrial policies like tariffs to maintain national security and economic stability.