The Return of Economic Populism and the End of Two Percent | Vincent Deluard

The US midterm election results signal a profound shift toward economic concerns, marking a rejection of recent political trajectories and a return to class-based economic discourse. Structural inflation persists as a long-term reality, driven by fiscal dominance and the breakdown of the 2% central bank target. The global economic landscape faces significant volatility, evidenced by the reversal of the Mexican "super peso" due to waning carry trade advantages and shifting industrial policies. Meanwhile, Canada’s economic outlook improves as it leverages its energy exports and potential capital repatriation to navigate global instability. Conversely, France faces a deepening debt crisis and political fragmentation, exacerbated by the ostracization of populist movements and a lack of effective governance. These developments underscore a broader trend of national capitalism, where nations prioritize domestic investment and energy independence over traditional globalist economic models.