"We are on the brink. That means not in, but it means we are quite close to [a capital war], and it would be very easy to go over the brink into a capital war, because there are mutual fears."
"Let's not be naive and say, 'Oh, we're breaking the rule-based system.' It's gone."
Global conflict risk is shifting from conventional military or trade wars toward a capital war in which nations weaponize financial instruments, control capital flows, and leverage debt ownership. Political moves that weaken alliances can create fear among foreign holders of securities, prompting sanction risks and reciprocal withdrawal of crucial funding. Escalating geopolitical tensions combine with technological changes and massive national indebtedness—cited at about $38 trillion for the United States—to erode existing monetary order and global power balances. The breakdown of a rule-based international financial system increases market volatility and elevates demand for the safest available assets.
Read at Fortune
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