Dear Money & Crisis Reader, If you want to get your head around the ultimate outcome of the 2020 presidential election, you should ignore the media experts and pundits and focus on one thing. The energy sector. Unlike the shills and talking heads in the media, energy investors LOSE money if they’re wrong. They have “skin in the game” so to speak. And because of the distinct differences between the Biden and Trump campaigns’ views on oil, the energy sector is an incredible barometer for how things are going with the election. From a 20,000-foot perspective, this presidential election is about globalism vs. nationalism. Globalism, as represented by the Biden campaign, represents the dominant economic trend of the last 40 years. Its key features include: - The outsourcing of Americans jobs to cheaper, international labor markets.
- The U.S. relying extensively on other nations for its energy, commodity, and other needs.
- The U.S. as one of several key nations that set global policy via international bodies (the U.N. the G-7, etc.).
By way of contrast, nationalism, as represented by the Trump administration, represents a complete refutation of globalism. Its key features involve: - That the domestic production of resources deemed critical to the U.S. economy is a matter of national security.
- That outsourcing weakens the U.S. economy from a strategic perspective as it shifts its industrial and manufacturing supply chains to other nations.
- That the U.S. is THE dominant force in the world and as such can set global policy regardless of what other nations desire.
Put more simply, a Biden win would be BAD for oil production in the U.S., while a Trump win would be GOOD for oil production in the U.S.. So What Has Energy Been Saying? With that in mind, take a look at this chart. |
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