In this episode, Michael Every discusses the Iran crisis as part of a broader shift toward 'economic statecraft,' where energy, swap lines, stablecoins, and supply chains become tools of national strategy. The conversation explores scenarios including a potential closed-loop energy bloc (NAFTA-style) and the Fed's possible pivot to supply-side support.
Summarized by Podsumo
Michael Every argues the Iran crisis is part of a shift to 'economic statecraft' — where central banks, swap lines, and energy become tools of geopolitics, not just markets.
A potential 'NAPTA' bloc (North American Petroleum and Hydrocarbons Trading Hub) could create a closed energy loop, forcing allies to cooperate while excluding rivals.
The Fed under Kevin Warsh may move away from broad-based QE to targeted support for physical reindustrialization, merging 'Warcraft' with 'Fartcraft.'
"I've been underlining that I thought when Trump was reelected that he would shift from economic policy to economic statecraft. — Michael Every"
"You cannot have an independent central bank targeting 2% CPI and also have joined-up thinking toward national security goals with economic statecraft. — Michael Every"
"We're now living in a world of Warcraft, but we may also need a bit of Fartcraft — financialization to prepare for that world. — Michael Every"