Deficits, austerity and fiscal constraints

As the long era of neoliberal certainty frays, Mark Blyth argues that we are drifting back toward a 19th century world of rival blocs, imperial habits and dangerous illusions. In this conversation, he traces how repeated “software crashes” of capitalism produced inflation, austerity, populism and now a return to industrial policy and great power confrontation. He connects deficits, demographics, migration, and housing with the lived reality of stagnant wages and rising prices. Along the way, he questions central bank mythology, challenges deficit obsession, and asks whether politics can adapt before events force a far harsher reset.

-----

50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

-----

Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.

IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.

And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.

Learn more about the Trend Barometer here.

Send your questions to info@toptradersunplugged.com

And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.

Follow Alan on LinkedIn.

Follow Mark on Twitter.

Episode TimeStamps:

00:00 - Cold open and warning on a return to 19th century style imperialism

00:23 - Niels and Alan introduce Mark Blyth and set the macro context

02:24 - From Scottish childhood to monetarism and the politics of macro ideas

08:33 - Capitalism as hardware and software and the recurring crashes of each regime

15:32 - The slow death of neoliberalism and the rise of populist reactions

18:57 - Deficits, austerity, bond vigilantes and why the house is on fire anyway

23:49 - Affordability, grocery prices, housing and the disconnect in elite dashboards

29:02 - Generational conflict, asset concentration and the missing left response

35:42 - Aging, health care, migration and the politics of who does the caring

40:43 - Inflation myths, central bank limits and lessons from recent shocks

45:13 - Britain’s broken growth model, deindustrialization and the London problem

48:01 - Industrial policy, defence, housing and what a real project state would do

53:14 - Trump’s hemispheric vision, hydrocarbons, and a world of regional satrapies

59:03 - Dollar power, cheaper currency strategy and fragile growth built on tech valuations

01:02:33 - Long term outlook, risks, and the books that still explain the mess we are in

Copyright © 2025 – CMC AG – All Rights Reserved

----

PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:

1. eBooks that cover key topics that you need to know about

In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. Click Here

2. Daily Trend Barometer and Market Score

One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! Click Here

3. Other Resources that can help you

And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. Click Here

Privacy Policy

Disclaimer