Barron's Advisor Edward Fishman: Weaponizing Finance and What It Means for Portfolios
Jul 15, 2025
Edward Fishman, an economic statecraft expert and author of "Choke Points, American Power in the Age of Economic Warfare," delves into the evolving world of economic warfare. He discusses how the U.S. leverages financial tools and sanctions as new realities reshape market risks. Key topics include the historical Nixon Shock's lasting impact, the rise of de-dollarization amid geopolitical shifts, and the complexities of global economic interdependence, especially between the U.S. and China. Fishman emphasizes the need to monitor economic indicators in this dynamic landscape.
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Invisible Choke Points Define Power
- The U.S. economic power today comes from controlling invisible choke points like the dollar-based financial system.
- This control lets the U.S. impose devastating economic harm without geographic military conquest.
Nixon Shock Changed Global Finance
- The Nixon Shock in 1971 marked a geopolitical shift, ending the gold standard for the dollar.
- This allowed the U.S. economy to transform from manufacturing-focused to a financial powerhouse.
Geopolitics Impact Gold Returns
- Since 1971, gold has grown roughly 9% annually, almost matching the S&P 500's 9.5% return with dividends.
- Geopolitical events can have profound, lasting impacts on investment portfolios and asset values.
