The Bankwatch

Tracking the consumer evolution of financial services

Populist goverment quickly becomes authoritarian and unstable

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We are just beginning to understand and see the impact of a populist government compared to the tried and true democratic parliamentary process.

Here are some recent victims which contribute to financial instability in the world.:

Mark Esper Defense secretary fired by Donald Trump for challenging Trumps desire to use military against the public. Richard Haas makes the point this morning on CNN that this change is from one unknown to an unknown replacement. This move suggests Trump wants a pliable resource at Defence to facilitate Trumps next move which coulee be anything from troop movement to joint Israel attack on Iran.

Jack Ma had his Ant Finance IPO cancelled by Xi in China for insulting the government by suggesting they were small minded.

Murat Uysal fired by Erdogan because the Lira dropped. This one is also reminiscent of Trump who continually did the unthinkable and criticised the Chairman of the Fed and blaming him for systemic changes in the economy such as interest rates or stock market gyrations.

Boris Johnson willingness to allow Dominic Cummings to break all lockdown rules last summer over the appropriate disciplinary action from other branches of government for similar offences. The point of lockdown you will recall was to move the populace in a particular direction to stop pandemic outbreaks.

In all cases the government motivation was centred in one person’s personal views and the need to blame someone for not specifically following his direction. The leader felt challenged so lashed out and fired someone, so that he could misuse the system for his own ends.

In all three cases the firings were far from the first and will not be the last. There are too many examples in the world now to lis them all.

The individual at the top insists on absolute obedience from all employees. There is no concept of values based leadership, meritocracy or anything resembling a process driven approach. On the contrary it is all about opinions, emotional reaction and a desire to get his own way.

Written by Colin Henderson

November 12, 2020 at 09:54

Posted in Uncategorized

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