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2 Dec, 2021 11:46

Ditching green, new Cold War, US constitutional crisis – Saxo Bank’s predictions for 2022

Ditching green, new Cold War, US constitutional crisis – Saxo Bank’s predictions for 2022

Danish investment bank Saxo Bank released its annual “outrageous predictions” on Thursday, to guide global financial markets through the “revolutionary” possibilities of 2022, from ditching the green transition to a new Cold War.

SaxoStrats, the bank’s most prominent strategists, claim that “there is so much energy building up” in the global economy and society as a whole, the current system is absolutely incapable of coping with it. This will lead to a “socioeconomic revolution,” which would bring about significant changes in the way the world runs. Here are some of them.

Space race & new Cold War

In 2022, the rise of hypersonic technology and space confrontation would boost the rivalry between the US and China. As the race for domination will be joined by other major players with advanced military technology, including Russia, India, Israel, and the EU, a new Cold War could break out on multiple fronts. As a result, firms dealing in hypersonic technologies will hit the funding spotlight, while those producing traditional warfare equipment will lag behind.

Green transition delayed

Skyrocketing commodity prices amid unrealistic deadlines for the green transition would hike inflation, forcing governments to quit their plans to normalize the climate. Environmental restrictions on new investments in oil and gas production would be eased for up to 10 years to curb the risk of social unrest amid rising food and energy prices.

Medical breakthrough to gain people extra years

Saxo Bank predicts a major breakthrough in medicine next year: scientists will create a “cocktail” of medicinal agents that regulate processes at the cellular level, extending a person's life by 25 years or more (remember Frank Herbert’s Dune and 300 ‘standard years’ of life expectancy? Well, here it comes). A bonus discovery – DNA editing, which is to “rewrite” potentially dangerous cells – will make most diseases history (Frank Herbert again).

US democracy dies amid constitutional & economic crises

After the 2022 Senate and House of Representatives elections, parties will be opposed to confirming the vote. As a result, a new Congress won’t be formed, with Biden only in power by special order. A full-blown constitutional crisis by early 2023, and an “existential crisis” in the globe’s largest economy due to 15% inflation, unseen since World War II. The end.

More ‘outrageous predictions’

Other possible events listed by Saxo strategists may seem less gruesome, yet are still quite epochal. For instance, French President Emmanuel Macron will set up an EU superfund of $3 trillion to finance defense and green transition – not from taxes, but from pension contributions. Voila.

Women investors will create an “army” to launch an attack on companies with weak gender equality, causing huge fluctuations in the companies’ share prices.

New alliances will be formed to draw the focus away from the US and China, with India joining the Arab States of the Persian Gulf and making huge profits.

Facebook will lose its position on the market amid its inability to draw in the young generation, even despite its metaverse aspirations, unless it actually attempts to buy teen-favored TikTok or Snapchat.

And lastly, traditional streaming services will plunge as musicians and consumers of digital content flock to NFT platforms.

“Remember that the world is forever evolving if at varying speeds, while business and political cycles are always finite,” Chief Investment Officer at Saxo Bank Steen Jakobsen said, commenting on the predictions. He also noted that, as ever, the list is merely “a warning against the potential misallocation of risk among investors,” not an actual forecast of doom and gloom for the globe.

However, according to Jacobsen, 2022 will inevitably bring the markets much more volatility.

For more stories on economy & finance visit RT's business section

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