End of capitalism in US tops Saxo Bank’s ‘outrageous’ predictions
The Danish investment bank also ‘expects' Robert F. Kennedy Jr. to take the Oval Office in 2024
Saxo Bank has revealed its annual list of “outrageous” events that are unlikely to happen, but could send shock waves across global markets if they came true.
The tongue-in-cheek outlook created by analysts at the Copenhagen-based investment bank explores how the world would navigate a “dangerously unpredictable future,” including powerful technological advancements.
US heralds the end of capitalism with tax-free government bonds
The US could be forced to increase fiscal spending to keep the economy going and try to avoid social unrest amid the presidential elections scheduled for November 2024. Demand for US treasuries will remain sluggish due to inflationary pressures and foreigners repatriating capital. To normalize borrowing costs, Washington will make income from government bonds tax-free.
Robert F. Kennedy Jr. wins the 2024 US presidential election
The US presidential elections will be won by a third-party candidate, Robert F. Kennedy Jr., starting a new political era in the country. That would mark a dramatic pivot away from plutocracy amid voters’ demands for reduced inequality and injustice, as well as for the end of forever wars.
World hit by major health crisis as obesity drugs make people stop exercising
A global health crisis will erupt as taking obesity drugs makes people stop exercising and increases consumption of junk food. Saxo sees the crisis lifting demand for processed food, with McDonald’s and Coca-Cola stock prices outperforming broader markets by 60% each.
Luxury sector plunges as EU goes Robin Hood
The EU will introduce a wealth tax of 2% in an effort to find more funding for various policy goals. The move will drag Europe’s luxury sector down, with such giants as LVMH or Porsche plunging 40%.
Generative AI deepfake triggers a national security crisis
Generative artificial intelligence is projected to turn into a national security threat following a daring AI deepfake heist against a high-ranking official in an unnamed developed state. Saxo experts say the deepfake-related challenge will force governments to introduce new laws, allowing only a small group of entities to spread public news.
Deficit countries from ‘Rome Club’ to negotiate trade terms
In the face of a severe global recession and limited tools to lower interest rates due to persistent inflation, countries with the world’s largest budget deficits create a ‘Rome Club’ to address discrepancies in the global trading system. The US, Britain, India, Brazil, Canada, and France will collectively negotiate trade terms with China, Germany, Norway, Japan, the Netherlands, and Singapore. Saxo analysts see gold, silver, and cryptocurrencies doing very well in an unpredictable environment for the world’s reserve currency and the unsustainable current accounts among deficit countries.
Japan’s ‘lucky 7%’ GDP growth rate forces BoJ to abandon yield curve control
Japan is expected to experience a surprising economic surge, leading to a significant policy shift by the Bank of Japan. The country’s GDP will grow by 7%, while real wages will increase by more than 4%. As a result, the Japanese yen will strengthen as local investors shift money into domestic assets.
With oil at $150, Saudis could buy Champions League franchise
Saudi Arabia will acquire the Champions League franchise on the back of soaring crude prices, hitting some $150 per barrel, almost double their current level. Saxo analysts say the oil-rich kingdom will turn one of football’s most prestigious tournaments into a global competition backed by FIFA, with many games being played in Riyadh.
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