An Arms Dealer Joins Silicon Valley’s Military Boom https://t.co/ytrvV2h5G0 https://t.co/ytrvV2h5G0 ...

Macroeconomic Analysis - Higher interest rates are exposing imbalances, leading to an unwind of capital misallocation dating back to 2008 and potentially 1989 [1] - The US stimulus post-GFC attracted capital due to its financial infrastructure [2] - A major capital rotation towards Europe and the rest of the world is underway, rebalancing global capital flows [4] - Zero percent interest rate policies masked underlying imbalances, now exposed with rates at 45%-5% [20][21] - Global synchronous growth is possible due to stronger US performance, surprising Chinese retail sales and exports, and Europe releasing its debt brake on fiscal spending [28] Defense Spending and Industrial Policy - Europe's lack of a military-industrial complex has hindered its technological development [3] - Increased defense spending, potentially reaching $14 trillion, could stimulate a major CapEx boom cycle [4][5][6] - Private capital is crucial for efficiently allocating capital in Europe's defense sector, balancing control and market pressure [13][14] - Europe has a hidden defense sector with many dual-purpose companies, presenting investment opportunities [16] Energy Security and Transition - Energy security, not climate concerns, is driving investments in nuclear, solar, and EVs [17][18] - The US energy independence has changed its geopolitical calculations, particularly regarding the Middle East [22][23][24] - Underinvestment in key commodities like copper and lithium, coupled with misallocation of capital, suggests a potential reversal [31][33]

If I want to hire, let's say, the next chief product officer at Get Your Guide, it's almost impossible to do that in Europe. I need to go to Silicon Valley because the density of people who have done that scale, have served tens of millions of customers a year, build a business that's 10 billion plus valuation that just doesn't exist to build the structures and the processes and everything to do That. ...