Klement on Investing • 7 implied HN points • 25 Feb 26
- Very powerful countries tend to feel more threatened and become more hawkish, which leads them to intervene militarily and economically even against weaker rivals.
- When checks on government power are weak, leaders can use state actions to benefit allies and big companies, increasing corruption and privileging private interests over the public good.
- Encouraging allies to rearm can make them more independent and confident, which may create new rivalries and strain old alliances, and could prompt deals or conflicts over strategic assets like semiconductors and Taiwan.