T.S. Elliot pronounced that Virgil’s Aeneid was a universal classic since the poem reflects the foundation of how you create and preserve a world system. The Aeneid displays in a powerful way the role that Rome played as a steward of such an international system. One of literature’s most important subject is the formulation and preservation of polity.
At the aftermath of Troy’s defeat and in the midst of those ruins, Aeneas emerges wondering what his mission should be, but after visiting the Underworld, he is fully aware of what he is supposed to do: become the founder of Rome. Stewardship of such a system involves foresight, the founding of institutions that will last and serve many generations to come, and the comprehension of historical reality. The Aeneid spans a history of more than 1,000 years. Aeneas arrives in Rome about 15 years after the fall of Troy — that is, around 1185 BCE. Rome was founded in 754 BCE. The Republic was established in 510 BCE. The destruction of Carthage and the end of Punic Wars took place in 146 BCE. Octavian became victorious at the Battle of Actium in 31 BCE, and Augustus ruled Rome from 27 BCE to 14 AD.
Aeneas has constructive vision when he visits King Evander in the pastoral setting at the foot of the Palatine Hill in what one day will become Rome, the capital of the world. It is an irony that one of the most dangerous politicians on planet earth nowadays (Italy’s VP, Mateo Salvini who desires to drain the Italian swamp) is working hand-in-hand with some other politicians to unravel an international system that has mostly propelled growth, higher standards of living, while preserving peace. It is absurd that those who desire to overthrow a system which — despite its many weaknesses — has advanced prosperity and pulled billions of people out of economic and political misery in the last 70+ years, cannot learn from the Trojan Aeneas who in the humble hut of Evander learned thousands of years ago the secret to polity.
The Aeneid is a journey toward a historical destiny whose portentous significance will only be realized by those who can comprehend statecraft and have visited the Underworld. In the Underworld Aeneas will meet his father, Anchises, who informs Aeneas of his destiny. Above all, his father tells Aeneas that the purpose of gaining power is to create and administer an international system that will crown peace with prosperity and civility.
“Remember Roman, these will be your arts:
To teach the ways of peace to those you conquer,
To spare defeated peoples, tame the proud”
The recent market turmoil has been monotonously explained using the language of trade wars, economic contraction, and the possibility of recession. Yesterday, the markets dropped 3% and the pundits tried to persuade us that this is due to the yield curve inversion (where the 2-year Treasury yield surpassed the yield on the 10-year Treasury). Really? Haven’t we had yield inversion (between Treasury Bills and the 10-year Note) for some time now?
- Have we really looked at fundamental valuations?
- Have we really counted the consequences of the Hong Kong demonstrations?
- Have we really understood the effects of India’s decision — to suspend Kashmir’s autonomy — on the possibility of a war with Pakistan? (Let’s not forget that both are nuclear powers.)
- Are we even close to measuring the ultimate results of a trade war that started between South Korea and Japan?
- Can we project the tidal waves of a Chinese hard landing? (Chinese production levels have been dropping.)
- Boris Johnson (a.k.a. BoJo) wants the UK to meet its historical destiny through the gate of crashing out from the EU. What will happen in Northern Ireland? What would the consequences be for the UK? Will that be the end of the UK given that Scotland will probably leave the UK?
- Have we run proper simulations to see the effects of a dysfunctional EU in which the “disruptors” — who want to drain the EU swamp — create havoc?
- Is the EU’s locomotive (Germany) in trouble?
- Is Russia really stable?
- Could US business and consumer confidence be taken for granted?
- Is the US still trusted by its allies?
- Can the US still preserve an international order?
- Is the trade war between the US and China really without costs to Americans?
- Where is Mexico headed with its populist president?
- How much more harm can the newly elected president of Brazil inflict on his country?
- How much more pain is in store for the Argentinian peso given that 16 months ago someone needed 18 pesos to buy a US dollar and now needs 60 pesos? Is the IMF about to experience its first lending that defaults in a big way?
Do we really have a functional international system? Could it be that the markets are sensing the unraveling of the international system and simply have started their reaction?
When Aeneas was about to depart from the Underworld, he had to choose between two doors: The Gate of Horn (through which true dreams emerge), and the Gate of Ivory (through which false hope and deception are elevated and advertised as liberators).
We may be standing at a similar juncture these days. Keep calm and look for real assets while hedging existing positions.
Another Perspective on the Recent Market Turmoil: Squandering the Stewardship of the International System
Author : John E. Charalambakis
Date : August 15, 2019
T.S. Elliot pronounced that Virgil’s Aeneid was a universal classic since the poem reflects the foundation of how you create and preserve a world system. The Aeneid displays in a powerful way the role that Rome played as a steward of such an international system. One of literature’s most important subject is the formulation and preservation of polity.
At the aftermath of Troy’s defeat and in the midst of those ruins, Aeneas emerges wondering what his mission should be, but after visiting the Underworld, he is fully aware of what he is supposed to do: become the founder of Rome. Stewardship of such a system involves foresight, the founding of institutions that will last and serve many generations to come, and the comprehension of historical reality. The Aeneid spans a history of more than 1,000 years. Aeneas arrives in Rome about 15 years after the fall of Troy — that is, around 1185 BCE. Rome was founded in 754 BCE. The Republic was established in 510 BCE. The destruction of Carthage and the end of Punic Wars took place in 146 BCE. Octavian became victorious at the Battle of Actium in 31 BCE, and Augustus ruled Rome from 27 BCE to 14 AD.
Aeneas has constructive vision when he visits King Evander in the pastoral setting at the foot of the Palatine Hill in what one day will become Rome, the capital of the world. It is an irony that one of the most dangerous politicians on planet earth nowadays (Italy’s VP, Mateo Salvini who desires to drain the Italian swamp) is working hand-in-hand with some other politicians to unravel an international system that has mostly propelled growth, higher standards of living, while preserving peace. It is absurd that those who desire to overthrow a system which — despite its many weaknesses — has advanced prosperity and pulled billions of people out of economic and political misery in the last 70+ years, cannot learn from the Trojan Aeneas who in the humble hut of Evander learned thousands of years ago the secret to polity.
The Aeneid is a journey toward a historical destiny whose portentous significance will only be realized by those who can comprehend statecraft and have visited the Underworld. In the Underworld Aeneas will meet his father, Anchises, who informs Aeneas of his destiny. Above all, his father tells Aeneas that the purpose of gaining power is to create and administer an international system that will crown peace with prosperity and civility.
“Remember Roman, these will be your arts:
To teach the ways of peace to those you conquer,
To spare defeated peoples, tame the proud”
The recent market turmoil has been monotonously explained using the language of trade wars, economic contraction, and the possibility of recession. Yesterday, the markets dropped 3% and the pundits tried to persuade us that this is due to the yield curve inversion (where the 2-year Treasury yield surpassed the yield on the 10-year Treasury). Really? Haven’t we had yield inversion (between Treasury Bills and the 10-year Note) for some time now?
Do we really have a functional international system? Could it be that the markets are sensing the unraveling of the international system and simply have started their reaction?
When Aeneas was about to depart from the Underworld, he had to choose between two doors: The Gate of Horn (through which true dreams emerge), and the Gate of Ivory (through which false hope and deception are elevated and advertised as liberators).
We may be standing at a similar juncture these days. Keep calm and look for real assets while hedging existing positions.