#162 - Mike Green - The Economy is Collapsing, Time to Prepare

In this episode of The Peter McCormack Show, guest Mike Green delivers a stark warning about the systemic collapse of the global economic and political order. He argues that capitalism has been corrupted by the erosion of competition and legal enforcement, leading to monopolistic behavior, diminished representation, and a growing sense of disenfranchisement among average citizens in both the US and UK. The war in the Middle East, particularly Iran's control of the Straits of Hormuz, is framed not just as a geopolitical crisis but as a symptom of deeper structural failures—where economic chokepoints are weaponized by authoritarian regimes, and the West’s inability to respond decisively reflects a broader loss of will and coherence. Green traces the root of the crisis to the decay of trust in institutions, the rise of passive investing, and the resulting financial fragility, especially as the passive investment share crosses 65%, a tipping point that could trigger a discontinuous market unwind. He warns of a looming credit and economic reset driven by demographic shifts, generational wealth hoarding, and the collapse of trust in both markets and governance. Despite the dire outlook, Green remains cautiously optimistic that the system can be reformed through renewed focus on competition, legal accountability, and public education—rather than revolution or state control—emphasizing that capitalism, when properly enforced, remains the most robust system for collective prosperity. Key takeaways include: 1) The real crisis isn’t inflation or the dollar—it’s the erosion of competition and legal remedies that protect individuals; 2) The passive investment boom has created a fragile, mechanically driven market vulnerable to sudden collapse; 3) Generational wealth hoarding by boomers, driven by uncertainty, is pricing out younger generations and fueling social unrest; 4) The war in the Middle East is a test of will, not just military power, and the US has the strategic advantage, but political short-sightedness threatens long-term stability; 5) The solution lies not in revolution or state control, but in restoring the moral and legal foundations of capitalism through education and enforcement of fair competition.