Blain’s Morning Porridge August 19th, 2026“What do you think of the French Revolution?” … “It’s too early to say.”The Chinese will be delighted. Western Economies are increasingly polarised and fractured. The US president calls anyone opposing him a “Communist”. The Right Wing threatens mass deportations, while the new emerging Populist Left is demanding redistribution and equality. Destabilising Western Democracies through fake news and disinformation is destroying the resilience of nations to resist. How should markets react? Key Takeaways:Western societies are increasingly divided into haves and have-nots. Hence the rise of populism on both left and right. That has impacted social and political cohesion – the factors that determine resilience, a critical national-security asset.The West is already at war – fake news, disinformation, propaganda, sabotage and cyber-attacks are undermining stability and resilience.The costs to counter hostile nations will be enormous in terms of resources required. Industrial capacity in the west has been neglected. Defence depends on rebuilding capacity, supply chains, labour and skills, and logistical depth. Money is tight after years of QE and welfare spending.The financial markets are confused about defence – it’s a critical part of the infrastructure of democracy, but many institutional investors still regard it as “incompatible with responsible investing”!Born in the early 1960s, I am one of a fortunate generation.You can read the Morning Porridge by subscribing on ⁠www.morningporridge.com⁠, and have it delivered fresh to your inbox every morning!

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“What did the council decide on item 42?” — answered with the speaker and the moment.

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