Will 2026 be brutal?

Andrew Bailey has warned MPs that substantial risks are building in global markets — and for once, I agree with him.

Trump’s attacks on the Fed, the escalating threats around Greenland, and the weaponisation of tariffs are turning political instability into financial instability. That’s already showing up in equity sell-offs — and it won’t stop there.

In this video, I explain:

- Why political risk is now systemic financial risk

- Why equities fall first, and bond markets follow

- How Keynes’s “animal spirits” and the paradox of thrift can trigger recession

- Why AI is not protected from a downturn; it’s exposed

- Why the UK is not insulated from risk

- Why austerity would be catastrophic now, and why we need a politics of care instead