The underpinnings of the state system in the Middle East have been economic, but that base is eroding even as spending needs increase—and the outcome could well resemble that of the Soviet Union, which faced the same problem.
How to understand the evolving situation?
One way is to think of the complex of states in the Middle East as companies. For example, Saudi Arabia might be a large multinational while ISIS is a start-up with a very different business model. In principle, there’s no reason that countries and states should be treated differently than companies; both are simply ways of organizing people through space and time.
This comparison opens up several paths of analysis, which can provide useful insight into what might happen and what it might mean to the U.S. Over the next couple of weeks, markets permitting, we’ll discuss different ways the current situation could play out.
Brad McMillan is the chief investment officer at Commonwealth Financial Network, the nation’s largest privately held independent broker/dealer-RIA. He is the primary spokesperson for Commonwealth’s investment divisions. This post originally appeared on The Independent Market Observer, a daily blog authored by Brad McMillan.