"Trump is trying to do a reverse Gorbachev and swing back to something that looks a little bit more Soviet and a little bit less American... he's trying to take a system... which is overly weighted towards consumption and financialization and which... is no longer the industrial power that it once was."
— Michael Every (00:03:27)
"The Eurodollar system is a prison... But the bricks in that prison are made from what used to be American factories and only by fragmenting the role of the dollar can you avoid that?"
— Michael Every (00:54:43)
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"Stablecoins should be looked at as a geopolitical weapon rather than an investment asset."
— Michael Every (00:54:43)
"You cannot have an independent Fed alongside a national security strategy, which says this is existential for America to do X. It’s just ideologically and practically insane."
— Michael Every (00:41:17)
"Mr. President, tear down this Wall Street."
— Michael Every (00:37:19)
Executive Summary
In this forward-looking discussion set in 2026, Michael Every argues that the United States is undergoing a "Reverse Perestroika." Just as Gorbachev attempted (and failed) to shift the Soviet Union from military-industrial production to consumption, President Trump is attempting to shift the U.S. from a consumption-heavy, financialized economy back to a military-industrial power. Every suggests this transition requires "Capitalism with a National Security Face," involving the end of Federal Reserve independence, the weaponization of stablecoins to solve the Triffin Dilemma, and the coercion of allies into a new "Warsaw Pact" to fund American re-industrialization.
Key Takeaways
The "Reverse Perestroika" Thesis: The pre-Trump U.S. economy was the inverse of the Soviet Union (all consumption/finance, no planning), leading to military atrophy. The new administration is forcing a pivot back to production and hard power, risking inflation and asset deflation.
The End of Fed Independence: With the confirmation of Kevin Warsh as Fed Chair (in this 2026 timeline), the central bank is becoming subservient to the Treasury. Expect credit rationing where capital is directed toward national security sectors rather than efficient market allocation.
Stablecoins as Geopolitical Tools: The U.S. aims to fragment the global dollar system. By encouraging foreign entities to hold stablecoins (backed by Treasuries) rather than traditional Eurodollars, the U.S. can fund its deficit without exporting its industrial base, effectively bypassing the Triffin Dilemma.
A New "Warsaw Pact": The "West" is fracturing. The U.S. is creating a closed, ideologically aligned trade block. Allies are being coerced into a "Reverse Marshall Plan," where they must use their trade surpluses to build factories in the U.S. rather than buying financial assets.
Europe as the New Egypt: Drawing a parallel to the 1956 Suez Crisis, Every argues Europe has lost its Great Power status. The U.S. now dictates security terms to Europe (e.g., regarding Greenland) just as the U.S. once dictated terms to the UK and France.
Detailed Summary by Topic
1. The Historical Framework: Suez and Soviet Parallels
(00:03:27 – 00:15:33)
Every establishes two historical anchors for the current geopolitical landscape. First, he references the 1956 Suez Crisis, noting that in 2026, the U.S. treats Europe the way America treated the UK and France in '56—as declined powers that must obey security directives (referencing a recent crisis in Greenland).
Second, he introduces the core metaphor: Trump as a "Reverse Gorbachev."
The Soviet Problem: The USSR had massive military capital stock but no consumer goods. Gorbachev tried to pivot to consumption (Perestroika) and the system collapsed.
The American Problem: The U.S. has massive consumption and financialization but atrophied industrial/military muscle. Trump is trying to pivot back to production.
2. Anatomy of the Soviet vs. Pre-Trump American Systems
(00:15:33 – 00:33:20)
Every provides a deep dive into the mechanics of the Soviet economy to contrast it with the U.S.:
Soviet Model: Central planning (Gosplan), allocation of goods (Gossnab), and a central bank (Gosbank) that monetized losses to meet output targets regardless of profit. It ensured production but misallocated capital.
Pre-Trump US Model: The inverse. No planning, open capital accounts, and a focus on consumption.
The Flaw: The U.S. system relied on the rest of the world buying Treasuries (the Triffin Dilemma), which required the U.S. to run deficits and hollow out its manufacturing base. This left the U.S. militarily vulnerable in a long-term conflict.
(00:33:20 – 00:47:31)
The "Reverse Perestroika" is described as "Capitalism with a National Security Face." Key components include:
Treasury Dominance: The Federal Reserve is no longer independent. Its job is to ensure cheap funding for the government.
Credit Allocation: Moving toward a Cold War-style economy where the government dictates that banks lend to specific sectors (manufacturing, defense) at lower rates than irrelevant sectors (consumption).
Capital Controls: Preventing capital flight and forcing investment into productive U.S. assets rather than financial speculation.
Immigration: Reducing net immigration to tighten the labor market, forcing wages up (which causes inflation but helps the working class base).
4. The Role of Stablecoins and the Reverse Marshall Plan
(00:47:31 – 01:03:19)
Every introduces a novel solution to the Triffin Dilemma:
Stablecoins: By encouraging the global use of dollar-pegged stablecoins, the U.S. can absorb global capital (which buys the Treasuries backing the coins) without strictly "exporting" dollars that eventually hurt domestic industry. It fragments the fungible global dollar into a system the U.S. can better control and track.
Reverse Marshall Plan: A concept credited to Michael Kao. The U.S. is coercing allies (who hold large trade surpluses) to stop buying U.S. paper assets and start building physical factories inside the U.S. This repatriates supply chains and industrial capacity.
5. Geopolitical Consequences: Coercion over Consensus
(01:03:19 – 01:18:50)
The conversation concludes on the fracturing of "The West."
The New Alliance: The U.S. is building a "Warsaw Pact" style alliance—not based on shared liberal values, but on strict economic and security alignment.
Coercion: Unlike the post-WWII era where U.S. dominance benefited allies, the new model is zero-sum. The U.S. is forcing allies (Europe, Japan) to act against their immediate economic self-interest to support U.S. re-industrialization.
Risks: If the U.S. cannot coerce allies into this pact, the domestic inflation caused by these policies could spiral, leading to a system collapse similar to the Soviet Union's end.
Data & Figures
Data Point
Value
Context
Date
February 03, 2026
The "current" date of the podcast recording.
Life Expectancy
65 to 57
Collapse in Russian male life expectancy after the Soviet fall.
Productive Loans
~20%
Percentage of U.S. bank loans used for commercial/industrial purposes (pre-Trump).
Unproductive Loans
~80%
Percentage of U.S. bank loans used for non-productive financial assets.
Defense Budget
$500 Billion
Hypothesized increase needed for the U.S. military budget in 2027.
Stablecoin Yield
2.5% - 3%
Potential fee paid to holders of stablecoins to incentivize adoption.
Equity Stakes
10%
Stories & Anecdotes
The Vodka vs. Water Arbitrage: Every recounts living in Russia shortly after the collapse of the Soviet Union. He vividly describes a market failure where a bottle of water cost $3.00 while a bottle of vodka cost $1.00, illustrating the chaos of rapid liberalization and misallocated capital.
The Suez Crisis (1956): Used as a historical rhyme. In 1956, the U.S. used financial pressure (a run on the Pound and Franc) to force the UK and France to withdraw from Egypt. In 2026, Every suggests the U.S. is using similar leverage to force Europe to comply with U.S. security interests in places like Greenland and regarding trade with China.
Fulton County, Georgia (2020/2026): Every mentions a 2026 news story about Tulsi Gabbard (Director of National Intelligence) investigating the 2020 election in Georgia. He frames this not just as political theater, but as a "warning shot" to anyone planning to interfere in the upcoming 2026 midterms.
References & Recommendations
People Referenced:
Kevin Warsh - Incoming Fed Chair (2026 context). Mentioned as the person who will end Fed independence and implement credit rationing.
Michael Kao - Strategist. Credited with the term "Reverse Marshall Plan" (forcing allies to invest in U.S. factories).
Brent Johnson - Santiago Capital. Referenced for his "Dollar Milkshake" theory and the quote that the "Eurodollar system is a prison."
Marko Papic - Geopolitical Strategist. Referenced for his "Constraints and Preferences" framework.
David Ricardo - Economist. Referenced regarding comparative advantage and the immobility of capital (which Every argues the neoliberal system ignored).
Mikhail Gorbachev - Former Soviet Leader. The primary analog for Trump's current structural dilemma.
Documents:
National Security Strategy (NSS) - Referenced heavily as the guiding document that prioritizes economic security over free market efficiency.
Historical Events:
Suez Crisis (1956)
Soviet Collapse (1991)
Cold War Credit Rationing
Speakers & Credentials
Grant Williams: Host of The Grant Williams Podcast. A highly respected financial commentator known for deep-dive interviews and "The Things That Make You Go Hmmm..." newsletter. He focuses on macroeconomic history and nuance.
Michael Every: Global Strategist at Rabobank. Known for his "out of the box" thinking, combining history, political economy, and geopolitics. He correctly predicted the shift toward mercantilism and economic statecraft years prior to the consensus.
Actionable Next Steps
Monitor "Credit Rationing": Watch for policy shifts where the Federal Reserve or Treasury explicitly guides bank lending toward "strategic sectors" (manufacturing, defense, energy) and restricts lending for financial speculation.
Re-evaluate Crypto/Stablecoins: Stop viewing stablecoins solely as crypto-trading tools. Research them as potential geopolitical assets that the U.S. Treasury may co-opt to maintain dollar dominance while fragmenting the global payment system.
Analyze "The West" Separately: Do not assume Europe and the US are a unified economic block. Assess investment risks in Europe as if it were an "emerging market" subject to U.S. geopolitical pressure (like Egypt in 1956).
Watch the 2026 Midterms: Pay attention to how the "Reverse Perestroika" policies impact inflation and the electorate. The success of this transition depends on maintaining a political coalition despite economic pain (inflation).
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