Kelly Coffey & Fareed Zakaria

February 18, 2022

2022 Economic and Investment Series: A Discussion With Fareed Zakaria

Welcome to our 2022 Economic and Investment Forum, hosted by Kelly Coffey, City National Bank CEO. During this edition of the event, Kelly welcomed journalist Fareed Zakaria, who shared insightful commentary on the economy and world events.

In the highlights below, Coffey and Zakaria discuss technology, inflation and how China and Russia impact the global economy.

About Fareed Zakaria

Fareed Zakaria is the host of CNN's “Fareed Zakaria GPS" and is a foreign affairs columnist for the Washington Post. He's earned a following with his thought-provoking insights as an observant student of history. Zakaria uses his knowledge of history to provide interesting perspectives on current and future events.

Born in Mumbai, India, Zakaria earned his undergraduate degree from Yale and his Ph.D. from Harvard. His impressive career has seen him serve as editor of Newsweek International, managing editor of Foreign Affairs, columnist for Time, analyst for ABC News, and host of “Foreign Exchange with Fareed Zakaria" on PBS. An author of several books, his most recent, “Ten Lessons for a Post-Pandemic World," was published in October 2020.

Part I: Zakaria's Outlook on Blockchain Technology

For Zakaria, blockchain is a powerful tool that enables reliability, scalability and security in the digital space. While he believes there's a future for blockchain currency, Zakaria expresses some uncertainty about the technology's capability to replace fiat currency. He points out that cryptocurrency's association with illegal activity holds it back, making some type of regulation crucial for its adoption. With the right regulatory controls, Zakaria thinks blockchain will find a practical use in society.

Part II: Globalization and Inflation

Currently, inflation is on everyone's mind, and Zakaria points out that it's closely tied to globalization. While goods are cheaper when produced in other countries, Zakaria notes that many people desire for those products to be manufactured domestically. Yet once production localizes, prices for goods inflate. Zakaria points out that, for inflation to be minimized, consumers who desire locally produced products might need to settle for ones produced abroad. He warns that political rhetoric against globalized production chains could continue to drive the cost of living up for ordinary people.

Part III: Zakaria's Outlook on China

Zakaria considers relations with China one of the single most significant economic and political risks for the United States. He cautions against entering a cold war with the nation, stating that a modern-day cold war would be a different situation than what played out with the USSR. This is because the Chinese economy's scale eclipses what the Soviet Union was able to produce. If the United States and China can find a way to be competitive and collaborative in the right areas, Zakaria thinks the world will be a better place.

Part IV: What's Zakaria's Outlook for Russia?

Regarding Russia, Zakaria asserts that energy issues could be key to preserving the nation's power for many years ahead. While Zakaria says things don't look great for Russia in the distant future, he points out that there's no denying that Russia will have economic power in the short term thanks to its oil and gas reserves. Zakaria argues that Russia will continue to be a major global economic force until green energy can replace oil, gas and coal.

The opinions expressed in this presentation are solely the personal views of the speakers and do not represent the views and opinions of City National Bank.

City National Bank remains committed to delivering objective, nonpartisan market analysis and investment guidance, with the goal of providing information to help our clients make informed financial decisions.

If you would like to keep up-to-date with the latest market news, innovation and shifting markets during the pandemic, consider signing up for City National Bank's newsletters – delivered weekly, straight to your inbox.

This article and presentation is for general information and education only. It is provided as a courtesy to the clients and friends of City National Bank (City National). City National does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are as of the date of the presentation with no obligation to update or notify of inaccuracy or change. 

It is not to be construed as an offer, or solicitation of an offer, to buy or sell any financial instrument. It should not be relied upon as specific investment advice directed to the reader's specific investment objectives. Any financial instrument discussed in this article may not be suitable for the reader. Each reader must make his or her own investment decision, using an independent advisor if prudent, based on his or her own investment objective and financial situation. Prices and availability of financial instruments are subject to change without notice. Financial instruments denominated in a foreign currency are subject to exchange rate risk in addition to the risk of the investment. City National Bank (and its clients or associated persons) may, at times, engage in transactions in a manner inconsistent with this article and, with respect to particular securities and financial instruments discussed, may buy from or sell to clients or others on a principal basis. Past performance is not necessarily an indication of future results.

This article and presentation may not be reproduced, distributed or further published by any person without the written consent of City National. Please cite source when quoting.

Thank you for subscribing!
Error. This is not a valid email address. Please try again.
Error. Please make sure all fields are properly filled out and try again.
Subscribe to Our Newsletter