Turmoil in the Middle East has led to spiking oil prices and sent financial markets reeling recently, a combination of events that should underscore the rapidly rising importance of political risk for investors in an increasingly interconnected world.

But despite the resurgent impact of local politics on world markets, Wall Street isn't well-equipped to analyze political risk -- and understandably so. Most traditional investors, after all, have focused on evaluating the relative merits of different U.S. stocks, rather than, for example, the internal dynamics of the Libyan regime.

So earlier this week, DailyFinance sat down for an interview with Ian Bremmer, president of The Eurasia Group, a leading political risk consultancy. Bremmer dissected some of the most salient developments and trends taking shape across the world, cutting through the generalizations that often enshroud them.


Welcome to a 'G-Zero' World


The toppling of Egyptian dictator Hosni Mubarak led to plenty of euphoria about the prospects for reform in the Middle East. But investors should hardly be surprised that the task of ousting Moammar Gadhafi in Libya is proving far more onerous, given the vast institutional differences between the two societies.

Skittish oil markets now seem to anticipate massive unrest in Saudi Arabia. But those fears, says Bremmer, are vastly overblown. So are worries that other authoritarian societies like China, a cornerstone of the global economy, will experience big upheavals.

The international community, meanwhile, is scrambling for ways to react to Libya. French proposals for targeted air strikes and heated U.S. debates about the feasibility of imposing a no-fly zone have dominated recent headlines.

Investors shouldn't hold their breath for quick fixes, Bremmer said. With global powers focused on their own internal problems, he says, a "G-Zero" world is emerging in which international consensus and coordination will be more difficult to muster then they have been in the past.

Beware of Generalizations


While the world may be growing more chaotic, it's also finding major new drivers of economic growth in rapidly rising emerging markets. Investors, though, should try to be more discerning about the prospects for different countries rather than reaching for blanket generalizations.

Seemingly reasonable categorizations of countries potentially poised for rapid growth like the Next 11 have garnered plenty of popularity. But investors should be aware of the vast differences that exist among these countries. Look beneath the surface before jumping in.

Today's rapidly shrinking world offers more opportunities for investors than it used to -- and more pitfalls. The trick, as always, remains being able to differentiate between the two.

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Dereck

Major Fraud Alert


The entire Federal Banking System under FirstGov has been "Consumed" and "Levied" by way of a Maryland State Circuit/District Court Ruled “Appropriation and Garnishment” of all Future Earnings prior to and after 2004 against Bank Of America by way of the F.D.I.C. Regulations Prohibiting failing Banks from Merging with other failing Banks between the Dates of 08/04/08 and 10/09/09.

Bank of America violated the 21st Century Act: Final Amendments to Regulation CC Section: http://www.federalreserve.gov/boarddocs/press/bcreg/2004/20040726/attachment.pdf

seeking reimbursement of Credit, Loan, and Finance Balances as a "Bank Entity" and not a "Nonbank Consumer" as specified on Pages 85 and 86.

The person they sued through a LLC. Debt Collection Company and Law Firm was the "World Fortune Owner" who "Counterclaimed" and won.

Now all Contracts of any Corporations (Including Employment) under the "Controlling Interest" of any Investment Bank Worldwide are "Null and Void", and are also under the stipulated Rules and Regulations of an "Closely-held S Corporation rendering all Employed under Legal Actions against “Domination”, and also means that "No Corporation can hold Shares" officially making every Stock Exchange on the Planet a "Ponzi Scheme" by default.

Businesses owned by the States (Public Corporations) are being sold Stock Shares by Corporations also under the Federal Banking System in this Worldwide "Ponzi Scheme". The World Fortune Company Merrick Inc. Sweden is dissolving Millions and Billions of Dollars from "All Levels of Government"in the U.S. of Financing based upon Years of "negligent inaction" involving this case.

The Federal Government has already been forced to discontinue supplying the Financing States use to pay their debts, Persons in Government Offices may want to begin to take their jobs more seriously, these are different times from 10 Years ago and you will not be accepted civil servants here just because you say you are here to do the right thing.

May 29 2011 at 12:37 AM Report abuse rate up rate down Reply
darkhrse4011

Hope you have Gold and Silver , This house of cards is about to come tumbling down !

March 14 2011 at 5:18 AM Report abuse rate up rate down Reply
SPQR

Look at the food you are buying and where it comes from. All I saw was Mexico and even China. However the oranges were from California. We are using our corn and soybeans to make fuel. That fuel is being sold outside the US and then back to us. 50% of our chicken comes from China. What the hell is going on here?????????????????? Your senators are all crooks!

March 13 2011 at 10:45 PM Report abuse rate up rate down Reply
amfnvf

People who call other people socialist are usually facist. Neither one is good for America!

March 13 2011 at 10:53 AM Report abuse -1 rate up rate down Reply
scottee

one pitfall of investing is that The Fed is manipulating stock prices, gold prices and interest rates...plus they are printing and diluting our dollar. is this okay with everyone?????

March 13 2011 at 9:44 AM Report abuse +5 rate up rate down Reply
lbe4707084

In 1971 President Nixon ordered a price roll back. On the list was OIL. American OIL wells, about fifty percent, are capped off. If you take a good look at the exodus of American industry it corralates to the rise of OIL. As OIL increases jobs went overseas. I can buy a gallon of high test gasoline in Venezuela for NINETENN cents, TWENTY NINE cents in Mexico. Why THREE DOLLARS and SENTY FIVE in America??? If we roll back the price of OIL and open our own OIL wells and control that cost most likely JOBS can return to America..

March 12 2011 at 5:17 PM Report abuse +1 rate up rate down Reply
lbe4707084

Why are so few comments here? Are we afraid we are being monitored? Some people think I'm crazy, I have been known to walk into Sam's Club and Walmart and say in a LOUD voice "Is anything here made in America?" And I really don't care what the management has to say. In the long run buting cheap shoddy goods is more expensive due to replacement cost. Think about it for a bit before responding. If anyone cares they can contact me direct at Lbe4707084@aol.com

March 12 2011 at 5:10 PM Report abuse +1 rate up rate down Reply
lbe4707084

To Darrell, no it is not easy to buy American anymore. But, I really try. I buy a American product even if it is more. To give you a for instance, I was putting new tires on my car. The shop started to put a tire on my rim when I asked whose tire it was. The response was" Oh, these are Chines." My answer was what the difference is in price. They replied about twenty dollars each. I think my life is worth more than twenty dollars.

March 12 2011 at 5:04 PM Report abuse +1 rate up rate down Reply
lbe4707084

To continue, we need to pull our troops out of the so called middle east. Let the Arabs and all those people kill each other off. Russia was in Afhganistan for ten years, and lost their asses. England was there for two hundred years and lost their asses. We are now there for almost ten years ans are losing our asses. For what purpose?? The so called reason to find Bin Laden, what nonsense. Why or how come we can't find a six foot four Arab who needs kidney treatment three times a week is hard to understand.

March 12 2011 at 11:19 AM Report abuse rate up rate down Reply
lbe4707084

Our so called global economy is a crock of crap. China is the manufacturing arm of America, what a shame, Oil is controlled by a few very greedy Wall Street speculators, what a shame. What we need to do is to nationalize our our OIL companies, Secondly STOP importing OIL from anyone, Opnen the hundreds of OIL wells capped off for the last 35-40 years. Thirdly bring the price back to reality of 25-30 dollars a barrel. And fourthly STOP buying CHEAP Chinese products, Put Americans back to work. A country can not be great if it does not manufacture.

March 12 2011 at 11:13 AM Report abuse +1 rate up rate down Reply
1 reply to lbe4707084's comment
Darrell Hansen

it sounds so easy when you say it. funny no one else has thought of it. by the way, Americans have to stop BUYING China made products before manufacturers and stores stop selling them. when I offer an American made product next to a Chinese made item that sells for less, you buy the Chinese one. Good idea when you don't have to pay for the USA made product. I'm all for "buy American" but it needs to be started with the consumer....stop blaming everyone else and look around your household and tell me you made any effort to buy AMerican.

March 12 2011 at 2:33 PM Report abuse +1 rate up rate down Reply