In economics, as in physics, every action comes with a cost. But there's a fundamental difference: while the laws of physics are immutable, we prefer to ignore economic axioms when they become inconvenient. The modern world has encountered a paradoxical phenomenon: the louder politicians talk about the benefits of economic nationalism, the deeper consumers' hands are forced to dig into their pockets. Deglobalization is becoming the most expensive political project of the 21st century, and we're all paying for it—whether we agree with it or not.
The world, it seems, has grown tired of being a unified economic organism. Geopolitical ambitions, the pandemic, trade wars—all of these push countries toward "economic sovereignty." A beautiful phrase that conceals an unsightly reality: inflation, shortages, and technological backwardness. While politicians in expensive suits exchange sanctions and counter-sanctions, ordinary citizens stand at supermarket checkouts, looking at price tags in bewilderment. This is the real price of "sovereignty"—and it's expressed not in abstract geopolitical victories, but in specific percentages added to your bill.
The Inflationary Trap of Autarky
Globalization, for all its flaws, was an unrivaled mechanism for price optimization. It functioned as a giant economic vacuum, sucking inflation out of the world economy by shifting production to regions with the lowest costs. Now that this process is reversing, the inflationary genie has escaped from the bottle. And stuffing it back will be much harder than letting it out.
"Localizing production" sounds patriotic and inspiring until you start calculating its real cost. Duplication of industrial capacities, broken supply chains, lost economies of scale—all of these transform into an inflationary tax on patriotism that falls on the shoulders of ordinary consumers. Each percentage point of "import substitution" translates into several percentage points of price increases. Economic mathematics is merciless: specialization and division of labor aren't just theories from textbooks, but working mechanisms for reducing costs.
In their quest for autonomy, countries are transforming into economic fortresses, whose walls become higher and thicker with each new "package of protectionist measures." But breathing within these fortresses becomes increasingly difficult: the air of economic efficiency is replaced by the suffocating miasma of bureaucratic control and state capitalism. Consumers are offered a remarkable deal: pay more for inferior quality goods, but support the national producer. This forced "patriotic tax" becomes an unbearable burden for the least affluent segments of the population, creating a breeding ground for social tension.
Consumer Shock: When Patriotism Hits Your Wallet
Modern consumers find themselves in a psychological trap. On one hand, they're bombarded with patriotic rhetoric demanding they buy domestic products. On the other, the reality of their financial capabilities dictates a different logic. The contradiction between ideological pressure and economic rationality creates an internal conflict that everyone resolves in their own way. The wealthy can afford the luxury of patriotic consumption, the middle class balances on the edge, and the poorest segments of society simply have no choice—their standard of living decreases as an inevitable sacrifice on the altar of "sovereignty."
The irony of the situation is that for all the talk about national interests, deglobalization disproportionately impacts the most vulnerable groups in society. This creates two parallel worlds: a world of the rich, for whom inflation is an inconvenience, and a world of the poor, for whom it's a catastrophe. Economic nationalism becomes a privilege of the affluent, who can afford to buy slogans instead of goods. For everyone else, reality is much more prosaic: a declining quality of life and constant fear about tomorrow.
Technological Fragmentation: Digital Iron Curtains
Deglobalization is particularly absurd in the technological sphere. Digital development by its very nature requires global integration, exchange of ideas, and free movement of intellectual capital. Attempts to create a "sovereign internet," "national operating systems," and "domestic processors" result in enormous costs with minimal efficiency. These projects consume budget funds without creating competitive products and cement technological backwardness.
Technological protectionism is a path to the digital Middle Ages, when knowledge and technology will once again become localized and isolated. We risk returning to an era of technological fiefdoms, each developing along its own trajectory, incompatible with its neighbors. For consumers, this means not just higher prices for electronics and digital services, but fundamentally lower quality, lack of innovation, and limited functionality.
The Illusion of Control: Economic Sovereignty as a New Cult
Deglobalization is dangerous not only for its economic consequences but also for the ideological dogmatism it engenders. Economic nationalism is transforming into a kind of secular religion with its own rituals, symbols of faith, and infallible dogmas. Criticism becomes heresy, economic rationality is replaced by ideological loyalty, and real results become less important than demonstrating the correct position.
This pseudo-religion demands sacrifices—and they're made in the form of a declining standard of living, rising prices, and deteriorating quality of goods and services. Like any religion, the cult of economic sovereignty promises paradise in the future in exchange for suffering in the present. "Endure now, and tomorrow we will become a great autonomous power"—this is its creed. The problem is that this "tomorrow" keeps getting postponed, while new sacrifices are constantly demanded.
The Future of a Fragmented Economy
Where is the path of deglobalization leading us? To a world divided not just politically, but economically, technologically, and scientifically. We are moving toward an era of neo-isolationism, where the advantages of global division of labor will be sacrificed to the illusory "sovereignty." This is a world with higher prices, less choice, worse quality of goods and services, and—particularly troubling—increasing inequality both between countries and within them.
An inevitable consequence of this process will be the formation of two parallel systems: one for elites who maintain access to global markets (through privileges, connections, or simply financial capabilities), and another for ordinary citizens trapped within the boundaries of national economies with all the resulting limitations. Deglobalization promises national sovereignty but delivers social apartheid. The prelude to this is already visible in countries most actively promoting the policy of economic isolationism.
It is particularly ironic that in an era when technology theoretically allows us to overcome national borders and create a truly global society, we choose the opposite path—fragmentation and isolation. This choice is dictated not by economic rationality but by fear, distrust, and the desire of elites to strengthen control over "their" territories and populations. The very concept of economic sovereignty in the 21st century becomes an anachronism—costly, inefficient, and, ultimately, unattainable.
Cryptocurrencies as a Response to Inflationary Chaos
In this world of fragmentation and growing inflation, investors and ordinary people are looking for ways to preserve their savings from devaluation. Traditional currencies, tied to national economies, are becoming increasingly unreliable instruments of savings. Inflation is turning into a hidden tax on everyone who holds fiat money, and this tax only increases as economic nationalism strengthens.
This is where decentralized financial instruments, especially cryptocurrencies with deflationary mechanisms like DeflationCoin, enter the stage. Unlike traditional currencies, they aren't tied to national economies and aren't subject to political manipulations. Moreover, the deflationary nature of such assets is directly opposite to the inflationary tendencies of deglobalization. While governments try to erect economic walls, digital currencies create a parallel financial universe where these barriers are meaningless.
DeflationCoin, with its innovative mechanism of algorithmic deflation and integration into a diversified ecosystem of digital services, offers an alternative to traditional financial instruments. It's not just a speculative asset but a potential hedge against the inflationary chaos generated by deglobalization. In a world where politicians suggest paying more for the illusion of sovereignty, sensible investors choose instruments that protect their real purchasing power.
