If you’ve been watching the news over the last few weeks, you might be getting a sense that the geopolitical environment is becoming more fragile.
In fact, it is. What began as uncertain is now becoming somewhat perilous and hostile.
Sadly, many Americans have grown accustomed to this environment as the “new normal.”
But there shouldn’t be anything normal about credible threats and potential conflicts, hot or cold.
If you are a retiree, you should be very concerned, as these events--all of which are beyond your control--pose a serious threat to your wealth and lifestyle.
Over the last year, we reported on the threat of de-dollarization (whose opening shots rang out during the successful launch of China’s PetroYuan futures, having traded nearly $4 billion in its opening session).
We also reported on the potential results of a US/China trade war. If you hold stocks, you know how that’s going...and we’re still in the opening stages of this conflict.
Now the Asia-Pacific threat has escalated: China and North Korea have strategically combined their forces, preparing a unified front for any potential conflict with the US, whether economic, political, or military.
President Xi Jinping told Kim during talks that China's "strategic choice" to back North Korea will "remain unchanged under any circumstances.”
Let’s get to the point: Both countries are playing a “long game” against the US, and landing a crushing blow on as many fronts as possible--be it political, economic, or military--may be their goal.
Despite this move, however, there still may be a chance for peaceful negotiations, as the Trump and Kim summit talks are scheduled to take place sometime in the near future.
But the China/North Korea combination puts the US in a weaker position: if the talks fail, North Korea, no longer entirely isolated, now has its own “trump card” in the form of America’s most powerful opponent.
With China’s backing, North Korea is also in a position to undermine US sanctions.
It may also embolden North Korea to continue with its nuclear development.
And with China's support, North Korea has virtually multiplied its military strength: a military attack on North Korea might be met by a military response from China; a scenario that's likely to end poorly for the US, in both lives and cost.
Ultimately, the China/North Korea alliance potentially renders President Trump’s threats a “paper tiger.”
If the Trump and Kim talks work out, then the consequences might be tepidly favorable.
After all, China is probably not very enthusiastic about the idea of having a nuclearized “rogue state” at its borders. But China also doesn’t want the US or South Korea at its borders.
Brushing all of this aside, however, the main point is that China has a much larger goal: it aims to become the world’s most dominant superpower.
This can only come by bringing about the eclipse of American dominance.
And if the summit does not work out, then all bets are off.
If you are a retiree, we urge that you protect your wealth.
A full-on trade war will further weaken the dollar and boost inflation. A national emergency may trigger the G20-approved “Adequacy of Loss…” asset seizures. And the national debt is going nowhere but higher, further degrading the value of your dollar and dollar-based assets.
There is only one way to protect yourself from this ailing system...and it’s to hold sound money outside of the system.
Don’t let geopolitical risk wipe out everything you’ve spent your entire life building!