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Weekly Touchpoint – Kissinger on Trade War Consequences

Posted By Isaac Nuriani |

 

It’s no secret the U.S. and China have political ideologies in direct opposition to one another. The two countries’ geopolitical rivalry is every bit as intense as their economic rivalry, and there is increased talk that an unresolved trade war could lead to an actual war between the two nations. Recently, one of the world’s most famous diplomatic figures suggested a “catastrophic outcome” is lurking if the U.S. and China can’t patch up their trade differences. This week’s important news for protection-minded retirement savers begins with more about this growing concern over the potential consequences of an “endless” trade war and ends with information about how precious metals may be a way to protect yourself from the fallout.

  • There have been rumblings lately that the failure of the U.S. and China to bring the trade war to an end poses dire consequences many casual observers aren’t considering. Recently, Taiwan’s Foreign Affairs Minister suggested trade-war fallout affecting China’s economy threatens peace in the Far East. Now, Henry Kissinger, the former U.S. Secretary of State and national security adviser under Presidents Richard Nixon and Gerald Ford, is issuing ominous warnings of his own about the possible consequences of continued trade discord between Washington and Beijing. During an appearance at a recent National Committee on U.S. China Relations event in New York City, the 96-year-old Kissinger declared an unresolved trade war could lead to a “catastrophic outcome,” one even “worse than the world wars that ruined European civilization.” MarketWatch has more.
  • The feeble condition of many of America’s private and public pension funds has been on the radar screens of worried observers for some time. The likelihood is increasing that many of these retirement systems will crash and burn under the weight of old commitments that can no longer be kept. American taxpayers are increasingly concerned they will be asked to step in and backstop these programs through more massive national debt increases. Wirepoints offers a closer look at one looming pension disaster in the state of Illinois, where the pension shortfall has worsened over the last 10 years by 75% even though key market indexes are up over 200%.
  • Russia has been pulling out the stops in the last several years to dump the dollar and move out from under the considerable weight of America’s economic thumb. Other nations, including China, have been seeking the same. Now we learn from ZeroHedge that Russia’s push is part of a greater overall effort by the world’s leading emerging economies – the BRICS – to work around the dollar. The so-called BRICS nations are Brazil, Russia, India, China and South Africa. Together, they represent over 40% of the world’s population as well as more than 30% of its GDP. According to Kirill Dmitriev, head of the Russian Direct Investment Fund (RDIF), BRICS are working in unison to establish not only a new international payment system for their benefit but also a “common cryptocurrency” they could use to steer clear of the dollar.
  • When’s the last time you moved? As a culture historically, Americans are a mobile, even restless, people. We tend to keep our eyes peeled for the next great opportunity wherever it might be. But that historical mobility is now in the midst of a significant decline. According to recently published data, Americans in every region of the country are spending a lot longer in their homes than they used to – over 60% longer than they did just nine years ago. As one popular financial site tells us, this trend is the latest telling consequence of an economy on far shakier ground than select positive data would lead us to believe. For more information about America’s new and disturbing “home confinement” program, along with information about which asset you can use to help break out of economic prison, read Augusta’s latest blog article here.

How bad can things be if the value of your 401(k) or IRA continues moving higher, right? Actually, it still can be pretty bad behind the scenes. Experts lately have agreed financial markets are still climbing only because the Fed continues to juice them with new money. This week’s Touchpoint highlighted several of a growing number of threats that could send the global economy into recession or even a full-blown financial crisis. Are you a retirement saver who can look past the headlines shouting about new market records and see the many signs that trouble is lurking? If so, you may be ready to have a conversation about protecting your portfolio with precious metals.

Call Augusta Precious Metals at 800-700-1008.

 

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