Weapons of Global Financial Warfare
The establishment financial press denies it. Experts laugh at the idea. Few people think about it.
But…There are a lot of weapons aimed like arrows at the heart of the American economy.
For example, the conventional wisdom is that the Saudi’s will never use their oil as a weapon against the West or the United States. Never mind that they did just that in the 1973 oil embargo.
On the heels of some tough talk in Washington about consequences for the mysterious disappearance and apparent murder of Saudi dissident and Washington Post columnist Jamal Khashoggi, the head of the Saudi government’s Al Arabiya new network responded with tough talk of his own. “If the price of oil reaching $80 angered President Trump, no one should rule out the price jumping to $100, or $200, or even double that figure.”
Such an event would give rise to a dollar crisis, as did the oil price shocks in the 1970s. The event contributed an explosion in gold prices.
The same head-in-the-sand posture applies to conventional thinking about China using its substantial dollar reserves as a weapon in the trade war. China would never do such a thing, we have been assured for years by presidents, treasury officials, and the New York Times alike.
But dollar disinvestment by China is a real threat. For years China has advocated the replacement of the dollar world currency reserve system.
And it has been aggressively acquiring gold through both visible and obscure channels.
Dollar dumping by China would be a global-scale event with consequences for the dollar that would rattle the world’s financial markets. But trade wars often give rise to such mega-reactions.
It is events like these – an oil crisis or a dollar crisis – that we advise our clients to prepare for. We think world events are becoming less stable, that financial turmoil is becoming more certain.
If you agree, you will want to protect yourself and your family with gold. Please speak to your RME broker at once.
Do not delay.
As always, I encourage you to speak with your broker at RME for more market updates. Expert brokers are available Monday-Friday from 9 AM- 5 PM or by special appointment after hours. Call today at 602-955-6500 or toll-free at 877-354-4040.