I am Ron Paul and I want to talk to you about the conflicts going on in North Korea the effects it could have on your retirement.
While much of the world is focusing on the Middle East in the aftermath of alleged gas attacks and the United States government’s response to them, the Trump Administration continues to speak tough words against the North Korean regime. Unfortunately, the bellicose rhetoric could exacerbate tensions on the Korean peninsula. Antagonizing a potentially unstable dictator could result in an armed conflict that doesn’t benefit anyone.
Some of the language being used almost makes it seem as though the US government is seriously considering a first strike against North Korea or an assassination attempt against Kim Jong Un. If that were to happen, it would almost certainly bring China into the conflict, pitting the world’s two largest economies against each other. The economic consequences of that would be dire.
War With China Would Hurt the World Economy
China has no desire to see a unified, American-allied Korea right on its border. North Korea, while occasionally annoying its larger neighbor, serves as a useful buffer. If the United States and North Korea were to go to war, China would almost certainly intervene to ensure that its interests were defended. It happened during the Korean War in the 1950s, when Chinese forces pushed unprepared United Nations forces out of North Korea and deep into South Korea, and it would very likely happen again in the event of another war.
But the economic consequences of a war between the United States and China would be the most harmful. Trade between the two countries would grind to a halt, depriving each country of each other’s goods and services. Given how reliant Americans have become on cheap Chinese goods, this would result in a major increase to the cost of living. Retirees and those living on fixed incomes would be particularly hurt by these price increases.
Stock markets would lose much of their value, as the uncertainties of war would put a damper on business investment and production. In a worst-case scenario, national directives might be put in place to mandate production of certain defense articles. Price controls, rationing, all of the tools used during World War II would not be out of the question either.
Effects on Retirement Planning
The effects of such a war would be deeply felt by those seeking to save for the future, those hoping for a happy and uneventful retirement. Traditional investment assets would provide little opportunity for building up a retirement nest egg, as they would lose much of their value. And the longer any conflict lasted, the longer the missed opportunities to build wealth would be.
The only real way to protect assets against such a scenario is to invest at least a portion of your portfolio in gold and silver. Gold and silver have always served as hedges and safe havens to protect wealth in times of war and economic crisis. Because of their safe haven status, they even gain value during times of war and conflict. A portfolio containing gold and silver would be well-positioned to protect against the risks posed by the possibility of war.
Nobody thought World War I would ever occur, as nearly a half century of peace, trade, and economic growth had made Europe far wealthier and more prosperous than it ever had been. But all it took was one assassination in a far-flung province to set the wheels in motion. The same thing could happen today, with events unfolding and accelerating before most people would be able to react to them. Don’t let yourself be caught flat-footed without a plan to protect your assets. Diversify into gold and silver while there’s still time.