“My point is not to single out the US for criticism. Today’s other major powers, including the EU, Russia, China, India, and Japan, could be criticized for what they are doing, not doing, or both. But the US is not just another country. It was the principal architect of the liberal world order and its principal backer. It was also a principal beneficiary. America’s decision to abandon the role it has played for more than seven decades thus marks a turning point. The liberal world order cannot survive on its own, because others lack either the interest or the means to sustain it. The result will be a world that is less free, less prosperous, and less peaceful, for Americans and others alike.”
USAGOLD note: Richard Haass is president of the Council on Foreign Relations. When changes this degree of magnitude are on the radar screen, and flatly laid before us by the president of the think tank at the heart of political and economic order in the United States, perhaps the ordinary investor-citizen should take note. Under what could become difficult – even volatile or chaotic – geopolitical circumstances, the preservation of wealth becomes the primary objective.
In a recent CNBC interview, JP Morgan’s Jamie Dimon warned, “If rates go up because you have inflation, that is not a plus. That is a bad thing. So far, we still have a strong economy in spite of these increasing overseas geopolitical issues bursting all over the place.” When asked to be more specific, Dimon ran off a list of concerns – “the Trump administration’s trade dispute with China, Brexit, the unwinding of bond-purchasing programs by central banks around the world, as well as flareups across Europe, the Middle East and Latin America including in Italy and Turkey.” Raising the possibility of the economy being “derailed,” Dimon concluded by saying “no one should be surprised if it happens down the road.”
Repost from 3/21/2018 with an updated USAGOLD note