Sleepwalking toward accidental conflict

Project Syndicate/Stephen S. Roach/2-27-2023

“With war raging in Ukraine and a cold-war mentality gripping the United States and China, there can be no mistaking the historical parallels [with World War I]. The world is simmering with conflict and resentment. All that is missing is a triggering event. With tensions in Taiwan, the South China Sea, and Ukraine, there are plenty of possible sparks to worry about.”

USAGOLD note: Roach says the three great powers (America, China and Russia) are “afflicted by a profound sense of historical amnesia.” From an investment standpoint, the main difficulty is assessing how the economy will be affected and how to position one’s portfolio to weather a geopolitical meltdown. Gold has always been a good thing to own in wartime.