You may have never heard of Bilderberg, and that is for a good reason. The annual gathering of the world’s decision-making elite has been meeting since 1954. This last week, they held their 2018 meeting in their ongoing efforts to “foster dialogue between Europe and North America.” Though this meeting is legendary for being so secretive, they did release their typical multi-point topics of discussion list.
Conspicuously absent from this list was the subject of the tumultuous, capsizing emerging markets (like Argentina, Turkey, Indonesia, and Brazil). Yet at the same time as the elite was decamping, legendary bond guru Mohammad El- Erian (formerly of PIMCO) was shouting a warning that the next shoe to drop is the crucial emerging market of Brazil. Now is the time to protect your retirement accounts with gold in an IRA. Remember that only gold offers insurance and protection during market turbulence. This is why you need to go ahead and consider your storage options for a Gold IRA now.
What is Bilderberg Anyway and Who Are Its Elite Members?
Many of the globe’s most influential leaders and businessmen participate in the yearly gathering of the notoriously secretive Bilderberg meeting that took place last week. Here they participate in a number of forums in which they can safely talk over their most urgent concerns for the state of the world, such as the death of free trade, Russia, and the so-called “post-truth” world. Critics have vehemently denounced this organization as the public face of the “One World Order.”
Experts from finance, industry, the media, and academia met together with influential political leaders in this year’s Turin, Italy-based meeting. More than 131 movers and shakers hailing from at least 23 countries took part, according to the Bilderberg organizers.
Among the heavy hitters on the guest list were Borge Brende the World Economic Forum president, Bank of England Governor Mark Carney, Ryanair CEO Michal O’Leary, and the CEOs of French conglomerates Total, Airbus, and DeepMind. Frenchman Henri de Castries chaired the meeting and headed up the steering committee of the organization for this past year.
If it sounds like a large percentage of the names dropped above were European you are not mistaken. Roughly two-thirds of the Bilderberg participants originate from Europe while the remainder are from North America. Around one-fourth of the attendees hail from government and politics while the balance are from business, the media, finance, and academia. Discretion at the meeting is demanded and expected. To this effect the meeting organizers claim that:
“The conference is a forum for informal discussions about major issues facing the world. The meetings are held under the Chatham House Rule, which states that participants are free to use the information received, but neither the identity nor the affiliation of the speaker(s) nor any other participant may be revealed… The participants are not bound by the convention of their office or by pre-agreed positions.”
Despite the secrecy of the meetings, they still publish a discussion topic list just before it opens. This provides an agenda of what the movers and shakers of the world consider to be the most critical issues driving world events these days. The topics for the year 2018 were:
1. Populism in Europe
2. The inequality challenge
3. The future of work
4. Artificial intelligence
5. The U.S. before midterms
6. Free trade
7. U.S. world leadership
9. Quantum computing
10. Saudi Arabia and Iran
11. The “post-truth” world
12. Current events
They have been pursuing several of these topics (such as persistent inequality, populism in Europe, problems with Russia, and arch-rivalry between Iran and Saudi Arabia) for years. Some of the other ones like quantum computing and artificial intelligence’s rise to prominence are new this year. Yet issues surrounding President Donald Trump and his administration have arisen because the new way of practicing populist politics have upended the traditional policies of yesteryear.
You can be sure that the Bilderberg elite are most disturbed by this continuing and developing political reality on the ground. They are also tackling the new problem in the media of social media becoming a tool to shape elections by indiscriminately blurring the lines of fiction and fact. This is the “post-truth world” that the Bildergroup spent a great amount of time on last week.
Conspicuously Absent from their Agenda Were the Troubled Emerging Markets
Yet with all of these worthy dozen key topics of discussion, the elites forgot completely about the critically melting down emerging markets on their agenda for 2018. Argentina imploded first, followed later by Turkey. Brazil may be the next victim on the list of dominoes to fall. This is the warning from one of the world’s leading financial authorities issued just last week.
Legendary bond trader Mohamed El-Erian suggested precisely that Brazil will be next even as the global elite were sitting down. The Brazilian currency the real suffered huge losses last Wednesday despite the fact that the national central bank agreed to issue another $1.5 billion in additional swap contracts to help it hold its head above water. This has left policy makers in Brazil in a “tricky position — and there’s little room for error,” the current Chief Economic Adviser to Allianz El-Erian warned on Twitter.
Brazil is only the latest in a long line of important economies to go down the drain in the quagmire of the rising U.S. dollar and global trade disputes that have become the order of the day. The Brazilian central bank has followed in the footsteps of central bankers from Argentina, India, Turkey, and Indonesia. Both Indonesia and India managed to claw back some of their currencies’ losses, yet the national currencies of Argentina, Turkey, and most recently Brazil are now existing in dangerous places to be following eye watering selloffs in 2018.
This chart shows the price of gold measured in a basket of EM currencies. Note that gold made an all-time high priced in these currencies in the last year:
Worst of all, El- Erian was not late to crash the party of this important emerging market asset class. In May he reiterated a warning from Harvard University-based Economist Carmen Reinhart that international risks to markets were growing rapidly with:
“Higher oil prices plus rising interest rates plus appreciating dollar, the trifecta that continues in #markets today (albeit not in an extreme fashion), tends to test the ‘self insurance’ of several #EMergingMarkets, together with their economic policy responsiveness.”
El-Erian is actually warning not so subtly about a major international market selloff potentially heading to Brazil’s financial and stock markets with this. Argentina, Indonesia, and even Turkey’s markets are not so critical as are Brazil’s to the rest of the world. It is no coincidence that Brazil is prominently featured as the first country in the list of the acronym BRICKS (Brazil, Russia, India, China, Korea, and South Africa).
Gold Is Your Retirement Portfolio’s Last Hope for a Parachute Off the Tanking Airplane
The interconnected international markets are the tanking plane on which your retirement portfolio is stuck. The parachute which can save your hard-earned money and account values is the world’s best historical safe haven known as gold. Now you know the latest compelling reasons for why you need to invest in gold in your IRA. It is time to contemplate what gold goes in an IRA today. Remember that doing nothing or delaying are also two decisions.
You need to embrace the same value protection asset (of the yellow metal) that people from all of history have counted on to protect their purchasing power against all of the geopolitical and economic chaos evident in the world. Remember that a $20 gold piece one ounce gold coin a hundred years ago bought a fine suit. Today the same coin buys several of the best-quality, name-brand suits in the world. Think about how to invest in gold today.