This past week saw U.S. President Trump finishing up his first overseas trip through the Middle East, Israel, and Europe finally culminating in the critically important NATO and G7 meetings. The G7 meeting revealed just how far apart the U.S. administration is from the interests and policies of a now more unified than ever European Union. German Premier Angela Merkel has signalled that Europe will now go its own way separate from the United States.
Meanwhile in Asia, the North Koreans test fired two more missiles in a highly provocative act sure to bring a strong response from the United States and key ally Japan. President Trump revealed in a taped phone conversation with Philippine President Duterte that the United States has moved two nuclear submarines off the Korean Peninsula in what has become an enormous display of American military power ready for a potential full-scale armed conflict with North Korea.
In the United Kingdom, with only 10 days to go till the snap Parliamentary general election, British Prime Minister Theresa May has watched in dismay and consternation as her much-vaunted historic lead over rival Labour Party has continued to erode and dwindle. Polls now show her down to even low double digit and single digit leads in what promises to be a potentially much closer election than she had hoped in her bid to shore up her Parliamentary majority ahead of Brexit negotiations.
You only have to look at the one crisis after another in the geopolitical world these days to understand the real reasons why you need gold in your IRA. Gold will protect your portfolio in times of financial crisis. As we are only one match away from a geopolitical powder keg explosion in the world, it’s about time to convince your financial advisor on gold in your retirement portfolio.
President Trump’s First G7 Meeting in Sicily Shatters the Global Consensus
American President Donald Trump finished up his first international tour of the Middle East and Europe by attending the NATO and G7 meetings in Brussels and Sicily in the second half of this past week. While his first part of the trip had been a success with both the Saudis and Israelis receiving the President enthusiastically, the European leaders were far less congenial.
After the events had passed, long-time German Chancellor Angela Merkel began to speak out and reveal the now-hardening positions of the “iron lady” of the European Union. Her warnings that the United States and Europe are drifting farther apart were ominous. Merkel spoke at a campaign rally in Munich on Sunday and openly and clearly shared her new world view after the conclusion of the President’s nine day trip.
President Trump had bullied the NATO allies for spending less than their commitments on defense, positioned the United States on the brink of withdrawing from the Paris climate accord, and called the legendary German trade surplus with the rest of the world and America “very bad.”
Photo Courtesy of BCNN1
Merkel responded by claiming that the longstanding dependable relationships established with so much labor and care after the Second World War “are to some extent over,” with:
“The times when we could fully rely on others are to some extent over — I experienced that in the last few days. We Europeans must really take our destiny into our own hands. Of course we need to have friendly relations with the U.S. and with the U.K. and with other neighbors, including Russia. Even so, we have to fight for our own future ourselves.”
The European leaders were especially offended by their inability to convince President Trump to commit to keeping the Paris climate treaty while at the G7 weekend meeting. This development Angela Merkel labelled as “very unsatisfactory.” These comments signal a widening split in the long-time rock solid Trans-Atlantic partnership that has defined much of the successful world relations since the end of World War II.
All of this happens against the backdrop of the upcoming German national elections slated for September 24th. Merkel has managed to rebound significantly in the polls following three big state election wins for her party the Christian Democratic Union that began in March.
She and her allies the CSU are together ahead of the rival Social Democrats by 13 percentage points, per a Saturday published Emnid poll. As recently as March, Merkel’s alliance had been at a statistical tie with her rival Schulz of the SPD party as Germans respond angrily to Merkel’s troubled immigration policies.
Japan and U.S. Pledge to Deter Repeated Aggressive North Korean Missile Launches
This past week and into the weekend, Kim Jong Un’s rogue regime test-fired another several dangerous ballistic missiles in a blatant further defiance of the international community. Prime Minister Shinzo Abe of Japan was among the first to condemn this latest launch on Monday as he vowed action from many nations to deter the continuous violations from North Korea, with:
“As we agreed at the recent G7, the issue of North Korea is a top priority for the international community. Working with the United States, we will take specific action to deter North Korea.”
While he would not specify what these effective actions the U.S. and its Asian allies will take in concert are, Abe did promise he would remain in close contact with South Korea and the other world nations on the issue. He pledged to do the utmost possible to protect the Japanese people.
Meanwhile, American President Trump informed the Philippine President Duterte in a taped call from April 29th that the United States has dispatched two nuclear submarines to the Korean Peninsular waters, with:
There’s “a lot of firepower over there. We have two submarines the best in the world. We have two nuclear submarines, not that we want to use them at all.”
Trump reiterated that a “major, major conflict” could occur with North Korea courtesy of its missile and nuclear programs. All options may be on the table, but he would rather resolve the smouldering crisis through diplomacy if possible.
The U.S. threats of a show of force come as North Korea continues in its so-far unstoppable march towards achieving its stated objective to place a nuclear warhead atop a ballistic missile proven in ability to reach the United States’ mainland in order to counter what Kim Jong Un calls U.S. aggression.
British PM Theresa May Slips in the U.K. National Polls With Elections Only Days Away
Britain’s Prime Minister Theresa May originally called the looming June 8th elections in Parliament as she felt confident she could win a Parliamentary majority of epic proportions. While the early British election polls indicated this was likely, the chances have been decreasing dangerously in recent days and weeks, as this graphic shows:
The commanding lead the Conservatives enjoyed only in early May of upwards of 24 percentage points have dropped to as little as even single digits over the rival Labour Party now. Look at the lead summary of the various British election polls just published:
- ORB poll: May’s lead halves to 6 pct points
- YouGov: May’s lead slips to 7 pct points from 9
- Opinium: May’s lead shrinks to 10 pct points from 13
- ComRes: May’s lead drops to 12 pct points from 18
May’s initial calling for the snap election took British and world politicians and financial markets by surprise back on April 18th. At the time, there were suggestions she might imitate Margaret Thatcher’s greatest electoral victory from 1983 and command a 144 seat majority. Other analysts said she even threatened Tony Blair’s record from 1997 of a 179 seat Labour majority.
Yet May began to run into trouble at the polls when she laid out her Conservative Party manifesto plans to force some of the elderly in the U.K. to bear a higher share of their own care costs. Labour seized on this so-called “dementia tax” effectively. Since then, May’s Opinium lead has fallen from 19 percentage points back on April 19th to 13 points a week ago, to only 10 points as of their May 23-24 online survey.
The global geopolitical instability continues and only seems to grow worse by the week lately. Time to learn why a gold IRA. In the increasingly chaotic world in which you live now, reliable gold storage is your first, last, best, and ultimately only line of defense for your retirement assets.