I want you to think 5-10 years ahead and realize that what is good for the U.S. economy in the immediate-term is starting to become destructive for the rest of the world.

The U.S. used to export ideas of democracy, but now it is exporting populism.

It doesn’t end there, though, because the U.S. economy is now moving full steam ahead, but other nations are not reaping the rewards from this, as they have for the past 40 years.

It used to be that U.S. prosperity would trickle to the rest of the nations, but it’s not happening this time around.

I expect that in the next five years, the role that the U.S. plays in global politics, as well as in international commerce will change radically and would be marginalized.

This is not to be taken lightly, since the entire way of life that Americans currently “enjoy” relies on deficit spending, which is financed by its trading partners.

China, Japan, and Russia have already stopped increasing Treasury debt purchases for years. Russia has even become a net seller.

Again, these are tectonic plates moving in global geopolitics. Never has there been any tectonic movement, without friction. Collision results in earthquakes, volcano eruptions, and tsunamis in the natural world, and it results in conflict in the diplomatic scene.

Cyber attacks are the gravest threat to our delicate way of living.

Countries infiltrating to an enemy’s electric grid and taking it down would cause mass panic. In a matter of hours, food items, which need cooling, would be purchased, leaving stores empty. The elderly would be left vulnerable, while gas stations would be stuck without adequate reserves of fuel. Massive traffic jams would worsen the situation.

U.S. think tanks ran simulations of such an event, and concluded that millions of people would be dead in a matter of a few short days.

My purpose in writing this is to highlight that our world functions, so long as our electrical devices are intact.

Without electricity, the internet is down. Phone reception could be distorted and satellites deemed useless.

Our prosperity, as a race, is guaranteed, so long as we deal with others from the assumption that peace is better than war.

If foreign countries wage an economic war on the U.S., the first thing they will do is buy less of its debt. The result of this would be disastrous for America because we know they will not shrink defense spending, as China is increasing theirs. Washington will not touch education as well, but they will go after the entitlements, which are not set in stone.

Politically, this would make retirees to go nuts, but I can’t imagine any other route taken, at this point.

In my mind, if you are banking on Federal subsidies, you’re in for a rollercoaster nightmare.

Instead, build your own castle by becoming a valuable person, which can demand big salaries. Better yet, partner-up and launch a business of your own.

The world is ripe with opportunities in all industries. Healthcare is mediocre at best. People are complaining about every other service provider, which means that there is room for improvement in many areas.

Have in the back of your mind, at all times, the idea that you might need to brace for impact if governments don’t find creative ways to get around the friction between the rising emerging countries, who are becoming more powerful than the European continent.

This is the beginning of the Chinese / American political chess match. If you’ve ever played chess, you know that much thought is put into strategy, but the result is always the same; soldiers die and there can only be ONE winner.

Best Regards,

Lior Gantz
President, WealthResearchGroup.com