Hullabaloo over President Trump’s policies, his nationalist stance and fears over potential trade conflicts may have turned some investors’ focus away from numerous geopolitical hotspots.
But not mine.
In fact, these hotspots are going to get worse before they get better … and they play right into my larger War Cycle research.
Take for example the latest – and frankly stealthy developments – growing from the budding romance between China and the Philippines.
No question this duo has experienced their share of conflict – but that’s changing. Especially as China contemplates its military ambitions and the Philippines’ strategic location in the South China Sea. Plus, it’s no secret that the Philippines’ populist President Rodrigo Duterte is open to a new relationship with China.
Let’s Make a Deal
In late January, China made good on an initial $3.7 billion investment (part of a $24 billion deal) to aid the Philippines in numerous infrastructure projects. The investment represents a massive 75% of total foreign investment into the Philippines throughout 2015 ($4.9 billion).
And you can be certain this investment is not a philanthropic exercise to help their neighbor.
From my lens, China’s maneuvering is to gain naval access beyond the first island chain and ultimately station military assets at a strategic location in the Pacific.
The U.S. has a defense treaty with the Philippines, allowing U.S. warships to move freely from the Pacific to Middle East war zones in return for U.S. defense.
But that’s in jeopardy after the U.S. didn’t adequately come to the Philippines’ defense when China took control of Scarborough Shoal and other islands. And that’s territory that China is now building runways and stationing missile batteries on.
Meanwhile, China’s late 2016 seizure of an American underwater surveillance drone in the region underscores the tense and volatile relationship.
The conflict is further aggravated by comments from newly appointed U.S. Secretary of State Rex Tillerson regarding tensions in the South China Sea: “We’re going to have to send China a clear signal that … island-building stops and access to those islands is not going to be allowed.”
Wow. Talk about a South Pacific powder keg.
What does this mean to you?
This plays into the growing dissent in the world that I’ve been screaming about for years. One that my extensive war cycle research says will turn violently higher, heading all the way up into the year 2020/21 before any lull is found.
The war cycles are real. They are documented and scientifically proven and based on over 14,000 wars spanning 5,000 years of civilization.
And these war cycles are just one component in an intersection of multiple cycles I call the Edelson Wave that are now converging into the most powerful tidal-wave of economic and political upheaval in more than eighty years.
It’s going to impact markets in ways you simply must prepare for. And that’s exactly what subscribers to the Real Wealth Report have entrusted me to do: Preserve and growth wealth.