Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
RAMPANT MONEY PRINTING INFLATION BIG PICTURE! - 16th Jun 21
The Federal Reserve and Inflation - 16th Jun 21
Inflation Soars 5%! Will Gold Skyrocket? - 16th Jun 21
Stock Market Sentiment Speaks: Inflation Is For Fools - 16th Jun 21
Four News Events That Could Drive Gold Bullion Demand - 16th Jun 21
5 ways that crypto is changing the face of online casinos - 16th Jun 21
Transitory Inflation Debate - 15th Jun 21
USDX: The Cleanest Shirt Among the Dirty Laundry - 15th Jun 21
Inflation and Stock Market SPX Record Highs. PPI, FOMC Meeting in Focus - 15th Jun 21
Stock Market SPX 4310 Right Around the Corner! - 15th Jun 21
AI Stocks Strength vs Weakness - Why Selling Google or Facebook is a Big Mistake! - 14th Jun 21
The Bitcoin Crime Wave Hits - 14th Jun 21
Gold Time for Consolidation and Lower Volatility - 14th Jun 21
More Banks & Investors Are NOT Believing Fed Propaganda - 14th Jun 21
Market Inflation Bets – Squaring or Not - 14th Jun 21
Is Gold Really an Inflation Hedge? - 14th Jun 21
The FED Holds the Market. How Long Will It Last? - 14th Jun 21
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 21
Why Tether USDT, Stable Scam Coins Could COLLAPSE the Crypto Markets - Black Swan 2021 - 6th Jun 21
Stock Market: 4 Tips for Investing in Gold - 6th Jun 21
Apple (AAPL) Summer Correction Stock Trend Analysis - 5th Jun 21
Stock Market Sentiment Speaks: I 'Believe' We Rally Into A June Swoon - 5th Jun 21
Stock Market Russell 2000 After Reaching A Trend Channel High Flags Out - 5th Jun 21
Money Is Cheap, Own Gold - 5th Jun 21
Bitcoin and Ravencoin Cryptos CRASH Bear Market Buying Levels Price Targets - 4th Jun 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

George Soros Warns of “Third World War”

Politics / GeoPolitics May 28, 2015 - 01:58 PM GMT

By: GoldCore

Politics

- War “inevitable” if U.S. meddles in South China Sea – Global Times
- Senior NATO official warns that “we’ll probably be at war this summer”
- Soros warns of ‘New World Order’ and war with China
- Soros warns could be “on the threshold of a Third World War”
- Many countries in Pacific lay claim to strategically important and mineral rich islands
- Tensions between U.S. and China and Russia escalating
- War would have many facets including cyber-warfare and currency wars


The ‘war’ word is being increasingly heard internationally as the U.S., EU, Russia and China adopt provocative postures over various disputes including Ukraine and in the Pacific.

War with the U.S. is “inevitable” if the U.S. involves itself in the dispute which has arisen over the Spratley Islands in the South China Sea according to China’s state controlled newspaper the Global Times.

“If the United States’ bottom line is that China is to halt activities, then a US-China war is inevitable in the South China Sea” according to an editorial in the popular government paper.

China has since last year been taking over a greater part of the long-disputed Spratleys and has begun land reclamation projects to make the archipelago a part of its sovereign territory. The move angered many of its neighbours like the Philippines and Vietnam who also claim the islands.

Geographically, the archipelago is close to the Philippines, Malaysia, Brunei and the Philippines. However, China has maintained a presence in the region on and off for centuries which is the basis for its claim.

The islands are believed to be located over large reserves of undersea oil and are also strategically vital as a shipping corridor through which vast amounts of goods are shipped. The islands also provide a platform from which China could project military power into the afore-mentioned countries.

Tensions between the U.S. and China, while low-key in other regards, have been escalating with China responding angrily to U.S. reconnaissance flights in the region.

The Global Times suggests that China is not daunted by a military conflict with the U.S. – “We do not  want a military conflict with the United States, but if it were to come, we have to accept it.”

Indeed, The Wall Street Journal has shown that in terms of conventional warfare China is the undisputed heavyweight in the region with a massive airforce and navy – see infographic.

The Chinese are utterly scathing of U.S. “meddling” in the South China Sea, thousands of miles from its own borders and clearly views itself as the new hegemon in the region. This seemingly innocuous dispute has the potential to rapidly spiral out of control.

There are also simmering tensions between China and Japan.

Both have long held claims to the Japanese-administered islands — known as Diaoyu in China and Senkaku in Japan. Tensions have intensified in recent months, and observers fear that a political or military misstep could rapidly escalate.

In late 2013, China announced an air defense zone over the East China Sea, encompassing the disputed islands. The new policy would require airlines to give Chinese authorities their flight plans before entering the airspace designated by China.

Japan’s Prime Minister Shinzo Abe said the new policy “escalates the situation and could lead to an unexpected occurrence of accidents in the airspace.” The United States called China’s announcement “unnecessarily inflammatory.”

Military posturing is quietly reaching new extremes in Europe, the Mediterranean and the South China Sea and the provocative bluster is reaching new heights.

Separately, it is believed that a senior NATO official has warned that “we’ll probably be at war this summer.”

Former NSA intelligence analyst John Schindler has said that a senior NATO official told him that the world would “probably be at war” sometime this summer. Although the tweet was retweeted over 1,000 times, the comment did not get any media coverage.

Finally, the ‘trumpets of war’ became a triumvirate when one of the most powerful men in the world today – George Soros - warned that we “are on the threshold of a Third World War.”

As China’s economy slows down, this could trigger a global military conflict as might other tensions in the region, Soros warned.

“If the transition runs into roadblocks, then there is a chance, or likelihood in fact, the leadership would foster some external conflict to keep the country united and maintain itself in power,” Soros said in remarks at a Bretton Woods conference at the World Bank.

“If there is a military conflict between China and an alley of the U.S., like Japan, it is not an exaggeration to say we could be on the threshold of a Third World War. It could spread to the Middle East, then Europe and Africa.”

Since Soros made his remarks, tensions between China and the U.S. have further escalated. China has released a new white paper which threatens military action unless the U.S. stops its current actions in the South China Sea.

If China’s efforts to transition to a domestic-demand led economy from an export engine falter, there is a “likelihood” that China’s rulers would foster an external conflict to keep the country together and hold on to power.

To avoid this scenario, Soros called on the U.S. to make a “major concession” and allow China’s currency to join the International Monetary Fund’s basket of currencies. This would make the yuan a potential rival to the dollar as a global reserve currency. In return, China would have to make similar major concessions to reform its economy, such as accepting the rule of law, Soros said.

An agreement along these lines will be difficult to achieve, Soros said, but the alternative is a brutal war.

“Without it, there is a real danger that China will align itself with Russia politically and militarily, and then the threat of third world war becomes real, so it is worth trying.”

The warning comes as Europe engages in some of its biggest ever war games — right on Russia’s front door. It’s a deliberate ploy, intended to warn regarding Ukraine but could be seen by Russia as a provocation.

War, if it comes, will be multi faceted and poses risks to markets.  Modern warfare would involve many facets including cyber warfare and currency wars.

Geopolitical risk continues to be seriously underestimated by investors and will likely impact markets in the coming months.

Must Read Guide: 7 Key Bullion Storage Must Haves

MARKET UPDATE

Today’s  AM LBMA Gold Price was USD 1,189.45, EUR 1,087.08 and GBP 775.94 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,187.85, EUR 1,088.07 and GBP 770.64 per ounce.

Gold fell $0.20 or 0.2 percent yesterday to $1,187.50 an ounce. Silver slipped $0.05 or 0.3 percent to $16.69 an ounce.

Gold in Singapore for immediate delivery was steady at $1,188.55 an ounce while gold in Zurich also flatlined in lack lustre directionless trading as gold continues to be capped below $1,200 per ounce.

Gold bullion seems to be taking trading direction from the U.S. dollar with no major economic data on the horizon.  The dollar has continued its strength since Fed Chair Janet Yellen once again suggested last week that the U.S. Fed is set to raise interest rates later this year.

Although safe haven demand has waned for the yellow metal, the Greek debt crisis is still not solved and may bolster bullion demand once again. June 5th is Greece’s next payment due to the IMF.

European markets are mostly lower this morning although the FTSE is marginally higher, as talks on Greece continue to bear little fruit.

Yesterday, the new government met its international creditors in Brussels to discuss a possible reform deal to unlock its last tranche of bailout money. It desperately needs this money to make repayments to the IMF and ECB over the coming months.

While the Greek government hinted a deal was on the way, saying it was in the process of drafting an agreement, others were less optimistic. Hawkish German Finance Minister Wolfgang Schaeuble said he was “surprised” by Greece’s positive outlook, while European Commission Vice President Valdis Dombrovskis said the two sides still had “some way to go”.

Greece is one of the main topics on the agenda at the G7 meeting of finance ministers and central bank chiefs this week and there could come interesting developments from this.

In late morning European trading gold is up 0.07 percent at $1,188.35 an ounce. Silver is off 0.07 percent at $16.67 an ounce, while platinum is up 0.17 percent at $1,121.78 an ounce.

This update can be found on the GoldCore blog here.

Mark O'Byrne

Director

IRL
63
FITZWILLIAM SQUARE
DUBLIN 2

E info@goldcore.com

UK
NO. 1 CORNHILL
LONDON 2
EC3V 3ND

IRL +353 (0)1 632 5010
UK +44 (0)203 086 9200
US +1 (302)635 1160

W www.goldcore.com

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

GoldCore Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in