Is the Cold War Warming?

by | Aug 4, 2021 | Archives

Is the cold war returning, even more?

Last week saw the 107th anniversary of a day that has had more impact in our lives than almost any other.  July 28, 1914, was the day Austria-Hungary declared war on Serbia, the beginning of World War I.

The inequity at the end of that conflict planted the seeds for WWII and the end of that bloodshed led to a cold war between the US and Soviet Union.  Those of us growing up after the war lived with a certain amount of dread. We were told we could be evaporated at just about any time.

cold war

I recall having drills in grade school.  As a six year old, I was taught when the air raid siren howled to crawl beneath my desk.

The worries were fruitless.  Here we are almost 70 years later… no atomic bombings.

Yet there  are concerns and they are growing.  Countries with nuclear weapons continue to spend a lot on nuclear modernization programs.  Increased technology in space and cyber realms, in hypersonic missiles, and in missile defenses has increased the threat.  There are well-documented examples of frighteningly close accidental nuclear war.

Increased use of weapons-delivery platforms capable of carrying either nuclear or conventional warheads (is that a nuke coming or not?) and hypersonic missiles (wow that is coming fast, is it a nuke?), increase the risks of escalating errors.

Now China appears to be increasing its nuclear act.  An Economist article “China is rapidly building new nuclear missile silos” (1) gives us a warning.

The article says: For decades, China has hewed to a policy of “minimum deterrence”, involving the maintenance of a relatively small arsenal that would allow it to hit back at aggressors but not wage an elaborate nuclear war. The Pentagon reckons the country has 200 or so operational warheads—about the same number as Britain or France—and only 100 or so ICBMs. (America and Russia have nearly 12,000 warheads between them.)  China is rapidly building new nuclear-missile silos. Their purpose is unclear, but the Americans are worried

One line of thought is that the new silos allow the Chinese to move their missiles around so no one knows exactly where they are.  Or maybe they are building many more missiles.

Whatever China’s goal, satellite pictures suggest that this is the “most extensive” building of silos since the construction of them by America and the Soviet Union during the cold war.

economist

Image of Chinese silos from the Economist

This comes at a time when governments of the world should be spending money on dealing with (rather than creating) existential threats to mankind, such as pandemics, global warming, disruptions to supply chains and technological disruption.

Yet we are stuck with the reality, if one nation has missiles and nukes, others have to have them too.

Winston Churchill summarized the problem when he wrote:  If the Almighty were to rebuild the world and asked me for advice, I would have English Channels round every country. And the atmosphere would be such that anything which attempted to fly would be set on fire.

All the really big problems today are global.  They cannot be solved by one nation.  Everyone has to cooperate.  Pandemics and climate change are more than enough to grapple with but there are even greater risks caused by technological disruption shifting societies and economies so quickly, the existing structures cannot keep up.

We are living in a global world but the hierarchies that must exist to support humanity are ruled by hundreds of parochial histories and differing cultures. Technologically and economically, there are no independent countries left in the world, but the system of a myriad of individual governments has not caught up with this fact.

Global cooperation is required.  Nationalism will not be able to solve mankind’s bigger problems.

I do not see this cooperation happening in any big way soon and that’s why I feel  there is great opportunity in small towns.  Big cities are at greatest risk.

Hopefully I’m as wrong as those who had me hide under my desk at school 70 years ago.  That’s why it pays to be a Pruppie, one who takes advantage of all the new technology that we have at our fingertips, but is independent of it.  Just in case our fears our realized, we are in  a good position to survive and prosper.

Gary

 

Big Opportunity in Small Towns

Here’s why there big opportunity in small towns,

In 2017, my report “Live Anywhere – Earn Everywhere” made several outrageous predictions about investing and living in Smalltown USA.  Readers of that report, who used this information, are cashing in with big profits now, four years after the fact.

It’s not too late!

Three recent Wall Street Journal front page stories show how profits have been made from predictions in my 2017 report “Live Anywhere – Earn Everywhere” .

That report predicted the upcoming inflation and suggested investments that would survive change and combat the loss of the dollar’s purchasing power.

One Wall Street Journal confirms the inflationary problem in its article “Higher Prices Leave Consumers Feeling the Pinch” (1).

wsj.com

The article points out how Janet Yellen was trying to walk back her comments admitting inflation.  The government will do just about anything to stop interest rates from rising and to hold back panic over the purchasing power of the US dollar.

This front page article sums up the situation succinctly:

Price tags on consumer goods from processed meat to dishwashing products have risen by double-digit percentages from a year ago, according to NielsenIQ.

Whirlpool Corp. WHR -2.01% freezers and dishwashers and Scotts Miracle-Gro Co. SMG -0.56% lawn and garden products are also getting costlier, the companies say. Some consumers are feeling stretched.

Kaitlyn Vinson, a program manager in Denver, said her recent $275 bill at a Costco Wholesale Corp. COST -1.16% store, which included razors and cotton pads on top of her typical grocery list, was more expensive than usual. Ms. Vinson said she switched from buying fresh to frozen fruit and vegetables because they are less expensive and last longer.

Kaitlyn Vinson said her recent bill at a Costco store was more expensive than usual. “We’re sacrificing the food that I really like to cook just to be cheaper,” she said.

The 2017 report also looked at the danger to pipelines in the US and explained how to protect against a failing US infrastructure.

The second Wall Street Journal article headline “U.S. Pipeline Shutdown Exposes Cyber Threat to Energy Sector” (2).

taiwan

That article starts: For years, security officials and experts have warned about the energy infrastructure’s susceptibility to cybercrime.

Why we cannot depend on governments.

“Live Anywhere – Earn Everywhere”  warned (in 2017) to avoid total dependence on our national infrastructure.

In that report, I shared an experience we suffered at our North Carolina mountain home when a couple of workers digging a ditch with a backhoe accidentally breached a small pipeline.

That one small error shut down delivery of gasoline to a huge part of the state of North Carolina.  Gas stations had to limit the number of gallons we could buy or shut down totally.

Just one pipe… shut a huge section of the state… down.

Now we see how ransomware has affected the supply of gas on much of America’s East coast.

The third, Wall Street Journal headline was, “The Breakout Cities on the Forefront of America’s Economic Recovery”. (3)

taiwan

That third article says: Rising stars such as Greenville, S.C., Des Moines, Iowa, and Provo, Utah, built out vibrant economies even before the pandemic; now, they are drawing new workers and businesses.

The key feature in “Live Anywhere – Earn Everywhere” was the potential of Smalltown USA.  Those who read the report and acted in 2017, 2018 and 2019 are seeing huge gains now.

So what do we do about this?

I explain how to protect purchasing power and beat inflation in my report  “Live Anywhere – Earn Everywhere”.  The report, published in 2017, predicted how the world would react to the pandemic and showed how to economically prepare for it.

I recently completed a followup report to “Live Anywhere – Earn Everywhere” called “The Neapolitan Effect” that explains how to to take advantage of the explosive growth that continues in two small towns in Ashe county North Carolina and Lake County Florida.

The “Neapolitan Effect” digs into the demographic, geographic, economic and social fundamentals that create small town opportunity so you can spot the same profit potential in small towns beyond just these two counties.

Before I put “The Neapolitan Effect” into our catalogue at $39.99, I would like to offer both the report “Live Anywhere-Earn Everywhere” (normally $39.99) and “The Neapolitan effect”  both for the price of one.

You can order both reports here for $39.99. 

Live Anywhere & Neapolitan Effect bundled: $39.99.

Gary

(1) www.wsj.com/articles/consumers-adjust-to-higher-prices

(2) www.wsj.com/articles/u-s-pipeline-shutdown-exposes-cyber-threat-to-energy-sector

(3) www.wsj.com/articles/the-breakout-cities-on-the-forefront-of-americas-economic-recovery

(4) www.wsj.com/articles/taiwan-defense-a-hard-problem-for-the-u-s-11612218797

 

(1) www.economist.com/china/2021/07/31/china-is-rapidly-building-new-nuclear-missile-silos

 

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