How to Protect Your Money from Financial Warfare
The comments below are an edited and abridged synopsis of an article by Jim Rickards
There are people who are preparing to do as much damage as possible to critical infrastructure in the US (Russia, China, Iran, North Korea, and others).
They’re using Cyber Brigades that hack into the critical infrastructure systems, and it’s a good bet that all of these systems have already been penetrated.
It’s called an asymmetric response: They want to fight in the area where they can win, or at least do enormous damage.
Financial warfare is already here, and will become a bigger threat as time goes on. What can you do to preserve wealth when these cyberfinancial wars break out?
The key is to have some portion of your total assets invested in nondigital assets that cannot be hacked, wiped out or disrupted in financial warfare.
Such assets include gold, silver, land, fine art and private equity that is usually represented by a paper contract and does not rely on electronic exchange trading for liquidity.
For gold, Rickards recommends a 10% allocation.
As an investor, you have enough to be concerned about just considering factors like inflation, deflation, Fed policy and the overall state of the economy. But financial warfare looms, enabled by cyberattacks and force multipliers.
Take defensive action by acquiring nondigital assets now. Rickards advises learning more about how complexity theory affects markets. The more you understand, the better off you’ll be.