Middle East Meltdown and a Bombshell from Germany!

If anyone has doubts that the cycles of war are indeed ramping up, just as Larry Edelson predicted several years ago, the latest headlines out of the Middle East should be very convincing.

As you’ve no doubt seen reported, there was a royal shakedown in Saudi Arabia over the weekend that had more drama than a whole season’s worth of Game of Thrones episodes.

Crown Prince Mohammed bin Salman, heir apparent to the Saudi throne, was behind the Saturday night massacre … officially labeled an anti-corruption purge. The crackdown resulted in the arrests of 11 princes and other high-ranking government officials, including one of the world’s richest investors, billionaire Prince Alwaleed bin Talal, nephew of the king.

That would be equivalent to Seattle cops locking up Bill Gates or Jeff Bezos!

As if that weren’t enough geopolitical drama, the Saudis on Monday accused Iran of orchestrating a ballistic missile strike on their capital, Riyadh, launched from Yemen. That amounts to a Saudi declaration of war against Iran. Plus, the Saudis accused Lebanon of effectively declaring war against the kingdom because of acts of aggression by Hezbollah.

Here’s where this ties into the war cycles: The Middle East has always been a powder keg, to be sure. For many years, however, Saudi Arabia and its enemies in the region, most notably Iran, have been content fighting a “proxy war” using other nations as pawns.

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But these latest events make it more likely than ever that a shooting war is likely sooner rather than later. Of course, that has put a bid under crude, even though oil appears overbought already. And the events are pushing both the dollar AND gold higher at the same time.

This proves once again that, although these assets often move in opposition, there are plenty of times when the buck and gold can and do rise together … most notably due to rising geopolitical concerns. And there’s no doubt we’ve got plenty worldwide.

At the opposite end of the see-saw from the dollar of course, is the euro. And we got another bombshell this week about the collapse of the European Union (EU).

A top-secret document, leaked to the media, reveals the German military is predicting … and planning for … a fragmented EU and its eventual collapse by 2040. Personally, I think their target timeline is far too distant, with a breakup of the EU more likely in the next few years.

But it’s significant that Germany, the nation at the very core of the EU, is actively planning for its demise.

Bottom line: It’s been a busy week, and it’s only Wednesday. But for all the reasons above, I believe your portfolio is very well positioned to profit as the winds of war blow stronger worldwide. The dollar and gold will be major beneficiaries. Plus, the euro and global stock markets are poised for a long overdue correction.

So, continue to hold all open positions. And stay alert for even more trade recommendations as volatility rises.

Good investing,

Mike