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As The China-Japan Conflict Escalates, Whom Will The US Support?
When the time finally comes for the inevitable discussion of just whom the US will support in the escalating China-Japan conflict: its long-term political ally Japan, where numerous naval bases are located, or its key inflation-exporting recipient and world economic powerhouse (ghost steel receipts notwithstanding) China, there will be much political rhetorical, many promises, even more lies, but in the end only one thing will matter. Money, or more specifically, debt and credit formation. Which brings us to the just released TIC data, which among other things shows that in July, Chinese holdings would have dropped to a 12 month low, if only the June print of $1164.3 billion had not been mysteriously revised to a fresh multi year low of $1147.0 billion, just so the July print of $1149.6 billion can be an uptick. More curious it that Japan, quite mired by its own debt "situation" of Y1 quadrillion in public debt and rising, continue to grab US paper with both arms, and as of July touched on an all time high of $1117 billion (maybe in another all-in gambit to show its "solidarity" with Big Uncle Sam in hopes Big Uncle Sam will support the Senkaku incursion).
The net result is that the spread between Chinese and Japanese US Treasury holdings has declined to a tiny $33 billion, from $430 billion one short year ago (we know that China is now actively buying gold with its current account cash instead of US paper but that is irrelevant for the time being). What is more importantly is which of its top US Treasury holders (the Fed being naturally the largest) will the US end up disappointing: China or Japan, because as much as it wants, it won't be able to support both. What happens if and when the snubbed party decides to dispose of its $1.1 trillion in US securities?
Source: TIC
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Samurais Vs Shaolin Monks... Whom will the Cowboys shoot first Bitchezz!!!
10 bucks on the Monks.
Put your money down boys.
10 bucks on the defense industry...which supports both sides.
250 bucks on the Chinese and their Made in China weapons!
No, wait..
In one month no one will even remember this episode. Fucking island that's smaller than some sports stadiums.
I'll plunk $10 on the 800lb yin-yang elephant in the room: Korea.
Things have been awfully quiet in K-Town as of late.
Why fight directly when the MIC can sell arms and merc services into a proxy battle for the same price?
The Koreans are busy voting up the most viral video in the history of YouTube.
See? They really are bad ass.
edit: (\sarc)
Ride the pony.
Catchy west coast swing music.
It's what's under the Island that counts
Yah. Yah. All the oil everywhere. Just fucking leaking out of the ocean, there's so much. Notice all the drilling platforms? All the oil companies are just climbing over themselves to sign leases. Sure. There must be petabarrels of oil under that island. Enough to fill the Cadillacs of every Chinese and Japanese gangster for the next thousand years.
Notice all the drilling platforms?
All those guys are down in Brazil.
Yah. Where there are no typhoons every year to fuck up their rigs.
"Go-zira!" [points to the sea, screams]
Captain America, what happened to your shield?
Well, I ordered a shield, but all I got was a warehouse receipt. Looked like this:
http://patchstop.com/images/products/large_669_P3119_-_4x3_-_Go_Fuck_You...
How 'bout the Chinese and their made in Russia weapons?
"How 'bout the Chinese and their made in Russia weapons?"
Yep. Now that the bugs have all been worked out by the Iraqis, Afghanis, Libyans, Yemenis, Yugoslavians, and Syrians, "this time it'll be different".
My neg vote above represents a bet that the Samurai gets shot
However, this is a no-win scenario. The US will persuade the Samurais to let it ( the islands) go for some diplomatic (economic) concessions
This could just be economic warfare. The Shanghai index is very close to dropping below its last support. The Japanese (and Americans?) may be adding a new page to the Beggar Thy Neighbor playbook.
Hahahaha that was seriously fugging funny =) whom will the cowboys shoot first :D
Thanks for cheering me up on this miserable day
Are there any samarais around the aapl plant? Thought not. Nasdaq would drop overnight below the endofworld levels if 'rioters' surrounded Foxconn. 20 bucks on the monks. Exciting times.
We need an over/under here AND a spread.
My money would be on the Japanese, at least initially and in a defensive posture. The Chinese have the numbers but lack discipline. That is, unless they commit their top level troops to any engagement, which would leave them vulnerable in other geographical areas.
In a 1 on 1 conflict the Chinese win. But if the conflict is to just have the Japanese hold out till John Wayne arrives I give them the edge.
"I fear all we have done is to awaken a sleeping"...Dragon
Support Iceland and screw the rest.
Icelandic Fundamentalists will be pissed or was that Islamist always get them mixed up
10/10 Icelandic Fundamentalists are free.
With two, you get eggrolled.
Talkin about your avatar?
Currency WAR's check, Trade WAR's check, World War ????????
Celente
Looks like the fed will have to secretly buy a whole bunch of paper to add to the "unofficial list" if they are even keeping a list anymore
If there is profit to be made, we will support both.
The truth is what it is, some things never change.
Sell The Japs military hardware and sell the Chinks the countermeasures there's a movie about that
The Chinese built the components of the hardware we would sell. They already have the countermeasures installed.
we are good little ferengi, aren't we?
Sorry in advance for the noise of a thousand geek detectors going off.
I have a feeling that supporting both sides in this conflict will not work. Who knows though. Logically, if we support both sides, both sides hate us, Japan loses, and we end up having an Asia Pacific/trade poop storm to deal with.
Logic of any kind has not got me too far lately though.
US has military treaty with Japan; not with China. Japan is Western surrogate, not China, only economic partner.
US has never been known to turn a blind eye to treaties... or anyother imperialist for that matter.
Simple. War with China means all Chinese assets are siezed by the US Gov. including monies on deposit at the Fed. Instant vaporization of a lot of debt.
What's not to love? Well besides the cost in iron, blood and gold.
Ding ding ding, we have a winner... +1
yes the corruption of US money line and outsourcing strategy pains point to China being "reigned in" by Pax Americana before its too late; from the US perspective.
Although ME oil stays vital nerve to energy and to oil petrodollar hegemony; all recycled to west. That oil/monetary pump is #1 asset of Pax Americana. If China goes militarist, then USA has a problem as its loses its big stick monopoly; something which is now old history, impossbile, as far as Japan is concerned.
A temporary downturn of China, loss of momentum in the Oligarchy game, better not entrain a policy change knee jerk, like reverse Pearl Harbour tactics to quelch USA's JApanese ally; as that would be crossing a Rubicon with the US at a moment when China is not ready military wise. (We know little on this capability). Lets hope and pray they are not tempted by populist pressure and in-house dissensions that upset their oligarchy mindset and whole national apple cart.
We will get through this spiralling crisis, which will stay regional thorn for years to come if the oil potential therein is significant, a feel for inhouse political maturity of their ruling class. Tipping times, as China will bid for hegemony in Asia further down the road; thats a given.
China has one problem, and that is force projection. Sure they have ICBMs and other long range ballistics, but they have no way to put boots on the ground in any real size. So how do you goad them into conflict in a location where they CAN force project if that is the goal? Rub a lot of salt in their nationalist pride with a proxy who happens to be a neighbor. Remember, there is at least 1.1 trillion dollars in debt that can be zeroed out, in addition to any other Chinese national assets residing in the US. That is a lot of motivation. Since they stopped playing along and buying treasuries, and the bulk of the hardship is borne by mainland Japan, there is little reason not to.
I don't agree with it, but it is very easy to see the motivations in the fog.
China has a significant asset in the treaties signed at the Postsdam conference post WWII.
These returned to China those territories seixed by Japan in the war of 1895. These territories include Formosa (Taiwan) and the disputed islands. This was agreed by all the great powers on the Allied side
Circa 1951 the US, which occupied and administered Okinawa, unilaterally extended its administrative jurisdiction to include the disputed islands which were then used as a bombing range.
When Okinawa was returned to Japanese jurisdiction the US also transferred the islands over which they had no true legal right of ownership and jurisdiction.
As for the debt, I am sure that should the US seize Chinese assets the Chinese will reciprocate. You need to total up the full investment of the Fortune 500 in China in plant and equipment. The Fortune 500 will never permit the US government to destroy their assets. Most Japanese firms also locate production facilities in China. So no more cheap $10 toaster ovens. And no relocation of production faciilties elsewhere in aisia pacific as this turns into a war zone. Good luck building toaster ovens in Af-Pak.
wow, intricate politics about these rocks in the sea.
True dat. Better than any who dunnit book I ever read.
In 1889, after the first sino-japanese war, China was defeated and signed the Treaty of Shimonoseki - China ceded DiaoYu island, group of small islands considered part of Taiwan:
"Articles 2 & 3: China cedes to Japan in perpetuity and full sovereignty of the Penghu group, Taiwan and the eastern portion of the bay of Liaodong Peninsula together with all fortifications, arsenals and public property."
http://en.wikipedia.org/wiki/Treaty_of_Shimonoseki
In 1943, as part of the allies during WWII, China, US, UK, made the Cairo Declaration:
"...
All territories Japan had won from China, such as Manchuria (Dongbei), Formosa (Taiwan), and the Pescadores (Penghu), shall be restored to the Republic of China.
..."
http://en.wikipedia.org/wiki/Cairo_Declaration
In 1945, Potsdam Declaration:
"...
Japanese sovereignty shall be limited to the islands of Honshu, Hokkaido, Kyushu, Shikoku and such minor islands as we determine." As had been announced in the Cairo Declaration in 1943.
..."
http://en.wikipedia.org/wiki/Potsdam_Declaration
So, after WWII, Japan has no sovereign claim over anywhere except its four major islands. Before 1972, DiaYu Island was under US administration, and served as some sort of weapon testing ground. In 1972, US transferred the "administration right" to Japan, intentionally leaving a hot zone of conflicts in the East Asian area.
Since then, there was a gentlemen's agreement between China and Japan, that the issue be put aside, so the two countries could cooperation in a broader economic and political range. However, as yuo already know, the Japanese government attempted to "nationalize" the island and change the "administration right" into ownership, that is the reason of the recent flare up in the region(could this be the price Hilary Clinton stated that China would pay after China and Russia veto the UN Syria resolution for the third time?).
Make no mistake, this is a serious strategic miscalculation on the part of Japan and US. This action of Japan is not only act of aggression towards China's sovereignty, but also an act of challenging the post WWII world order. By encouraging Japan's reckless action, US is putting the current world order in danger, and ultimately will hurt its own interests. They assume China would just take it in their ass. But China actually has been preparing for this kind of war for the last decade (DF 21D ballistic missile, aka "air carrier killer", land base anti-satellite missile, aka "satellite killer", and formidable submarine power, etc.), which would deter US intervention.
At this very moment, China has sent 12 more patrol ships to the waters of Diayu Island, and I don't see any possibilities of compromise. Either Japan back down and leave the island, or a major war.
P.S, in 1949, China splitted into P.R. of China and R. of China(Taiwan), so both have claim over DiaoYu Island. It is a great news that both sides are co-operating against Japan during the current conflict.
Excellent historical summary of the region! It is important to note that there is no such thing as international law - it's all a gentleman's agreement that lasts only as long as the disadvantage of maintaining the status quo outweighs the disadvantage of upsetting it. The real wild cards are Russia and N. Korea, and what their reactions would be in another sino-japanese war. My bet is they sit on their hands and pick up the pieces afterwards, but I'm in the cheap seats. The US benefits massively on several fronts. Debt seizure, end to Chinese buying Africa with US dollars, more blood tears and treasure for the war machine. China ALSO benefits from a conflict - citizen anger focus outward, ready made population control, and seriously enhanced status on the world stage for taking on the top dog. The US has blunted the military with all the foreign wars, and having China and Iran go hot at the same time would be an unmitigated disaster due to the Navy stretched thin already. I'm not sure that China is in such a good position either to be the clear victor in a conflict of the region. They also have India on the other side that would love to take some territory off of China's hands that they have been quarreling over for forever.
Grab the popcorn. The Archduke is about to have a bad day.
Can they just write off the Chinese debt like that? what would other countries do with their USD if they think that their US bonds can just be written off?
I would think that would constitute a default on the debt owed to China.
Either way I would never lend another RED CENT to the US, and I think that others would feel the same way.
Congress has the power to seize the US assets of countries (and their citizens) we are at war with. It would not be a default, but a legal (lol) and normal operation in the time of war - denying resources to the enemy. For a historical example, please see Bayer and their aspirin patent in WWII.
So then I ask if this is possible why owe anything in USD at all. If this were to happen every other country in the world would dump the USD. my guess is banks and companies would do this as well.
All confidence would be lost and we all know that this is nothing but a confidence game.
There are a ton of military bases sitting on ME oil that tell me dumping USD would be a bad move.
The end of Take Away Chinese Food...
just imagine...
talk about a catastrophic escalation...
Every half-lit town in the nation has Chinese takeout staffed by actual Chinese. Young men with knives in the back, young girl out front at the counter. simply recipe.
Now if China is an aggressor, you would have to round up 10 Chinese in every town.
That could take lots of dums dums. You would also need a staging point the size of that airport in Denver.
hmmmmmm.....
Worse yet, this could mean an iShit shortage.
Indeed as you say « Japan is Western surrogate »
The Japanese elites accept constant humiliation at the hands of Americans (rape of Japanese by US military personnel, bases in Japan which Japanese hate)
Obviously the Japanese elites started this stupid arrogance over islands near to China, because the US told them to do it ... they wouldn't have dared without US backing
Japan's elites rolled over in the 1985 Plaza Accord extortion by America, which directly led to currency distortions and their economy's crash four years later, and the 'lost decades' since then
Now Japan's elites are rolling over in 2012 in another American game ...
- sabotaging the Japan - South Korea - China alliance which had been getting nicely started
- inducing China to become aggressive, leading much of the rest of East Asia to pull closer to America
- perhaps to help the US destabilise the whole region, something America usually likes to do
- perhaps to set up one flank of World War III
- but at least setting up Japan's humiliation as a regional power to go along with their decline in global economic status, Japan's leaders playing the American game against the interests of their own people and industry
You were wrong on the Koo article comment but you are spot on on this one. Imagine a nation invaded in 1853 and defeated in 1945 by the same force celebrating the first invasion every year. Imagine a nation as the only victim of nuclear war allowing the American nuclear power industry to build nuclear reactors less than a decade after the a-bombs were dropped and while scarred civilians still walked the streets of Japan. The American propaganda is strong in Japan and could only happen with compliant co-cospirator Japanese leaders. The enemy of the Japanese people is their own government and has been for decades.
The US is only concerned with American interests including the corporate America's investments in China which will likely trump Japanese sovereignty concerns.
The enemy of all people is their government. Fixed that for ya'.
Indeed. The Japanese are cursed with two.
If it ever came down to supporting one side or the other, then it would likely mean war and the US would have an excellent opportunity to renege on it's debt to China thus making it's role as a "key inflation-exporting recipient" meaningless.
Rule 1 of Fight Club: You don't talk about Fight Club.
Rule 1 of America: Avoid unnecessary foreign entanglements.
We are in the beginning stages of the USA getting kicked out of Eurasia. I say good riddance.
Line the oceans with remotely piloted death and just give it a rest for a century or two.
HAHAHAHAHAHAHAHAHAHA!!!! Good one :) snif... :)
Rule 1 of America: If a foreign war started and America had nothing to do with it, you didn't pay much of attention.
The European Union cannot escape the fact that it has problems at its outer perimeters, in Belarus, Ukraine, Turkey, civil wars in Syria and Libya.
It’s also going to have to learn the lesson of Libya: that in the future the U.S. is not automatically going to assume leadership when it comes to defending the interests of the West.
Both China and Japan have accumulated $Trillions of savings in UST that they can now spend to fight each other -
Should be a great stimulus to the global economy -
It can be closer to the truth than you might think.
But both sides of this war are then selling US assets to pay for their conflict. Makes for a very cheap dollar. Twenty years out Chinese firms will be building Foxconn plants in Texas to build cheap toaster ovens to supply the demand of the Chinese Walmarts.
Or 20 years out US charities are soliciting donations for the 500 million survivors of the Chinese civil war and political/economic collapse.
No less likely than the foxcon sweatshops in Texas story.
This is another downside of money printing: as we export more inflation, it rises the prices of "real" assets, like real estate.
This means, the probability of war rises and the use of propaganda, especially naionalistic propaganda, rises as each countries' core group of leaders try to grab what they can get.
China views the islands as a market opportunity for both confiscating land AND getting a tired-and-underpaid workforce a boost in morale (It is much better for the anger of those to be pointed outward, not inward, for China's "elites"). Japan is the whipping boy right now b/c they are beginning a phase the US will experience in 2-8 years.
The US picks China, b/c in the end, w/o CHina, there is no corporate profit that the govt can tax and pay off the military with (who also fears China over Japan).
You're forgetting that the US for all intents and purposes owns Japan. That won't be given up lightly.
"What happens if and when the snubbed party decides to dispose of its $1.1 trillion in US securities?"
Ummmm......the Fed buys them through a proxy?
What did I win Tyler?
Ben creams his pants every night at the tought of printing 1.1 trillion to buy those holdings. Of course, the US would support Japan and all that printing would destroy China via inflation.
Or China dumps its treasuries and causes massive inflation in the US.
I think that either side is a lose lose for the USA
It could effectively be done overnight to be honest. Dump the dollar and agree to direct currency exchange with everyone else. Bye bye dollar. Sell at a slight discount and you wipe out all demand for US debt, which effectively means that everything the us issues becomes monetized.
That proxy being the Social Security Trust Fund, perhaps?
Not unless they change the law (or the Fed just breaks it). The SS "trust" fund gets "special issue" (greater fool) Treasuries.
"By law, income to the trust funds must be invested, on a daily basis, in securities guaranteed as to both principal and interest by the Federal government. All securities held by the trust funds are "special issues" of the United States Treasury. Such securities are available only to the trust funds."
http://www.ssa.gov/oact/progdata/fundFAQ.html
As The China-Japan Conflict Escalates, Whom Will The US Support?
The banks, of course. They'll fund both sides.
All your debt are belong to us! Wait.....
I say it should come down to an Iron Chef cook-off; China vs. Japan; Panda Express vs. (enter your fav Japanese restaurant here...)
I wouldn't call Panda Express cooking...
Iron Chef secret ingredients:
1. Oil
2. T-bills
3. Radioactive debris
Now....FIGHT!
Fucking awesome man! +1
Today has had some really funny posts on ZH and it's only 9am!
Funny you should say that, as I was thinking along similar lines just last night in regards to our Presidential election. I thought perhaps the whole thing could be decided through a fight to the death using only machetes while trapped in a large cage with a few wild hyenas.........
that's original, and yet random
And Tina Turner with big hair? Shall we call it "Mad Max Beyond Thunderdome?" Oh, wait...
2 men entahhh. 1 man reave.
+1 on having a hyena for president.
America does not have the money to support itself let alone anyone else. That Big Stick is now owned by a pauper.
They must be planning on re-starting the Draft right after elections.
I met a young man Saturday night, probably in his early twenties. He wanted to fight me. Since I RECENTLY watched Fight Club, I obliged the guy
and we headed outside, only to be cut off by the bar manager and disengaged.
I've been thinking a lot about that night. This young man has the spunk, at least, to fight. He's angry (at boomers, at being unemployed, at his parents, at everything).
I reckon he'll make a good Marine. Pretty much anyone with a pulse is going to be forced into WWIII. Instead of fighting each other, we should be joining forces against TPTB, the Free Shit Army, The Muzzies, I dunno. Just anything but each other.
I sure as Hell don't see 'made in Japan' on everything in stores.................
I think this is a smokescreen to change the conversation about the succession process in China. This is China, nothing is ever as it seems. The real tinderbox is still the middle east.
Quite possible.
The U.S will support Japan as they continue the efforts to contain China. TPTB will find some other third world country to export the inflation to.
South America and Africa are ripe for the picking.
My thoughts exactly.
got to keep our eyes on the prize
mind your own business round-eye, we deal with you later
Of course the U.S. will support Japan...Then China will support its currency with gold and create a global gold standard..U.S. loses before one shot is fired...
Yeah, and maybe China will build a navy with all that steel they have sitting in warehouses... oh wait.
Ghost steel builds ghost ships which are very hard to see on radar. Big Chinese advantage. They could be anchored in Ne Orleans right now and no one even notices.
this will all blow over, and I have faith in humanity (huge eye-roll)
Don't you mean "eggroll"? ;)
This is epic! I wonder if South Park will do an episode making fun of this nonsense!?
Shitty Wok VS. Shitty Sushi
damn mongolians!
the Chinese do build our iPads.... just saying...
And the Japanese still dispise western people as inferior people and the Chinese are hard working people.
I GO FOR THE CHINESE!!
GO CHINA!!! LET JAPAN GO UNDER THE SEA!!
I'M UP FOR 20 EURO'S!!!!
Japanese women don't despise western men as 'inferior'
No sireeee.
they prefer unusually small yet ghostly white members, barely able to free themselves from a basket weave of raven black coarse hair
Gross.
Chinese word for foreigner is "dog"..
I say build American market iPads in USA, European market iPads in Europe and let Apple make less profit.
In the office of disgraced Corruptocrat Bo Xilai, he hung a map of "Greater China". Obviously the map included that renegade province of Taiwan, the "liberated" province of Tibet, and the Diaoyu Islands. Canadians might be relieved to know it did not contain Vancouver, though it may not have been updated. Burma, on the other hand, might take exception to the fact that Bo's map included Myanmar/Burma/Pyu/Greater Amarapura....call it what you will as part of the Middle Kingdom. There is no historical record whatsoever that any Chinese ever ruled that land, though it is likely there are some as yet undiscovered "ancient" documents being created at this very moment. It may well be no coincidence that China's stock has tumbled in Burma and that the new government has reached out to the West and India to offset the creeping annexation.
Chinese ships were sailing to Myanmar and even India in 1270, when Marco Polo's father envisaged taking the sea route to China. Their expedition even went to Hormuz in 1271 to take boat on advice of Abaqa Khan, ilkhanate chief, to junction with the Mongol navy in Burma waters.
They gave up and doubled back when they realised that the Arab Dhows were unreliable to get them to Myanmar where the Mongol navy was. They took the land route via Badakshan pass, Afghanistan. Mongol navy sailed to Arab lands in 1400s, after their land silk routes had collapsed to Tamerlane's army, before the Portuguese navy arrived in that region.
We support Japan and put China down; does anyone really want to pay them back all those Treasury $$$'s?
Will Apple move their factories from China to Zimbabwei?.........the labour is cheaper
it's obvious no one is 'ever' going to get their money back. Perhaps a flanking maneuver is in order
What happens if and when the snubbed party decides to dispose of its $1.1 trillion in US securities?
Don't worry. Benny will buy them.
Yep, since Benny already owns more securities than China does, what's another trillion.
How many times do I have to break this down for people? The vast majority of US treasuries is owned by... the US!
What if both China and Japan sell all their Treasuries ...... Holy Shit Batman.
Their respective economies will grind to a screeching halt instantaneously, that's what will happen.
Then Japan, China, and the last remaining saver in America discover that the only difference in value between a piece of paper with 1 zero on it and another piece of paper with 4 zeros on it is the promise of the US treasury not to add 3 zeroes.
I smell opportunity
I wouldn't go against the Chinese. We tried that once and got a good ass whooping or, should I say, the greatest strategic retreat from the Yalu river to the 38th parallel.
Don't kid yourself.
China IS the greatest economy in the WORLD.
http://www.youtube.com/watch?v=zzP5qr-ZxHY&feature=related
http://www.youtube.com/watch?v=sDzVVEa1eKg
China supplied the brawn but the USSR supplied the technology and the pilots. Don't count on Russia backing Chinese expansion - they want Japan and the US to contain China in the Pacific so they can protect Siberia from Chinese incursions. China is loathed throughout the world, probably much more than Japan ....and India wants China contained. I don't think this decrepit Communist dictatorship could survive trade sanctions - it would implode
You forget, or maybe you never knew, that the million Chinese that went South across the Yalu river were all Volunteers.
They are not playing.
The Chinese will not overtly attack but, will undermine USA interest in the region if we play their game and back the Japanese.
The Chinese undermined the USA the day they moved manufacturing plants from US soil to Chinese provinces. The day that Boeing has to check for fake Chinese parts in its planes and even the latest US jet fighter has fake Chinese parts. The US lives up to Lenin's adage that The Capitalists would sell them the rope with which to hang them.
http://www.military.com/video/logistics-and-supplies/military-equipment/...
The greater lesson is that if you allow your debt-to-GDP to surpass 200%, you'd better already have a strong military in place because someone will test your weakened financial state.
If your strongest ally is 50% funded by your aggressor, you may not have the protection you thought you had.
US is comitting suicide so will throw Japan under the bus. That's why China is now expansionist, and on the move, along with everybody else. Blood is in the water and the frenzy is underway.
The Fukushima reactor meltdowns are still spewing radiation into the ocean and atmosphere. Japan is well underway to becoming a nuclear wasteland.
will master obama become china's biatch? o'bama-o'biatch no more master blaster
Just hilarious, the fed would be the only buyer of US debt. Taking it from one pocket and putting into another. The US dollar should be much lower. Same with the Euro,
Chinese Japanese,
Don't forget to wash your knees.
Its all fucking Greek to me anyways???
Is that a question?
Where does Israel stand on the issue?
Downwind from the fallout?
Dumping 1 trillion dollar over 1000 days into gold ( cash left over from selling 1.1 trill of treasuries over 3 years plus operational costs)
Leaves 1 billion of gold prchses a day. At an average 3 year price of 2000 an oz-----32k per pound ----64,millton.....15 tons per day for 1000days.
Q
150000 tons. Of course if peopleknew this was the plan the average price would be double. Making the price yield in a purchase of somewhere near 8000 tons of gold.
Of course if you buy all this gold your going to need more weapons to protect it. Thats where the chinese will invest their surplus.
All that gold concentrated in one place makes it easier to raid ala Iraq, Libya, Syria, Iran.....
Chinese territorial waters now extend as far as their Su-30MKK's strike range.
I heard a young Chinese guy interviewed at a protest against Japan. He was asked what he did. He says "I am studying auto manufacturing so that I can go to work at a PLA tank plant and build new tanks to kill the Japanese".
At least he was honest. And YES, the Chinese have not forgotten what Japan did to them way back in the 1930-40s. Or what the west did to them for over a century. We American's remember Pearl Harbor and remember 9/11 and our kids will too. So don't blame the Chinamen if they too have an axe to grind.
The Japs did 9/11?
Yup, and the Germans bombed Pearl Harbor.
http://www.youtube.com/watch?v=V8lT1o0sDwI
The Chinese hate us and only tolerate us as long as the parasite/host relationship exists. This is quickly coming to an end as customer demand wanes.
If we snub Japan I'm sure they could see the poetic justice of a nuclear strike.
Another war drives up the deficit and expands the feds balance sheet if nations sell their bonds. Inflation and shortages would drive food prices through the roof.
If China and Japan go to war they will both buy weapons from the U.S. A win for us.
Citizen demonstrations against another country’s actions (e.g., the Diaoyu or Senkaku Islands dispute between China and Japan) and workplace sabotage (e.g., Chinese factory workers installing malware on new computers sold in the US) are the vulnerable downsides to efficient globalization.
Supply-chain-management disruption of the just-in-time inventory system will be the world economy’s undoing. Result, a systemic global depression is coming.