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In Response To Japanese "Antagonism" Over Senkaku Islands, China Dispatches Two Patrol Ships

Tyler Durden's picture


Yesterday, in a rather paradoxical development, the Japanese Cabinet formally announced that the government will purchase several disputed islands that China also claims — a move that Beijing said would bring "serious consequences." The issue at hand is that China and Taiwan also claim the islands, which are part of what Japan calls the Senkakus and China the Diaoyu group. It is paradoxical because the last thing Japan, and its statutory deflationary and demographic collapse needs right now is to "antagonize" the world's fastest growing economy, and its neighbor to the west with whom it had a rather violent give or take as recently as 1945. Japan spin was naive: Chief Cabinet Secretary Osamu Fujimura repeated that the islands are part of Japan's territory and should not cause any friction with other countries or regions. "We certainly do not wish the issue to affect our diplomatic relations with China and it is important to resolve any misunderstanding or miscommunication." Turns out quite a bit of friction was caused as a result, as well as a substantial amount of misunderstanding and miscommunication. As Globe and Mail reports, "China has dispatched two patrol ships to the East China Sea in a show of naval strength and antagonism toward Japan after Tokyo said it had purchased a group of disputed islands from their private owners. China’s aggressive response ratcheted up tensions in a long-standing conflict between the two countries over claims to the territory."

It is now Japan's turn to explain just why China has it all wrong when it says Japan "stole" these islands from China, or else send a few patrol ships of its own, as the most unexpected rivalry suddenly escalates to much needed distraction levels. After all recall that none other than PM Noda promised two days ago to achieve 1% inflation in 1 year. For a country which has been mired in deflation for over 30 years, there may be just one way to achieve this goal, and it may just involve China in one capacity or another.

From G&M:

Japan’s central government said it had purchased the islands for 2.05 billion yen ($26-million U.S.) from the Japanese family it recognizes as the owner. The acquisition was intended to calm China’s concerns after the nationalist governor of Tokyo had proposed buying the Senkaku Islands and developing them.


The Chinese Ministry of Foreign Affairs, in a statement, said the purchase “cannot alter the fact the Japanese side stole the islands from China.”


If Japan insists on going its own way, it will bear all the serious consequences that follow,” the ministry added.


Xinhua, China’s state-run news agency and mouthpiece for the ruling Communist Party, said the dispatching of ships by the China Marine Surveillance Agency was part of a broader plan to safeguard China’s sovereignty over the islands.


The nationalist fervour whipped up by Xinhua and other state media over the contested territory comes as the Chinese Communist Party is preparing for a once-in a-decade leadership transition in November. The fact that Chinese President Hu Jintao’s expected successor, Xi Jinping, has cancelled a series of diplomatic meetings and has not been seen in public for a week, has not been reported in the media in China. Regardless, some have questioned whether the Chinese government is engaging in “wag the dog” tactics and diverting attention from what now seems a wobbly leadership transition.

And since the foreplay between Israel and Iran is now entering its third year and everyone is bored out of their wits waiting for the inevitable strike to occur, perhaps it is only fitting that the next armed conflict will come, literally, out of the far left-field. Next, cue Hillary Clinton claiming that it was Syria's fault all along.

A brief history on the Senkaku conflict:

For those who need a refresh on the various geopolitical tensions in the far east, and relative military strenght, we present it again below.


Arms race brewing in Asia

Asian Navies vary broadly in size

China is gaining on US Navy

Americas forward deployed military

areas disputed in China, Japan, and Koreas

China's desruptive South China Sea

Areas disputed in China and India Mainland


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Tue, 09/11/2012 - 20:42 | 2783769 Conman
Conman's picture

Maybe  Xi Jinping is personally commanding those ships. Explains his disappearance. That or he's dead.

Tue, 09/11/2012 - 20:46 | 2783779 r00t61
r00t61's picture

Put the two stories together, and it sounds like the prologue of a Splinter Cell game.

Tue, 09/11/2012 - 22:24 | 2784015 knukles
knukles's picture

Why Chinee upset when Ferengi buy it?

Tue, 09/11/2012 - 22:47 | 2784055 Precious
Precious's picture

Excellent theater for western consumption as Asian technosortia eat our lunch 6 ways to Sunday.

Tue, 09/11/2012 - 23:18 | 2784127 DeadFred
DeadFred's picture

The latest report are that this was all a misunderstand. The Japanese thought they were just buying some GREEK islands.

Wed, 09/12/2012 - 04:56 | 2784553 Parrotile
Parrotile's picture

Funny, I'd have thought all such hard assets would have been bought up by the Bundesbank . . . . .

Tue, 09/11/2012 - 20:49 | 2783782 chump666
chump666's picture

Next war will be a stand-up fight, and most likely starting as a navel battle in the South China sea.

Tue, 09/11/2012 - 21:53 | 2783931 BandGap
BandGap's picture

I have thought this for quite some time. China is spoiling for some action.

Tue, 09/11/2012 - 22:00 | 2783951 azzhatter
azzhatter's picture

things must be falling apart fast in China, need an external enemy to divert attention

Tue, 09/11/2012 - 22:14 | 2783993 AldousHuxley
AldousHuxley's picture

this is subvert blockade of china's ports....


China's regional influence depends controlling her sea borders....

China is trapped by US

  • with Korea (owned by US military after receiving assistance in Korean War)
  • Japan (owned by US military after losing WWII)
  • Taiwan (hardcore anti-Chinese)
  • Phillipines (ex-US colony)

control the islands surrounding china's sea ...and oil...control China's trade.

Tue, 09/11/2012 - 22:25 | 2784019 Vet4RonPaul
Vet4RonPaul's picture

great synopsis Aldous

Wed, 09/12/2012 - 00:52 | 2784295 AldousHuxley
AldousHuxley's picture

US knows that Chinese military weakness is in the navy.


basically Chinese do not have enough Aircraft Carriers in the navy...


on land, Chinese army has plenty of people they can throw around.





Wed, 09/12/2012 - 02:07 | 2784310 TwoShortPlanks
TwoShortPlanks's picture

Control the airspace around a Hornet's Nest and you control the ya thunk?!

Ba-Bow!!! Just like Hornets, all that will do is increase China's Military presence in the area as well as won't control shit.

China's limited (but sufficient) access to open ocean is only a detriment during war time, certainly not in peace time.

Any restrictive activity hindering China's access to international shipping (exports/imports) will more than likely be met with hostility from China, and I doubt very much that Japan nor Taiwan want to pick a fight with China, nor do they have the balls.

And don't expect Uncle Sam to do much; he's too busy printing food stamps and really, he needs China as much as China needs him. Trust me, the export shit that comes out of China actually suppresses the US public as consumers need shit to buy in order to be happy. No shit = no happy, it's that fucking simple. And I'll tell you this so it's no fucking surprise later; the US Government is a fucking bucket-load more shit scared of its own people than it is of China. 25% of US citizens have guns and more often than not it's the fucking crazies which have not one or two but an entire Army Base in their fucking basement. Look no further than the purchasing on 120-or-so thousand hollow point rounds...I spent 12 years in the Army and never saw a single hollow point, let alone 120, 000 of the fuckers! To protect what,,,Food Stamps?

Pretty soon, China will cut a deal with some other nation/s, Brazil, Indonesia, India, Vietnam, to host Military Bases and/or shared shipping port, creaping around the different than what the US did.

Hey, maybe even a Sub base in Cuba...won't that put a fucking fly in ya soup?!

The reality is, there's isn't going to be a war, not with China at any rate; China's been playng this card game way too well so far. Middle East, sure thing, why not?!

This thing with Japan and the islands...piss and vinegar...a distraction.

For most people, when they think of Chinese they think of China. When I think of Chinese I think that every western city has a China Town which does a roaring trade. I think about how much the Chinese work, everywhere, and what they spend their money on. As we speak, that cash is buying-up all the best property in all the best suburbs. I think of all the family back-chanels which Chinese people use to move money to and from family. extended family and associates in China. THAT'S the real China ZH bloggers, not the country on the map and a few piss-weak islands which China wants to have so as not to lose face internationally.

What is China?

Wed, 09/12/2012 - 03:37 | 2784443 AldousHuxley
AldousHuxley's picture

What is China?


the new kid on the block.


son of a European colonialism whore, ambition to become a world class pimp.



American pimp doesn't like Chinese pimp putting hands on American controlled whores. So American pimp tries to restrain young Chinese by binding feet together and putting under house arrest guarded by old whores.


Because once young Chinese pimp comes out, it will be hell on earth.



Tue, 09/11/2012 - 22:37 | 2784041 BandGap
BandGap's picture

Not to mention buddying up with Vietnam, another Chinese nemasis.

Wed, 09/12/2012 - 00:41 | 2784261 AldousHuxley
AldousHuxley's picture

On June 21, 2012, Vietnam passed a law entitled the Law on the Sea which placed both the Spratly Islands and the Paracel Islands under Vietnamese jurisdiction, prompting China to label the move as "illegal and invalid"

Tue, 09/11/2012 - 22:46 | 2784052 lolmao500
lolmao500's picture

Taiwan (hardcore anti-Chinese)

LOL. About 30-40% (or even more) are pro-China, just look at who won the election. A lot of them might not like China but they are not ``hardcore anti-Chinese``.

It's like saying republicans are hardcore anti-democrats.

Wed, 09/12/2012 - 00:39 | 2784254 AldousHuxley
AldousHuxley's picture

you sure it wasn't anti first women president thing?

Wed, 09/12/2012 - 00:40 | 2784258 lolmao500
lolmao500's picture

I never considered this aspect... I think Taiwan has evolved ``enough`` to not think that this is an issue??

Who knows.

Wed, 09/12/2012 - 00:14 | 2784215 chump666
chump666's picture

I'd lock it in, probably soon.  If the Fed sends oil over 100 (they won't do QE3 this Friday for that reason), then India will step up the Vietnam joint gas venture in the south china sea, Philippines has the Spratly Islands dispute with China still kicking...then there is Japan building up it's navy

China is feeling squeezed, imported inflation from madmen central bankers, internal bizarreness (next PM disappears off the planet), now Japan is adding pressure.  Not looking good.

Wed, 09/12/2012 - 01:46 | 2784348 MrTouchdown
MrTouchdown's picture

Empire of the United States landwar in Asia GO!


What could possibly go wrong?

Wed, 09/12/2012 - 06:50 | 2784687 Parrotile
Parrotile's picture

Another US War? Whose going to pay for it?? You're going to sell more T Bills to . . . . CHINA??? You all might THINK they are stupid, but as someone whose worked "over there" you've got a LOT of catching up to do. Stupid they are NOT, and where there's potentially big money involved, the Chinese are VERY astute businesspeople.

China's not Afghanistan, nor Iraq, not Libya. China is currently VERY GOOD FRIENDS with Russia, and the US of A's planning to "intervene"??!!

Seems a good recipe for WW3 - the war that NO-ONE will win ('cause no-one will be alive once it's over). 

 "Beam me up Scotty, there's definitely NO intelligent life on THIS Planet!"

Wed, 09/12/2012 - 04:58 | 2784557 Parrotile
Parrotile's picture

Battle of the Navels - sounds very Sumo to me . ! (Or perhaps it'll be a Navel Orange throwing event!)

Tue, 09/11/2012 - 20:50 | 2783787 CrawdadMan
CrawdadMan's picture

So Japan will send their own patrol ship, and China sends more. Before you know it it'd be a Cold War for Patrol Ships.

Mr. President, we cannot allow a patrol ship gap!

Tue, 09/11/2012 - 21:42 | 2783911 Calmyourself
Calmyourself's picture

U.S has 71 Nuke subs that are in a class of their own in fact littoral waters are not safe havens anymore..  China can send all the patrol boats they like but if I were them I would pak them full of ping pong balls first, ala Mythbusters, love Carrie.. 

Tue, 09/11/2012 - 22:03 | 2783955 Vet4RonPaul
Vet4RonPaul's picture

agreed; China would learn that it isn't a good idea to bring a patrol boat with an inexperienced crew to a naval battle with the US and/or Japan.  Can you think of any great Chinese naval battles in say the last two thousand years?  didn't think so

Tue, 09/11/2012 - 22:05 | 2783962 Calmyourself
Calmyourself's picture

Ummm no, their nuke boats suck not saying I want war just commenting on qualitative edge..

Tue, 09/11/2012 - 20:55 | 2783791 billsbest
billsbest's picture


Bankers need wars to make enormous profits thru debt creation. We had been expecting the Rothschild syndicate to goad a China/India war for the greatest payoff. Instead, maybe we're wrong and it's someone else. Poor dears.


India Boring Border Tunnels to take on China, Pakistan
Tue, 09/11/2012 - 22:14 | 2783992 Cabreado
Cabreado's picture

"Bankers need wars to make enormous profits thru debt creation."

Bankers need corrupt politicians first.

Wed, 09/12/2012 - 03:45 | 2784449 AldousHuxley
AldousHuxley's picture

well that's a given wherever government exist.

Wed, 09/12/2012 - 07:01 | 2784722 Parrotile
Parrotile's picture

Pakistan and India - they really love each other don't they, AND they are both fully fledged Nuclear Powers.

All it needs is some local border disagreement, and a "trigger-happy" event, and this is where we could realistically see the start of a significant nuclear exchange.

Would it remain contained? No idea, but I'd not be betting the Family Heirlooms on effective containment, with or without outside intervention.

Mind you with recent events demonstrating the instability of the Indian Grid, all it needs is an EMP event to shut down all the Country, and wouldn't it be tempting to initiate such an event to coincide with a solar CME - to provide an "external reason" for a "natural disaster".

Unlikely scenario? Not according to the comments in the Times of India article on the big grid failure. Plenty of suspicion of "external involvement" in that too.

Far too many nuclear weapons around, and far too many crazy people looking after them.

Tue, 09/11/2012 - 20:57 | 2783801 q99x2
q99x2's picture

How you goin to arrest a banker with the world exploding? This is not fair.

Wed, 09/12/2012 - 00:13 | 2784212 Things that go bump
Things that go bump's picture

We aren't.  After the coming epic failure, the starving, ragged remnants are going to hunt them down and drag them out of their dens.  They will not die happy.

Tue, 09/11/2012 - 20:59 | 2783806 moonstears
moonstears's picture

Blaaaack Swaaaaaaaannnnn!(?)

Tue, 09/11/2012 - 21:04 | 2783821 tsx500
tsx500's picture

this event , just like everything else , is BUUUUULLISH  !!!          

Tue, 09/11/2012 - 21:42 | 2783898 akak
akak's picture

That absurdly grapsing maritime border claimed by China is laughable on the face of it, and insulting to every one of China's southern neighbors.

Talk about blobbing-up!

Wed, 09/12/2012 - 00:01 | 2784185 Vlad Tepid
Vlad Tepid's picture

It obvious.  I don't know why Tyler seems to be apologizing for naked Chinese aggression here.

Tue, 09/11/2012 - 21:04 | 2783819 LeisureSmith
LeisureSmith's picture

The famous words of one Charles Montgomery Burns comes to mind. And just a reminder folks, you can't hug someone with nuclear arms. You can do it with radioactive arms but you really shoulden't.

Tue, 09/11/2012 - 21:07 | 2783828 dryam
dryam's picture

Let's just get this US/China thing over with already.  China is the next superpower, and the U.S. is done.  The Chinese are so smart & patient.  They are so going to kick the world's ass over the long haul. 

Tue, 09/11/2012 - 21:09 | 2783832 moonstears
moonstears's picture

Decades 'till your wet dream o' China supremacy comes true, methinks.

Tue, 09/11/2012 - 21:12 | 2783835 moonstears
moonstears's picture

Done? Done...we have not yet begun to fight(or, uh, debase our currency), Sir!

Tue, 09/11/2012 - 21:30 | 2783876 The Watchman
The Watchman's picture

Central planning doesn't have a great track record. My guess is you're wrong. Liberty returns to the USA and the rest of the world is left for dead when we come roaring back. Globalism is dying. Nationalism with a focus on freedom and liberty are our destiny.

Tue, 09/11/2012 - 21:39 | 2783899 kridkrid
kridkrid's picture

Yeah... china is in the cat bird's seat.  One billion three hundred and forty four million mouths to feed and a net importer of food since the mid 1990's.  They provide a boatload of near slave labor that the global economy keeps marginally employed through the bubble that is the global economy... but that slave labor is going to become restless when the wheels stop turning.  The US is likely done, but we are taking everyone down with us... don't kid yourself. 

Wed, 09/12/2012 - 00:46 | 2784280 ElvisDog
ElvisDog's picture

Not to mention that industrial production is moving to robot labor. Chinese worker-bee factories are fast becoming obsolete. What are those hundreds of millions of suddenly uncompetitive factory workers going to do then?

Plus, if China was on its way to taking over the world why are all the rich Chinese getting foreign passports and buying bug-out homes in U.S., Canada, and Australia?

Wed, 09/12/2012 - 02:10 | 2784378 AnAnonymous
AnAnonymous's picture

why are all the rich Chinese getting foreign passports and buying bug-out homes in U.S., Canada, and Australia?


Why should they not?

Contrary to the claims made in the article, the military is second, what matters the most is the access to resources and entrenched that access to resources is.

Germany learned once again that lesson during WW2.

Chinese could have the best army in the world, without the proper access to resources, they will do nothing.

Chinese going everywhere helps developing a much stronger structural access to the world resources.

And the efficiency is even better when the deployment is made of 'american' chineses...

Tue, 09/11/2012 - 21:08 | 2783829 nasa
nasa's picture

Where else were the Japanese going to establish New Tokyo after the Fuk goes boom...

Tue, 09/11/2012 - 21:14 | 2783842 Renewable Life
Renewable Life's picture

It's about the oil stupid!!!!

Tue, 09/11/2012 - 21:22 | 2783859 dick cheneys ghost
dick cheneys ghost's picture


Tue, 09/11/2012 - 21:14 | 2783843 Dr. Engali
Dr. Engali's picture

Everybody is so pissed off. Wasn't it just a few short years ago the world was singing kumbaya and issuing debt like it was candy to babies? What's with all the hate all of a sudden?

Tue, 09/11/2012 - 22:29 | 2784029 knukles
knukles's picture

kumbaya is the problem

Wed, 09/12/2012 - 02:11 | 2784382 AnAnonymous
AnAnonymous's picture

What's with all the hate all of a sudden?

It takes an 'American' to see a surge in hate all of a sudden.

Others knew of the state of the world under the 'american' empirium and it was not as relayed by the free press...

But hey, US citizenism is as US citizen does.

Tue, 09/11/2012 - 21:18 | 2783847 partimer1
partimer1's picture

If we have to bet the outcome of the dispute, I would bet the Chinese will lose. They always lose. Think about this, you have seen british colony, french colony, spanish colony, have you ever seen or heard of a Chinese colony? They have history of 5000 years.

Tue, 09/11/2012 - 21:27 | 2783870 Let them eat iPads
Let them eat iPads's picture

There is a rather large Chinese colony in Vancouver.

Tue, 09/11/2012 - 21:58 | 2783946 BandGap
BandGap's picture


Tue, 09/11/2012 - 22:03 | 2783956 azzhatter
azzhatter's picture

Mostly Hong Kongers

Tue, 09/11/2012 - 22:26 | 2784009 guinea
guinea's picture

Pretty sure the original landmass of the Chinese tribe was the size of New Jersey.  How do you think they got so big?  The Chinese take the long and assimilation way towards conquest.  

The Japanese should be thanking their lucky stars they got nuked by Americans, otherwise the capital of Japan today would be in Beijing and Mandarin would be the lingua franca of the Greater East Asian Co-Prosperity Sphere.  Just look at what happened to the Manchus.

Wed, 09/12/2012 - 02:12 | 2784383 AnAnonymous
AnAnonymous's picture

The Manchus are chinese?

Wed, 09/12/2012 - 00:05 | 2784192 Vlad Tepid
Vlad Tepid's picture

A colony is an inefficient and hamfisted way to control foreigners.  The Chinese prefer a tributary relationship, whereby the lessers bring the good stuff to THEM.  It works so much better that way.  You're looking for a guy in a pith helmet.  If you want evidence of Chinese imperialization, just walk down to your local Apple store and realize who your master is.

Tue, 09/11/2012 - 21:18 | 2783848 White.Star.Line
White.Star.Line's picture

War today is nothing more than ant skirmishes.

Like Edward Abbey said, "nuclear weapons have taken all the fun out of war."

Tue, 09/11/2012 - 21:22 | 2783862 Debeachesand Je...
Debeachesand Jerseyshores's picture

Great World War III starts with disputes over a pile of rocks.


But-----But-----But>>>>> There's OIL and Natural Gas under those Rocks.

Tue, 09/11/2012 - 21:25 | 2783867 Let them eat iPads
Let them eat iPads's picture

It seems we nuked the wrong country.

Tue, 09/11/2012 - 21:28 | 2783872 White.Star.Line
White.Star.Line's picture

Based on what we did to the Sioux, Comanche, Apache, etc. etc.
and what we have done to their beautiful pristine country in the name of profit and plunder.

We probably should have nuked ourselves.......

Tue, 09/11/2012 - 22:08 | 2783974 Vet4RonPaul
Vet4RonPaul's picture

every nation in existence today stole the land from someone else.  The US is not the exception.  And, the American Indians stole their land from other American Indians also.  The world is a tough place; get used to it.

Wed, 09/12/2012 - 02:15 | 2784387 AnAnonymous
AnAnonymous's picture

And, the American Indians stole their land from other American Indians also. The world is a tough place; get used to it.


Sure, sure. When you are the biggest thief in human history, that is the kind of tales you need to justify yourself, especially when you have made of property an unalienable human right...

Indians stealing from themselves? How is that?

Cant 'Americans' admit that by racializing the indian question, they are dismissing the possibility they could have stolen the land? After all, they are all Indians now...

Tue, 09/11/2012 - 21:33 | 2783885 Dr. Engali
Dr. Engali's picture

Come on get with the program and think like an elite with no conscience. If we wouldn't have nuked Japan ,killing hundreds of thousands of people,we wouldn't have a vassal state we could put bases in to keep China in check. You need to keep the long term in mind. A demonstration of the countries willingness to nuke a country is sometimes enough.

Wed, 09/12/2012 - 00:07 | 2784199 Vlad Tepid
Vlad Tepid's picture

Our efforts to keep China in check seem to have failed (1949, Korean War, 1989, nowadays).  Perhaps we should have just stuck to the moral high ground.

Tue, 09/11/2012 - 21:29 | 2783874 Stuck on Zero
Stuck on Zero's picture

I'm going to propose a solution to the problem of ownership of the Spratleys and Senkakus and any other disputed islands.  Have the U.S. Navy place 100 smart mines around each island.  Then, no-one can approach the islands and the birds and fish can live there in peace.  I call this the Solomon approach.


Tue, 09/11/2012 - 21:52 | 2783930 Vet4RonPaul
Vet4RonPaul's picture

Here's another solution that involves the US Navy; with the USN and Japanese Imperial Navy elminatie the Chinese Navy in one week and then close their access to the sea.   The US actually maintains an admirality and generations of fighting men.  The Japanese had great Navies against the Russians pre WWI and again in WWII; they haven't forgotten how to run a Navy.  The Chinese - never had a Navy and would lose it in a week of serious disagreements; just because you have pieces on the chess board doesn't mean you can put them to practical use.  Only the US, Japan, UK and Russia have real navies; the rest are to show those that don't know better.  That's why Spain can't cross the Atlantic to get their companies back from Argentina and why the French can't even cross the Med.  Shock-la-bluea!

Tue, 09/11/2012 - 22:05 | 2783964 azzhatter
azzhatter's picture

You just explained why China cannot become a world a superpower. No nation has ever been able to do it without a Navy

Tue, 09/11/2012 - 22:11 | 2783984 akak
akak's picture

I believe that the Mongols did not own very many aircraft carriers or submarines.

Tue, 09/11/2012 - 22:15 | 2783994 Vet4RonPaul
Vet4RonPaul's picture

akak is also right.  Ghengis Khan was super bad and seems to be one of the very few exceptions to the rule.

Tue, 09/11/2012 - 22:12 | 2783988 Vet4RonPaul
Vet4RonPaul's picture

azzhatter wins the daily double!  US rules cuz USN rules the sea lanes.  Cargo and Commerce don't move without US tacit approval and the world knows it.

Tue, 09/11/2012 - 22:17 | 2783997 Dr. Engali
Dr. Engali's picture

Are navies going to make the difference that they used to make with new missile capability? I guess we will find out in the gulf.

Tue, 09/11/2012 - 22:21 | 2784007 knukles
knukles's picture

And the Chineee are very good at building lots of shit real quick like.
So much for being short of a Navy



Tue, 09/11/2012 - 22:27 | 2784024 Calmyourself
Calmyourself's picture

Right and nothing would ever inconvenience those shipbuilders...  A navy takes abit more than some hulls..  Maybe they could quickly build a bunch of planes..

Wed, 09/12/2012 - 00:24 | 2784232 Things that go bump
Things that go bump's picture

Knukles - The ships actually have to float you know.  Lots of things built real quick are liable to have, shall we say, quality issues? 

Tue, 09/11/2012 - 22:31 | 2784030 Stuck on Zero
Stuck on Zero's picture

Rome never had a Navy.  They outsourced it to the Phoenicians.


Wed, 09/12/2012 - 00:53 | 2784296 ElvisDog
ElvisDog's picture

That is incorrect. When Augustus and Agrippa were fighting Sextus Pompey in Sicily, they built an enormous navy of something like 300 triremes and eventually destroyed Pompey's fleet.

Tue, 09/11/2012 - 21:38 | 2783895 Haloween1
Haloween1's picture

What is the problem here?  Two countries facing economic malaise.  One for 20 years and the second for 1 year.  How to fix the problem - WAR!


Tue, 09/11/2012 - 21:54 | 2783935 kridkrid
kridkrid's picture

Here is what you add to the second one... I can't quickly find better data than this, but the Chinese population in 2008 for children age 0-14...male 142,085,665/female 125,300,391 (2008 est.).

For those counting at home, that's 17,000,000 more boys than girls, or more than 1 million more boys born each year than girls.  Soooo.... just some back of the napkin numbers, but I'm guessing there are something like 20 million unmarried and likely frustrated men between the ages of 18 and 32.  When the global economy grinds to halt, they might need something to take their minds off of being single, unemployed and unwanted. 

Tue, 09/11/2012 - 22:20 | 2784005 Vet4RonPaul
Vet4RonPaul's picture

It's an even worse ratio for those guys when you consider all the Chinese girls that don't date Chinese guys.  That one child policy, while needed, has rendered them a society without brothers, without sisters, cousins, uncles and aunts.  When their parents die, many of them will have zero relatives.  Kind of scary to think about that society.

Tue, 09/11/2012 - 22:34 | 2784035 Colonel Klink
Colonel Klink's picture

Unintended cuntsequences, no bitchez!!

Tue, 09/11/2012 - 23:53 | 2784174 Stuck on Zero
Stuck on Zero's picture

Without the one-child rule there would likely be no Sisters, cousins, aunts, and uncles because they would have starved to death.


Tue, 09/11/2012 - 22:21 | 2784010 Vet4RonPaul
Vet4RonPaul's picture

btw - where's AnAnonymous when we need him?  sailing around in one tohse patrol boats?

Tue, 09/11/2012 - 23:25 | 2784136 TheFourthStooge-ing
TheFourthStooge-ing's picture


btw - where's AnAnonymous when we need him?

He's waiting by his mailbox for a reply to his ransom note for Xi Jinping.

Wed, 09/12/2012 - 02:18 | 2784390 AnAnonymous
AnAnonymous's picture

Why would you need me?

'Americans' are trapped in their fantasy and they need nothing else to satisfy themselves...

Oh, yes, it could be one of your fantasy that I am sort of needed? But still, it is just a fantasy and do as you please...

Tue, 09/11/2012 - 22:48 | 2784061 BandGap
BandGap's picture

Estimates are that there are about 25000000 men that will never get laid. That's a lot of angst.


Wed, 09/12/2012 - 00:35 | 2784246 Things that go bump
Things that go bump's picture

I understand that those girls, suddenly realizing their true value as a scarce commodity, have grown mighty particular. Boys with no prospects need not apply.  I understand desperate young men have been known to kidnap girls and carry them off.  I bet they're sorry they let Americans adopt all those unwanted little girls.  

Wed, 09/12/2012 - 02:15 | 2784385 YuShun
YuShun's picture

To some extent, they can deal with this problem by importing young women from neighboring countries, and that is happening.

Wed, 09/12/2012 - 02:41 | 2784395 Things that go bump
Things that go bump's picture

I bet there are lots of nice young North Korean girls who would just hop at the change to hook up with a Chinese factory worker, but it is all those unwanted little girls who were born with ethnic Chinese eggs in their ovaries.  

Wed, 09/12/2012 - 00:55 | 2784300 ElvisDog
ElvisDog's picture

Sounds like homosexuality will be on the rise in China with all those extra boys.

Tue, 09/11/2012 - 22:05 | 2783965 CrashisOptimistic
CrashisOptimistic's picture

The geology under Senkaku is promising for oil and gas.

Non Japanese ppl do not understand the depth of feeling in Japan about this matter.  Japan schoolchildren are taught that they got nuked twice for one primary reason -- they have no oil.  The earthquakes of millions of years has eliminated any oil they might have ever had.  And the result of this was they bombed Pearl to ensure no threat to the Indonesian supply when FDR embargoed American oil exports (the US was the Saudi Arabia of that era) to Japan (who were abusing China at the time).

But regardless of historical perspective, Japanese kids are taught that they are the only country on Earth to be nuked, twice, and it was because of oil.  Now, they would seem to have some oil on their territory and China seems to be trying to steal it.

Japan is not going to tolerate this.

Never ever forget for the rest of your life that from now on, oil decides everything and is the impetus for all politics.

Wed, 09/12/2012 - 00:03 | 2784191 partimer1
partimer1's picture

That's the same kind of brainwashing shit they do in china. I thought Japanese people are smart up cuz they got nuked twic by Americans. Guess not. Those oil will be there for long time, and China and Japan will come to some kind of term on this one.

Wed, 09/12/2012 - 00:12 | 2784208 Vlad Tepid
Vlad Tepid's picture

How excatly is emphasizing the fact that Japan has no oil brainwashing?

While we're at it, why don't you come to terms with the fact that I own your kitchen now because I claim it to be so.  Your argument is specious.

Wed, 09/12/2012 - 09:04 | 2785178 partimer1
partimer1's picture

Is oil the reason they got nuked twice?  thats not BS?  I thought they got really far to the pearl harbor and fucked the US interest is the reason they got nuked.  Am I wrong about this?   You can sit there claiming whatever you want.  The reality is that if there is fight, both countries will go down, and Japan suffers more.  I don't see a real fight. They will shut their mouths and come to a term.

Tue, 09/11/2012 - 22:05 | 2783961 Atomizer
Atomizer's picture



It’s all the same BIS [Bank of International Settlements] propaganda 

BIS seen selling EUR/USD above 1.2640 

Last Updated :4/9/2012 4:16 PM


May 14, 2004– BIS & OFAC: Embargoes & Other Sanctions. Department of Commerce. Bureau of Industry & Security. 

G20 Bitchez

Bank of Japan Accounts(September 10, 2012)

Tue, 09/11/2012 - 22:19 | 2784003 Atomizer
Atomizer's picture

As long as the poor are subsided to be feed, homed and universal healthcare is available. Grand theft banking auto will continue to removed money from your banking account to redistribute to another poor folk.

Tue, 09/11/2012 - 22:32 | 2784031 Colonel Klink
Colonel Klink's picture

Krugman suggests this is bullish.  Break a few windows, stimulate the eCONomy.  He knows what he's talking about, he has that knoble piece prize, just like Obummer the peacenik.

Forgive me, I don't mean to DRONE ON.

Tue, 09/11/2012 - 22:36 | 2784038 yogibear
yogibear's picture

China will back down. Now is not the time for China to show force. 

China is very, very, very patient! It built the Great Wall over centuries.

It knows the best way to defeat and topple the US and Europe is not militarily, but through economics.

The US bankrupted the Soviet Union and China will bankrupt the US. The US is doing a great job of bankrupting itself.


 "Let China Sleep, for when the Dragon awakes, she will shake the world." 

Tue, 09/11/2012 - 23:00 | 2784088 Colonel Klink
Colonel Klink's picture

Well they're certainly eating our lunch economically in holding a trillion plus of our treasuries.  That is, if they can collect.  If not, I'm sure there will be a billion plus Chinese who will be pissed!

Wed, 09/12/2012 - 02:47 | 2784411 IronShield
IronShield's picture

The dollar may be our currency, but it's your problem.  Capiche?

Wed, 09/12/2012 - 00:14 | 2784213 Vlad Tepid
Vlad Tepid's picture

Of course, the Great Wall didn't do one wit of good and ended up bankrupting several dynasties and preventing them from investing in an exploration fleet in the 1400s.  Maybe they learned from their mistakes.

Wed, 09/12/2012 - 01:47 | 2784350 reader2010
reader2010's picture

The Great Wall of China had been used as the wealth transfer vihicle for the ruling elite. and its another purpose was to lock the Chinese population inside for taxation.

Tue, 09/11/2012 - 22:36 | 2784039 lolmao500
lolmao500's picture

And guess what, Xi Jinping is quite the hawk.

Tue, 09/11/2012 - 22:43 | 2784045 lolmao500
lolmao500's picture

While China is positioning itself in North Korea...

China Gains Use of Another N.Korean Port

China has gained the rights to use the North Korean port of Chongjin on the East Sea. The move is part of a Chinese push for access to the East Sea.

Edging their bets against Japan, the US and SKorea.

Tue, 09/11/2012 - 23:05 | 2784095 GS-DickinDaMuppets
GS-DickinDaMuppets's picture

Go Long;     RICE.....and SOY Sauce


...doing GOD's work...GS-DickinDaMuppets

Tue, 09/11/2012 - 23:04 | 2784097 Son of Loki
Son of Loki's picture

The right winger neocons in Japan have just given the right winger neocons in China an excuse to double the military budget.

Very non-productive.

Tue, 09/11/2012 - 23:38 | 2784152 youngman
youngman's picture

You know what is really that we can all watch this live on our new APPLE IPHONE 5´s out tomorrow......made in China no gold

Wed, 09/12/2012 - 00:13 | 2784209 lolmao500
lolmao500's picture

Made by Foxconn slaves and built with Chinese kids tears.

Wed, 09/12/2012 - 00:00 | 2784182 Vlad Tepid
Vlad Tepid's picture

I think you're out to lunch, Tylers.  Japan owes no more explanation to China than the US does to France for owning Michigan.  Japanese soveriengty has been undisputed here for a very long time and China has a track record of seeking any place it can to antagonize its neighbors over littoral claims.  Can you say bullying?  Does Vietnam, the Philippines, Malaysia, Indonesia, Taiwan, and Brunei also "owe China an explanation."  Since when is operating as a negotiating partner in good faith with the world community "naive?"  China is the one with a problem, not Japan.

Wed, 09/12/2012 - 11:53 | 2786119 matrix2012
matrix2012's picture


to have thing gets straight..... please do some research in history before saying too much


The Diaoyu Islands issue was settled after World War II. The United States has nonetheless managed to turn it into a complicated dispute.


The Diaoyu Islands and surrounding islets have been the inherent territory of China since ancient times, and were first discovered, named and used by the Chinese. The earliest historical record of the Diaoyu Islands can be dated back to China’s Ming Dynasty about 650 years ago in a book titled "Voyage With a Tail Wind," published in 1403. The book records the first usage of "Diaoyu Islet" and "Chiwei Islet". The names refer to the current Diaoyu Islands and Chiwei Islet.

Hu Zongxian, the Zhejiang governor of the Ming Dynasty, placed the Diaoyu Islands and surrounding islets within China’s maritime defense system. It demonstrates that the islands have been within China’s maritime defense sphere since the Ming Dynasty. Japan claimed sovereignty during the Sino-Japanese War of 1895, seizing the islands by illegal means.

Back in 1582, the Diaoyu islands was officially incorporated into the Chinese territory as a part of Fujian Province. Until the late Qing Dynasty, there was absolutely no ambiguity as to the ownership of the islands. For centuries the Diaoyu Islands were administered as part of Taiwan (or Formosa, as Taiwan was called before 1945).

Japan took the Liu Chiu Islands, which Japan calls Okinawa (formerly known as Ryukyu Islands), by force from China in 1874, when the Qing Dynasty (1644-1911) was invaded by several countries. The Diaoyu Islands, though, remained under the administration of Taiwan.

In 1895, as the Qing government’s defeat in the First Sino-Japanese War was all but certain, Japan illegally occupied the Diaoyu Island and its affiliated islands. After that, Japan forced the Qing government to sign the unequal Treaty of Shimonoseki and cede to Japan “the island of Formosa (Taiwan), together with all islands appertaining or belonging to the said island of Formosa”. Since then, Japan incorporated the Diaoyu islands into its territory as a part of Okinawa Prefecture.

After the end of the Second World War, China recovered the territories invaded and occupied by Japan such as Taiwan and the Penghu Islands in accordance with the Cairo Declaration and the Potsdam Proclamation. According to international law, the Diaoyu Island and its affiliated islands have already been returned to China at the end of World War II. The Japanese government accepted the terms of these documents, including one saying “that all the territories Japan has stolen from the Chinese, such as Manchuria, Formosa (as Taiwan was called before 1945), the Pescadores (or Penghu Islands), shall be restored to the Republic of China”.

Facts are facts, and history is not to be reversed. Japan’s position on the issue of the Diaoyu Island is an outright denial of the outcomes of the victory of the World Anti-Fascist War and constitutes a grave challenge to the post-war international order.

Article 2 of the Treaty of Peace with Japan, which was signed in 1951 by Japan and the allied powers, states: “Japan renounced all right, title and claim to Formosa and the Paracels.” Article 4 of a separate peace treaty signed in 1952 by Japan and the Republic of China declared that ALL agreements made between Japan and China BEFORE 1941 were NULL AND VOID.

As stated above, it’s perfectly logical to conclude that the Diaoyu Islands, being part of the Taiwan territories, have been returned to China.

So where do the claims to the contrary come from?

In part from an ILLEGAL TREATY the United States and Japan signed in San Francisco in 1951 in the ABSENCE of CHINA, one of the victors in the war. Article 3 of the treaty wrongly (intentionally) assigned the Diaoyu Islands and other islets to the Liu Chiu Islands, which was then under the US’ control. [THE US intentionally planted a time-bomb in the East China Sea.]

On September 18th, 1951, then Chinese Premier and Foreign Minister Zhou Enlai made a solemn statement on behalf of the Chinese government that the Treaty of Peace with Japan signed in San Francisco was illegal and invalid, and would not be recognized without the participation and signing of the People’s Republic of China.

In 1953, the United States Civil Administration of the Ryukyu Islands arbitrarily expanded its jurisdiction to include the Diaoyu Island and its affiliated islands, which are in fact Chinese territories.

In June 1971, Japan and the United States signed a pact to hand over Okinawa to Japan. The Diaoyu Islands were mapped into the handover area. China’s Foreign Ministry announced on December 30th 1971 that such a move was "totally illegal" and reiterated that the Diaoyu Islands and surrounding islets were "an integral part of the Chinese territory".

After 1972, when the US handed over the Diaoyu Islands, as well as the Liu Chiu Islands, to Japan under the Okinawa Reversion Agreement, Japan once again began to administer the islets. Even so, that agreement did not and could not recognize Japan’s control over the islands. The country is now trying to use its “nationalization” plan to pretend it has sovereignty over the Diaoyu Islands.

The principle of "shelving disputes and seeking common development" set forth by former Chinese leader Deng Xiaoping in 1979 has been the basic rule for China and Japan to handle the Diaoyu Islands dispute in the past 30 years. Both countries claimed sovereignty over the islands while waiting for an appropriate time to resolve the dispute, and neither country will make concessions in this regard.



Wed, 09/12/2012 - 01:15 | 2784321 BigInJapan
BigInJapan's picture

This is how Japan gets out from under Article 9's pacifism and finds a way to spend even more money it doesn't have, to develop a "real" military. The amount of shovel-ready jobs floating around here after Fukushima boggles the mind. This country is running on shovel-ready jobs now so may as well go all in and get some harware, too. The winds of war...

Fairly sneaky timing on Japan's part, to pull this move as China heads into the changeover. It could easily blow up in their faces, though - Japan has been sucking China's tits for the past decade and simply can not exist without Chinese money. They know it, the Chinese know it. I'll bet anyone that this goes bad for Japanvbefore it gets better.

The language in the Potsdam Declaration states Japan has to "return" those islands to China. Signed by the emperor, himself. Is there any real debate as to who owns them?


Wed, 09/12/2012 - 02:53 | 2784416 Vlad Tepid
Vlad Tepid's picture

I have no idea what you're talking about.  Perhaps you could be more clear. Article 8 of the Postdam Declaration states:

The terms of the Cairo Declaration shall be carried out and Japanese sovereignty shall be limited to the islands of Honshu, Hokkaido, Kyushu, Shikoku and such minor islands as we determine.

The Senkakus and other islands to the south were all adjudged to be an intergral part of Okinawa Prefecture, which was restored to fully Japanese sovereignty by a US military governorship in 1972. 

Furthermore, the Japanese Emperor never signed the Potsdam Declaration.  If he had, the bombs never would have been dropped and the war would have been over. 

The disageement from the Chinese side is that they (PRC) never signed the Treaty of San Francisco with Japan as did all the other powers (sans USSR) because they weren't actually a country.  Now they come back 70 years later and start claiming the spoils of the Pacific War.

Wed, 09/12/2012 - 12:19 | 2786218 matrix2012
matrix2012's picture

"Now they come back 70 years later..."


Looks like you obviously overlooked these facts....

1) After the Japanese surrender & the 1951 treaty which gave control of the islands to the American, China was soon embroiled in another civil war between the Kuomintang vs CPC until the Communists emerged victorious & in control of the country.

2) Not soon after that, came the proxy wars that were fought in Korea & Vietnam where Red China along with USSR were involved directly in helping their commie brothers in their fights against Western imperialism.

3) Then came a period of a Cold War between the Western world & Communism.

4) Until the 1970s, the United States recognized the Republic of China on Taiwan as the legitimate government of mainland China and did not maintain diplomatic relations with the Communist regime of the People's Republic of China. In the midst of the Cold War, the Sino-Soviet split provided an opening for the U.S. to establish ties with mainland China and establish it as a counter to the Soviet Union, at which both the US & China finally established diplomatic relation in Jan 1st 1979.

5) That was after the little great man called Deng Xiaoping first opened out China to the world of capitalism in 1978.


So, it must be noted that the US handed over the islands to Japan, its ally, in 1972, right at that time.....

a) When China was still in a period of Cold War with the Americans.

b) When China was still a backward & impoverished nation where there were more important issues in the country to attend than instead of the barren unihabitated islets.

c) Taiwan had too weak the leader then and thus in no position to question what the Superpower was doing.


Above reasons partly explained why both China & Taiwan didn't take any action during that period.

Wed, 09/12/2012 - 01:56 | 2784365 reader2010
reader2010's picture

The Chinese military is indeed a gitantic Paper Tiger.  Back in 2004, they got rid of the navy's the number two boss out of political reasons. They found he had embezzled about $7 million USD cash , and about 100 million Chinese RMB cash stored at two of his residences. 

Wed, 09/12/2012 - 02:48 | 2784413 Ar-Pharazôn
Ar-Pharazôn's picture

if Japan bought the islands that means the China could do the same.

The chinese didnt even ask to buy the islands so i think this prooves their real interest. Nothing.

Dear chinese friend you're late, so fuck you ;)

Wed, 09/12/2012 - 06:10 | 2784651 BigInJapan
BigInJapan's picture

Want me to sell you those shoes you're wearing?

Wed, 09/12/2012 - 12:31 | 2786280 matrix2012
matrix2012's picture

How can you ever place any bid to buy out (or buy back) something that you have been steadily claiming as yours?

 the moment you tender the bid, it immediately self nullifies your claim... really dumb  LoL 


Wed, 09/12/2012 - 06:36 | 2784676 Parrotile
Parrotile's picture

Never forget that there are a LOT of Chinese who will NEVER forgive Japan for the Rape of Nanking.

The Chinese are patient, and have excellent memories . . . .

Wed, 09/12/2012 - 12:39 | 2786303 matrix2012
matrix2012's picture

it's hardly possible... to forgive. forget, they won't definitely



* The Tears of Nanjing: Thoughts and Reflections on the Nanjing Massacre

In memory of the (at least) 300,000 Chinese murdered during the Nanjing Massacre.

What is often ignored in Western education curriculum, and unknown to Western society in general, is the fact that War in Asia had already erupted by 1937 with the Japanese invasion of China and the subsequent takeover of the then capital city of Nanjing, 4 entire years before the attack on Pearl Harbor in 1941. Japanese expansionism had already begun by the early 1930s with the occupation of the northeastern part of China and the establishment of the puppet state of Manchukuo. Full scare war between the Empire of Japan and the Republic of China officially began by July 1937 following the Marco Polo Bridge Incident. By August of 1937, the Japanese launched a full scale assault on the city of Shanghai. They were met with heavy resistance from the Chinese Nationalist army but eventually captured the city after weeks of brutal fighting. By then, the then-leader of China, Chiang Kai Shek, knew that the Japanese’s eventual target would be Nanjing. Knowing that the city would be lost, Chiang Kai Shek pulled out and relocated his government to Wuhan and later Chongqing. He left with most of the Nationalist army in preparation for future battles, leaving only a small, disorganized and greatly undersupplied battalion of soldiers left to defend Nanking. The Japanese slowly made their way to Nanjing after the fall of Shanghai.

The Japanese arrived outside the city walls on December 8, 1937. After 5 days of fighting with the remaining Nationalist army, the wall was breached. The Chinese army remaining in Nanjing were vastly outnumbered and outmatched by the superior Japanese forces and weaponry. After the city fell on December 13, 1937, the Chinese army surrendered their weapons and hoped to be treated with mercy by the occupying Japanese forces. They couldn’t have been more wrong. The events that followed later became known in history as the Nanjing Massacre.

Nanjing was embroiled in total chaos and lawlessness. The state of chaos and anarchy allowed the Japanese army to do whatever they wanted to in the city. The feeling of domination and power over the civilians of Nanjing and the powerless Chinese soldiers who have given up arms eventually overwhelmed the Japanese soldiers who saw Chinese people as inherently inferior. The sense of power they felt eventually led them to pillage the entire city and commit gruesome atrocities that numb the human conscience. The Japanese Army’s motto at the time was: “Kill All, Loot All, Burn All”. During the occupation of Nanjing, the Japanese army committed a gross range of atrocities in the city which included, but were not limited to, raping women to death, burying civilians and prisoners of war alive, mass executions, beheadings, and the murdering of entire families from children to the old and infirm. Many of the soldiers who gave up their arms stole civilian clothes in order to avoid capture. John Rabe was given assurance by Japanese military officials that soldiers who have given up arms would be spared. Yet this assurance was futile. The Japanese soldiers summarily rounded up thousands of people from the Nanjing Safety Zone whom they accused of being soldiers disguised in civilian clothing, tied them up in groups and led them to the banks of the Yangtze River for mass execution. These groups of men were lined up along the banks of the Yangtze and machine gunned. Those who did not die from gunfire were later bayoneted or beheaded by Japanese soldiers. A Japanese soldier recalled seeing “rows and rows of dead body mountains.”




Wed, 09/12/2012 - 09:55 | 2785434 Venerability
Venerability's picture

Tyler, Japan per se - not being much of a part of the REAL conflict, which is about OIL AND GAS - what isn't these days? - is a Straw Man for those China considers the real aggressors, Exxon and countries on its coattails, which include Vietnam and, I believe, the Philippines.

People making Market Bets on this quasi-artificial conflict need to understand why China's partial Talisman and full Nexen bids are at the heart of a resolution to the situation.

One way or the other - involving a lot of horse-trading and Oil-trading - China is pretty certain to prevail.


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