Tuesday, February 9, 2010

Scariest thing I have read all day

We recently sold some weapons to Taiwan.  China is not happy about that.  Actually the Chinese military is nearly livid about it--they know that it is only a matter of time before they have to face Taiwan, and they don't want to face any more American weapons than they must.

The thinkers in the Chinese army have suggested that the Chinese government should dump some of the US treasury bills that they own, in retaliation.

Our economy is on very shaky legs right now.  Moody's recently warned that the US government is in danger of losing it's AAA rating because of the tremendous amount of debt that we are carrying.  China owns enough Treasury bills to break the dollar if they sell a large chunk.  And they know it--they just told us they know it.

China is unlikely to do this because we are still their biggest export market.  They can't strike us without hitting themselves, and they won't do that until they are ready to move to a full-scale shooting war posture.  It's a sad commentary that I trust the Chinese government's economists and strategists to understand this dynamic and not violate it, but I don't trust the US government's economists and strategists.

Iran is probably going to go nuclear on Thursday.  My guess is a small underground n-bomb test.  We desperately need China's help to make any sanctions stick, and since we've just pee'd in their soup that is unlikely to happen.  I am afraid that team Obama has been chasing too many donors (the military complex that was lobbying for this sale to Taiwan) and fighting too many fires without a coherent understanding of the chess board.  But we are about to face a harrowing decision: we will have to sell out Taiwan and Tibet in order to get China's help with Iran.  This is a sickening and horrible decision.

No comments:

Post a Comment