When this latest massive financial bubble bursts, what will China do in the future as economic tensions between the US and China build up?
Some say that physical, military war with China is inevitable.
The US military must already be considering this possibility.
The Pentagon already plans to encircle China with Stealth fighter and other military bases.
As usual the generals plan to fight the next major war with the weapons of the last, which will become completely redundant by the time any physical war actually breaks out.
The next war will be fought with electromagnetic pulses, cyber warfare and weapons that we probably can't even imagine yet.
China is already planning to replace the US Dollar as the global reserve currency.
China is already marginalizing the USD through a series of numerous non USD trade deals and the setting up of the "Brics bank" which is intended to replace the Federal Reserve, the IMF and World Bank.
The US is already war gaming a currency war with China, with the advice of Jim Rickards.
China is no longer buying US Treasuries.
It is converting the US Dollars it is still receiving in trade into hard assets - land, oil, gold, other mineral rights, buying the largest producer of US pork, buying JP Morgan's old headquarters in Manhattan etc.
The passing of Citizens United makes it possible for almost unlimited Corporate campaign donations (bribes).
US politicians are easily bribed, e.g. the 2 leading members of the Senate Banking Committee were bought by JP Morgan for 6 years for just $880,000.
Why wouldn't China just buy/set up US front companies in order to buy US politicians?
Why wouldn't China test out this potential strategy at the State level first?
Why wouldn't they say, buy land to set up a 50 sq mile "economic development zone" in Idaho.
Why wouldn't they buy 3 relatively small retail banks in the US?
Why wouldn't they buy farmland?
Why wouldn't they buy American food producers?
Why wouldn't they bribe local state politicians with the promise of local jobs and campaign donations?
Spending a few $100m on buying Federal politicians would be a lot cheaper than fighting a military war against the US (cold or hot) and the outcome would be far more certain (for China).
The US wasted over $5tn just fighting the minor localized wars in Iraq and Afghanistan.
The US is building military bases and moving troops into 35 more African countries, presumably to counter the Chinese natural resource deals that have already been made with half of Africa.
Africa could well give the best clues as to how things might eventually pan out.
No comments:
Post a Comment