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South China Sea or not, China and U.S. are on a collision course January 12, 2017

Posted by hslu in China, Cold War, Debt and deficit, Economics, Global Affair, Middle East, Military, Politics, Taiwan, Trump.
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‘No access’: Rex Tillerson sets collision course with Beijing in South China Sea


South China Sea is merely an excuse for America to “Pivot to Asia.” 

The target of this strategic re-balance from Europe and Middle East to Pacific Rim is China. 

The objective is to maintain (or protect) the world order America built over the past 70 years and the hegemony America enjoyed since the end of WWII. 

The by product of this foreign policy initiative is a weakened China and a damaged Chinese economy.

The hidden agenda is to divert the world attentions from the total failure of America’s democratization effort in the Middle East. However, the U.S. achieved its intention to dominate the world vis a vis a retracted Middle East, a wounded Europe and a crushed Euro.

The beneficiaries are American weapon makers which have a brand new market to sell their military hardware to. They have already made a killing from many countries in the Middle East. 

The U.S. will likely use several tactics to weaken China’seconomy: sanctions, tariff, 35% tax on all imports from China, freeze of Chinese bank assets in the U.S., etc. On the political front, abandoning “one China” policy, recognizing Taiwan as a separate country, establishing formal ties with Taiwan and conducting military exercise with Taiwanese arm forces are merely first steps.

What Beijing plans to do isn’t very clear right now but China will not give in easily to words from people in Trump’s administration.

What can ordinary Chinese people do? How about stop buying everything American: from McDonald’s to Starbucks to Boeing? 

Dangerous conflicts are inevitable but direct military conflict is probably not likely for now. The Cold War against China started by Obama will be carried out by Trump and American presidents after him. In the end, the game will play out in the economic front instead of fighting it over with boots on the ground.

China has $3 trillion in foreign currency reserves. America has $20 trillion national debts and borrows $500 billion a year just to get by.

Whom do you think will be the last one standing after 20 years?

Is time to load up on gold?



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