What is going to happen in this growing adversarial relationship between the U.S. and China? Well, without a doubt, we will continue to see an expansion of the U.S. military into regions all around China in the attempt to force it into some kind of submission; a tactic that will never work. China will simply continue following the same agenda that it has for decades, spreading its influence and investments around the world.
At some point when the U.S. military intimidation becomes far more than the Chinese government will tolerate, then it may retaliate through powerful economic means. More than likely China will not overreact but will follow a plan that will severely impact America over a period of time.
China could curtail or even put a complete hold on its exports of rare earth minerals to the U.S, directly affecting this country's military and security systems; it could sharply reduce its holdings of U.S. securities, it could severely cut back new purchases of securities, and it could continue to pursue its agenda of replacing the dollar as the world's main currency.
When and if such measures were put into effect, it would shake America's financial foundations that are built on little more than sand, being propped up by the Federal Reserve pumping mega-billions of Fiat Money into the financial sector. This is a country which is spending hundreds of billions of dollars that it doesn't have and if the flow of new borrowed dollars is cut off, even the non-stop printing of dollars in the Treasury Department will not prevent the financial disaster which would follow.
A massive confrontation may well be on the way, it is almost inevitable; the question is: will this government and its leaders come to their senses and realize that if they continue their agenda of military intimidation of China the repercussions could be catastrophic? This is a time when cooler and wiser heads must prevail and throw this entire misguided process into reverse gear. But will they?
Michael Payne
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