Thursday, January 05, 2006


Red China has 700 billion dollars of US currency which it is sitting on. Libertarian economists tell us that this is no threat to the American economy because this currency reserve is an asset which is paying a good return for the Chinese. I think that this is BS. China has invested 7/10 of a trillion dollars in a weapon which could cripple the US economy if (and when) they decide to pull the trigger on it by dumping it on the world market.

This situation has been described as "China's foot on America's throat". Make no mistake about it when you couple China's US currency reserves with their military's focus on cyber warfare a very bleak picture emerges. China has co-opted Japan's dream of a Greater East Asia Co-Prosperity Sphere and is taking concrete steps to bring it about. A complete or even partial collapse of the US economy timed to coincide with an invasion of Taiwan looks more and more like a "when" scenario rather than an "if" scenario.