China Talk

Lots of noise over the China/Japan island dispute and how big, scary China will flex it’s as yet unseen military might. Uh huh. This is not the Asian century. China is not a world player, they are a maker on tiny plastic things for the amusement of the developed world.

This is the most accurate portrayal of that I have ever seen written:

Precisely. When we have used up China to our satisfaction, we can turn to anyone we choose to provide our manufacturing. Like Mexico for example. And they would be happy to do it. Everyone thinks China has us in a corner, when in fact the opposite is true.

China owns US debt. Debt which can be repudiated at a whim and cannot be used to buy anything the US does not want.

China does not have its own market and is decades away from it. Regardless of how many iToys Apple says it sells there.

Messing with Japan is having them expose what is really on their minds and they would be foolish to “flex” their non-existant muscles at Japan or anyone else for that matter.

Their military is a joke, their planes glow infrared like a flare and their single aircraft carrier is a relic.

Im not really sure what they think they will gain from this, but exposing how new they are to the way the world works.

Simple as that…

 

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About Japan, but read my pull out quote…

Denninger strikes again. Karl, buddy, I’m glad you’re out there.

What this means is that when, not if, things go sideways you have had a demonstration in bright lights and bold neon paint that governments will at best do nothing useful and at worst will expend resources in the wrong places compared to the most-important agenda items toward stabilization of the situation at hand.

In short when things go pear-shaped you will either help yourself or you will suffer from whatever circumstance arises.

If that is not a compelling reason to get your house in order in the shortest possible term, please, continue charging against your Visa/Amex/MC/Discover – everything will be just peachy…