Friday, January 26, 2007
The Peoples Republic of China has inched closer to a military challenge to global American hegemony by obliterating a satellite in orbit of earth from a ground based missile.
According to Bill Wilson this could be a precursor to a Star Wars type arms race.
America buried the former Soviet Union in an arms race the former communist nation could not financially afford. So here is the kicker.
China owns a $230 billion trade surplus with America. Couple this with the fact that China also owns $1.1 trillion in foreign exchange reserves. The key word is AMERICAN DOLLARS.
In a military arms build up, China could slow America down by calling in its markers. If America abides and pays its debt the nation is hampered economically. If America reneges on its debts, the global economy will be thrown out of whack.