by Michael Snyder, End Of The American Dream:
We are closer to a war with China than most people realize. Right now, U.S. officials in Washington are deeply concerned that the Chinese may impose a full-blown blockade on Taiwan as the first step in a “reunification” campaign. Many Americans don’t realize that such a move would be a really, really big deal. If China chooses to blockade Taiwan, the U.S. and China would instantly be in a state of war. All of a sudden, the flow of high-end computer chips from Taiwan would completely stop. And all of a sudden, the flow of products that we import from China would completely stop. In other words, our standard of living would be radically altered for the foreseeable future.
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But there are certain things that are likely to happen before China pulls the trigger on a military solution. In recent months, China has been making moves to reduce economic exposure to the United States, and one of those moves has been to sell off U.S. Treasuries.
In fact, January was the sixth month in a row in which Chinese holdings of U.S. Treasuries fell…
China continued to cut its holdings of US Treasuries at the beginning of the year amid rising long-term interest rates, which slashed its returns on its overseas investments after the US Federal Reserve accelerated its lending cost increases last year.
As foreign holdings rose for a third straight month in January, China’s holdings slid to US$859.4 billion in January from US$867.1 billion in December, declining for the sixth straight month and marking their lowest point since May 2009, according to data released by the US Department of the Treasury on Wednesday.
The good news is that the Chinese have been selling off their holdings at a measured pace.
If a blockade or an invasion was imminent, I would expect the Chinese to start selling off Treasuries much more rapidly.
We will keep watching to see if the pace changes.
Meanwhile, CBS News is reporting that China just completed “three days of military drills meant to simulate a blockade of Taiwan”…
China has completed three days of military drills meant to simulate a blockade of Taiwan. The drills included an aircraft carrier and nuclear-capable bombers as tensions continue to ramp up following a meeting between House Speaker McCarthy and Taiwan President Tsai Ing-wen.
Many analysts believe that they are literally showing us what they intend to do.
During these drills, the Chinese practiced attacking Taiwan from the east for the very first time…
China’s newest aircraft carrier has for the first time practiced attacking Taiwan from the island’s east coast, demonstrating Beijing’s growing determination to project power beyond the Taiwan Strait and far into the Pacific Ocean, an area traditionally dominated by the United States and its regional allies.
If the Chinese fully encircle the island, Taiwan would be totally cut off from U.S. help.
The U.S. could try to break the blockade, but that would mean shooting at the Chinese.
Of course the Chinese would not just use ships to impose a blockade. On Monday, the Chinese sent more fighter jets toward Taiwan than they ever have before…
Late Monday, the Taiwan Defense Ministry registered 91 fighter jets and 12 ships from the Chinese military within the space of 12 hours. This is a record-high number of Chinese military aircraft entering the airspace surrounding Taiwan in a single day.
Of these, 54 aircraft crossed the median line of the Taiwan Strait and entered Taiwan’s south-western and south-eastern airspace.
The Chinese are making it very clear that they aren’t messing around.
In fact, the Chinese military just released an animated video that simulates what an all-out attack on Taiwan would look like…
China’s military has declared it is ‘ready to fight and smash Taiwanese independence’, releasing an animated video simulating how it would launch an all-out attack on the self-governing island nation.
The clip, shared by the Chinese military’s Eastern Theatre Command’s official WeChat account and later posted on Twitter by The Global Times, showed how Beijing would launch a torrent of missiles from the mainland and its navy in the Taiwan Strait to demolish Taiwan’s defences before invading.
But most Americans still aren’t taking this seriously.
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