The Economic Impact of a War Between Japan & China

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“The United States believes that the establishment of diplomatic relations with the People’s Republic will contribute to the welfare of the American people, to the stability of Asia where the United States has major security and economic interest, and to the peace of the entire world.”

President Jimmy Carter
The American Presidency Project. December 15, 1978

 

Unfortunately, this is not a conspiracy theory.  2013 is a decisive year to deter the escalation of a war between Japan & the People’s Republic of China.  Who can stop it? According to this impressive video, the United States of America has a decisive role to play in this global arena.

A major conflict between the region’s two largest economies would not only impose a harsh dilemma on U.S. diplomats, but also have a significant impact on the entire global economy. It is in every nation’s best interest that the Chinese and Japanese settle their territorial dispute peacefully.

The team at One Minute MBA explains that

“The conflict between China and Japan has put the United States in a precarious position: if a full-scale war were to erupt, the U.S. would be forced to choose between a long-time ally (Japan) and its largest economic lender (China). Last year, China’s holdings in U.S. securities reached $1.73 trillion and goods exported from the U.S. to China exceeded $100 billion. The two countries also share strong economic ties due to the large number of American companies that outsource jobs to China.

However, the U.S. government may be legally obligated to defend Japan. In November, the U.S. Senate added an amendment to the National Defense Authorization Act that officially recognizes Japan’s claims to the disputed islands; the U.S. and Japan are also committed to a mutual defense treaty that requires either country to step in and defend the other when international disputes occur. Not honoring this treaty could very easily tarnish America’s diplomatic image.

The countries of the Asia-Pacific region are collectively responsible for 55 percent of the global GDP and 44 percent of the world’s trade. A major conflict between the region’s two largest economies would not only impose a harsh dilemma on U.S. diplomats, but also have a significant impact on the entire global economy. It is in every nation’s best interest that the Chinese and Japanese settle their territorial dispute peacefully.”

To read the entire video transcript please visit this link.

Journal Reco. “Sino-Pacifica”: Conceptualizing Greater Southeast Asia as a Sub-Arena of World History

Map of Southeast Asia
Image via Wikipedia

I just got my hands in a great article on Southeast Asia issues.  Here’s the abstract for the article (via Project MUSE) and I hope you’ll get to enjoy it too,

Conventional geography’s boundary line between a “Southeast Asia” and an “East Asia,” following a “civilizational” divide between a “Confucian” sphere and a “Viet­nam aside, everything but Confucian” zone, obscures the essential unity of the two regions. This article argues the coherence of a macroregion “Sino-Pacifica” encom­passing both and explores this new framework’s implications: the Yangzi River basin, rather than the Yellow River basin, pioneered the developments that led to the rise of Chinese civilization, and the eventual prominence of the Yellow River basin came not from centrality but rather from its liminality—its position as the contact zone between Inner Eurasia and Southeast Asia.

In a sense . . . the frontier of Southeast Asia has retreated slowly from the line of the Yangzi (in what is now central China) to the Mekong delta (in what is now southern Vietnam).

—Charles Holcombe, The Genesis of East Asia

[T]he Vietnamese-Lao wars of the seventeenth century were resolved wisely when the Le rulers in Vietnam and the Lao monarch agreed that every inhabitant in the upper Mekong valley who lived in a house built on stilts owed allegiance to Laos, while those whose homes had earth floors owed allegiance to Vietnam.

—The Emergence of Modern Southeast Asia: A New History [End Page 659]

The question of boundaries is the first to be encountered; from it all others flow.

Fernand Braudel, The Mediterranean World in the Age of Philip II

In conventional geography, the largest division of the human community is the continental or subcontinental scale “world region.” World regions are the most useful as concepts when their boundaries can be seen as enduring, immobile, and, above all, easy to map. Yet, in the first quotation above, we see a border between two world regions, Southeast and East Asia, that rolls southward thousands of miles over thousands of years. In the second quotation, we see a border between two kingdoms within the same world region, Southeast Asia, that cannot be traced as a simple line on the ground, being created by the contrasting cultural preferences of inextricably mixed populations. The moving boundary and the undrawable boundary are actually the same, the frontiers between Sinified Vietnam and its un-Sinified neighbors.

China Is Asked for Investment in Euro Rescue

Euro
Image by Images_of_Money via Flickr

A new chapter is being written in the History of Money, Bank and Credit as news of how European leaders are asking for China to rescue them from the chaos they created. I wish this guys reconsidered before continue acting some of the most important principles of Deficit Financing, Freedom, Inflation, Money, Property Rights, Savings, Welfare State, Consumption, Credit; Gold Standard, Market Value, Objective Theory of Values, Production, Purchasing Power, Sanction of the Victim, Selfishness and the Trader Principle just to mention a few before going on making more business that en debts their country’s economy while make their citizens poorer.

And as Ayn Rand cleverly mentioned in regard to Deficit Financing,

The government has no source of revenue, except the taxes paid by the producers. To free itself—for a while—from the limits set by reality, the government initiates a credit con game on a scale which the private manipulator could not dream of. It borrows money from you today, which is to be repaid with money it will borrow from you tomorrow, which is to be repaid with money it will borrow from you day after tomorrow, and so on. This is known as “deficit financing.” It is made possible by the fact that the government cuts the connection between goods and money. It issues paper money, which is used as a claim check on actually existing goods—but that money is not backed by any goods, it is not backed by gold, it is backed by nothing. It is a promissory note issued to you in exchange for your goods, to be paid by you (in the form of taxes) out of your future production.

“Egalitarianism and Inflation,”
Philosophy: Who Needs It, 133

Read more of this news:

PARIS — A day after European leaders unveiled their latest plan to save the euro, top officials opened talks with China in an effort to lure tens of billions of dollars in additional cash, giving China perhaps its biggest opportunity yet to exercise financial clout in the Western world.

China is expected to demand significant concessions, including financial guarantees and limits on what Beijing sees as discriminatory trade policies, in exchange for any investment in Europe’s emergency stability fund. The head of the rescue fund, Klaus Regling, got a cautious reply from Chinese officials Friday during a visit to Beijing, where he said he did not expect to reach an investment deal with China anytime soon.

A senior Chinese official, Vice Finance Minister Zhu Guangyao, said China — like the rest of the world — was still waiting for the Europeans to deliver crucial details on how the rescue fund, the European Financial Stability Facility, would operate and be profitable before deciding on whether to participate. via: China Is Asked for Investment in Euro Rescue by Liz Alderman and David Barboza.