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China-Japan Rearmament Is Keynesian Stimulus, If It Doesn't Go Horribly Wrong -- Ambrose Evans-Pritchard, The Telegraph
Asia is on the cusp of a full-blown arms race. The escalating clash between China and almost all its neighbours in the Pacific has reached a threshold. All other economic issues at this point are becoming secondary.
Beijing's implicit threat to shoot down any aircraft that fails to adhere to its new air control zone in the East China Sea is a watershed moment for the world. The issue cannot easily be finessed. Other countries either comply, or they don't comply. Somebody has to back down.
The gravity of the latest dispute should by now be obvious even to those who don't pay attention the Pacific Rim, the most dangerous geostrategic fault line in the world.
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My Comment: The three flashpoints that could spark a massive and destructive war have remained the same since the end of the Cold War .... the (1) Middle East, (2) Pakistan - India, and (3) north-eastern Asia .... specifically the Koreas, Japan, Taiwan, and China. North-eastern Asia has always been my biggest concern .... in the event of a conflict treaty obligations would involve the U.S. military, and the situation could easily and quickly escalate into a major conflict. In short .... because of the incredibly destructive arsenals present in this part of the world .... war in this region would be quick, massive, incredibly destructive, that will result in the destruction of numerous economies, disrupt international trade, and freeze much of the international financial system that we operate under today. Because of this awareness .... coupled with historical grievances and nationalism .... both China and Japan are now simultaneously embarking on an arms buildup .... and I do not see them stopping this buildup at anytime in the near future.
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