It's getting hot over here.Submitted by Michael Nystrom on Wed, 11/27/2013 - 11:05
Ignore all the BS about the Keynesian stimulus and focus on the facts. Actually, you still have to take the potential Keynesian stimulus idea into account - not because it is true, but because the players involved no doubt believe it is true, thereby... making it true. Argh!
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.
Japan’s foreign minister, Fumio Kishida, accused China of “profoundly dangerous acts that unilaterally change the status quo”.
The US defence secretary Chuck Hagel called it “a destabilising attempt to alter the status quo in the region” and warned that the US would defy the order. The Pentagon has since stated that US pilots will not switch on their transponders to comply, and will defend themselves if attacked. Think about this for a moment.