Do not taunt Risky Funball.

Tricky Dick might have really screwed us up with his first trip to the ChiComs in the early 70's. My father was in military intelligence and retired in 74 and died in 88. His prediction was that the USA and USSR would one day militarily fight the Chinese. He warned about ever doing anything with them.

I'm more worried about China deciding they want Russia's natural resources than anything else in that regard.

Such a war will last 20 minutes. The first 15 while Chinese troops storm the border, the last five as the nukes head for every Chinese city (and Russian city) in exchange, turning both into smoking holes.

Russia "wins" that exchange, as much as one can "win" a nuclear exchange. If the US is wise it sits back and watches the fireworks rather than get involved.

Why would China need to attack Russia to get its natural resources?

They have plenty of dollars that Russia wouldn't mind having.

Rbar, for now they do.

Russia will be happy to sell China whatever China will pay for at Russia's price. The problem comes when the price is too high or China's financial system blows up - and the latter is looking increasingly likely.

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Such a war will last 20 minutes. The first 15 while Chinese troops storm the border, the last five as the nukes head for every Chinese city (and Russian city) in exchange, turning both into smoking holes.

Certainly China can see such an outcome. What's the upside for China? Why would they commit to a course of action that is so obviously suicidal?

Pick your means of death: Internal rioting that threatens to topple you is worse than a war you might lose.

History is replete with such examples.

Why war with Russia? China is doing to Russia what Mexico is doing to us. Stealth invasion by illegal aliens. Setting up large ethnic enclaves. Etc.

Russia's far east is slowly turning Chinese.

Russia's declining Slav population is helping, of course. But that's a self-inflicted wound.

http://www.worldtribune.com/worldtribune....

MBS are, technically, asset-backed securities(I think)

Auto loans and credit-card receivables are the most common form of collateral for asset-backed securities.

Karl...with my two assumptions above, which companys would come under "Riskier securities "?

"Buying" corporates allows the China Operators to add an additional layer of deniabilty and obfuscation between them and their ultimate funders; Fed/Treas Complex. If worked correctly (from the Chinese POV), this would be very effective: have GE, BoA, BA, GS all doing their bidding for them.

Where our "gov" is comprised of a bunch of spineless jellyfish the funds will flow like the Amazon through the corrupt gov contracting networks.

Denninger,

Obama would never invalidate China's debt. Why? China could nationalize the fixed investments of our entire Fortune 500. It's worth a lot more than $1 trillion. We would lose and not a shot would be fired.

Think before flapping your jaws.

You China-bashers are killing me. If only Bernanke had the intelligence to make a similar decision (don't buy junk!), we'd be much better off.

Mkkby
China already contols those assets de facto right now. They are allowed to operate in order to employ Chinese workers and bring in some FX. Those assets will all change formal ownership in any confrontation but the loss to the US will be virtually nothing. The loss to the trans-nationals that have stabbed the US in the back will be tremendous.

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These people are not our friends folks

But, but, but they are just like us...

sushi is spot on as usual. The transnational cos. that you consider US companies are not they are loyal to a profit margin regardless of where that takes the labor from. Exxon is no more a US company than China Life is. The fact that they spent the cash (and a pittance I might add) to bribe the US Congress does not make them a US company. The multinational who have their **** confiscated took a risk and should live with it, I'll lose no sleep nor take up arms to defend their right to offshore jobs in the name of margins.

"These people are not our friends folks. They steal our intellectual property, they threaten us at whim and they have intentionally tampered with their currency by pegging it to the dollar in order to prop up their exporters, not to mention making our bogus accounting and lending look like a six-year old's birthday party by comparison."

Wow. I am impressed you actually said that. I can recall a time way back when as I was a child that we were taught to fear China and Russia. Then they somehow became our buddies, but the kind that will steal your girl if they can.

Forget about missiles. Japan, and then China have destroyed us by pandering to the U.S. consumers continuous addiction to low prices. On a brighter note, we at least make plenty of great foodstuffs; and just yesterday, I bought dryer sheets that actually say Made in the USA on them. I was shocked.

Has anyone thought that Google's threat to leave China is prescient? Maybe they see what is coming and will cut their losses as China is just getting to be too much trouble.

From the same people we do business with. No I didn't do the translation, but always found this article very alarming. Hopefully this doesn't count as tin. From what I have read this guy was/is a general in there military. Scary stuff that is clearly being ignored here:

http://www.theepochtimes.com/news/5-8-8/....

Nicodimas:

THAT was ONE VERY SCARY ARTICLE!!!

And this General is pretty high up in the whole Chinese hierarchy!

No wonder they are bleeding us dry for any & all of everything! By legal and illegal means - heck when your an atheist EVERYTHING is legal and MIGHT MAKES RIGHT!

....The Book of Revelation is dead-ahead!

That's a scary article Nicodimas. I'm glad I live in the USA and not Russia. If China needs resources then it'll make more geographical sense for them to get them from Russia/Siberia. Hint: with 1.3 billion people ... they definitely need resources.

Gen is right that China would prefer to pay money for their resources from Russia. A Russia-China war would happen if the prices get too high for the Chinese. That scenario is certainly possible. Look at what Russia does to its neighbors and most of Europe in general about its gas pipelines. The threats of Russia cutoffs are a frequent worry for Europeans. I don't think the Chinese would look kindly upon the Russians playing that game with them.

The biggest risk on war between the USA and China is over the island nation called Taiwan. The commies running the government in Beijing look at arms trade deals between American defense industry companies and Taiwan the same as most of America would consider a similar deal being struck between the Aryan Nations in northern Idaho and Chinese defense companies. If China flexes their muscles in demanding that Taiwan submit to their authority then it could turn into a nasty war. IMHO we ought to encourage some sort of 100 year deal where Taiwan will be an independent commonwealth under China and then another 100 years towards full assimilation. Just my 2 cents.

Degaston -

Please correct me if I'm wrong, but everything I have read points to the fact that Russia has played no games with the gas to Europe. They have cut off supplies to Ukraine for non-payment or refusal to pay the agreed-to market price. When supplies to Ukraine have been cut off for those reasons, Ukraine has diverted European supplies for their own use (without payment) and in those cases Russia has cut off those lines as well until Ukraine agreed to not tap into the European-destined supplies.

While Russia is certainly no saint when it comes to its behavior in many other areas, I believe their actions in the European gas supply issue have not been unreasonable. After all, they need the income from their supplying Europe with gas just as much as Europe needs the gas.