Will China Choose Russia or America in the Coming War?

Friday, March 21, 2014
By Paul Martin

Dave Hodges
March 21, 2014
The Common Sense Show

When war breaks out between the United States and Russia, which side will China support? Make no mistake about it, China is the 800 pound gorilla in the room that cannot be ignored. Whomever, the Chinese throw their support behind in the upcoming war between the US and what is left of NATO, will be the likely winner.

Asking the correct questions holds the key to making the correct assessment with regard to who China will militarily support. China knows that in today’s world, they cannot militarily defeat either the Russians or the United States, individually. However, the Chinese have positioned themselves to determine the ultimate winner.

China’s Main Motivation

Following the 1944 Bretton Woods agreement, that established the dollar (i.e. the Petrodollar) as the world’s reserve currency, the dollar immediately became the second best invest long-term investment on the planet, next to the actual owning of gold. Subsequently, when the Chinese made the decision to purchase US debt, it had to appear to the Chinese that they were purchasing a sure thing which would return untold amounts of wealth.

What the previous generation of Chinese leaders did not foresee was that the US would purchase themselves into such a quagmire of debt, and would someday cause the US to be on the verge of committing economic suicide. The Chinese have come to realize that they have purchased a declining asset.

Twenty five years ago, if the Chinese financial planners could not have foreseen that the US would be 17 trillion dollars in debt, have an unfunded mandate liability (e.g. social security, Medicare, etc.) of 240 trillion dollars and would have assumed the liability of over one quadrillion dollars of credit swap derivatives debt that resulted in the “need” for the bailouts. If they had, the Chinese would have run from the dollar a long time ago and then would have moved into to clean up after the coming crash of the dollar occurred. In short, the Chinese failed to anticipate that the US would commit financial suicide in slightly more than a generation.

The Chinese Adjust

The Rest…HERE

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