Monday, May 19, 2014

World News - Vietnam And China

Just when it looks like things are calming down in Europe, things heat up in Asia. China evacuated it's nationals from Vietnam over the weekend. The reason given was to protect them from the protests that were happening. Today we learn that China is massing troops on the border with Vietnam. So maybe the evacuation was not because of the protests but because China is going to invade! See what happens when the world perceives that the West (and especially the U.S.) is weak? China feels it can flex some muscle because it knows that the only thing the west will do is issue sanctions. In doing so the west will not only hurt China economically, but it will also hurt itself. China is the wests largest trading partner. It is also the largest debt holder of U.S. bonds. What would happen if China decides to sell some of the bonds (or all of them)? Oh, this could get interesting quickly!

What do you think?

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