Quote Originally Posted by Bo-Bo24 View Post
Quote Originally Posted by Gandalf View Post
These nations are pumping up the nationalism as their economies are both on the verge of tanking. They have to divert attention and blind nationalism always works. Think Thatcher and the Falklands. Japan has run trade deficits month after month and is broke, Chinese local government has wasted lots of money and exports are down.

I don't think war is likely, but the financial war will suck everyone in.
Very true, China's economy is essentially a bubble waiting to burst. The only way they can maintain it is if the people of China indulge in consumerism which isn't likely due to no one having any dispoibal income. A war would be a great way to kick start the economy due to investment in industry and the man power required.
The shadow banking sector in China is huge and seemingly in a precarious state. The one thing the Chinese have in their favour is gold, enormous quantities of it. Over 2000 tonnes of gold was consumed by the Chinese public last year. When things go wrong in the West they have nothing except debt. At least the Chinese have their gold. The same with the Chinese government too. The Fed seems to have its gold missing and can only solve things by magically printing money via the Fed, whilst the Chinese instead are learning that the US is a lost cause, and are focussing more on gold and keeping other avenues open. The Chinese are smart.

Any economy will have its ups and downs, but unlike the West, China hasn't created a black hole yet. Japan, Europe, UK, and the US are the real problems as consumerism meant growth by borrowing and beyond that there is nowhere to go exect a new feuadalism.