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.