Best of the Week
Most Popular
1. Dollargeddon - Gold Price to Soar Above $6,000 - P_Radomski_CFA
2.Is Gold Price On Verge Of A Bottom, See For Yourself - Chris_Vermeulen
3.Dow Stock Market Trend Forecast 2018 - Nadeem_Walayat
4.Gold Price to Plunge Below $1000 - Key Factors for Gold & Silver Investors - P_Radomski_CFA
5.Why The Uranium Price Must Go Up - Richard_Mills
6.Dow Stock Market Trend Forecast 2018 - Video - Nadeem_Walayat
7.Jim Rogers on Gold, Silver, Bitcoin and Blockchain’s “Spectacular Future” - GoldCore
8.More Signs That the Stock Market Will Rally Until 2019 - Troy_Bombardia
9.It's Time for A New Economic Strategy in Turkey - Steve_H_Hanke
10.Fiat Currency Inflation, And Collapse Insurance - Raymond_Matison
Last 7 days
Golden Sunsets in the Land of U.S. Dollar Hegemony - 20th Sep 18
5 Things to Keep in Mind When Buying a Luxury Car in Dubai - 20th Sep 18
Gold Price Seasonal Trend Analysis - Video - 20th Sep 18
The Stealth Reason Why the Stock Market Keeps On Rising - 20th Sep 18
Sheffield School Applications Crisis Eased by New Secondary Schools Places - 20th Sep 18
Precious Metals Sector: It’s 2013 All Over Again - 19th Sep 18
US Dollar Head & Shoulders Triggered. What's Next? - 19th Sep 18
Prepare for the Stock Market’s Volatility to Increase - 19th Sep 18
The Beginning of the End of the Dollar - 19th Sep 18
Land Rover Discovery Sport 'Approved Used' Bad Paint Job - Inchcape Chester - 19th Sep 18
Are Technology and FANG Stocks Bottoming? - 18th Sep 18
Predictive Trading Model Suggests Falling Stock Prices During US Elections - 18th Sep 18
Lehman Brothers Financial Collapse - Ten Years Later - 18th Sep 18
Financial Crisis Markets Reality Check Now in Progress - 18th Sep 18
Gold’s Ultimate Confirmation - 18th Sep 18
Omanization: a 20-year Process to Fight Volatile Oil Prices  - 18th Sep 18
Sheffield Best Secondary Schools Rankings and Trend Trajectory for Applications 2018 - 18th Sep 18
Gold / US Dollar Inverse Correlation - 17th Sep 18
The Apple Story - Trump Tariffs Penalize US Multinationals - 17th Sep 18
Wall Street Created Financial Crash Catastrophe Ten Years Later - 17th Sep 18
Trade Wars Are Going To Crash This Stock Market - 17th Sep 18
Why Is Apple Giving This Tiny Stock A $900 Million Opportunity? - 17th Sep 18
Financial Markets Macro/Micro View: Waves and Cycles - 17th Sep 18
Stock Market Bulls Prevail – for Now! - 17th Sep 18
GBPUSD Set to Explode Higher - 17th Sep 18
The China Threat - Global Crisis Hot Spots & Pressure Points - 17th Sep 18 - Jim_Willie_CB
Silver's Relationship with Gold Reaching Historical Extremes - 16th Sep 18
Emerging Markets to Follow and Those to Avoid - 16th Sep 18
Investing - Look at the Facts to Find the Truth - 16th Sep 18
Gold Stocks Forced Capitulation - 15th Sep 18
Hindenburg Omen & Consumer Confidence: More Signs of Stock Market Trouble in 2019 - 15th Sep 18
Trading The Global Future - Bad Consequences - 15th Sep 18
Central Banks Have Gone Rogue, Putting Us All at Risk - 15th Sep 18
Gold Price Seasonal Trend Analysis - 14th Sep 18
Growing Number of Small Businesses Opening – and Closing – In the UK - 14th Sep 18
Gold Price Trend Analysis - Video - 14th Sep 18
Esports Is Exploding—Here’s 3 Best Stocks to Profit From - 13th Sep 18
The Four Steel Men Behind Trump’s Trade War - 13th Sep 18
How Trump Tariffs Could Double America’s Trade Losses - 13th Sep 18
Next Financial Crisis Is Already Here! John Lewis 99% Profits CRASH - Retail Sector Collapse - 13th Sep 18
Trading Cryptocurrencies: To Win, You Must Know Where You're Wrong - 13th Sep 18
Gold, Silver, and USD Index - Three Important “Nothings” - 13th Sep 18
Precious Metals Sector On a Long-term SELL Signal - 13th Sep 18
Does Gambling Regulation Work - A Case Study - 13th Sep 18
The Ritual Burial of the US Constitution - 12th Sep 18
Stock Market Final Probe Higher ... Then the PANIC! - 12th Sep 18
Gold Nuggets And Silver Bullets - 12th Sep 18
Bitcoin Trading - SEC Strikes Again - 12th Sep 18

Market Oracle FREE Newsletter

Trading Any Market

Pivot Insanity Risking Nuclear War - Why is Obama Goading China?

Politics / GeoPolitics May 30, 2015 - 06:35 AM GMT

By: Mike_Whitney

Politics

US Secretary of Defense Ashton Carter is willing to risk a war with China in order to defend  “freedom of navigation” in the South China Sea. Speaking in Honolulu, Hawaii on Wednesday, Carter issued his “most forceful” warning yet, demanding “an immediate and lasting halt to land reclamation” by China in the disputed Spratly Islands.

Carter said:   “There should be no mistake: The United States will fly, sail, and operate wherever international law allows, as we do all around the world.” He also added that the United States intended to remain “the principal security power in the Asia-Pacific for decades to come.”


In order to show Chinese leaders “who’s the boss”, Carter has threatened to deploy US warships and surveillance aircraft to within twelve miles of the islands that China claims are within their territorial waters. Not surprisingly, the US is challenging China under the provisions of the UN Convention on the Law of the Sea,  a document the US has stubbornly refused to ratify.  But that’s neither here nor there for the bellicose Carter whose insatiable appetite for confrontation makes him the most reckless Sec-Def since Donald Rumsfeld.

So what’s this really all about?  Why does Washington care so much about a couple hundred yards of sand piled up on reefs reefs in the South China Sea? What danger does that pose to US national security? And, haven’t Vietnam, Taiwan and the Philippines all engaged in similar “land reclamation” activities without raising hackles in DC?

Of course, they have. The whole thing is a joke. Just like Carter’s claim that he’s defending the lofty principal of “freedom of navigation” is a joke. China has never blocked shipping lanes or seized boats sailing in international waters. Never.  The same cannot be said of the United States that just  recently blocked an Iranian ship loaded with humanitarian relief–food, water and critical medical supplies–headed to starving refugees in Yemen. Of course, when the US does it, it’s okay.

The point is, Washington doesn’t give a hoot about the Spratly Islands; it’s just a pretext to slap China around and show them who’s running the show in their own backyard. Carter even admits as much in his statement above when he says that the US plans to be “the principal security power in the Asia-Pacific for decades to come.” China knows what that means. It means “This is our planet, so you’d better shape up or you’re going to find yourself in a world of hurt.” That’s exactly what it means.

So let’s cut to the chase and try to explain what’s really going on, because pretty soon no one is going to be talking about Ukraine, Syria or Yemen because all eyes are going to be focused on China where our madhatter Secretary of Defense is trying to start a third world war.

Here’s the scoop: Washington has abandoned its China policy of “containment” and moved on to Plan B:  Isolation, intimidation and confrontation. In my opinion, this is why the powerbrokers behind Obama dumped Hagel. Hagel just wasn’t hawkish enough for the job. They wanted a died-in-the-wool, warmongering neocon, like Carter, who is, quite likely, the most dangerous man in the world.

Carter’s assignment is to implement the belligerent new policy of incitement and conflict. His actions will prove to the skeptics that Washington is no longer interested in integrating China into the US-led system. Rather, China has become a the biggest threat to Washington’s plan to pivot to Asia. And, just to remind readers how important the pivot is to America’s future, here’s an Obama quote I lifted up from Tom Engelhardt’s latest titled “Superpower in Distress”:

“After a decade in which we fought two wars that cost us dearly, in blood and treasure, the United States is turning our attention to the vast potential of the Asia Pacific region….As we end today’s wars, I have directed my national security team to make our presence and mission in the Asia Pacific a top priority.”

The so called pivot is Washington’s “top priority”, which means that China’s unprecedented ascendency must be slowed and its regional influence curtailed. Thus, the dust up over the Spratly Islands will be used in the same way the US has used other incidents, that is, by demonizing China’s leaders in the media, by assembling a coalition that will publicly oppose China’s activities, by implementing harsh economic sanctions, by launching asymmetrical attacks on China’s currency and financial markets, by excluding China from critical trade agreements, and by inciting social unrest (color-coded revolution) through the support of dissidents living in China. These are the all-too-familiar signs of US meddling directed at “emerging rivals” who threaten US global hegemony. China now finds itself at the top of the list.

US powerbrokers know that bullying China involves significant risks for themselves and the world. Even so, they have decided to pursue this new policy and force a confrontation. Why? Why would they embark on a strategy so fraught with danger?

The answer is: They don’t see any way around it. They’ve tried containment and it hasn’t worked.  China’s growing like crazy and its regional influence threatens to leave the US on the outside looking in. Carter even admitted as much in a recent speech he gave at the McCain Institute at Arizona State University. He said: “We already see countries in the region trying to carve up these markets…forging many separate trade agreements in recent years, some based on pressure and special arrangements…. Agreements that…..leave us on the sidelines.  That risks America’s access to these growing markets. We must all decide if we are going to let that happen.  If we’re going to help boost our exports and our economy…and cement our influence and leadership in the fastest-growing region in the world; or if, instead, we’re going to take ourselves out of the game.”

See? It’s all about markets. It’s all about money. Here’s more from Carter’s speech:  (The) ” Asia-Pacific…is the defining region for our nation’s future”… “Half of humanity will live there by 2050″ and that “more than half of the global middle class and its accompanying consumption will come from that region.”….”There are already more than 525 million middle class consumers in Asia, and we expect there to be 3.2 billion in the region by 2030…President Obama and I want to ensure that… businesses can successfully compete for all these potential customers. ….Over the next century, no region will matter more… for American prosperity.”

This is why the Obama administration is making a general nuisance of itself in the South China Sea. It’s so the big US mega-corporations will have new customers for their IPADs and toaster ovens.

For that, they are willing to risk a nuclear war.

By Mike Whitney

Email: fergiewhitney@msn.com

Mike Whitney lives in Washington state. He is a contributor to Hopeless: Barack Obama and the Politics of Illusion (AK Press). Hopeless is also available in a Kindle edition. He can be reached at fergiewhitney@msn.com.

© 2014 Copyright Mike Whitney - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Mike Whitney Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules