String of Signs

Chinese reactions to North Korea Shelling

In Uncategorized on November 25, 2010 at 6:47 pm

I thought this comment at china smack was interesting.

“I think in the current situation of the Kim family completely siding/aligning with China, this instance of the northern bangzi artillery attack must’ve been been done with China being previously notified, and it is even possible that it was with China’s encouragement, the benefits being:

1. After America’s 600 billion quantitative easing, international hot money is eying China. If war happens on the Korean Peninsula, this hot money will think twice about entering China.

2. Domestic inflation has recently been out of control, so the go-vern-ment purposely slowing down the economy, lowering prices, especially the prices of international raw materials/commodities like oil, soybeans, and copper, which are 3 commodities that China relies mainly on imports, and are the three main sources of imported inflation. So if North Korea starts a war, the US Dollar must appreciate significantly, and these 3 commodities will necessarily drop in price significantly, contributing to a drop in prices across the board domestically [in China].

3. China’s current industrial rise has already reached a critical point. At the top, its direct competitors are Japan, Korea, and Europe. Through a North Korean war, it will throw Korea into chaos, disrupt Japan, and massively help the rise and global competitiveness of China’s domestic electronics, microchip, IT, automotive, and shipbuilding industries.
In short, as long as China does not directly deploy troops [get militarily involved], the benefits/advantages are many, and no matter how hot the flames of war burn, it will still first destroy Korea, and then destroy Japan, taking out these two forever wild wolves [no matter how well you treat it, it will never remember your kindness and be dangerous to you].”

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  1. I believe this comment is not only interesting it also contains sound reasoning. It is correct that if China dose not become militarily involved in a korean war the benefits are vast. Not so where the U.S. is concerned.A war would create another critical situation for us as we would unwisely offer military support to South Korea even though we are currently involved in a no win situation in the middle east. I am somewhat surprised there has been no discussion on the Wikileaks situation where 2.7 million U.S. top secret and classified documents are being distributed worldwide. This has put the U.S. on center stage stark naked where the entire world can see everything. It certainly has pretty much ruined our credibility. There are some classified documents disclosed relative to the Korean situation. I love my country, however, I fear for it’s future. Our debt is so large we will never be able to recover and our governments answer thus far has been to simply print more money to try and stimulate the economy which is not the intelligent path to follow.

  2. Don’t worry about ‘printing money’, read Scott Sumner.

    From the wikileaks it appears that China, is almost ready for a unified Korea, so hopefully, the transition can occur with their blessing. But that was last year, and this comment may still be more relevant now, with the various currency depreciations.

    I don’t know about ruining the credibility, George Bush, ruined the credibility for me, with lying about WMD in Iraq. Now at least these documents show USG, to be very rational and a positive force in the world. And I think Arabs are seeing that as well. But they’ve only released 270 so far. In general I love the information, but I think, there is reason, documents are labeled classified. And leaks should be done in specific cases where laws are being broken, by conscientious insiders. Not a general document dump for the sake of it. But this information, makes it politically easier to force Iran’s hand etc.

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