Armstrong Economics Blog/Politics Re-Posted Aug 30, 2022 by Martin Armstrong
China does not want a war with the US. The US, however, is continually provoking China by using Taiwan as its scapegoat. The US Navy announced that two warships will be traveling through the Taiwan Strait. The reasoning? The military aims to demonstrate freedom of movement through international waters. In other words, they deliberately want to anger China.
Nancy Pelosi began the subtle attack on China when she visited Taiwan and disregarded warnings from every intelligence agency. China repeatedly warned America not to interfere in its One China policy. Yet, Pelosi said she wants Taiwan to liberate Taiwan.
“We take this trip at a time when the world faces a choice between autocracy and democracy,” Pelosi said. “We cannot stand by as the CCP proceeds to threaten Taiwan — and democracy itself,” Pelosi said in a statement. “Our congressional delegation’s visit should be seen as an unequivocal statement that America stands with Taiwan, our democratic partner, as it defends itself and its freedom.”
China flexed its military power as soon as Pelosi left by performing almost a mock invasion through the skies and sea. As of this week, Taiwan reported 23 Chinese aircrafts and eight ships around Taiwan. Russia was provoked by NATO and backed into a corner before invading Ukraine. Beijing is increasingly feeling the pressure as the US is not actively abiding by its One China policy. Between the current recession, proxy war in Ukraine, and surmounting debt, the US is simply stretched too thin to enter a war with China.
Our models warn that geopolitical tensions will rise going into 2023. China is selling off US debt, which is another sign of coming geopolitical problems.