China can turn to Financial Warfare against United States, War in Egypt Proves
In the fall of 1956, during the Suez Canal Crisis, the world was on the brink of major international conflict. American allies, Britain and France, were engaged in a battle against Egypt over control of the Suez Canal.
The Soviet Union was threatening to intervene on the side of Egypt. America wanted to avoid military action at all costs and demanded the British and French allies withdraw from the region. When America’s request was denied, the United States turned to financial warfare. America, which at the time, owned much of English debt, threatened to sell off or dump a significant part of it’s holdings in the British Pound. This would have have effectively destroyed England’s currency.
The result, all British and French military forces withdrew from the Suez region within weeks. Some historians considered at that moment, the British Empire ceased to exist.
When we finance our deficits and debt by borrowing from other countries, China for example, the implications are dire. When we engage in this overzealous borrowing, it gives our president less flexibility in making foreign policy decisions, just as England endured, as we would have to worry about what our bankers think instead.
China knows these truths and history, and I know they have Financial Warfare in their playbook – to assume any different is ignorant.
In May 2009, the U.S. owed China $772 billion.
Rome, the longest lasting empire in the history of the world, was said to collapse for three reasons:
1. A decline of moral values and political servility.
2. Over-extended and over-confident military around the world.
3. Fiscal irresponsibility amongst government.
Is Rome burning, forum?