The Coming China Wars: Where They Will Be Fought and How They Can Be Won

Introduction

News Release, October 25, 2012

<division> <title>U.S.-China Chill Melts Down World Markets</title>

NEW YORK—Global stock exchanges were devastated this week by the worst collapse in history as a wave of panic selling followed the sun from Asia through Europe and back to Wall Street. The pandemonium was triggered by a Chinese government announcement that it would no longer finance the mounting budget and trade deficits of a “profligate United States” that “refuses to live within its means” and that “insists on scapegoating China for its own internal economic problems.” Nor would China continue to try to prop up “an increasingly worthless dollar.”

As the Chinese began dumping U.S. assets on Wall Street, both stock and bond prices plummeted. ...