It’s no secret that China and the US are jockeying for advantage on many fronts. One part of their relationship which is supposed to be “settled law” is that Taiwan no longer exists as “the nation of China” - and is an autonomous portion of the land claimed by China (whose government is currently the PRC).
https://www.cnn.com/2022/08/01/politics/nancy-pelosi-taiwan-…
https://www.cnn.com/2022/08/01/asia/nancy-pelosi-asia-trip-s…
Despite the public requests by both the President and the US military and the threats of the PRC, the US Speaker of the House, Nancy Pelosi will, in fact, visit and spend a night while meeting with the government of Taiwan. She and her companions (other members of Congress) are currently in Singapore.
As the Speaker of the House, third in-line for the Presidency, (along with a number of other Congresspeople) is apparently not representing the wishes of the Executive department, the US military has realigned its navel resources in the South China Sea and the Sea of Japan in order to be prepared for Chinese actions.
I’m guessing any “bumping of military heads” involved in this trip could have immediate (hopefully short-term) effects on portfolios.
Jeff
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…Despite the public requests by both the President and the US military and the threats of the PRC, the US Speaker of the House, Nancy Pelosi will, in fact, visit and spend a night while meeting with the government of Taiwan. She and her companions (other members of Congress) are currently in Singapore…
Jeff, I rarely agree with Pelosi on much of anything, but, IMHO, this is the correct call by her.
Kowtowing to China would set a very bad precedent and show weakness.
Cheers!
Murph
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There appears to be a lot of posturing right now. Us, with Pelosi visit. Them with military. I’ve seen videos of tanks on trains on the mainland, and also sitting on streets, presumably near a port. Also I believe the Taiwan government websites are being attacked. To me this is all posturing and I would not worry until I hear about boats. China can’t do anything to take Taiwan without an awful lot of boats. But the trigger finger is getting itchy.
Taking Taiwan could really hurt the West. We depend WAY TOO HEAVILY on that island. We are starting to change that, but that will take a MANY years. I think China needs to figure out what it is trying to accomplish with taking Taiwan. If it is to hurt the West, tick tock tick tock. If it is simply national pride they can wait until the world does not depend on them as much, and therefore less concerned if it happens.
…a lot of posturing right now.
Yes. And I suspect both sides have a lot of side agendas also in play with regard to the posturing.
Pelosi visit.
Crimea and Taiwan are intertangled for propaganda purposes. I would not be at all surprised if Pelosi visiting Taiwan has as much to do with warning Russia that Congress is serious about backing Biden in both places, and that Biden and Pelosi are on a jointly agreed script.
Them with military…
I would be amazed if Xi and his cohorts have anything higher on their agenda than demonstrating to the Chinese people that despite a whole lot of almost out of control messes going on that "We are in Charge and We have the Banks and the Foreign Imperialists under perfect control.
Posturing can be dangerous. Sometimes one takes a posture and then loses balance and falls into movements one only wished to indicate were possible and under consideration. Why markets are not more jittery about all this is waaaay beyond me.
david fb
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