Saturday, March 18, 2006

China Iran == Hammer Time

If we get our economic tentacles deeply connected with China and Iran, they may hesitate sending military pain our way. If we are deeply connected economically, maybe (just maybe) we won't have world war 3.

China increases military spending and Iran's missiles and Iran's uranium processing create formidable military opponents. Pakistan and India are capable of causing significant military distraction, even if it would only be short-lived.

Iraq is no longer stabilizing Iran's ambitions. China may take this oppportunity to seize disputed waters that contain oil.

How can we prepare? Maybe one day we will wake up to headlines of aggression by Iran or China, and that gold and silver prices have doubled. It is unlikely that a few ounces of precious metals will be enough to weather the storm. There are no easy answers, thare are only consequences.

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