Taiwan Encircled

       The island nation of Taiwan is back on page 1.  The independent nation off the east coast of Red China has been the 'target' of Chinese military units that have attempted to intimidate the country's new president. Planes, boats, and drones(no trains) have been sent to patrol in the South China Sea in large numbers, sending a message: "we're coming for you" sooner rather than later. Old Commie leader Xi JP has lots of economic problems at home, so, taking a well worn page from the Communist playbook, he's shifting the focus away from massive economic problems to an international problem that he created as a diversion.

       The economy in China has most recently received a boost when Beijing announced a huge investment in regional banks to stimulate those locations that have been suffering dearly with bad loans caused by the construction of apartments that nobody wants and nobody is buying. Hmmm. Sounds like a state run economy, Communist type of central planning. Recall the old Soviet scheme(s) of central planning.  Millions of apartments sit empty around the country. Miles of high rise building are threatened with demolition. Millions of former owners have stopped paying on the loans they thought would be paid by inflated future sales(sound familiar? )See 2008.

      Old Xi and Co. have put their heads together and have found just another rockpile with no solution. Try, try, try again. Investors in China are getting concerned. Companies are anxiously watching world opinion as the threats of tariffs appear on the world stage: tariffs on Chinese made EVs are already in place in the EU. Those cheap EVs made in China will not be flowing to Europe in large numbers. They will not allow China to manufacture its way out of an economic slump. Poor Old Xi. At a time when he should retire to smell the roses, ginseng tea,etc., he's stuck in the Party machinery trying to fix it. Good luck.

     Scaring Taiwan with military might only increases tensions with the West causing business to halt contracts and investments, further damaging any hope of recovery. Same old, same old. USA military units have continued to patrol the Taiwan Strait, displaying evidence of support. The Chinese Navy is larger in the area, but does not have the experience or capability,yet, to invade. Time will tell if Xi is stupid or just crafty.