From a tactical point of view what response would there be. Let’s assume it was a missile from a foreign power for a moment, not many countries have the technical ability to launch a SLBM. Take out the friendly nations to us and that leaves only a couple possibilities.
1: Russia
2: China
I don’t believe in coincidences so let’s look at when this ‘UFO’ appeared. Right during the whole QE2 debate was going on this object was sighted, also this was in advance of the G8 summit.
Now, assuming it was a missile I doubt it would be us. We wouldn’t have fired this in sight of LA if this was something we wanted to keep secret. If it wasn’t us and it was a missile all signs point to China. Russia has nothing strategic to gain from firing a missile off our coast and really doesn’t have the muscle to back up t hat threat. China has both a strategic gain and the muscle to back up the threat. China sees itself as pretty much the sole Superpower in the world now, if you consider military AND financial might. Right now our economy is so fragile that *if* China had the balls to call in the chips we would be screwed financially. Sure, so would they but in a long-term conflict their financial power and the influence through the rest of the world would be the deciding factor. Right now the Chinese Navy cannot go toe to toe with ours but that’s changing quickly and due to financial pressure we’ll have to severally cut our defense spending if we don’t dramatically change course. Give the Chinese another 15-20 yrs at current pace and we will have to write off the entire pacific.
It was us. Another message. To whom, that is the question.
No they don't. China has a second or thrid tier millitary with a economy dependent on US dollars. They may own debt, but if they want to go to shooting - debt canceled. Not in their interests.
China sees itself as pretty much the sole Superpower in the world now, if you consider military AND financial might.
I agree that China is working to achieve that spot, but they aren't there yet, by a long shot. Additionally - both their base economy and military spending are funded by borrowed US dollars. Pushing the issue to the point of hostilities takes that funding and turns it into value zero.
Right now our economy is so fragile that *if* China had the balls to call in the chips we would be screwed financially.
In a free market scenario - the dumping of US treasury reserves from China would have consequences for us, but also for China. Their currency would necessarily have to appreciate to make up for the sudden imbalance. Their already excessive inflation would go to hyper inflation overnight. Hyper inflation in a wealthy nation - serious problem. Hyper inflation in what is mostly a third world country - extremely serious problem.
If push came to shove - the US could and should freeze/embargo the transfer of at least US securities into our out of China and and any nation that would trade such with them until they decided to stop being engaged in pushing and shoving.
Personally - if things come to a shooting war for other reasons - I don't think debt service is a big issue. And I think China knows that if they launches missles at or near or toward or within pissing distance of the US, we can remove 3+t trillion in wealth from their economy overnight without impacting the soul of another debt holder on the planet.
Personally - the freaking thing looks like a contrail to me.