You have read the headline correct no need for a second glance. A second Cold War has unofficially begun and this showdown will be a struggle between
the East and the West. Will the final result be a collapse of the already economically and politically weakened United States or will it end with the
collapse of a growing economic and political global force known as China?
This Cold War has only begun and will be a full out economic and political war with proxy battles and wars that will reach around the world. During
the Soviet-American Cold War we seen proxy wars spring up around the world with many nations siding with Soviet Union and others siding with the
United States. There were nations which remained neutral between the two warring factions.
The current situation in the Middle East between Iran and Israel is very significant in respect to this new Cold War, so too is the situation
developing on the Korean peninsula. For the Cold War to be truly recognizable we must have two nations at odds on each Continent each siding either
with China or with the USA.
Iran – Israel Struggle
The fact that Israel has nuclear weapons is an open secret they have plenty of nuclear weapons and this has kept the other Middle East nations at bay.
Allowing Israel to commit assaults upon the Arab people without any large retaliation other than a few skirmishes with armed groups along its
Iran however is developing its power and is beginning to rival the regional influence of the state of Israel and actually posing a threat to its
regional dominance. With the development of Iranian nuclear power and the buildup of its military and weaponry they are now becoming a state with
enough power to influence the decisions of Israel.
But why has there been no strike on Iran? Because a strike on Iran would be the equivalent of the US striking Cuba during the Soviet-American Cold
War, it would lead to a massive retaliation. Israel and the United States know this fact and so they tread the waters with caution. Of course China
has given into sanctions against Iran and why not? China doesn’t want to be blunt about their attempt at taking super power status, it would not
benefit them at this current moment.
Israel is a proxy state for the United States dominance in the Middle East which through Israel it maintained a monopoly on power over the ME. Now
with the rise of the Chinese backed Iran there will be two proxies in the ME both serving the interests of the states that brought them to regional
China does not want a large war on their border (Afghanistan-Pakistan) causing instability in their Western regions. China wants cheap energy
resources for themselves and so they must secure a state in the ME which will give that to them. This country which has the ability to lock up the key
transport route for almost all ME oil is Iran and they are a key strategic proxy to have in the region for a growing superpower.
So do not expect any Iranian war. Iran will develop nuclear technology as deterrence to the West and this will keep any direct conflict between the
two states from ever occurring.
The Korean Conflict
With more debt uncertainty in Europe and now a crisis on the Korean peninsula which was caused by S. Korea launching artillery shells into N. Korean
There is now speculation that this might have been a staged crisis to boost
the US Dollar. 2
With uncertainty growing in Eastern Asia this impacts the Chinese economy and redirects investment into a safe haven, the United States. By using this
as a ploy the United States could be waging economic war against China and it might just get a lot worse after the revelation that China and Russia
will be doing trade in their own currencies instead of the US Dollar coming just one day after the Korean conflict.
This means the Koreas will once again be a place of extreme tensions between two proxy states guaranteeing that there will never be a united Korean
peninsula, at least not in our lifetimes.
These two events occurring in the Middle East and East Asia are only the beginning of an inevitable show down between two nations which if they go to
direct war will be M.A.D. but are also dependant on each other for economic survival.
Either nation could easily walk away from each other ending trade and dropping bonds but it would be disastrous for both national economies so the
best they can do when waging this Cold War is to keep the same economic situation continuing and fight each other with proxy economic, political, and
I am sure many more nations will step up to the plate and side with their own nation of ‘choice’.