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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: jim black who wrote (3328)	4/28/2001 1:35:03 PM
From: KyrosL	Read Replies (1) of 74559

I disagree. Bush clarified his comments about defending Taiwan militarily by later declaring that he supports the one China policy and that Taiwan should not declare independence. So, things are back to status quo. The Taiwan issue is bogus, IMO. It is a bone thrown to the Republican right wing, and I am sure the Chinese know it. Taiwan is rapidly becoming a service economy, whose manufacturing base and capital is increasingly tied up in mainland factories. Anybody with half a brain knows that unification of China and Taiwan along Hong Kong lines is a certainty within the decade. As to a future clash with China over resources, I just don't see it. The US is blessed with plenty of alternative energy sources to risk WWIII over middle east oil. And, in a pinch, in can double its energy efficiency and potentially completely free itself from foreign energy dependence by simply raising the price of its energy to the same levels as in Europe and Japan, via energy taxes. By reducing the rest of the taxes by the same amount, it can thus achieve the lowest taxation by far among industrialized countries, thus increasing its economic advantage over them. Kyros

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