There are dozens of initiatives President Obama could undertake to strengthen our economic security. Here is one: He should enter into closed-door negotiations with Chinese leaders to write off the $1.14 trillion of American debt currently held by China in exchange for a deal to end American military assistance and arms sales to Taiwan and terminate the current United States-Taiwan defense arrangement by 2015.I think a war for Formosa would be a bad deal for the Taiwanese. They would suffer many casualties, both military and civilian. In the end, if the Mainland folks wanted, most of them would die.
This would be a most precious prize to the cautious men in Beijing, one they would give dearly to achieve. After all, our relationship with Taiwan, as revised in 1979, is a vestige of the cold war.
On the other hand, our casual treatment of the problem has keep Taiwan free to grow into a democracy over the last 60 years. Another decade or two or even more, might allow time for Taiwan to grow in sophistication and maturity and China to find a solution that meets the needs of all sides. A preemptory dumping of Taiwan by the US will just create more nuclear armed nations. That might not be a good idea at a time we are trying to talk down Iran and North Korea.
And, to boot, once we run the trade deficit to China back up to $1.14 trillion, who do we trade off next? Korea? Japan? Australia? The Philippines? Hawaii?
And, there is such a thing as integrity. Sure, we are not as exceptional as we think we are, but I would hope we would hang on to our integrity for a while longer and not get into treating other nations likes this was a giant "Risk" game.
Regards — Cliff
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