Monday was a WARNING to all Americans. - Dylan Jovine

Writing About the Stock Market & Life Since 2003


Monday was a WARNING to all Americans.

That’s where the military showdown between China and the U.S. is going to happen.
The stakes couldn’t be higher. Whoever wins this contest will literally control the world.
Consider our Asian allies Japan, Australia, South Korea, Taiwan, Singapore, the Philippines, Vietnam and others. China’s trying to bully each one to do what it says.
They want total control of the South China & East China Sea.  
Vietnam has fished the South China Sea for hundreds of years. It’s how they feed their people. But now China sends military ships to harass Vietnamese fishing vessels.
In the East China Sea, Chinese ships were spotted near a group of Japan-controlled islands for the 100th straight day on Wednesday.
Can you imagine a country sending ships to our territorial waters for 100 straight days?
Clearly, our allies are nervous. They face a grim reality. They only way they can counter China is with our help.
So they breathe a sigh of relief when they read this Wall Street Journal article Monday, “U.S. is Positioning Military Assets Around Asia to Counter China, Esper Says.”

In that way, Monday’s article was a warning to all Americans. We’ve taken one step closer to war with China. This is important stuff. 

To illustrate just how important the South China Sea is right now, consider this:
If we didn’t support our allies in this struggle, they would be forced to shift their allegiance to China. 
One by one, China would muscle them to buy Chinese products, trade in Chinese currency and support Chinese policies.
And let me be clear: if it even looked like we weren’t going to support our allies, the economic effects would be devastating: 

1. The U.S. dollar would crash, as China forces our former allies to trade in its currency;2. Interest rates would spike, as ex-allies sold dollar-denominated assets like real estate and factories to move them to China;3. The stock market would crash, as both of the above events unfolded. 

Bottom line: you would be dramatically poorer if the United States did not confront China in the South China Sea. Period. That’s the price of empire.
So we know where this showdown is going to happen: the South China Sea.
And we know when the showdown is likely to happen: 2025.
That’s because China has a plan in place called “China 2025.” It’s basically President Xi Jinping’s plan to kick us out of the South China Sea by 2025.
To be able to kick us out, they need to build up their military assets in the region. That’s why they’ve been building islands there and putting weapons on them. Their goal is to make it so “expensive” for us to move our ships into the region, we cede the South China Sea to them.
The moment they feel they have enough weapons in place, they’ll make their move. Here’s what I see happening:
One day they announce a new policy for the region: any ships entering the South China Sea without permission will be seen as an attack on China by a foreign nation. And China will respond in kind.  
From here on out China alone will decide who enters the South China Sea.  
At this point the United States has a decision to make. Do we risk war by sailing through? Or do we cede our global position, standing and alliances? 
A major factor affecting that decision will be who we believe has the military advantage in a conflict. 
One thing China has done to increase its advantage is to employ a strategy called A2/AD or anti-access/area denial strategy. These are the missiles they are putting on the islands they are building.
Their plan is to sink our Navy ship with surface-to-air-missiles. If they sink an aircraft carrier or two, the thinking goes, we’ll leave the South China Sea with our tail between our legs.
The big question U.S. military planners have been asking is “How can we protect our ships against these anti-ship missiles?” 
In August 2019, a small Alabama company answered that question. They did it by building our first-ever 5G Weapon.
This revolutionary new kind of weapon is so advanced, it can stop China in its tracks.
If that sounds like science fiction, consider this –

1. CBS News Reports“It’s an entirely new type of weapon.”2. The New York Times Reports: “No existing defense can stop it.”3. Secretary of the Army Ryan McCarthy says: “We’re going to make a lot of them very quickly.”

The small firm making this new weapon is tiny compared to defense contractors like Lockheed Martin, Boeing and Raytheon.
But it beat out all of those companies to become to the first to manufacture these new 5G Weapons for the United States.
Its current sales are just $3 billion.
But that could soar as much as 1,000%, as the U.S. government spends billions developing these new 5G Weapons to confront China.

 Get the name of the small company here >>>

“The Buck Stops Here,”

Dylan Jovine, Chairman, Behind the Markets

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