dailyreckoning.com / By Addison Wiggin / November 29, 2013
In the late 1980s, when it was apparent the Soviet Union was on its last legs, Colin Powell was Ronald Reagan’s national security adviser. One day, he found himself sitting at a table in the Kremlin across from the last Soviet leader, Mikhail Gorbachev.
“Ah, General, I’m so sorry,” said Gorbachev, “you’ll have to find a new enemy.”
Or that’s how Powell remembered it during an interview last year.
“We lost our best enemy,” he said. “Our whole structure depended on there being a Soviet Union that might attack us.”
Powell’s candid admission spotlights something we’ve said going back to at least our book Empire of Debt: Washington’s empire operates on a logic all its own. It’s best if you shape your investments accordingly…
The year 2013 is ending much the way we described it at the start: China and Japan holding a urination match over some tiny uninhabited islands — with the United States in the, um, line of fire.
Chinese and Japanese fighter jets are buzzing each other’s territory. Chinese and Japanese leaders are spewing indignant rhetoric.
Fortunately for the lives of those soldiers who have sworn to uphold their leaders’ promises to engage, that’s all it’s amounted to. But as we said to our Apogee Advisory readers in January and again in early October, the threat of hot war is ever-present. And the United States is obligated by treaty to side with Japan