By MoneyMorning.com.au
There is a big geopolitical game of chess going on. The US generally stands behind Israel, even when it goes out on its own. But who stands behind Iran?
Iran counts China as an ally.
So an Israel vs Iran conflict would essentially be a proxy fight between US and China. I think we can expect to see more conflicts fought indirectly between the world’s two superpowers.
The growing power of China’s military compared to America’s brings us back to what I talked about at the ‘After America’ conference on Friday.
Chinese defence spending to double in four years
This first thing to jump out from this chart is that China’s military budget is already more than all of its neighbours’ budgets combined.
The other important point is that it will double in the next four years – to $240 billion.
People often make the comment that China’s military budget is large but is still a fraction of America’s. True.
But America’s is forecast to fall at the same time that China’s is rising.
So although China’s budget is just 15% the size of America’s NOW, in four years’ time it will have grown to be about 40% the size of America’s.
That gap is closing, and fast.
Our conference was called After America.
And I don’t think anything says After America better than that.
Dr. Alex Cowie
Editor, Diggers & Drillers
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