The relationship between economic and military power are on display off the coast of South Korea. According to the 14 July report from Nightwatch Chinese displeasure with a previously-announced joint exercise involving the Koreans and the US is being accommodated, with the operations of the USS George Washington Carrier group shifting from the Yellow Sea to the Sea of Japan. Of course, American officials say there is no connection, but
as long as China holds more than $1.052 trillion
in US Treasury bonds, it will get its way on defense issues that the
administration considers not vital or needlessly provocative. For now,
the Treasury Department rules, except in Afghanistan.