Zerohedge has an insanely interesting post up concerning China’s response to our arms sale to Taiwan.

“And you were worried about Iran. China’s People Liberation Army has come out and openly said that the nuclear option, i.e., selling US Treasuries, is now on the table and should be exercised as “punishment” for U.S.’ arms sales to Taiwan. China undoubtedly realizes that this is a prime example of sado-masochism as the resultant plunge in Treasuries that would follow would hurt the US certainly, but also have a “mild to quite mild” impact on China’s $700 (and likely much greater) UST holdings. Game theory 101 just got interesting.”

Go read them, here and here.

Also, Steve Meyer speaks his thoughts, as we “…pass through the eye of the hurricane, and face the second wall of pain…”

Interesting food for thought video. It should also make you rethink both short and long term investment strategies.