If we come to the aid of one, we antagonize the other, and they may not only refuse to buy our debt any longer, but dump what they have on the open market, crashing the dollar, the gov’t bond market, and send interest rates skyrocketing.
Staying completely out of it is not an option either. Having valerie...I mean obama at the helm and kerry as SOS isn't tremendously reassuring either.
In a naval war—my money is still on Japan. Tradition is important in the naval service. Italy under Benito had the ships but not the Naval tradions to beat the UK. Sounds like Japan needs to start building some ships—or buying them from someplace—US maybe?
A divine wind will come up and destroy the Chinese navy.
This could get very ugly very fast.