Published Oct 17, 2022

140 - The Future is Fiat | Noah Smith (Noahpinion)

Noah Smith delves into the power struggles shaping global economics, the rise of a China-Russia alliance, and the strategic impact of cryptocurrencies on authoritarian regimes, exploring supply chains, technological leverage, and geopolitical dynamics with insights into the US-China interplay and Taiwan's security.
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  • New Axis

    The concept of a "New Axis" alliance between China and Russia is explored by , who compares it to historical alliances. He describes it as a partnership of convenience rather than shared values, much like the original Axis powers during World War II 1. This alliance is primarily driven by mutual interests, such as China seeking to distract Western powers while expanding its influence in Asia 2. notes, "For China, what they want from Russia is basically distract Europe, distract America if possible, so we can have a freer hand in our backyard to increase our power within Asia."

    For China, what they want from Russia is basically distract Europe, distract America if possible, so we can have a freer hand in our backyard to increase our power within Asia.

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    The discussion highlights the strategic dynamics between these nations and their potential impact on global geopolitics 3.

       

    China's Power

    China's economic and military influence is underscored by its manufacturing capabilities, which argues are unmatched globally. He explains that while the U.S. retains high-value production, China dominates in volume, making it a formidable force in any potential conflict 4. This dominance is crucial in a world where manufacturing might still matters, even in the nuclear era. states, "If all you have is nukes, then you can either kill yourself to destroy the world or do nothing and surrender."

    If all you have is nukes, then you can either kill yourself to destroy the world or do nothing and surrender.

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    He further discusses the strategic implications of China's potential actions against Taiwan, emphasizing the necessity for preemptive strikes to ensure success 5.

       

    US Concerns

    The United States' strategic concerns are shaped by its alliances and defense strategies in the face of potential conflicts with China and Russia. highlights the importance of conventional military forces alongside nuclear deterrence, as seen in historical contexts 6. Taiwan emerges as a critical point of contention, with noting that its security is vital to maintaining U.S. influence in East Asia 7. He explains, "If China conquers Taiwan, that completely compromises the security of Japan, who is our major ally in the region."

    If China conquers Taiwan, that completely compromises the security of Japan, who is our major ally in the region.

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    The discussion also touches on the potential for conflict resolution, though acknowledges the uncertainty surrounding these geopolitical tensions 8.

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