Defeating China, Russia, North Korea, and Iran in the Cold War of Terror

China and Russia are allied and using all the tools at their disposal, including supporting North Korea and Iran, and to a lessor extent Venezuela, to defeat us in a new Cold War of Terror. China and Russia have supplied weapons, diplomatic cover, and economic support to these rogue states to drain American resources, our respect in the international community, and generally create chaos. China is stealing our technological secrets through a coordinated program of traditional intelligence and computer infiltration. China and Russia are threatening our satellites. China constantly threatens our ally, Taiwan. We can use the lessons from the first Cold War to figure out how to win this new one.

JFK got nuclear missiles out of Cuba by equating the Soviet Union with Cuba, and convincing the USSR that he was willing to go to war over it. Ronald Reagan ultimately defeated the Soviet Union by breaking them economically using a coherent strategy combining trade, foreign policy, and domestic policy. We can use a similar strategy with China and North Korea to remove nuclear weapons from North Korea and defeat Communist China, their Russian allies, and Iran, and win this new Cold War.

First, we should acknowledge that China has provided the military, economic, and diplomatic resources so that North Korea could develop the bomb. China is responsible, and has in effect equated itself to North Korea and it's nuclear threat. As JFK did with the Soviets, we should hold China accountable for the provocative actions of North Korea. We should adjust the status quo so that we apply the same sanctions to China we apply to North Korea. From this new position that we are dealing with one unit, China/NK, we should offer improved trade with China/NK if it takes steps to remove nuclear weapons from the Korean peninsula. We should also make it clear that any new provocations from China/NK will be met with harsher sanctions, and that any nuclear attack by China/NK will result in full retaliation against China/NK.

Once we put China in this position, it won't allow North Korea to be the tail that wags the dog. China will be upset with the U.S., as will the rest of the world who will call us dangerous cowboys, like they did Reagan, but China's only good option would be to work for a nuclear free Korean peninsula. China would suffer the economic pain (no more Kentucky Fried Chicken) of losing the world's greatest consumer as a costumer, plus it would be in the untenable position of being at the mercy of the madman in North Korea. America could get China's support for regime change or some other policy to remove the nukes in North Korea.

America would also suffer economic pain (T-Shirt prices would rise) from these trade restrictions, but domestic policy would limit that pain, and turn it into an advantage. By adopting the FairTax, America would begin to return as a manufacturing juggernaut. Reducing government interference in the free market would assist this process. American products, no longer burdened by the income tax, would compete with Chinese made products on the world market, further enriching America and hurting China/NK. This American growth in manufacturing would drive prices lower to compensate for the price increases from restricted trade with China/NK. This would put pressure on China to democratize.

Without American money flowing into China, it won't be able to purchase as much fuel. Oil prices will fall, hurting Russia and Iran and helping the U.S economy. This will immediately impact Iran's ability to develop nuclear weapons and fund terrorism as well as reduce Russia's leverage over Europe. Venezuela would also be affected. Further, we can use a domestic energy independence policy in the U.S. to further reduce the world's dependence on oil, export that technology to our allies, and further reduce the economic power of Russia and Iran.

It's likely that China's response will be to stop buying America's debt. America can diffuse that problem by cutting spending to balance the budget. When all this is done, we will have effectively economically disarmed China, Russia, and Iran, while strengthening the economies of the U.S. and our allies. China will work with us to remove the nuclear weapons from North Korea, regime change would become likely in China, Iran, North Korea, and Venezuela, and Russia would begin to move back towards democracy under economic pressure from the U.S. As these countries become more friendly, we would reward them with better trade deals, while preserving trade as strategic tool. All the while terrorist organizations would be starved for money, and would have to resort to throwing rocks.

America has foolishly given up trade as a strategic lever to effect change in the world. By trading freely with our enemies in this new Cold War of Terror, we provide the funds they use against us. We also no longer have either a carrot or a stick for influence. We need to take control of our trade, use it as a tool coordinated with foreign and domestic policy, and defeat our enemies without firing a shot, just as Ronald Reagan did. While we could do this alone, it would work even more effectively if our allies for democracy joined in. This is in the interests of America, our allies, and the world.