Prince said, "This is a clear sign of the collapse of American credibility and deterrence.
Beyond the intermediate inflation threat caused by shipping disruptions and skyrocketing container rates due to rerouted merchant ships around Africa's Cape of Good Hope, the long-term game is even more troubling: America's "credibility and deterrence" is quickly eroding.
The West faces dire consequences if the Iran-backed Houthi aggression in the southern Red Sea persists.
As a result, the chances of armed conflict in the South China Sea are rising.
Thousands of tons of crude oil will now pour into the Red Sea," Prince wrote on X, adding, "Thousands of tons of crude oil will now pour into the Red Sea."
We have detailed this extensively: • US, Allies Condemn China's Actions Against Philippine Vessels In South China Sea • US, Philippines Working On Intel Sharing Deal Amid Clashes With Chinese Vessels With the US obligated to defend the Philippines if China attacks the Filipino military, Beijing is observing the West being bogged down in multiple conflicts as a sign of major weakness.
This perceived weakness could embolden China to escalate disputes in the South China Sea, sensing a weakening West becoming increasingly entangled in multiple conflicts, including those in Ukraine and the Middle East.
https://www.zerohedge.com/military/clear-sign-collapse-american-credibility-deterrence
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