Graphic: World’s Largest Armed Forces

Because of the Spratly’s brouhaha, many Filipinos seem to be searching the web for the odds of winnability for the Philippines, in case of a military escalation that could lead to a war with China.

I think these people, whom have not experienced the horror of wars, seem to desire it, perhaps in the doltish presumption that any war won’t get them involved or that wars function as some form of sporting event.

In wars, the losers have always been the people, as both combatants and non-combatants get slaughtered, aside from the economic hardship, physical dislocation and the psychic or mental trauma that arises from such hellish events.

Worst, people from opposing camps shoulder the burden of paying for such outrageous exercise.

Yet if there are any winners, they have always been the politicians, who see people fighting and dying in their behalf and paying for their reckless adventures in the false name of nationalism.

This graphic from the Economist.

The above graph only shows that a war with China is suicidal.

The better alternative is to engage them in more trading activities that should ease geopolitical pressures. Trade and not war is the answer.

Gaddafi Financing Libya’s War With Gold

If there is one way to go around sanctions, then having a pile of gold could make the difference. Well, that’s how Libya’s Muammer Gaddafi has reportedly been able to finance his war.

From the Financial Times,

The international community has hit Muammer Gaddafi with a raft of sanctions and asset freezes aimed at cutting off his funding. But the embattled Libyan leader is sitting on a pot of gold.

The Libyan central bank – which is under Colonel Gaddafi’s control – holds 143.8 tonnes of gold, according to the latest data from the International Monetary Fund, although some suspect the true amount could be several tonnes higher.

Those reserves, among the top 25 in the world, are worth more than $6.5bn at current prices, enough to pay a small army of mercenaries for months or even years.

While many central banks hold their gold reserves in international vaults in London, New York or Switzerland, Libya’s bullion is in the country, said people familiar with the country’s activities in the gold market.

As I earlier pointed out, part of gold role’s in the Middle East crisis has been as “alternative ways to shelter assets”.

More from the same article,

The political turbulence in the Middle East – besides boosting the price of gold to a record $1,444 a troy ounce – has highlighted the property that has for centuries made gold so appealing to criminals, investors and dictators alike: it does not rely on a government for its value.

Following the revolution in Egypt, the country banned gold exports for four months in order to prevent officials of the former government from moving their wealth abroad.

At the same time, Iran has been quietly stocking up on gold in recent years, in an apparent attempt to shift away from the US dollar and thus protect its reserves from risk of seizure. Other significant buyers of gold include China, Russia and India.

Maverick governments are learning to see the role of Gold as an anti-establishment currency.

More signs of Gold gradually reacquiring its lost role as money.