I don't know if you guys follow international affairs much, but if you do you have probably heard of the dispute between China and Japan over the Senkaku islands which Japan 'bought' though China still claims as sovereign territory. This was escalated by China launching it's first aircraft carrier recently leading to a growing Japanese nationalism and a swing to the right with the fear of an arms race between the powers. What do you guys think of this? What should the united states, EU, the west's response be? Best case worst case projections?