As the U.S. makes plans to reduce its military budget to proportions not seen since before World War I, China is, according to President Hu Jintao, making “extended preparations for warfare.”

The emphasis in China is on the Navy – the exact place the U.S. is de-emphasizing.

Everyone who understands China knows what this means. It is preparing to dominate the South China Sea – not good news for Japan, the Philippines, Vietnam, Malaysia, Brunei and especially Taiwan, which it intended to annex forcefully.

If you think more than a few months or years ahead, as the Chinese do, a military confrontation between China and the U.S. is almost unavoidable. Yet, into this scenario walks Microsoft billionaire Bill Gates.

He was in China recently to announce a joint project to design a new, fourth-generation, $1 billion nuclear reactor design.

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“The idea is to be very low cost, very safe and generate very little waste,” explained Gates. His Terrapower company has also talked to India and Russia about the research it is doing. The traveling wave reactor concept uses depleted uranium as its power source and produces less nuclear waste than other designs. “All these new designs are going to be incredibly safe,” said Gates. “They require no human action to remain safe at all times.”

The designs are also built to withstand damage caused by disasters such as tidal waves and earthquakes like the one that hit the Fukushima Daiichi reactor in Japan earlier this year.

But here’s the question:

Why is Gates working with China and Russia on these designs when the U.S. is facing critical energy shortages? Why isn’t the U.S. government interested in exploring safe nuclear power like this to create jobs and much-needed energy for the future? Why is it that the U.S. government is wasting hundreds of millions, perhaps billions, of taxpayer dollars on solar energy scams producing nothing, while billionaire U.S. citizens are helping our competitors and future adversaries develop real power?

Sooner or later, China and the U.S. are going to clash militarily. It’s inevitable. The two biggest, baddest kids on the block usually do. But it’s more than that. China is determined to challenge America as “the one remaining superpower in the world.” China would like to supplant the U.S. of that title.

All you have to do is watch its expanding military budget – much of which is actually hidden from the public.

Why does China spend more than the U.S. on elaborate civil defense facilities that have no purpose other than saving civilians from a nuclear attack? Do you really believe the Chinese government fears a first strike from the U.S.?

Why have Chinese officials threatened to nuke Los Angeles in retaliation for any U.S. defense of Taiwan? It’s because it is well-known the Chinese have the capability of doing it. But there’s even more to the story. The fact is the Chinese have a nuclear capability of far more destructiveness that includes the annihilation of the East Coast.

That’s right.

Not only has China poured money into underground shelters to protect civilians against nuclear attacks, while the U.S. has dismantled its civil defense structure, China has also greatly expanded – in secret – its offensive nuclear arsenal, while the U.S. has not built any new nuclear weapons in many years.

China is also gobbling up the world’s supply of oil.

Which is why I’m puzzled about Gates designing new energy-producing nuclear reactors for China – and not for the U.S.

China has already benefited greatly from high-tech transfers that began during the Clinton administration – including missile technology delivered by friends of the former president. Are wealthy

Americans like Gates suicidal or just disloyal to their country?

Or, maybe it’s both.

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