US-China War Could Create Global Economic Crisis

- June 4, 2026
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Congress is mounting its strongest challenge yet to President Trump’s Iran War, federal prosecutors have unveiled a sanctions-evasion case tied to Iran’s nuclear program, and investigators in Washington, D.C., are digging deeper into allegations that police officials manipulated crime statistics.

The House of Representatives voted Wednesday to approve a war powers resolution to limit unauthorized American military involvement in Iran.

Sponsored by Rep. Gregory Meeks of New York, the measure would require the White House.

U.S. Army, Public domain, via Wikimedia Commons
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PAUL’S DEFENSE BRIEF (PDB) – America isn’t ready – A China-Taiwan war would start an economic crisis. A full-scale invasion of Taiwan is a real eventuality. Last year, CIA director William Burns noted that China’s Xi Jinping, has instructed his armed forces to be ready for an invasion by 2027.

But that isn’t Xi’s only option. He could use his far larger coast guard and military to impose a “quarantine,” allowing merchant shippers and commercial airlines to travel in and out of Taiwan only on China’s terms. This strategy would mirror Beijing’s moves in the South China Sea, where its coast guard is trying to assert control over waters and atolls that are part of the Philippines, a US treaty ally.

If China forces a confrontation over Taiwan, which Beijing claims as its own territory, the US will need to respond decisively: The implications potentially include a global economic crisis far worse than the shock caused by the Covid-19 pandemic.

MEANWHILE – Chinese warships, aircraft deploy in strength to Scarborough Shoal staging “combat readiness patrols,” marking Beijing’s final major show of strength against Manila over the disputed South China Sea maritime feature in 2024.

FOR YOUR EYES ONLY – Here’s a roundup of today’s other top defense stories ending the week from conservative national security expert PAUL CRESPO.

Not the President’s Daily Brief, but almost as good – PAUL’S DEFENSE BRIEFING – the PDB:    

HOMELAND SECURITY

A Muslim US Army veteran driving a pickup truck that bore the flag of the Islamic State group wrought carnage on New Orleans’ raucous New Year’s celebration, killing 15 people as he steered around a police blockade and slammed into revelers before being shot dead by police.

FOCUS ON HIS MUSLIM BACKGROUND AS WELL – Here is the military service record for the New Orleans attack suspect. Shamsud-Din Jabbar served in the Army from March 2007 to July 2020 after briefly enlisting in the Navy’s delayed entry program.

FBI found 150 homemade bombs at Virginia home during search in December.

A military appeals court has ruled against Defense Secretary Lloyd Austin’s effort to throw out the plea deals reached for Khalid Sheikh Mohammed and two other defendants in the 9/11 attacks.

POLITICS

Here’s where Trump’s Pentagon and national security nominees stand ahead of new year as the Senate gets to work in earnest on confirming Trump’s Cabinet.

‘The MARSOC 3 are free’: Drinking convictions dismissed against Marine Raiders, ending 6-year legal saga stemming from the 2019 death of a Green Beret veteran working as a contractor in Iraq.

As Colorado becomes the second state to legalize psychedelic therapy this week, conservative leaders are restricting the treatment over objections from some of the city’s 90,000 veterans, who’ve become flagbearers for psychedelic therapy to treat post-traumatic stress disorder.

US imposes sanctions on Russian and Iranian groups over disinformation targeting American voters.

IRAN THREAT/ISRAEL WARS

US military hits Houthi targets in Yemen hours after the Iran-backed terror group launched attacks on Israel.

Rebels easily toppled Syria’s army. Their challenge now: Rebuilding.

Israel faces a reshuffled strategic deck in Syria. Suddenly, Israel has a Syria problem. For years, Jerusalem had banked on a relatively predictable balance of power with the neighboring regime of Bashar al-Assad in Damascus making it generally possible to anticipate how the Syrian dictator would behave.

Palestinian Authority suspends Al Jazeera, in latest blow to channel. The authority’s official news media accused the Qatari-backed broadcaster of “inciting sedition” and “interfering in internal Palestinian affairs.”

RUSSIA THREAT – UKRAINE WAR

On e-scooters and ATVs, Russian forces swarm Ukrainian positions in the east, heightening longstanding concerns over how Ukraine manages its military and countering assumptions that Moscow’s offensive would slow.

Ukraine’s Zelenskyy expresses hope for 2025, but Russia presses on with attacks.

Speaking on the 25th anniversary of his rule, Vladimir Putin delivered an upbeat and vague New Year’s Eve message declaring “everything is fine” but did not address casualties in Ukraine or rising inflation at home.

North Korean troops deployed to Russia’s western border with Ukraine are conducting “human wave tactics” on the battlefield, leading to more than 1,000 casualties within their ranks last week.

Three men have been charged with spying on US military bases for Russia and plotting attacks on American personnel in Bavaria in retaliation for Western support of Ukraine.

NORTH KOREA THREAT

South Korean court issues warrants to detain impeached President Yoon and search his office and residence over allegations of rebellion in connection with his short-lived declaration of martial law.

INTERNATIONAL SECURITY

A staunch US ally in Africa says French forces will withdraw. The troops are expected to leave Ivory Coast this month as France fast loses influence there.

Several European nations conducted operational deployments to the Western Pacific this year, combining national strategies, international commitments and participation in the biennial Rim of the Pacific 2024 exercise.

Pakistani security forces suffer deadliest year for a decade while fighting Taliban insurgency.

US MILITARY

The Army’s fitness standards may shift for combat arms roles in 2025. But how much tougher will they be? This presents an early test for President-elect Donald Trump’s incoming Army leadership

New special trial counsels take over prosecution of major sexual harassment cases from commanding officers.

2024 in review: Space Force. The year saw challenges in orbit and on the ground as the young service continued to expand.

Florida’s Space Coast capped off a record-breaking year with 93 launches from Cape Canaveral Space Force Station and NASA’s Kennedy Space Center, up from 74 launches in 2023.

END of PDB

The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.

READ NEXT: Biden Moves To Permanently Ban Trump From THIS – Can He Do Anything?

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Paul Crespo

Paul Crespo is the Managing Editor of American Liberty Defense News. As a Marine Corps officer, he led Marines, served aboard ships in the Pacific and jumped from helicopters and airplanes. He was also a military attaché with the Defense Intelligence Agency (DIA) at U.S. embassies worldwide. He later ran for state and federal office, taught political science, wrote for the editorial board of a major newspaper and had his own radio show. A graduate of Georgetown, London and Cambridge universities, he brings decades of experience and insight to the issues that most threaten our American liberty – at home and from abroad. To read more go to: paulcrespo.com.

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