The only issue right now that could bring the US into direct confrontation with the Chinese is Taiwan...I think the latest annoucement concerning China's defense budget follows Taiwanese President Chen Shui-Bien's recent suggestions at changing Taiwan's constitution...US signed an agreement in 1978 after breaking ties with Taiwan saying that as long as the status quo remains (Taiwan does not drop its policy of eventual unification with China), the US will come to Taiwan's aid should China attempt to use military force...I think the budget isn't meant to intimidate the US, but more to intimidate Taiwan and to irritate the US...from what I can gather, the US government is having a hell of a time trying to figure out what the Taiwanese President's intentions are in regards to Mainland China/Taiwan affairs...he seems to be pushing it a bit lately...

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1995 black pearl/black Mercedes-Benz E420 :