The chinese government declared the no fly zone. It is a bluff, but Chinese government seems to think people are stupid and would do not think it is a bluff. Japan is challenging it. Would China lose its bluff or would this lead to a more serious confrontation. Is China giving Japan a golden opportunity to go back into China, and solve Japan's economic problems. What would be the effect on the markets particularly the VIX? Armchair generals: what is your analysis?