Chuck Holton
Politics • Culture • News
Interesting New Information about Chinese Meddling in Panama
And Marco Rubio Headed to Panama on First Overseas Trip
January 22, 2025
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Chinese Flag Flies over Ship Transiting the Panama Canal

The Panama Canal is back in the spotlight, and for good reason. This vital link between the Atlantic and Pacific Oceans has become a focal point of geopolitical tensions, with the United States stepping up its involvement. Recently, sources close to U.S. intelligence revealed China’s growing interest in Panama, which has prompted the U.S. to declare the Canal a matter of "national security."

China’s Game-Changing Proposal

Here’s the deal that’s turning heads: China has reportedly offered Panama an ambitious package that includes:

 

 

  1. Paying 50% of Panama’s national debt, which currently stands at $54 billion.
  2. Building a railway connecting Panama City to Chiriquí, boosting infrastructure and economic growth.

China also requested that the Panama Canal allow transactions in currencies of BRICS nations—Brazil, Russia, India, China, and South Africa—instead of exclusively using the U.S. dollar. If Panama accepts, this could weaken the dollar’s dominance and reshape global trade.

This proposal aligns with BRICS’ broader strategy of reducing reliance on the dollar, positioning the Canal as a key piece in China’s economic playbook.

Enter Marco Rubio

Adding to the intrigue, U.S. Secretary of State Marco Rubio is planning a visit to Panama as part of his first official foreign trip, which will also include Guatemala, El Salvador, Costa Rica, and the Dominican Republic. According to U.S. officials, the trip is tentatively scheduled for late January to early February.

Rubio’s agenda is expected to focus on two main issues tied to the MAGA foreign policy platform:

  1. Curtailing illegal migration through collaboration with countries in the Western Hemisphere.
  2. Reinforcing U.S. claims over the Panama Canal, following former President Donald Trump’s assertion that the U.S. should “reclaim” the strategically crucial waterway.

Panama’s leadership has strongly rejected Trump’s remarks. Speaking at the World Economic Forum in Davos, President José Raúl Mulino stated,
“The Panama Canal belongs to Panama and will continue to belong to Panama. The Panama Canal is not a concession or a gift from the United States.”

Rubio’s visit will undoubtedly be watched closely, not just for its implications on the Canal but also for its focus on migration, a priority he highlighted in a recent memo to State Department employees. He called mass migration “among the most consequential issues of our time” and pledged to negotiate agreements to repatriate illegal immigrants.

Why the U.S. Cares So Much

 

The U.S. has a lot at stake when it comes to the Panama Canal, and it’s not just about keeping trade routes open. The financial implications of Panama stopping its exclusive use of the U.S. dollar for Canal transactions—and allowing payments in BRICS currencies instead—could be devastating for the United States.

Here’s why: the U.S. dollar is the world’s primary reserve currency, meaning most global trade and international financial transactions rely on it. This status gives the U.S. enormous economic advantages, including lower borrowing costs, strong influence over global markets, and the ability to impose effective sanctions.

If Panama acceded to China’s request and began accepting BRICS currencies like the Chinese yuan or Russian ruble, it would weaken the dollar’s dominance in global trade. This could trigger a domino effect, encouraging other countries and major international trade hubs to follow suit. Over time, the dollar’s role as the cornerstone of the global financial system could erode, undermining U.S. economic power and destabilizing its ability to manage debt.

For the U.S., losing the Panama Canal as a bastion of dollar-based trade wouldn’t just be a symbolic blow—it would be a tangible threat to its economic security. A shift toward BRICS currencies would empower competing nations like China and Russia, allowing them to grow their influence while diminishing Washington’s leverage on the global stage.

This is why the U.S. sees China’s proposal to Panama as a red flag. It’s not just about keeping control of a strategic waterway—it’s about safeguarding the foundation of America’s economic might. The Canal has always been a crucial link for trade, but in this context, it’s also a battleground for the future of global finance. The stakes couldn’t be higher.

The Big Picture

As Panama balances its sovereignty with growing international pressures, the future of the Canal hangs in the balance. For now, all eyes are on Rubio’s upcoming visit and how it will shape U.S. policy in the region. One thing is certain: the Panama Canal is once again proving its immense importance on the global stage.

 

 

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Mercy on the Ground, War on the Horizon

The conflict between the United States and Iran is doing that strange dance right now. On one hand, you’ve got “negotiations” in Geneva. On the other hand… you’ve got aircraft carriers moving.

Axios reported this morning that we may be closer to striking Iran than most people realize. Not months. Not “someday.” Possibly days. And if you watch the hardware, it tells a clearer story than the press releases.

In just the last 48 hours, reports indicate the U.S. has surged:

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  • Roughly 40 aerial refueling tankers

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That carrier does not have to sail into the Strait of Hormuz to be useful.

From the eastern Mediterranean—especially with tanker support—U.S. aircraft can strike targets inside Iran. Which means this could kick off before the Ford ever gets to the Gulf.

These “Talks” Aren’t Really Talks

The negotiations happening in Geneva aren’t face-to-face. There’s no American official sitting across a table from the Ayatollah. It’s shuttle diplomacy.

Omani intermediaries walk between rooms—one room with American envoys, another with Iranian representatives—carrying messages back and forth.

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Iran says:
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That’s not negotiation.

And while the delay continues, the Ayatollah is publicly threatening to sink American carriers, calling them “big targets.”

Can Iran Sink a Carrier?

Let’s be serious for a moment. Yes, Iran has hypersonic missiles. Yes, they have thousands of short-range missiles designed to threaten neighbors like Saudi Arabia. Yes, they have speedboats with guns and some small submarines.

But here’s the problem for them:

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Iran’s Threat Videos, America’s Buildup, and the Question Nobody Wants to Answer

Right now, the nuclear talks in Geneva are stalling with Iran. Meanwhile, the United States is building combat power in the region at a level we haven’t seen since the Iraq invasion—two aircraft carriers, dozens of warships, hundreds of combat aircraft, and tens of thousands of troops either in theater or moving that direction.

 

The U.S. buildup is not subtle—and Iran knows it

From what I’m tracking, the U.S. is moving into the region with:

  • Two carrier strike groups (one already in theater and another inbound)

  • 300–400 combat jets in the region when you count land-based aircraft

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  • A steady stream of support aircraft—tankers, ISR platforms, and the stuff you don’t talk about on a public livestream

And here’s the point: the United States isn’t putting all that out there to “negotiate harder.” That’s the kind of posture you take when you want your opponent to understand the consequences before you act.

Iran’s information war just leveled up (and yes, the video was impressive)

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The missile they’re showcasing is the Khoramshahr-4 (they’re pitching it as unstoppable, “uninterceptable,” and essentially a war-ending weapon).

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Khoramshahr-4: a serious threat, but not a war-winner

From the way this missile is being described, it’s a liquid-fueled, medium-range system with roughly 2,000 km range—meaning Israel is in reach, U.S. bases in the region are in reach, and potentially some assets farther out are threatened depending on basing and launch options.

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That’s why they’re leaning so heavily into the psychological side: if you can’t win the fight, you try to prevent the fight.

The Strait of Hormuz threat has a problem: China

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