Zero Hedge 
September 19, 2012
All day long we read how today, on the 81st anniversary of Japan’s invasion of Manchuria, anti-Japan protests flared up in 125 Chinese cities , for the most part peaceful, protesting what China believes is an illegal Japanese attempt at annexation of the Senkaku Islands as a proximal catalyst, but likely also an outlet for years of pent up anti-Japanese sentiment (of which there is plenty on both sides). For a good example of this see recent events in Muslim countries, US embassies and a certain film about Mohammed. Things got so heated, that late in the day there was some speculation that China may consider retaliating for what it considers an unprovoked territorial grab by the not so beloved eastern neighbor by selling its holdings of Japanese bonds. And while that may or may not occur, the probability of some serious escalation only gets largely greater as we read news of such development, this time out of Japan
– Fire Spotted At Gate Of Chinese School in Kobe, Japan: Kyodo 
Well, if Japan wants this confrontation to get truly ugly, then by all means re-retaliate, and certainly bring the school children in it. One thing is certain: China will not step down, and neither will Japan. What happens next is thus anyone’s guess.
And to think all of this is over a piece of uninhabited rock in the middle of nowhere.