@WILD:
(…)You could go the other way as well and spend heavily in the Pacific to get an edge on Japan looking to sink their fleet/transports.(…)
This thread seems to be the right place to elaborate on this. I really like to hear how you guys do this if you have some experience with it.
I have never really seen this happen in my games, but I really see this working on a grand startegy level in certain situations.
I once did this against myself playing both the Axis and the Allies. That’s how I test out strategies before I ‘use’ them in a team (or against them ;-)). Saves ‘thinking time’ when with your friends and you get a clue about the viability of a certain  strategy. During that one time I got to mixed results (I think I made some mistakes with the tactical implementation of the strategy).
First the US Fleet needed protection against the huge Japanese advantage in or on its inner circle of territories by buying many CV + FTR/TAC + DD. Japan has a lot of aircraft and a decent fleet at start and if the USA moves its fleet deliberatly into range of both, the USA is going to loose all its units in a very unfavorable ratio.
After a couple of turns (turn 4 or 5 IIRC) the defensive strength of the US fleet was good enough to withstand an attack from both the IJN and the Japanese aircraft so the push westwards was started, producing more DD’s, Subs and TRS and STR as reinforcements.
 When I stopped testing (turn 9), the USA/UK/ANZAC had taken all of the DEI and the entire South East Asia up to Hong Kong. But Japan, playing a very elusive game with its fleet, was not on its knees: it still had strong enough defenses in China and everything North of Shanghai and a very large stack of defenders in the Philippines. Furthermore Japan took Hawai and San Francisco from the USA.
The problem I encountered with this ‘KJF’ strategy was that Japan always threatened to take Hawai and after that, San Francisco as an ‘eye for an eye’ if the USA moved its fleet towards any Japanese Posessions. The IJN simply kept its distance/blocked and stayed within striking range of Hawai. In Europe, Germany was about to take Moscow and had become a monster without any real US’ presence there. Surprisingly enough Moscow stayed out of their hands for 8 turns even without any US commitment. UK had been very generous with its spitfires… Anyway the USA could NOT ignore europe any longer and had to swith into a (very near) 100% mode against Germany (afer taking back SF, of course ;-)). Japan would definately recover over a couple of turns with this switch of USA focus into Europe. The IJN, still eluding the US Navy, was getting stronger by the minute.
Looking back I think I had been too afraid of Japan taking San Fransisco, therefore waiting too long to exchange Japanese possessions for some of the USA’s. Or didn’t see how this could be turned into advantage for the USA at least…
Correct me if I’m wrong but I think that if the USA moves forward as soon as possible and conquers everything around the Philippines and the DEI and cutting off the Japanese ability to place reinforcements for the IJN anywhere (by overwhelming the set up points), loosing Hawai and SF is worth it. SF will be taken back the same turn or 1 turn later. If the IJN wants it, the set up point for the US Navy in the Pacific is lost as well but this shouldn’t matter too much because the allied fleet is already much stronger, ANZAC + India have a rather huge income and the USA is planning to focus on Europe anyway. Furthermore, Japan looses a LOT of IPCs by US conquest and convoying (no intention to actually conquer Japan or North of Shanghai itself), while the USA looses only 6IPCs in the long term (Hawai + its NO). Not to mention the IPCs the USA gains by taking back the Philipines and parts of the DEI and SE Asia (sharing with the ANZAC and the UK).
Note that Japan produced the absolute minimum on Mainland Asia to not become completely overrun and loose everything there against the USA+ China + UK. The ‘Lion’s share’ of its income was used to reinforce the IJN/airforce (and fortify Japan itself at some point) and because of this I think that Japan cannot prevent being killed or at least castrated by the USA if the latter, with the lessons learned, seriously goes KJF…