Potential Conflict Grows with North Korea

It is no longer just a conflict of words and rhetoric, as verbal threats have now been followed with posturing actions which have taken this conflict to a whole new level.

This weekend North Korea completed an underground test of a nuclear bomb with ten times the strength compared to their last underground nuclear test. This occurrence comes just days after North Korea fired a short-range ICBM over one of Japan’s islands.

The underground test brought about condemnation from both North Korea’s enemies as well as allies.

In response to the most recent events by North Korea, South Korea ran a simulated strike on the North Korean nuclear site. This drill was carried out by both the Air Force and Army of South Korea. They launched multiple surface-to-surface ballistic missiles from ground-based launchers, as well as air-to-surface missiles from the South Koreans F-15 fighters.

It’s a Mad, Mad, Sad World

Recent actions by the North Koreans have made it crystal clear that they have absolutely no intent whatsoever to give up their current quest to become a nuclear power. The mad and sad truth is that the North Koreans are getting closer and closer to achieving that goal. In fact, for all intents and purposes, the North Koreans are now a nuclear power in that they possess multiple nuclear bombs. They are at the final steps of acquiring the knowledge to miniaturize a nuclear warhead to fit on top of one of their ICBMs.

Even more worrisome are their stated intentions. They have made it known that their development of nuclear armament is not simply for defensive purposes. North Korea has threatened to use their nuclear arsenal to attack the United States.

As recently as today the North Koreans have warned that they are ready to send “more gift packages” to the United States if it continues to put pressure on the regime.

As reported in the Independent, Han Tae Song, the ambassador of the Democratic People's Republic of Korea (DPRK) to the UN in Geneva, addressed the UN-sponsored Conference on Disarmament two days after his country detonated its sixth and largest nuclear test. Ambassador Han Tae Song said, “The U.S. will receive more gift packages from my country as long as it relies on reckless provocations and futile attempts to put pressure on the DPRK."

The sad truth is that the current crisis between North Korea and South Korea and the United States has now ratcheted up to a new level, where the posturing is in actions rather than just words alone — actions that could lead the world into turmoil, chaos, and destruction. Even sadder is the fact that in all likelihood this conflict could easily grow much worse before it reaches any kind of resolution.

Wishing you as always, good trading,