Kim Jong Un May Not be Stupid Enough to Launch an Attack but He Does Control the U.S Stock Exchange
Tensions between the West and North Korea typically correlate in the direction of how the Stock Market will wave itself.
The threat of a Hydrogen Bomb, the rogue nation’s’ sixth and most powerful, forced members of the United Nations Security Council to assemble an emergency session on Monday to condemn North Korea’s test.
Ambassador Nikki Haley attacked China, who is keeping North Korea essentially on life support. She brought back the August threats that the administration used against North Asia threatening military intervention and tougher sanctions that would bring China back to the table. However China has expressed their neutrality, not favoring one country over the other. Their ideologies similarly match the brutality of Juche North Korea.
General Mattis also issued a warning to Pyongyang indicating they have full capabilities to defend South Korea and Japan. Also any threat aimed at Guam will be met with a massive retaliation remaining unanimous in the denuclearization of the regime.
“We have many options to do so,” The Secretary of Defense said.
Meanwhile, the North Koreans have flocked to their Leaders decisions as they have before give unanimous plaudits to firing of ICBMs.
The Stock Markets seem to have shifted throughout this Asian Peninsulan crisis. When Trump made his remarks following North Korean threats on Guam that the nation would be met with “Fire and Fury” to which the world has never seen, the Dow plummeted.
Market Watch Reported that The Dow Jones Industrial Average dropped -0.79% the S&P 500 index dropped -0.97% and the Nasdaq Composite Index dropped -1.30%. The President’s remarks at the time caused the Dow to snap a multisession streak of records.
But now that Kim Jong Un retaliated in one of his most vicious threats to date. The Dow Jones industrial average dropped nearly 170 points and the stock of United Technologies’ dropped after announcing a $30 billion mega-deal to buy Rockwell Collins.
CNBC reports The S&P 500 pulled back 0.5 percent, with financials leading 10 sectors lower. To add to the negative coverage, Hurricane Irma, which is likely to reach a category 5 by next weekend, has flown over the Caribbean and Florida causing Insurers XL Group and Everest Re Group to decline drastically.
In addition, The Nasdaq composite declined 0.5 percent as shares of Amazon and Alphabet both dropped.
North Korea’s threats can be traced back to the Clinton administration when in 1994, agreed to sell energy to the regime believing they would eventually dismantle their nuclear program. The Same goes for the Iran deal under the Obama and Kerry administration which has at numerous occasions made deliberate threats directed to the West. President Bush also failed to strike a deal with Kim Jong Il who’s nation reached full capabilities in 2006 when it successfully was able to launch its nuclear campaign.
To the credit of Bush and Clinton, Kim Jong Un is a different cat than his predecessors. He has exemplified serious disdain for Capitalism and the ideals of the West. As increasing tensions arise, could this just be political moves back and forth or is Kim Jong Un stupid enough to risk the fate of his entire nation over one aggressive attack?
Japan tried that in 1941 which led to the US entering WWII not fanning out so well in the end with the Truman administration literally exemplifying what “Fire and Fury” entails.