Royston Leonard / Mediadrumworld/ZUMA Press/Newscom Leave it to Donald Trump to threaten to rain “fire and fury” on the North Korean people the same week the world observed the 72nd anniversary of the U.S. government’s vindictive atomic bombings of Japanese civilians.
With markets about to close for the next 2 days, the question on every trader’s mind is: ” should i carry risk over the weekend, or should I dump it all in case North Korea fires another test, or non-test, ICBM launch which may be just the provocation Trump needs to give the green light to a squadron of B-1 bombers to begin a bombing campaign.” After all, Trump himself tweeted this morning that “military solutions are now fully in place, locked and loaded, should North Korea act unwisely.
Secretary of Defense James Mattis made the following statement:
Mattis making a statement like this indicates not only that military operations are possible, but that active planning is underway if not completed. This situation looks to get more tense in the near future and the outcome as to whether military action takes place may lie with China’s ability to bring the DPRK under some sort of control.
One scenario would be for China to take preemptive action to remove the regime and occupy the North as a buffer to the South.
On July 4, North Korea tested a Hwasong-14 ICBM, rushing closer to posing a major nuclear threat to the U.S. Just a few weeks later on July 28, the Kim Jong-un regime tested its second ICBM, this time with a range that may include major cities in the continental U.S. To make matters more concerning, the Defense Intelligence Agency has said that North Korea could successfully arm an ICBM with a nuclear warhead as early as next year.
Since the collapse of the Berlin Wall in 1989, the world has had one undisputed economic superpower: the United States. But while the U.S. has enjoyed its moment in the sun, the balance of power has been slowly shifting towards the inevitable rise of China.