Best of the Week
Most Popular
1. Climate Change Mass Extinction - Birds, Bees and Bugs: Going Going Gone - Richard_Mills
2.A Purrrfect Gold Price Setup! - Peter_Degraaf
3.Who Finances America's Borrowing? Recession Indicator for Independent Thinkers Part 2 - F_F_Wiley
4.America’s One-sided Domestic Financial War - Raymond_Matison
5.Gold Price Summer Doldrums - Zeal_LLC
6.Two Key Events Will Unleash Gold - Jim_Willie_CB
7.Billionaire Schools Teacher in NAFTA Trade Talks - Richard_Mills
8.Get Out Of Crypto Cannabis Bubble Before It Pops and Move Into Bargain Basement Miners - Jeb_Handwerger
9.Stock Market Could Pullback for 1-2 weeks, But Medium Term Bullish - Troy_Bombardia
10.G7 Chaos, Central Banks and US Fed Will Drive Stock Prices This Week - Chris_Vermeulen
Last 7 days
Financial Markets Analysis and Trend Forecasts 2018 - A Message from Nadeem Walayat - 21st Jun 18
SPX Bouncing Above Support - 21st Jun 18
Things You Need To Know If You Want To Invest In Bitcoin Now - 21st Jun 18
The NASDAQ’s Outperformance vs. the Dow is Very Bullish - 21st Jun 18
Warning All Investors: Global Stock Market Are Shifting Away From US Price Correlation - 20th Jun 18
Gold GLD ETF Update… Breakdown ? - 20th Jun 18
Short-term Turnaround in Bitcoin Might Not Be What You Think - 19th Jun 18
Stock Market’s Short Term Downside Will be Limited - 19th Jun 18
Natural Gas Setup for 32% Move in UGAZ Fund - 19th Jun 18
Magnus Collective To Empower Automation And Artificial Intelligence - 19th Jun 18
Trump A Bull in a China Shop - 19th Jun 18
Minor Car Accident! What Happens After You Report Your Accident to Your Insurer - 19th Jun 18
US Majors Flush Out A Major Pivot Low and What’s Next - 18th Jun 18
Cocoa Commodities Trading Analysis - 18th Jun 18
Stock Market Consolidating in an Uptrend - 18th Jun 18
Russell Has Gone Up 7 Weeks in a Row. EXTREMELY Bullish for Stocks - 18th Jun 18
What Happens Next to Stocks when Tech Massively Outperforms Utilities and Consumer Staples - 18th Jun 18
The Trillion Dollar Market You’ve Never Heard Of - 18th Jun 18
The Corruption of Capitalism - 17th Jun 18
North Korea, Trade Wars, Precious Metals and Bitcoin - 17th Jun 18
Climate Change and Fish Stocks – Burning Oxygen! - 17th Jun 18
A $1,180 Ticket to NEW Trading Opportunities, FREE! - 16th Jun 18
Gold Bullish on Fed Interest Rate Hike - 16th Jun 18
Respite for Bitcoin Traders Might Be Deceptive - 16th Jun 18
The Euro Crashed Yesterday. Bearish for Euro and Bullish for USD - 15th Jun 18
Inflation Trade, in Progress Since Gold Kicked it Off - 15th Jun 18
Can Saudi Arabia Prevent The Next Oil Shock? - 15th Jun 18
The Biggest Online Gambling Companies - 15th Jun 18
Powell's Excess Reserve Change and Gold - 15th Jun 18
Is This a Big Sign of a Big Stock Market Turn? - 15th Jun 18
Will Italy Sink the EU and Boost Gold? - 15th Jun 18
Bumper Crash! Land Rover Discovery Sport vs Audi - 15th Jun 18
Stock Market Topping Pattern or Just Pause Before Going Higher? - 14th Jun 18
Is the ECB Ending QE a Good Thing? Markets Think So - 14th Jun 18
Yield Curve Continues to Flatten. A Bullish Sign for the Stock Market - 14th Jun 18
How Online Gambling has Impacted the Economy - 14th Jun 18
Crude Oil Price Targeting $58 ppb Before Finding Support - 14th Jun 18
Stock Market Near Another Top? - 14th Jun 18
Thorpe Park REAL Walking Dead Living Nightmare Zombie Car Park Ride Experience! - 14th Jun 18

Market Oracle FREE Newsletter

5 "Tells" that the Stock Markets Are About to Reverse

Markets Rattled by New Conflict Between North and South Korea

Politics / North Korea Nov 24, 2010 - 05:04 AM GMT

By: Static_Chaos

Politics

U.S. stocks dropped more than one percent on Tuesday with two Korea's exchanging fire adding to the already worrisome Irish debt crisis in Europe.

The latest with Ireland is that European Union (EU) officials estimate that a rescue package may amount to about 85 billion euros ($114 billion). That news sent S&P issuing a new downgrade on Ireland's sovereign debt.


However, Ireland (along with Spain and Portugal, etc.) has mostly been factored in, so the new development in Korea is what really jolted the market (or some may say the market is dying for an excuse to correct.)

The latest conflict between North and South Korea could be counted as one of the most dramatic confrontations since the Korean War in 1953.

Based on Seoul's account, it all started with North Korea warning the South to halt military drills near their disputed sea border. The South, naturally did not comply, and the North retaliated by shelling the small island of Yeonpyeong (clip below).

According to AP, Seoul responded by unleashing its own K-9 155mm self-propelled howitzers and scrambling fighter jets. Two South Korean marines were killed and 15 troops and three civilians were also injured. There are no confirmed casualties from North Korea yet.

The communist side warned of more military strikes if the South violates the maritime border by "even 0.001 millimeter," while South Korea vowed "massive retaliation" should North Korea attack again. 

This confrontation came on the heel of another conflict.  In March, North Korea was blamed for attacking and sinking the South Korean warship Cheonan while on routine patrol, killing 46 sailors.  The North denied responsibility. 

The U.S. reacted by President Obama issuing statement "strongly condemned the attack" and that the U.S. “stands shoulder to shoulder” with South Korea on this. Meanwhile, China--still neck-deep in a similar border dispute with Japan and other neighboring countries--issued a relatively indifferent "call for calm" statement.

I've seen "World War III" and "Gulf War III" mentioned in some news articles over this event, but believe it is an unlikely scenario. A Korean War II serves nobody's interest, including North Korea. And I imagine China is fully aware of how much disruption a Korean war II would bring to its economy.

On the other hand, I would be more worried about a third Sino-Japanese War, since there's a fresh stand-off between Chinese and Japanese patrol boats just past weekend near their disputed islands.

China is indeed Korea times 1,000 or worse when it comes to size and fire power, not to mention the feud with Japan runs deeper than the one between the two Korea's.

So, it seems King Dollar still reigns supreme as long as there's a faintest threat of war and chaos, which will likely give people such as Joe Weisenthal an excuse to continue praising QE2 Is Not Bad For the Dollar.


By Static Chaos

http://static-chaos.blogspot.com

© 2010 Copyright Statoc Chaos- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules