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
SPX/Gold, Long-term Yields & Yield Curve 3 Amigos Update - 22nd Jun 18
Gold - How Long Can This Last? - 22nd Jun 18
Dow Has Fallen 8 days in a Row. Medium-long Term Bullish for Stocks - 22nd Jun 18
Trouble Spotting Market Trends? This Can Help - 22nd Jun 18
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

The Axis of Evil shrinks by one, North Korea, will Iran be next ?

Politics / US Politics Feb 17, 2007 - 04:10 AM GMT

By: Mike_Whitney

Politics The Bush foreign policy is predicated on one simple axiom: “We will stop the world's most dangerous men from getting their hands on the world's most dangerous weapons”. By that standard, Bush's dealings with North Korea havebeen a wretched failure. After 6 years of fruitless saber rattling and belligerence, the North detonated a nuclear bomb in early October and put region on notice that there's a new member in the nuclear weapons club.


For the time being, only South Korea and Japan are within range of the North's missile systems, but as the technology improves the Taepodong 2 will eventually be capable of hitting mainland U.S.A. The bottom line is that the American people are considerably less safe with a nuclear armed DPRK (Democratic People's Republic of Korea) than they were before.

The Bush administration has had ample time to take steps to negotiate a settlement between the two traditional adversaries. Instead, they chose to aggravate the situation by trying to topple the regime by freezing bank accounts and enforcing punitive “unilateral” sanctions.
Unsurprisingly, Bush's ham-fisted tactics have produced the opposite result of what was intended. The North rushed ahead with its research and quickly figured out the basic elements of nuclear bomb-production allowing the madcap dictator in the oversized sun-glasses to build a stockpile of between 6 to 12 nuclear weapons. Now the entire region is on tenterhooks and frantically trying to cobble together a diplomatic solution.

The Bush administration has stubbornly refused to sit down in one-on-one negotiations with the North. Their refusal was supposed to send a message that the U.S. is just “too important” to engage a vassal state like North Korea in serious dialogue. Bush further strained relations by including the North on its “axis of evil” list which includes the states that the US has designated as targets for regime change.

Additionally, Vice President Cheney delivered a blunt warning to Kim in a speech he delivered early last year. He said, “We don't negotiate with evil; we defeat it.”

What could be clearer?

Given the administration's blatant hostility, Kim Jung Il did what any leader would do if they were facing a similar existential threat; he developed a credible deterrent to US aggression, nuclear weapons. His research was undoubtedly hurried along by Bush's bellicosity.

Immediately following October's nuclear blast, the Bush administration reversed its policy and sent a messenger to the North Korean Embassy to see if they would be willing to conduct secret “bilateral” negotiations in Berlin. Bush was desperately trying to avoid the appearance that he had completely caved in on a matter of principle, but the facts are not in dispute. Bush's sudden U-turn is just another unfortunate humiliation for the country.

The Bush public relations team is trying to spin the new agreement as a “breakthrough”. But there is no breakthrough. Bush has capitulated on all the main issues. It's a terrible deal and that's why so many conservatives are enraged and spewing their anger in the newspapers.

The agreement will remove the North from the State Department's list of terrorist states and provide 50,000 tons of fuel oil just for shutting down its Yongbyon reactor. But that won't address the north's clandestine nuclear program or Kim's nuclear weapons stockpile. In fact, these are not even on the table!

Just months ago Bush rejected the same deal saying, “We will never agree to blackmail”.

My, how things change once a country gets nukes.

The present agreement is worse than the “Agreed Framework” which was initiated by Bill Clinton in 1994 and which was universally repudiated by Republicans and the conservative think tanks. Nicholas Eberstadt of the far-right American Enterprise Institute summarized it like this:

“This is substantially worse than the Agreed Framework… The (original) agreement attempted to freeze everything that we knew about the DPRK's activities and probe their good faith. Now, we have agreed to a deal that only freezes part, at most, of North Korea's nuclear activities for a much higher price then the earlier agreement, with a regime that we know operates in bad faith on nuclear deals.”

Eberstadt is right. Every part of the agreement favors the North. The United States and its allies will have to provide 50,000 tons of fuel oil just for the privilege of sitting down at the bargaining table with the DPRK diplomats. Shutting down Yongbyon is utterly meaningless; that doesn't tell us where the secret uranium enrichment program is located and that is the fuel-source for the Kim's nuclear weapons.

There's no chance that the administration will persuade the North to “denuclearize” (the administration's word du jour). Kim knows that the real objective of US policy is regime change and that guarantees that he will never give up his nukes. Instead, he plans to use the upcoming negotiations as a means of extorting more concessions from Bush and the allies. Next, he's expected to demand electrical power from South Korea, additional food and medicine, and the light-water reactor which was promised by Clinton. All the while, his nukes will remain safely tucked away beyond reach; his only real bargaining chip.

The real danger in Bush's policy-turnabout is the message that it sends to Iran and any other country who wants to improve its prospects vis a vis the United States. If Iran had any doubts that it needs nuclear weapons to fend off the US; those doubts have been removed.

Bush's blundering foreign policy has dealt a withering blow to nuclear nonproliferation and paved the way for a 21st century arms race. This is a bad deal all around and only underscores one basic truism:

Blackmail works.

By Mike Whitney

Email: fergiewhitney@msn.com

Mike is a well respected freelance writer living in Washington state, interested in politics and economics from a libertarian perspective.


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


Comments

defcon1
17 Feb 07, 14:35
Re: The Axis of Evil shrinks by one, North Korea, will Iran be next ?
Bush is an idiot !

The worst President in the countries history !
Trade101
18 Feb 07, 22:09
Re: The Axis of Evil shrinks by one, North Korea, will Iran be next ?

Don't think they will do the same for Iran, since theres oil in iran ;)


Post Comment

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

6 Critical Money Making Rules