North Korea News About Childish Nuclear State Tanks Stock Market

North Korea news is dominating the headlines, scaring stock market traders and trying the patience of world leaders. North Korea, obnoxious and aggressive in normal times, has been increasingly belligerent recently. The nuclear-armed dictatorship that can’t feed its own people attacked and sank a South Korean ship in March. After an investigation into the sinking produced evidence pointing to North Korea, South Korea held navy war games in a show of strength. A hotline between the North and South established to defuse confrontations was then severed by North Korea. Analysts trying to figure out the mysterious nation said North Korea’s behavior is related to the upcoming succession of power from dictator Kim Jong-il to his son Kim Jong-un.

Source for this article: North Korea news about childish nuclear state tanks stock market

International extortion: the North Korea nuclear test

The first North Korea nuclear test in 2006 started painting a picture of a more desperate, impoverished dictatorship that would rather blackmail than borrow money. The Washington Post reports that since President Obama took office, dictator Kim Jong-il has launched missiles, conducted a second North Korea nuclear test and seized a pair of U.S. journalists. In March a North Korean submarine torpedoed and sunk the South Korean warship Cheonan in South Korean waters, killing 46 sailors. After the South cut off aid and commerce with the North this week, upon reviewing evidence implicating the North in the Cheonan sinking, the North suspended all ties with Seoul. It seems likely that the South will seek additional sanctions from the U.N. Security Council, which will provoke more threatening behavior from North Korea.

Cheonan ship sinking

The Pyongyang regime’s recent spate of threats, culminating with the Cheonan ship sinking, has analysts speculating a transfer of power. It could be part of an effort by 69-year-old dictator Kim Jong-il, who recently had a stroke, to establish his 27-year-old son as his successor in the family dynasty. The New York Times reports that the succession theory fits in with the established North Korean behavior patterns. A reasonable person would believe that North Korea’s confrontational stance is delusional. But it makes sense to Kim Jong-il. A threat from the outside is what he needs to maintain the atmosphere of fear that keeps his dynasty in power. To create the impression his son will be a strong leader of North Korea’s armed forces, Kim Jong-il will give Kim Jong-un credit for the Cheonan ship sinking.

Conclusions about North Korea news

No one ever really knows for certain what is going on with North Korea news. At present the succession theory for North Korea’s recent provocations can only be a guess. CNN contributor Fareed Zakaria said blackmail could be counted on as the rationale for such crimes as North Korea nuclear tests – until now. Zakaria went further to say that the days when South Korea and the U.S. differed on the North Korean issue may be over. Maintaining the status quo may not be possible anymore after the Cheonan sinking. Knowing for sure the true motives driving the North Korean regime may never happen, but now the U.S. and South Korea agree that deeds, not words are the next step in the crisis.

North Korea stock market fear

North Korea’s stock market influence continued to be felt this week. When the North Korean government ordered its citizens and troops last week to be ready for combat, investors ran for cover. In comments about the North Korea stock market connection to MarketWatch, Andrew Wilkinson, senior market analyst at Interactive Brokers, said, “The words of the North Korean leader commanding his troops to be battle-ready are yet another excuse for markets to recoil once again.”

Find more information on this topic:

Washington Post reports

http://www.washingtonpost.com/wp-dyn/content/article/2010/05/26/AR2010052605047_2.html?wprss=rss_world/asia&sid=ST2010052502499

New York Times reports

http://www.nytimes.com/2010/05/28/world/asia/28north.html

CNN contributor Fareed Zakaria

http://edition.cnn.com/2010/OPINION/05/27/zakaria.korea.china/