The drama with North Korea and its ruler Kim Jong In appears to be never-ending. North Korea has tested 14 missiles this year alone. Such provocations have gotten the attention of the entire world – something Kim Jong Un obviously covets. Now North Korea claims it has developed a hydrogen bomb capable of being added to a long-range missile, capable of reaching the United States:

North Korea said on Sunday it has developed an advanced hydrogen bomb that possesses “great destructive power” as U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe talked by phone about the “escalating” nuclear crisis.

The report by North Korea’s official KCNA news agency comes amid heightened regional tension following Pyongyang’s two tests of intercontinental ballistic missiles (ICBM) in July that potentially could fly about 10,000 km (6,200 miles), putting many parts of the mainland United States within range.

Under third-generation leader Kim Jong Un, North Korea has been pursuing a nuclear device small and light enough to fit on a long-range ballistic missile, without affecting its range and making it capable of surviving re-entry into the Earth’s atmosphere.

North Korea claims the hydrogen bomb was home grown, so the U.S. cannot deny it materials from other countries, precludes it from sanctions and enables the country to “produce power nuclear weapons, as many as it wants.”

The Situation

President Donald Trump has fostered, tough, “John Wayne – like” presence on the global stage. During his presidential campaign promised to get tough with China, Mexico, the blacks, immigrants, et. al. In an act of defiance Kim Jong Un has tested Trump’s mettle by stepping up his missile launches. A February launch was likely meant to test the preparedness of the Trump administration.

Trump responded employing the Terminal High Altitude Area Defense system (“THaad”) on South Korean soil. THaad is designed to protect South Korea against attacks from short and medium-range ballistic missiles. Thaad’s infrared seeker technology is supposed to detect incoming threats and strike the target with a missile of its own. THaad’s presence on the Korean peninsula got everybody’s dander up. The South Korea’s did not welcome a larger military presence there. North Korea saw it as an effront to its sovereignty. China didn’t want because the defense system could potentially spy on China and track its own nuclear activity. The problem is that Thaad’s presence might have further heightened tensions on the Korean peninsula. The South Korean populace has looked askance at the United States’ beefed up military presence there.

Terminal High Altitude Area Defense system (“THAAD”)

Over a dozen North Korean missile launches and some tough talk later, the U.S. and Kim Jong Un still have not made any progress on ending North Korea’s provocations.

Unprecedented Provocation

North Korea needs to continue to missile tests so it can gain the capability of striking the continental United States. Previous missile tests launched weapons into the Sea of Japan. However, last week Kim Jong Un launched a missile over Japan and into the Pacific Ocean. Japan Prime Minister Abe Shinzo called the act an unprecedented provocation. In a show of force, North Korea wanted to prove it could strike the U.S. territory of Guam.

The missile traveled 1,678 miles; another 500 or so miles and it could have potentially struck Guam. Global financial markets cratered initially, but finished higher by the end of the week. Kim Jong Un wants a nuclear capability to keep from being removed from office by the U.S. Trump claims talking is not the answer pursuant to North Korea. Until both sides come to an agreement it appears missile launches and tough talk will continue. That portends more volatility for global financial markets.

 

On Shock Exchange

Shock Exchange: How Inner-City Kids From Brooklyn Predicted the Great Recession and the Pain Ahead explains the stock market and U.S. economy through the eyes of the New York Shock Exchange, a financial literacy program Ralph Baker started in 2006 to share his passion for investing and basketball with his 11-year-old son and other boys his age. The book predicts the “pain ahead” for the U.S. economy, the demise of China, the pending stock market crash and social unrest.

Shock Exchange has been trumpeted by President Obama, the Senate Finance Committee and House Ways and Means Committee. However, they conveniently forgot to cite the source. Critics try to make and unmake authors, but the market always decides. The book was also recently added to Trump Syllabus K12, crafted by Dr. Kaye Wise Whitehead of Loyola University Maryland. Shock Exchange is the best book on Wall Street in the past 20 years, and on economics, it may be the most important book since the Great Depression.

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