Politics

Global markets are closed for the weekend, so we will need to wait until tomorrow evening to see how investors react to the latest back-and-forth between the North Korean government and President Donald Trump. In North Korea’s latest salvo in its war of words, a state-run newspaper declared in an editorial that the country’s Paektusan army is now “on standby to launch fire into its [the US’s] mainland, waiting for an order of final attack."

Authored by James George Jatras via The Strategic Culture Foundation,

For the first time in four years, the credit market sees more risk of a South Korean sovereign default/devaluation than China.

After months of hit money flows in EM stocks sending KOSPI to record highs in the face of rising nuclear tensions with its neighbor, this week saw investors crack as Daiwa analysts warned "Kim looks to have chosen a path of no return."

Authored by James Rickards via The Daily Reckoning,

This was the week that the logic of war collided with the illogic of bubbles. So far, the bubble is winning, but that’s about to change.

The “logic of war” is an English translation of a French phrase, la logique de la guerre, which refers to the dynamic of how wars begin despite the fact that the war itself will be horrendous, counterproductive, and possibly end in complete defeat.

Authored by Mike Shedlock via MishTalk.com,

Dear President Trump, forgive my harsh language, but since you and your staff can use harsh language, why can’t anyone else?

That’s a minor question. Since you are busy, I prefer an answer to this question: What the F Business is Venezuela of Ours?

I ask because you stated: “We have many options for Venezuela including a possible military option if necessary.”