UN Security Council

In a fascinating report that provides a glimpse into the shadowy North Korean black-market economy, the Washington Post has published a story about a 2016 incident in which Egyptian authorities intercepted a North Korean ship bearing a Cambodian flag after being alerted by US authorities. After searching the ship, Egyptian law enforcement discovered something unexpected: a trove of nearly 24,000 rocket launchers, and components for 6,000 more weapons, hidden below a large pile of loose iron ore.

Shortly after the UN Security Council "strongly condemned" North Korea’s “highly provocative” ballistic missile launch over Japan on Friday, Kim Jong Un vowed he would complete his nation's nuclear program despite escalating international sanctions. On Saturday, state-run news agency KCNA quoted the leader, who said that North Korea is nearing its goal of "equilibrium of real force” with the U.S. and claimed that North Korea's nuclear program is nearly complete.

World stocks hit new record highs on Tuesday amid a continuation of Monday's risk-on theme which unleashed a dramatic relief rally on easing North Korea tensions and signs that Hurricane Irma caused less damage than feared (which according to Keynesians should be GDP negative). The MSCI All-Country World Index gained 0.2%, hitting the highest on record with a fifth consecutive advance.

Via Ted Galen Carpenter of The Strategic Culture Foundation,