Earlier this week, North Korea fired four missiles into Japan’s exclusive economic zone. This was the second missile test in the last month.
Perhaps more alarming are reports that the missiles were aimed at U.S. military bases in Japan.
Larry spoke about rising geopolitical risks and war cycles last month. And unfortunately, just like Larry predicted, the situation is escalating quickly.
But don’t just take my word for it.
Military specialists in the region indicate that tensions with North Korea are at their worst. This comes on the heels of two missile tests in the last few weeks and on reports that North Korea used chemical weapons in an airport.
On one side of the divide, you have the U.S., Japan and South Korea – all condemning North Korea’s nuclear ambitions. On the other side of the equation are North Korea and, to a lesser extent, China.
North Korea’s nuclear and missile capabilities are improving and becoming more difficult to predict. Their missiles are also landing closer to Japan, a key U.S. ally.
What’s fueling tensions?
It’s no coincidence that these test launches come as the U.S. and South Korea conduct joint military drills, just like they’ve done in each of the last seven years.
Meanwhile, North Korea’s leaders are becoming more incendiary in their remarks, calling the wargames an “invasion rehearsal” and charging the exercises are “driving the region toward nuclear disaster.”
Don’t be shocked to see more test launches from North Korea, as the joint U.S.-South Korea military drills are scheduled into April.
Adding even more fuel to the fire: Recent actions from China.
China has opposed American plans to deploy a missile-defense system in South Korea – referred to as THAAD. Regardless, construction began this week.
China views THAAD as an unnecessary and provocative military escalation. They also view the system’s powerful radar, which is used to track incoming missiles, as a threat to their own defense.
And China’s retaliating against South Korea economically. In just the last week, they’ve …
Stopped local tour agents from selling packages to South Korea.
Suspended business at four Lotte Mart supermarkets in Dandong.
- Purged South Korean shows from the platforms of major Chinese streaming companies.
Where do we go from here?
We all know that sanctions against North Korea don’t work.
In fact, a recent U.N. report concluded that North Korea evaded international sanctions with help from a far-reaching network of front companies and governments.
Sure, China began to flex its economic muscle against North Korea after the February missile launch. It vowed to bar the import of products made with North Korean copal, a highly prized, aromatic resin.
This would be a good step because China represents 70% of North Korean trade. Unfortunately, China’s already walked back that promise.
Furthermore, North Korea is defiant and views U.N. sanctions as having no legal basis whatsoever.
Worse yet, North Korea threatens that more sanction pressure will result in “stronger self-defensive counter measures” and the “U.S. will bear all the responsibility.”
There is no question that this puts the Trump administration in a bind, especially in the wake of the president vowing to deal with North Korea “very strongly.”
A U.S. Strategic Command spokesman said: “U.S. forces remain vigilant in the face of North Korean provocations and are fully committed to working closely with our Republic of Korea and Japanese allies to maintain security.”
This is important to you because these regional conflicts are going to do two things:
First, they are going to unleash the full fury of heavily armed, increasingly authoritarian governments — new Big Brother states all over the world — that now track nearly everything we write, say, buy or do.
Second — and most surprising of all — this new cycle of warfare will also coincide with the last stock- and commodity-market booms of our lifetimes, booms that too many ordinary investors will miss out on due to bad advice and even blind panic.
So, don’t be blindsided: Sign up for Real Wealth Report today.