You all know that North Korea had major advance in the development of a thermonuclear device of yield about 100 kilotons (Hiroshima was 20kt).
A few things to add.
-Various sources points at the new advancement is caused by some weapon design from Ukraine – stolen or sold in the period of the US -sponsored Ukrainian revolution (a bit like Iraq…unintended consequences).
-The hydrogen bomb can be variable yield. So North Korea could have also more powerful bombs. But more scarily it could soon arrive to tactical -artillery mounted devices.
-The US is showing a constant underestimating of North Korean capabilities. This also means that a potential US pre-emptive attack has to come soon – if ever. In a conventional battle North Korean Army is circa 1970 as weaponry so does not stand a chance – apart inflicting casualties to civilian population.
-An hydrogen bomb is dangerous as it is so powerful that you do not need precision. And even if explodes in the atmosphere as North Korea did not have perfected the re-entry module at least would fry all technology for hundreds of kilometers as EMP pulse.
Markets will start to take notice of the magnitude of the issue. Already gold futures went up $11 during the weekend.
It will be interesting to see the behaviour of the cryptocurrencies – they are considered a safe heaven too – but they would be fully exposed in a cyber or EMP pulse attack.
But for now the most interesting (and probably unfeasible) issue come out of President Trump.
He said he is working on a complete ban on the nations that trade with North Korea.
China is the trading partner for 70% of North Korean issue. That would be a halt to over USD650 billion (export 170 — import 480) with massive repercussion on everything.
If you think that most of the things you use come have at least part of it made in China (like Apple), you will understand. Hopefully he realises the issue, but if that happen the market could crash in a blink.
investorpolitico 