North Korean Communication
Tensions between the US and North Korea have escalated following the release of a letter, believed to be written by the Foreign Affairs Committee, which urges “sharp vigilance” towards the “heinous and reckless” Trump administration.
The letter, which was reported by the Australian Foreign Minister after it was received at the country’s Indonesian embassy, is unusual as communications with the West are usually done through the North Korean state news agency.
Published in the Sydney Morning Herald, the letter, which is addressed to the “parliaments of different countries” said that “If Trump thinks that he would bring the DPRK, a nuclear power, to its knees through nuclear war threat, it will be a big miscalculation and an expression of ignorance”.
North Korea A “Fully Fledged Nuclear Power”
The letter continues by saying “The DPRK has emerged a fully-fledged nuclear power which has a strong nuclear arsenal and various kinds of nuclear delivery means made by dint of self-reliance and self-development. The real foe of nuclear force is a nuclear war itself.
“The Foreign Affairs Committee … takes this opportunity to express belief that the parliaments of different countries loving independence, peace and justice will fully discharge their due mission and duty in realising the desire of mankind for international justice and peace with sharp vigilance against the heinous and reckless moves of the Trump administration trying to drive the world into a horrible nuclear disaster.”
Commenting to the Herald in response to the letter, the Australian Foreign Minister said that’s he believed the letter shows that the collective actions of those allied against North Korea, in terms of applying maximum pressure as well as diplomatic and economic sanctions, are working.
“Trying to out-crazy somebody is not a good way to run a country” says author Blaine Harden on Trump’s North Korea approach pic.twitter.com/DQuYuyXtmv
— CNN (@CNN) October 21, 2017
Growing Global Concern
The main countries in alliance against the secretive, communist state are the US, Japan, South Korea, The UK and Australia though in recent months even China and Russia, countries typically allied with North Korea have expressed concern about the frequent testing of nuclear missiles. Indeed, in September, China backed UN sanctions against North Korea which call for the de-escalation of tensions.
The UK Responds
The UK Foreign Minister, Boris Johnson, has recently commented on the growing threat from North Korea saying that the US administration has an “absolute duty” to use “any option” as a means of defending against North Korea.
The eccentric UK spokesman compared the current situation to the Cold War and said that “The public can be forgiven for genuinely starting to wonder whether the nuclear sword of Damocles is once again held over the head of a trembling human race.” Johnson added that he believes that economic pressure applied by the Chinese could be key to solving the crisis. Johnson was also keen to highlight that “No one wants any kind of military solution to the problem.
But Kim and the world need to understand that when the 45th president of the United States contemplates a regime led by a man who not only threatens to reduce New York to ‘ashes’, but who stands on the verge of acquiring the power to make good on his threat, I am afraid that the US president – whoever he or she might be – will have an absolute duty to prepare any option to keep safe not only the American people but all those who have sheltered under the American nuclear umbrella.
“And I hope Kim will also consider this: that if his objective is to intimidate the US into wholesale withdrawal from East Asia, then it strikes me that his current course might almost be designed to produce the opposite effect.”
The reaction seen across currency markets and other asset classes has so far been quite contained though there has been some profit taking in riskier assets and the Yen has seen a safe haven bid. For now, USDJPY is challenging the resistance trend line of the bearish channel which has framed price action over the last six months. Above here, the next key resistance will be at the structural levels of 114.46 115.45.