President Trump took action once more against North Korea yesterday in the hopes of curtailing that nation's nuclear/missile program. The nature of the move may have gotten lost in the swirl of harsh talk and insults coming from both sides. Here, however, is the gist of the move: Trump issued an Executive Order that authorizes the Department of the Treasury to impose sanctions on people and companies (including financial institutions) that do business with the North Koreans. Right before the order was signed, the Secretary of the Treasury called his Chinese counterpart and informed him that the move was coming. Most likely, this was previously discussed with China as well. In response, the Bank of China directed Chinese banks to stop dealing with North Korea.
It's hard to overstate the impact of these moves if they continue in place and are observed. Chinese banks provide the main financial link for the North Koreans to the rest of the world. Chinese banks also finance North Korea's trade which is mainly with China. With these banks out of the picture, it is likely that the bulk of North Korea's exports to and imports from China will stop. Even foreign purchases of components needed for the NK missile programs will grind to a halt. It's the ultimate financial squeeze on the NK's short of an embargo and blockade (which are acts of war.)
Kim Jung Un is someone who would be perfectly fine with starving his people in order to complete the missiles and nuclear weapons program. At some point, however, he has to concern himself with the likelihood that the NK people will rise up and replace him and his cronies. It may not come to that, but it ought, at a minimum, to be a concern for Kim.
One thing is certain. President Trump has achieved more in his confrontation with North Korea in six months than Obama, Bush or Clinton did in eight years. Hopefully this will all get resolved, but if we end up in a war in Korea, it won't be because the President didn't try to avoid it. There's no doubt that the anti-Trump media will condemn the President for some reason regarding this policy. it doesn't matter what he does; they condemn him. The American people, however, ought to understand just how well this has all been done.
It's hard to overstate the impact of these moves if they continue in place and are observed. Chinese banks provide the main financial link for the North Koreans to the rest of the world. Chinese banks also finance North Korea's trade which is mainly with China. With these banks out of the picture, it is likely that the bulk of North Korea's exports to and imports from China will stop. Even foreign purchases of components needed for the NK missile programs will grind to a halt. It's the ultimate financial squeeze on the NK's short of an embargo and blockade (which are acts of war.)
Kim Jung Un is someone who would be perfectly fine with starving his people in order to complete the missiles and nuclear weapons program. At some point, however, he has to concern himself with the likelihood that the NK people will rise up and replace him and his cronies. It may not come to that, but it ought, at a minimum, to be a concern for Kim.
One thing is certain. President Trump has achieved more in his confrontation with North Korea in six months than Obama, Bush or Clinton did in eight years. Hopefully this will all get resolved, but if we end up in a war in Korea, it won't be because the President didn't try to avoid it. There's no doubt that the anti-Trump media will condemn the President for some reason regarding this policy. it doesn't matter what he does; they condemn him. The American people, however, ought to understand just how well this has all been done.
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