Donald Trump hinted he would start nuclear World War Three with North Korea, when he replied to a question, saying “I don’t know, I mean, we’ll see.”
Trump’s apparent willingness to start a disastrous war he has no hope of winning comes as the Pentagon Watchdog has announced a probe into his former National Security Adviser Michael Flynn for concealing payments from foreign governments in spite of a 2014 warning not to do so.
Donald Trump said Saturday it is “not exactly the right time” for the United States to label China a currency manipulator or bring up unfair trade deails when he is asking Chinese President Xi Jinping to help rein in North Korea’s attempt to develop nuclear weapons.
Yet that same Trump just a couple of days ago threatened to terminate the trade deal with South Korea, perhaps an even more important ally in reining in North Korea’s nuclear weapons programme.
In spite of his generous stance to China, Trump seems to have received no firm offer of help from China, leaving his new National Security Advisor, to speculate today that China might agree to reign in North Korea.
Why doesn’t Trump make it clear to China if reigning in North Korea is suddenly his top priority along with Goldman Sachs, that currency manipulation and new trade deals are still on the table?
It sure looks like Trump wants to encourage North Korea’s aggression against South Korea and launch a third world war, bankrupt the USA and introduce martial law.
Commentators note that Trump has no endgame for North Korea other than to turn both Koreas into a failed state through reunification.
One expert reunification could cost 3 trillion dollars, even if South Korea did manage to absorb 30 million North Koreans.
The reunification of East and West Germany in 1989 is still not completed in spite of enormous costs to West Germany. It can be imagined how expensive and difficult the reunification of North and South Korea is going to be. And if the USA terminates its trade deal with South Korea, you wonder how South Korea could begin to generate the kind of surpluses to pay for a fraction of the cost of reunification with the North.
Trump’s focus on North KorWITHea could also serve to deflect from economic data showing the USA is heading towards a recession following interest rate hikes by the Federal Reserve.
“The weakest showing since the last recession for consumer spending held down first-quarter GDP which could manage only a 0.7 percent rate of annualized growth. Consumer spending rose at only 0.3 percent which is by far the worst showing since no change in fourth-quarter 2009.”
Consumption has been artificially boosted by a new housing bubble facilated by Trump’s repeal of certain provisions of the Frank Dodd Act. But it only a question of time before it bursts.
A housing, student loan bubble bust as well as the new massive tax cuts announced for the super rich are setting the USA on the path of fiscal crisis such as Greece.
While Trump has touted his moves to renogiate tariffs, these are long term plans which will only succeed if US consumption is strong and the country’s debt is manageable. On current, interest rate rise and fiscal projections, domestic consumption is set to collapse and the US fiscal situation to deteriorate to the point where it starts to resemble Greece.