NKorea may be preparing to test missile, US delays missile test over N Korea tensions, CHINA Warns UN “We will Not Allow Trouble On Our Doorstep”

SKorea: NKorea may be preparing to test missile

SEOUL, South Korea (AP) — A top South Korean national security official said Sunday that North Korea may be setting the stage for a missile test or another provocative act with its warning that it soon will be unable to guarantee diplomats’ safety in Pyongyang. But he added that the North’s clearest objective is to extract concessions from Washington and Seoul.

North Korea’s warning last week followed weeks of war threats and other efforts to punish South Korea and the U.S. for ongoing joint military drills, and for their support of U.N. sanctions over Pyongyang’s Feb. 12 nuclear test. Many nations are deciding what to do about the notice, which said their diplomats’ safety in Pyongyang cannot be guaranteed beginning this Wednesday.


US delays missile test over N Korea tensions
Pentagon puts off intercontinental missile launch apparently to avoid stoking tensions with North Korea.

The United States has decided to delay a long-planned missile test scheduled for next week out of California “to avoid any misperception or miscalculation”, given tensions with North Korea, a senior US defence official has said.

The unusual precaution by the US follows a barrage of hostile rhetoric from North Korea – including the threat of open war – that has created jitters in South Korea’s financial markets.


Chinese Foreign Minister Wang Yi told United Nations Secretary-General Ban Ki-moon that Beijing would “not allow trouble on China’s doorstep.” and “expressed severe concern over the current tensions on the Korea Peninsula”.



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  • http://www.facebook.com/people/Dean-Jackson/100000528158955 Dean Jackson

    Ladies and gentlemen, the Federal Reserve Bank (along with the Bank of England and the European Central Bank) is intentionally maintaining low interest rate policies to PREVENT the necessary economic correction, which correction would be followed by recovery if interest rates were allowed to rise to their market levels. You see, if interest rates are relatively low, then there is no prospect for investment since the expected return to the lender (interest) would be low.

    What do people do when interest rates increase? They invest more (and consume less) because the return on investment is greater. The proceeds that would have gone towards consumption instead goes towards investment because the lure (interest) is higher.

    Central Banks know the solution for “stall mode” economies, and that is to raise interest rates.

    As all economists know (including those at the Federal Reserve, the Bank of England and the European Central Bank) investments are not based on the cost of borrowing, but on the expected return on the investment. Of course, with near zero percent interest rates there is near zero expected return on the investment! So why are Western central banks continuing a policy that (1) is not working; and (2) is not working because it violates the tenets of economic science?

    The cost of borrowing doesn’t determine investment (expected future earnings does). If such were the case, Western economies would be robust beyond description.

    Now, decreasing government debt won’t revive the economy, just as little government debt doesn’t equate to a booming economy. In order for an economy to recover, first there has to be an expected return on investment to encourage less consumption and greater investment, the greater investment being spurred on by the higher rate of return that higher interest rates would bring about.

    The result of a hike in interest rates to market levels: (1) economic correction that wipes out malinvestments (how can investment take place when true relative general price levels aren’t known?); (2) once the economic correction has run its course, investment begins to pick up; and (3) the economy revives with investment opportunities leading to higher tax revenues to not only pay the higher cost of borrowing, but pay down the Federal debt as well.

    With interest rates so low, there is little expected return on investment, hence no investment.

    The value of the dollar would increase with the rise of interest rates, since the rise in interest rates would signal the economic recovery. As I said, “…and (3) the economy revives with investment opportunities leading to higher tax revenues to not only pay the higher cost of borrowing, but pay down the Federal debt as well.” Of course, as the economy recovers what happens to Federal borrowing? It decreases!

    In addition, any inflation is unhealthy, and is under-counted since it doesn’t take into consideration productivity gains. For example, if productivity in 2012 was 3% and inflation calculated at 2%, real inflation is 5% not 2%. You see, the real general price level has fallen 3%, therefore one must add to that statistic (the 3% fall in general prices) the observable inflationary statistic of 2%.

    Deflation is necessary to wipe the malinvestments still in the economic pipeline. How can investments take place when real general relative price levels aren’t known?

    Now, if we know these basic rules of economics that promotes investment, then we also know that our politicians and their colleagues at the Federal Reserve Bank are intentionally sabotaging the economy. The question therefore is: Why?

  • kennot

    I think US is bankrupt, does not have any money left for launch…