Posted on 04/10/2017 10:46:09 AM PDT by Red Badger
The benchmark averages have surrendered earlier gains on news that China has deployed 150,000 troops to the North Korean border, and the U.S. is considering further sanctions against Russia. The reports caused the S&P 500 to falter at trendline resistance at 2,370 and the Dow Jones Industrial Average to fall back to support at the 50-day moving average.
Stocks were cautiously higher before Monday's open amid geopolitical pressures and jitters ahead of Q1 earnings from the country's largest banks. As the morning progressed, the averages gained altitude before running into a wall of resistance that was exacerbated by reports of troop deployments on the Chinese border with North Korea by a Korean news agency.
Among the eleven S&P 500 sectors, financials were taking the brunt of selling pressure, followed by losses in technology and telecommunication sectors. Energy shares continued to outperform with oil futures buoyed by concerns tied to the Middle East, and supply reductions from Libya.
(Excerpt) Read more at nasdaq.com ...
The “authorities” can’t crack down on squat. Most of them are getting a cut of the revenue. That seems to be how it works over there. If you are in charge of making sure something doesn’t happen, there is good money to be made in letting it happen.
The one thing that both China and South Korea fear the most is their borders becoming overrun with refugees.
That’s why simply removing Kim Jong Un is a tricky proposition. Somebody is going to have to occupy the country to keep it from becoming completely chaotic. Preferably that occupation would be a joint effort.
“China, Russia, the US and South Korea each get a sector.”
That would be the wrong move. China and Russia don’t get squat because they removed the massive boil from their arses. South Korea controls the North, but not open border until at least a generation.
The Kim Dynasty isn’t going to go away without help from China. And while they want them gone just as much as we do, they also want to milk it for everything they can.
“they also want to milk it for everything they can.”
This is why Trump needs to negotiate from the position of strength. To prevent just that. Do not let them milk for anything.
Look at it this way:
If the Chinese annex North Korea, they have a ready made source of cheap labor....................
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