Best of the Week
Most Popular
1.The Greatest Stock Market Crash Of Your Life Is Just Ahead… – Warns Harry Dent - GoldCore
2.Budget 2016: Borrowing, Lifetime ISA, House Prices, Economy, Syria, Brexit and Stocks - Nadeem_Walayat
3.Gold Price Intermediate Top - Clive_Maund
4.Brussels Terror Attacks, Death of the European Union, BrExit Wake up Call - Nadeem_Walayat
5.Stock Market Maybe This Time is Different? - Tony_Caldaro
6.UK House Asking Prices Break Above £300k! Housing Market Paralysis - Nadeem_Walayat
7.A Big Reason Why Silver Price Is Set To Soar - Hubert_Moolman
8.The Financial Crisis Has Just Begun; Is The American Dream Is Over? - Chris_Vermeulen
9.Gold Stocks Spring Rally - Zeal_LLC
10.GLX, GLDX, Baby Gold Bull Market Stillborn? - Rambus_Chartology
Last 7 days
Consensus Forming: China Heading Back Into Financial Crisis - 30th Apr 16
The Next Technical Price Targets for Gold & Silver - 30th Apr 16
Stock Market Downtrend Should be Underway - 30th Apr 16
Gold And Silver – A Clarion Alarm Call For All Paper Assets - 30th Apr 16
US Economic Statistics LIES, LIES AND OMG, MORE LIES - 30th Apr 16
Stock Market Strong Elliott Wave Relationship is Developing - 29th Apr 16
Fed's Kaplan: Brexit to Factor in US June Interest Rate Decision - 29th Apr 16
Silver Miners Strong in Grim Q4 - 29th Apr 16
Is Silver a better bet than Gold in the Near Future? - 29th Apr 16
How to Use the CoT Report in Gold Investing? - 29th Apr 16
Sri Lanka is Intriguing: Areas to Consider for Value Investing - 29th Apr 16
Gold “Chart of The Decade” – Maths Suggest $10,000 Per Ounce Says Rickards - 29th Apr 16
Are We or Are We Not in a New Gold Bull Market? - 29th Apr 16
Silver: The “Five Year Plan” and the Great Leap Forward - 28th Apr 16
Michael Hudson: The Wall Street Economy Has Taken Over The Economy and Is Draining It! - 28th Apr 16
AUD/USD - Trend Reversal or Just a Bigger Pullback? - 28th Apr 16
A Gold Revaluation Could Transform Your Financial Status - Overnight - 28th Apr 16
Monetary Policies Misunderstood - 28th Apr 16
Gold Bullion vs Gold Miners - 28th Apr 16
OECD Suggests BrExit Would Cut Net Migration by 1.2 Million by 2030 - 28th Apr 16
MP Naz Shah Punished for Tweets Made During Israel's Genocide of Gaza Palestinian People - 28th Apr 16
Global Recession in 2016 and Beyond - The Obvious Evidence - 27th Apr 16
Why Gold Bugs Need to Stop Listening to The Fear Mongers and Start Thinking for a Change - 27th Apr 16
BlackRock’s Fink: Fed to Raise Interest Rates by Quarter Point ‘at Best’ - 27th Apr 16
Gold More Productive Than Cash?! - 27th Apr 16
Donald Trump Will Fire Janet Yellen and Be Trapped - 27th Apr 16
Money Saving Gardening by Propagating Roses From Cuttings - Propagating Rose Plants Over 2.5 Years - 27th Apr 16
Facebook Censors Pro Trump and Negative Hillary News - 27th Apr 16
This is the Era of the Democrats and Your Taxes are Going Up - 27th Apr 16
Long Awaited Gold Price Breakout - 26th Apr 16
Crude Oil Price Double Top or Further Rally? - 26th Apr 16
Madness in the Crimex Gold and Silver Trading Pits - 26th Apr 16
Britain's Prospects: GBP and BREXIT - MAP Wave Analysis - 26th Apr 16
CRB, Gold, Oil, Cotton, Coffee - 7 Must See Commodities Charts - 26th Apr 16
Gold Price Target is $3,000 and Silver is $75 per Ounce - 25th Apr 16
Parameters for a Stock Market Sell Signal-in-the-making - 25th Apr 16
Stock Market Dangerous Divergence - 25th Apr 16
Gold Miners Nub is the Sweat of the Sun - 24th Apr 16
US Dollar Price Forecast - 24th Apr 16
Stock Market Upside Objective Reached - 24th Apr 16
Why Leftist Greeks have more reasons than Liberals to favour Entrepreneurship and Support Entrepreneurs - 24th Apr 16
The Dow Jones is a Catalyst for Misplaced Stock Market Optimism - 24th Apr 16
Why Russia Harasses U.S. Aircraft and Ships - 24th Apr 16
Stocks Bull or Bear Market Rally? - 23rd Apr 16
A Bright Future for Solar Power in the Middle East - 23rd Apr 16
Silver Commitments of Traders – Halloween is Arriving Early This Year - 23rd Apr 16
Good News, Bad News, Both Favor Gold And Silver - 23rd Apr 16
Mish's Sure Fire Proposal to End Japanese Deflation - 23rd Apr 16
Mish Shedlock: “EXCUSE ME MR. PRESIDENT, IS THAT A JOKE?” - 23rd Apr 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Catching a Falling Financial Knife

Bush backs down to Nuclear North Korea as US Drops Sanctions

Politics / North Korea Feb 09, 2007 - 05:46 AM GMT

By: Mike_Whitney

Politics

There's been plenty of saber rattling and bold talk about forcing North Korea to abandon its nuclear weapons program, but after a 6 year standoff, Bush has decided to give in to Kim Jung Il's demands. The western media is characterizing the new developments as a “breakthrough”, but, in fact, Bush has retreated on every issue of consequence. It is as close to a total foreign policy failure as one can possibly imagine. Nothing has been achieved. The bottom line is this; Kim refused to budge from his original position, while Bush completely capitulated on his.

“The US has talked tough without achieving anything.” Han Seung-Joo, South Korea's former foreign minister (UK Guardian)

Bush backs down to Nuclear North Korea as US Drops Sanctions


This suggests that there may have to be a serious reworking of Dick Cheney's famous maxim that “We don't negotiate with evil; we defeat it”.

Wrong again, Dick.

The so-called “breakthrough” took place last month in a face-to-face meeting between Washington and Pyongyang in Berlin. The meeting was kept secret to conceal the administration's willingness to meet one-on-one with their North Korean counterparts. Up until then, the chest-thumping Bushies had refused to negotiate in person; choosing instead to hide behind the 6 party talks. Kim's detonation of a nuclear bomb last summertriggered a sudden reversal inthe administration's approach. (Iran has probably noticed Bush's eagerness to negotiate with nuclear-armed states.)
“According to Japan's Asashi newspaper, the two sides signed a memorandum of understanding under which North Korea would make steps towards denuclearization at the same time as the US resumed annual shipments of 500,000 tonnes of oil, which were halted in 2002.” (UK Guardian)

If this all sounds familiar, it is because the deal is identical to the “Agreed Framework” that was worked out by the Clinton administration in 1994 (and which the Bush administration stubbornly refused to honor for 6 years). The only difference now is that North Korea has nuclear weapons.

The new agreement will drop US sanctions against the North and stop “freezing” their foreign banks accounts, a violation of international law. Kim will be expected to cease his nuclear activities at the Yongbyon reactor and allow inspectors from the IAEA, the UN nuclear watchdog agency, to resume their work.

Kim agreed to all of these conditions10 years ago; his position has never changed. Only Bush has backed-down.

US envoy, Christopher Hill, has tried to put a brave face on Washington's capitulation saying, “I sense a real desire to have progress.”

“Progress”?

Those who have followed the issue won't be so easily fooled. The administration is sending up the white flag and calling it victory. They've back-pedaled on every point of dispute and now they're back to “square one”.

Other parts of Clinton's “Agreed Framework” are still being hammered out, but it isnearly certainthat Bush will be required to meet the terms of the original deal and provide food and 2 lightwater reactors for electrical power. More importantly, Kim is bound to push for “security guarantees” which are now de rigueur for any nation negotiating with the war-mongering US. The North will demand a written assurance (Treaty) that the administration will not preemptively attack them. (The US National Security Statement claims the right to preemptively attack whoever it chooses depending on US national interests)

A signed treaty with North Korea would be agiant leapforward for nuclear nonproliferation as well as world peace.

6 years of failed policy, as well as wars that stretch across Central Asia and the Middle East, have finally pushed the blundering Bush administration to the bargaining table. The lesson is unavoidable: Bush CAN be forced to act rationally when all other options have been thoroughly exhausted. Perhaps, we can glean some small amount of hope from that.

South Korea's former foreign minister, Han Seung-Joo, summarized the latest diplomatic developments saying:

“The US and South Korea will play this up as a big success. But they are going back to where they were before. The US has talked tough without achieving anything. They have reached a new status quo in which North Korea is a nuclear weapons state”.

Like I said, we're back to square one, except now Kim has nukes.

By Mike Whitney

Email: fergiewhitney@msn.com

Mike is a well respected freelance writer living in Washington state, interested in politics and economics from a libertarian perspective.


© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife