SUMMIT VERY, VERY, GOOD. A New Beginning?

 “Working together, we’ll get it taken care of,” By Todd Horwitz, Bubba Trading

 

US President Donald Trump shook the hand of North Korean leader Kim Jong Un Tuesday morning local time, an extraordinary display of diplomacy that reflects an unprecedented gamble for two brash leaders’ intent on making their mark on history. The men greeted each other with extended hands in front of a row of US and North Korean flags — a previously unthinkable sight that reflects a new chapter in the two countries’ acrimonious relationship.

Later, Trump said his historic summit with Kim was going “very, very good” and predicted an eventual agreement on Pyongyang’s nuclear weapons. “Excellent relationship,” he said as he emerged from one-on-one talks after 48 minutes. “Working together, we’ll get it taken care of,” Trump said, positing he could “solve a big problem, a big dilemma” alongside his new partner.

Should they succeed in making a diplomatic breakthrough, it could bring lasting change to the security landscape of Northeast Asia, like the visit of former U.S. President Richard Nixon to China in 1972 led to the transformation of China. The U.S. side has said it is resolute in its goal for Tuesday’s summit: North Korea’s total and verifiable denuclearization. American officials have dangled the relief of stringent international sanctions or even economic aid if the hermit regime were to acquiesce.

North Korea, on the other hand, is understood to want guarantees about the future of its autocratic regime and the security of its borders. Washington is hoping the bilateral discussions will be the first of many with Kim’s government, eventually leading to the country surrendering its nuclear capabilities. That weapons program has become a threat to neighbors such as Seoul and Tokyo — and even for the U.S. mainland.

For decades, Pyongyang has sought to depict the world’s largest economy as an imperialist aggressor for its role in the Korean War while simultaneously blaming Washington for North Korea’s dire economic situation that’s been exacerbated by international sanctions. The isolated country has long said it’s justified in seeking nukes in light of the “extreme and direct nuclear threat” from the U.S., which it accuses of pushing for regime change.

Keep those stops tight
Todd “Bubba” Horwitz

IN ASSOCIATION WITH

Financial Markets & Political Commentary

 

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About the author

Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.