01 May 2013

Straits Times Index Hold Steady Above 3300 Points

It is slowly but surely heading back to where it was before the financial crisis of 2008 and I wonder what can get in the way. I think the main thing to look out for now is the situation in the Korean Peninsula, the question is, will war break out? But the most important thing is, if war really breaks out, will the USA take part? Will China take part?

As we all know, Singapore has close trade relations with both the US and China, and the value is in the billions each year. If the US decided to take part in the conflict, it only means that they will spend more money, and they are already in so much debt so it's going to be a major blow to their economy, and it will impact other economies working closely with them i.e. Singapore. I don't believe they are not aware of this so I bet they are taking cautious steps too.

As for North Korea, I don't think they will start the war, just count her allies, I think the only country she can count on is China but even the second superpower has its own issues to take care of, so why would China enter the war, ok maybe they will send supplies out of kindness but I think that's about it because China is too busy with earning money, to them, war is a waste of time, focusing on economic superiority is a better choice.

I think everybody is waiting, nobody dares to do anything foolish, if you look at recent news, you can see that each country backed down a bit, except North Korea who kept maintaining her threats, but all are empty threats, if war really breaks out, one thing is for sure, the reign of their current regime will be over, North Korea just don't have the capability to take on both the South and the US, they can only deal damage but victory is impossible, there's just so much at risk for them.

And not forgetting that Japan is also not too happy with the North Koreans, so you see, why the heck would the North Koreans dare to do anything except hurling threats, China won't fully back them up, and 3 countries are pissed off, 1v3, what are the odds? No chance.

And the best part, the North Koreans even had to ask Mongolia for food aid, they can't even feed themselves, not to mention fighting a full-fledged war.

But then again, in such tensions, it's really hard to say for sure, you just need somebody to pull the trigger and all hell will break loose, but even so, we all know who will lose.

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