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World News Archives - Invest Smart https://invest-smart.org/category/world-news/ Asset Protection and Investment News Fri, 04 Aug 2017 22:14:55 +0000 en-US hourly 1 https://wordpress.org/?v=6.2.4 Slowdown in Chinese Real Estate Market https://invest-smart.org/slowdown-in-chinese-real-estate-market/ Mon, 07 Aug 2017 17:48:19 +0000 http://invest-smart.org/?p=1438 Domestic real estate investment in China is dropping. Numbers released from the National Bureau of Statistics of China show that May’s property investment in terms of square footage was higher than last year, but still remained way below the baseline.

The decline in investment combined with cooling measures will likely result in a major drag on real estate prices in the country.

Why are we using square meters of investment?

“If you’re new to Asian real estate investment, analysis is slightly different from how it would be done in North America or Europe.” (Joe Garza – Garza & Harris) It’s much more specific, and typically done on a per meter basis — whereas you’re probably used to benchmark prices or a home price index.

It’s not any more accurate, or less accurate by itself — analysts in Asia just look at it differently. So today we’ll be looking at one indicator that’s commonly used, the amount of square meters invested in a month, compared year over year.

Real estate investment in China increased from last May

Domestic investment in China is up from last year, but down significantly from the long term trend. May 2017 saw 75.8 million square meters of land developed and bought, a 5.3% increase from the same month last year. Some people likely think this number is great, because it’s higher than last year. Let’s give it some context to give us a better picture.

Investment for May remained way below the long-term trend

When looked at over time, this is a massive drop in investments. The average for May over the previous decade was 116 million square meters. This means this May is actually 35% lower than the trend established over the previous decade. This combined with cooling measures being rolled out by their government, is expected to put downward pressure on home prices in the country.

Cooling measures coming to China

The low rate of investment will collide with new cooling measures across the country. One of those measures will be flooding the market with inventory in major cities. The Beijing Municipal Commission of Housing and Urban-Rural Development (the name’s even longer in Chinese), have accelerated the approval of new developments.

They’re also adding millions of square meters of housing, many with restrictions like maximum sale prices. Adding inventory to the hottest markets, while restricting prices can’t be a great thing for price growth.

China is one of the leading countries for global real estate investment. So a slowdown of domestic investment could be yet another sign that the country’s real estate investors are running out of steam.

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War and Peace: What to Do With Gold in Times of Geopolitical Instability https://invest-smart.org/war-and-peace-what-to-do-with-gold-in-times-of-geopolitical-instability/ Thu, 04 Jun 2015 21:48:15 +0000 http://invest-smart.org/?p=1361 In June, tensions between the Iraqi government and insurgent collective, ISIS escalated—and so did gold prices.

It was roughly the same scenario late last year. Gold prices soared by up to 9 percent after a horrific chemical attack in Syria left hundreds dead and sparked talks of out-and-out U.S. military intervention.

“Gold can smell war,” as pundits say.

While there can be no doubt about the sensitivity of gold in times of geopolitical instability, investors should nonetheless know how exactly the metal reacts to these kinds of situations. As you will see, the behavior of gold before, during, and after military engagement is highly nuanced.

Why do gold prices rise in war?

Gold is the currency of conflict. In wartime, this commodity holds court as money, whereas paper money is rendered relatively insignificant.

In view of this, governments keep vast reserves of gold just in case of armed provocation: Weapons and war machines are essentially bought with gold. This is why the NY Federal Reserve ended up with the bulk of the world’s gold deposits right after World War II.

In fact, a government can treat gold as a bargaining chip, with the ability to cripple a rogue power. Just take a look at Syria. In 2012, at the height of sanctions from the international community, the Assad-ruled nation desperately sold almost 26 tons of its gold reserves. Apparently, one of Europe’s sanctions against Syria forbade its governmental institutions from trading in gold, silver, and other precious commodities.

When to buy gold

Times of political turmoil can actually be ideal for going on a gold-buying spree. Gold practically went into orbit in the days leading to the bloody Gulf War, specifically as Iraq was invading Kuwait in 1990. Prices somewhat leveled off thereafter before rising steeply once more when Operation Desert Storm launched in Iraq in 1991.

Gold was just as responsive when the US was fomenting another Gulf War. In December 2002, three months before Operation Iraqi Freedom, the value of gold vaulted to a six-year high after the Bush administration somehow managed to accuse Iraq of flouting UN’s disarmament resolution.

Similarly, Bush was mulling war with Iran in 2007 when the price of gold reached $806 an ounce, a peak unseen in 27 years.

That said, it’s worth noting that gold prices in these examples did not peak during the war itself. The tendency, it seems, is that gold attains its zenith either in the run-up to or at the onset of military aggression after which, the metal tends to slide to pre-war prices.

Takeaway

Demand for gold reaches intensity like no other event than during war. Rumours of war alone are enough to catapult the metal to historic highs. For obvious reasons, wartime is when you would want to unload your gold, if only because there is no assurance that the event would have permanent repercussions on bullion prices.

Of course, you should take into account other factors. Consider buying or selling gold when the economic indicators of war are palpable, e.g. a flailing US dollar and loosening of a central bank’s monetary policies. Put another way, when the world is in peace and prosperity, the price of gold tends to be unexciting, and you should make an investment decision accordingly.

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Workplace Absences Cost UK Economy £100bn Annually https://invest-smart.org/workplace-absences-cost-uk-economy-100bn-annually/ https://invest-smart.org/workplace-absences-cost-uk-economy-100bn-annually/#comments Mon, 17 Mar 2014 10:14:59 +0000 http://invest-smart.org/?p=1129 The consequences of workplace injuries can be devastating for employees, but employers that do not protect the health and fitness of their workers can also face substantial difficulties. These do not just include inflated insurance premiums due to accident at work compensation claims and industrial illness claims, but also disruption to the business and a loss of productivity.

Research by the British Heart Foundation (BHF) revealed that almost 650,000 people in the UK call in sick at work every week, with this impacting the country’s economy by £100 billion annually.

The organization’s Public Administration and Defense sector sees the highest number of workplace absences. This sector, which includes public sector workers, sees around 51,000 absences in the average week.

But poor health and safety standards are not just damaging productivity when employees are absent or make industrial illness claims or claim accident at work compensation. The study also showed that of the eight million people who experienced health problems that lasted over 12 months, almost half (44%) said they are unable to perform all of their working duties fully, despite being able to make it back into work.

Improving the health and fitness of workers

The BHF noted that these high levels of sickness absence and significant reductions to productivity could be prevented if employees had a healthier lifestyle. The BHF highlighted its Health at Work program as an example of ways employers could improve the health of their workforce.

Personal injury solicitors note that health and safety regulations are developed so employers can prevent accident at work compensation claims and other personal injury claims and should help employers prevent any unnecessary employee absences.

Employers are legally obliged to take all reasonable steps to protect their employees. If they are negligent towards this duty, then they can end up paying out significant sums of money – either by themselves or through their insurers – through personal injury claims, and could also encounter fines and prosecutions from the Health and Safety Executive. They may also encounter prolonged workplace absences, rapid employee turnover and poor worker morale. However, while these economic arguments may provide the most compelling reason for businesses to ensure the health and fitness of staff, being responsible for the ill-health of an employee could see employers face emotional problems such as guilt, and it is arguably more important to ensure employee safety from a moral standpoint than from a financial one.

What Employers Can Do

Any employers who are unsure whether or not they are effectively protecting the health and safety of their personnel ought to speak with a consultant and examine the BHF’s Health at Work program before it is too late.

Businesses that focus on employee health and fitness will see productivity increase and sickness absences decrease. Unfortunately, too many businesses are missing the opportunity to improve the productivity, health and morale of their workforce, and may face severe financial problems as a direct result of this.

About the Author

Carol Smith is working with the team of personal injury compensation solicitors and also many years experienced in health care sector. She is constantly striving to deliver the highest possible standards of patient welfare and to ensure hospitals abide by the strictest health and safety regulations.

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Malaysia Plans to Leverage Strengths in Islamic Finance to Become Global Financial Hub https://invest-smart.org/malaysia-plans-leverage-strengths-islamic-finance-become-global-financial-hub-2014/ Sat, 01 Mar 2014 00:22:14 +0000 http://invest-smart.org/?p=1109 With Islamic finance expected to see aggressive growth last year, Malaysia is already setting in motion plans to become a major Islamic financial hub in the world. The government has recently unveiled plans to transform Kuala Lumpur into a financial center to attract international investors and promote trade. Through investments in the construction of 11 new buildings, the capital will be home to a new financial district designed to keep up with regional financial powerhouses Singapore, and Hong Kong.

Malaysia is currently ranked 22nd in the Global Financial Centers Index. The country is included in Asia’s Top 10 Financial Centers, wherein Singapore and Hong Kong are the frontrunners to take on their Western counterparts over the next decade. Shanghai and Shenzhen are also top contenders.

Kuala Lumpur aims to increase its chances of becoming a global financial superpower with the Tun Razak Exchange (TRX) project. The government is expected to capitalize on one of Malaysia’s economic strengths, which is the fast-growing Islamic financing marketplace. TRX, under which the financial district dubbed as “Asia’s Canary Wharf” will be developed, should lay the foundation for Kuala Lumpur’s goal to compete with international financial hubs, starting from its Asian neighbours.

Expected Boom in Islamic Finance

Islamic finance has grown particularly strong in the cities of Dubai and London, according to the AlHuda Centre of Islamic Banking and Economics (CIBE). The institution projects Islamic assets to exceed $2 trillion in 2014. Growing interest in Islamic finance among countries in North Africa, like Libya, Morocco, Senegal, and Tunisia, will drive the growth. There is also an increased uptake in Europe and the UK.

Islamic bonds—sukuk—will rise in popularity, to account for about 16% of the total industry, according to CIBE chief executive Zubair Mughal. Islamic banking is estimated to make up for 78% of the industry while Islamic funds or takaful will hold 4%. Islamic microfinance, meanwhile, will make up 1% of global Islamic financing.

Demand for Islamic products is expected to continue going on an upward trend this year, partly supported by a growing Muslim population. To non-Muslim investors, Islamic investment products are attractive because of the level of risk—low to zero—they present. The industry has also become easier to track with its inclusion in international rating systems like Dow Jones, FISE, S&P, and MSCI.

Islamic finance operates on concepts of shared responsibility and thoughtful decision-making. It also promotes socially responsible investments, thus becoming a highly viable option for governments and private organizations looking to make green investments.

Challenges for Malaysia

The TRX project is in line with the government’s goal to become a high-income economy by 2020. With the project already being rolled out, Malaysia is hoping to invite more foreign investments to speed up its economic growth, leveraging on its status as a solid Islamic financial center. There are also plans to offer tax breaks and incentives for businesses who will choose to operate in the new financial district.

Malaysia could attract major players away from its more established competitors if it finds a solution to some of its weaknesses, one being  the apparent lack of educated English-speaking workers in Islamic finance. Other challenges Kuala Lumpur needs to overcome include the need to outperform its Asian rivals in several area such as ease of doing business, the employability of new graduates, relations with international markets, and general competitiveness.

About the author:

Gilbert Bermudez is a contributor for CompareHero, a Malaysian comparison website that focus on comparing local financial services for free.

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Iran Offers Concessions on Nuclear Program, But Concerns Persist https://invest-smart.org/iran-offers-concessions-nuclear-program-concerns-persist/ Mon, 02 Dec 2013 22:54:39 +0000 http://invest-smart.org/?p=1005 Photo by: Indigoprime

The United States and Iran are engaged in ongoing negotiations over Iran’s nuclear program and the sanctions that have been imposed on Iran as a result. In recent year, sanctions applied by the United Nations, European Union, and United States have crippled Iran’s economy.

Rouhani Pledges Resolution

In August 2013, Iranian President Hasan Rouhani took office and promised to find a resolution to the measures the international community has taken against Iran as a result of the country’s nuclear program. In October 2013, Iranian diplomats met with representatives of the United Nations Security Council, which consists of Britain, China, France, Russia and the U.S. Iranian diplomats also met with U.S. officials in bilateral talks that same month. Additional meetings are scheduled for November 2014.

Iran has 440 pounds of 20 percent enriched uranium and tons of 5 percent enriched uranium.

United States and European officials have praised Iran’s positions in the negotiations as being positive and offering a high level of detail rather than vague statements. However, the crux of the matter remains unresolved; Iran claims that it intends to use its uranium enrichment program for entirely peaceful purposes. The international community, on the other hand, remains skeptical because uranium enrichment can also be used to develop nuclear weapons, which is particularly disturbing given Iran’s long-established ties to terrorism. Iran has 440 pounds of 20 percent enriched uranium and tons of 5 percent enriched uranium. The former especially concerns the U.S. and other countries because it can be further enriched to weapons-grade uranium relatively quickly.

Iran Flexes Own Leverage

Iran has indicated that it is willing to consider enrichment to less than 20 percent if Western nations provide it with uranium of that potency for a research center in Tehran. Iran has also expressed willingness to subject its nuclear weapons program to United Nations monitoring, although the details of such monitoring are the subject of dispute. Above all else, Iran seeks relief from the sanctions currently imposed on it. But Iran has some leverage of its own; shortly before Iran’s October meeting with the United Nations Security Council, a U.S. intelligence official was quoted as saying that Iran’s nuclear program has advanced so far that halting the program or even partially reversing it is necessary for negotiation to yield a result.

20% Iran is willing to reduce its uranium enrichment to below 20 percent if provided with uranium of comparable concentration for research in Tehran.
Changes in November

On November 8, 2013, shortly before further negotiations over Iran’s nuclear program took place in Geneva, the online outlet the Daily Beast reported that the Obama administration had begun to soften financial sanctions against Iran after the election of President Rouhani in June. Such news is certain to provoke criticism by Israel, whose leaders have criticized the negotiations with Iran as being far too accommodating.

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Putin Says Snowden Must Cease Denigrating Conduct Against USA to Receive Asylum https://invest-smart.org/putin-says-snowden-must-cease-denigrating-conduct-against-usa-to-receive-asylum/ Mon, 01 Jul 2013 20:09:13 +0000 http://invest-smart.org/?p=836 From the lips of Russian President Vladimir Putin to the rest of the world, particularity the United States, Edward Snowden must stop “damaging our American partners.” That was the underlying tone in a recent statement that Putin made to the press relating to elements of rogue ex-NSA contractor, Snowden, who might be seeking asylum in Russia after the US State Department revoked his passport, trapping him, purportedly, in a Moscow airport.

While the fate of Snowden – namely whether or not other countries will offer asylum considering the international fiasco that has ensued – is unclear, it’s starkly reminiscent of that of infamous leaker Julian Assange, the founder of the now nefarious Wiki Leaks, who is holed up in an Ecuadorean embassy in London. Now, it seems, that Snowden could suffer a similar fate should Russia not be so inclined to offer asylum, as they are so demonstrating at the moment.

According to Putin, few nations are interested in the international pressure and debacle that would be tantamount to offering asylum to the rogue whistle blower.

“If he wants to go somewhere and there are those who would take him, he is welcome to do that,” Putin said in a recent statement to the press. “If he wants to stay here, there is one condition: he must stop his activities aimed at inflicting damage to our American partners, no matter how strange it may sound on my lips.”

But Snowden is in no hurry to cease his damaging leaks of high level classified information that relates to NSA policy. Apparently, Putin, in a measure reticent of his KGB Cold War era heydays, is profoundly bound by the clandestine services pledge: You don’t leak classified information about the spy network that employed you to anyone.

“Just because he feels that he is a human rights defender, rights activist, he doesn’t seem to have an intention to stop such work,” Putin said of Snowden’s pursuit in leaking classified documents to the international community.

New information that has just recently been leaked resulted in scathing reactions from numerous EU nations, after having been apprised that many of their diplomatic cables, embassy offices, emails, internet communications and telephone calls had been recorded or intercepted illegally by the NSA. The results of which have heralded wide rebuke from the international community regarding the US spying policies abroad on friendly nations.

“We cannot accept this kind of behavior from partners and allies,” French President Francois Hollande said on French television on Monday.

Germany was outspoken about their opinion regarding the matter, too, stating this week that, “Eavesdropping on friends is unacceptable,” German government spokesman Steffen Seibert told reporters in Berlin. “We’re not in the Cold War anymore.”

As the Obama administration races to quell the fanning flames, it’s finding itself in quite the precarious indisposition regarding international affairs, ally relations and citizen controversy regarding what is, quite possibly, the largest leak of intelligence in US history.

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Obama Encourages Putin to Further Reduce Russia’s Nuclear Stockpile https://invest-smart.org/obama-encourages-putin-to-further-reduce-russias-nuclear-stockpile/ Wed, 19 Jun 2013 18:17:14 +0000 http://invest-smart.org/?p=803 This week, the G8 Summit convened at the Lough Erne resort near Enniskillen in Northern Ireland as the world’s eight most prosperous industrialized nations met to discuss a laundry list of issues that the international community faces. At the forefront of topics being discussed is the Obama proposed reduction of nuclear warhead stockpiles to Putin. The U.S. leader assured Putin that both countries could safeguard their peoples with one-third fewer nuclear armaments.

Obama underscored that while the current threats are not nearly as indelible as they once were – as seen at the height of the Cold War – democratic nations must be wary of existential threats that can foment such as nuclear proliferation and societal circumstances that could boon extremism if left unabated.

“So long as nuclear weapons exist, we are not truly safe,” Obama said to a crowd that numbered more than 6,000 persons in his address. He vowed to the people to renew rounds of talks with Russia aimed at reducing the nuclear arms stockpiles that both nations hold.

Russia, however, was not so tentative to the matter. They reiterated their discontent with the missile defense systems that the U.S. has deployed domestically and abroad, which in essence nullify a large part of the nuclear threat to the U.S. and its allies, and were certain to express that such talks should be inclusive of other nuclear powers as well.

Obama is seeking to forge an accord with Russia to reduce both nations’ weapons stockpiles. The U.S. and Russia hold the largest nuclear stockpiles in the world today. Previously, the New Strategic Arms Reduction Treaty known as New START was initiated in 2010, a mandate that evokes that both nations must reduce their stockpiles to no more than 1550 deployed nuclear warheads by the year 2018.

Analysts speculated that the growing tensions between the U.S. and Russia mostly center upon the bloody civil war that is brewing in Syria, and that forward movement on the issue is unlikely at best. Russian President Vladimir Putin is a stark backer of Syrian President Bashar al-Assad, whereas the U.S. and its European allies are in favor of toppling the regime and replacing it with a democratic government.

Yuri Ushakov, the foreign policy adviser for Putin, advised that any proposition of nuclear arms reductions must involve other nuclear powers.

“Other countries should be in the process of cutting their nuclear arsenal as well,” Ushakov said in a statement to reporters. “The situation is far from that one in the ’60s and ’70s when only the U.S.A. and the Soviet Union held a dialog on reducing their nuclear arms stockpile.”

Deputy Prime Minister Dmitry Rogozin emphasized that so long as the U.S. continues to build and deploy missile defense systems that there is little wiggle room for arms reduction, something that continues to be the source of much friction between the two nations.

“Development of the shield and the sword are mutually interconnected,” he told reporters while answering questions in St. Petersburg. “Not to understand this is either lie, bluff or demonstration of deep unprofessionalism.”

 

 

 

 

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Smoky Business: IEA Reports 2012 Emissions at All-Time Highs https://invest-smart.org/smoky-business-iea-reports-2012-emissions-at-all-time-highs/ Mon, 10 Jun 2013 20:23:26 +0000 http://invest-smart.org/?p=760 There is good news and there is bad news in today’s report. Let’s start with the good news first, as the bad news tragically trumps it in a deleterious way. So on to the uplifting news foremost.

According to the International Energy Agency, in 2012, the U.S. posted its lowest pollution levels since the mid-90s. Emissions dropped by more than 200 million tons, or by about 3.8 percent, mostly attributed to a traversing from coal to gas-powered energy sources. Similarly, Europe also posted a 1.4 percent reduction of emissions, a decline of 50 million tons.

Yet still, this was not enough to stem the tide of industrializing nations like China, Brazil, India and others—whose provocations with pollution essentially render the reductions in U.S. and in the E.U. as less than satiable on the global scale.

The annual World Energy Outlook report was released by the IEA this week, and it bore with it some less than uplifting news. According to the report, China was the biggest producer of worldwide emissions in 2012; its emissions were up by 300 million tons or about a 3.8 percent increase since 2011. While this is still yucky news, the upside of this is that the increase was the least amount over a ten year span, thanks to the Chinese investing in newer, cleaner and more renewable energy sources.

According to the IEA, energy production accounts for more than two-thirds of all worldwide pollution output (CO2 and other greenhouse gases). The report also found that these emitted gases put the earth on pace for a 3.6-5.3 C (6.5-9.5 F) temperature increase.

“Climate change has quite frankly slipped to the back burner of policy priorities. But the problem is not going away — quite the opposite,” stated IEA Executive Director Maria van der Hoeven.

For decades scientists have warned that an increase of the world’s temperature to such highs could have devastating impact on the entire world. As coastal waters continue to rise with global warming and glacier melting, entire regions could disappear in the years to come, covered by water.

In the IEA report, they stated that many countries are heeding the warning and are implanting fortuitous systems to help spur emission decline. For example, London has stated that by the year 2020 they expect to post a serious decline in emissions thanks to newer technologies. This process includes: improving energy efficiency in buildings industry and transport, limiting the use of coal-fired power plants, halving the oil and gas industry’s release of methane, and phasing out fossil fuel subsidies.

This week, in Bonn, Germany, negotiators for climate change will be commencing another annual meeting to discuss a global approach to change. They will be hammering out the details of a proposed global climate pact that is hoped to be adopted by the nations of the world by as soon as 2015.

According to the IEA report, developing countries worldwide account for greater than 60 percent of the world’s emitted pollution during the present day.

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Eurozone Recession Strikes Stark Mood as Woes Continue into Sixth Quarter https://invest-smart.org/eurozone-recession-strikes-stark-mood-as-woes-continue-into-sixth-quarter/ Wed, 15 May 2013 18:16:07 +0000 http://invest-smart.org/?p=679 Today marked the start of the sixth quarter that the eurozone has been in a recession, underscored by the austerity measure taking place in Cyprus and in Spain, amongst other countries in the European Union. According to statistics that were presented by the EU yesterday, 9 of the 17 countries in the EU are currently in a recession. For the sixth consecutive quarter the EU economy has declined, dropping .02 percent this quarter (Jan-March, 2013).

It is notable to state that this contraction is far less when compared to the contraction that was felt last quarter, which was .06 percent, or three times as worse. However, it does denote an unwelcomed and trident decline for the struggling Euro, which is the sole currency for the 17 countries, excluding England and Germany, the economic powerhouses of the EU. Governments are addressing this fiscal decline by raising already too-high taxes and slashing budgets, austerity measures that are seemingly having minimal impact upon the struggling $12.2 trillion Euro economy.

Existing austerity measures have been highlighted by scores of civil unrest and rising unemployment rates. Greece has more than 27.2 percent of its population unemployed, the highest number of any country in the history of keeping records. Spain sets the second record for unemployment at 26.7 percent, and Italy is still reeling from a government showdown and a current 11.2 percent unemployment rate.

This recession marks the longest one in the 14 years since the Euro has been introduced. Typically, recessions are defined as experiencing two or more quarters of simultaneous decline in an economy.

“The eurozone is facing a double blow from necessary restructuring of its domestic economy and somewhat disappointing growth in world trade, in particular demand from emerging markets,” said Marie Diron, senior economic adviser to Ernst & Young.

The eurozone hosts more than half a billion people, and is the largest export market in the world. If the recession continues at this pace, it could affect U.S. and Asian markets. Eurozone economy is growing at a fluttering pace of .02 percent annually. The U.S., the world’s strongest economy, is on course at 2 percent growth. Meanwhile, China, the world’s fastest growing and No. 2 worldwide economy is growing at 8 percent annually.

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Doomsday Clock is Ticking: North Korea Preparing for Missile Test https://invest-smart.org/doomsday-clock-is-ticking-north-korea-preparing-for-missile-test/ Wed, 10 Apr 2013 18:53:42 +0000 http://invest-smart.org/?p=575 According to numerous government entities, the propensity for a missile launch by North Korea is considered to be “considerably high.” Over the past few weeks of intensity, the reclusive and belligerent nation has redacted the 1950s Truce Armistice, has closed its cross border production plants, has severed all forms of communication with the South, and has declared its nation in a “state of war” while urging all foreigners in South Korea to leave the country, in combination with expelling any embassy members from its nation. This, combined with tracked recent missile movements in the North to the eastern side of its country, have the world wary.

Pyongyang is gearing up to celebrate the anniversary of the country’s founder, an annual celebration that takes place every year on April 15th. Typically, the bellicose nation ramps up rhetoric and attempts to demonstrate its military prowess during the event to the world.

As tensions continue to rise on the Korean peninsula, the United States has stated that North Korea could launch missiles at any time. Japan has recently moved several missile interceptor batteries to Tokyo as a deterrent, and a horde of interceptor batteries are headed to Guam to protect U.S. interests.

Today, South Korea stated that it was making preparations for the launch of the Taepodong-X, an untested North Korean intermediate-range missile called the Musudan.

South Korean Foreign Minister Yun Byung-se emphasized such warnings, stating to the parliamentary recently, “according to intelligence obtained by our side and the U.S., the possibility of a missile launch by North Korea is very high.”

Musudan has an estimated range of 1,500 – 2,500 miles. That’s far enough to reach the Japanese mainland, Guam, and other U.S. military bases in the vicinity. According to defense officials, the preparations for the missile launch have been completed, and they speculated that the country could decide to launch missiles at any time.

North Koreans seem confident of their ability to win any war, even though a missile launch is deemed suicide by the international community, as the U.S. and its allies would immediately respond with decimating force. Allies China and Russia have already made it clear that a provocation such as a missile launch against such targets would be a direct declaration of war, and that they would not condone the nation for it. Basically, they would probably let North Korea sink its own ship, rather than become involved in another World War, as North Korea so fervently desires.

Kim Un Chol, the 40-year-old head of a political unit at Pyongyang’s tobacco factory, underscored the general consensus of the North Korean people, telling the Associated Press, “The people of Pyongyang are confident. They know we can win any war. We now have nuclear weapons. So you won’t see any worry on people’s faces, even if the situation is tense.”

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