North Korean Nuclear Conflict Would Cost US $5 Trillion Just On Reconstruction Costs

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North Korean Nuclear Conflict Would Cost US $5 Trillion Just On Reconstruction Costs
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Is there going to be a North Korean nuclear war with America? We hope not and do not think so but here is what the so called experts think. If I have time I would like to write my own piece on this.

Global stocks are sliding in the wake of escalating US North Korean Nuclear War tensions. Upon the recent back and forth threats from North Korean dictator, Kim Jong-un and the United States President, Donald Trump on Wednesday, international indices are down. Conversely, safe haven assets, are up.

Dow futures and S&P 500 futures are down 0.3%, Germany’s DAX and France’s CAC40 dropped 0.7%, and London’s FTSE 100 is down 0.5%. This is not uncommon when geopolitical turmoils arise, but if the threats evolve into physical conflict, US debt levels could spike exponentially and global supply chains will be severely affected.

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investor 1652197064It's no secret that this year has been a volatile one for the markets. The S&P 500 is down 18% year to date, while the Nasdaq Composite is off by 27% year to date. Meanwhile, the VIX, a key measure of volatility, is up 49% year to date at 24.72. However, it has spiked as Read More

While traditional markets fall victim to political tensions, safe haven assets like gold, the Swiss franc, and cryptocurrency soar. Crypto is at record highs today, pushing past $120 billion USD. Yesterday, Bitcoin hit an all-time high of $3,500 USD and popular tokens like Ethereum, Litecoin and Dash are up as well.

 

Goldman Sachs

While macro risks to KRW have receded, there is still the tail-risk from any over a North Korean Nuclear War, as price action in recent sessions has shown. But that is unlikely to price in markets until investors see enough evidence that this time is different than previous episodes of tension.

Capital Econ

Many of the main targets in South Korea are located close to the border with the North. The capital, Seoul, which accounts for roughly a fifth of the country’s population and economy, is located just 35 miles from the border (see Map 1 on next page), and would be a prime target. The capital region as a whole, which includes two other districts neighbouring Seoul, accounts for slightly more than 10% of the country’s land area but roughly half the country’s population and