North Korea Attacks South Korea Yellow Sea Island, South Korea On Highest Non-Wartime Alert In Response, USDJPY Goes Parabolic

Tyler Durden's picture

Update: South Korea has scrambled F-16 jets to its west coast.

It is time to see just how much WWIII is priced into this market. WSJ reports that the Koreas may have just crossed the line:"North Korea fired artillery at South Korea's Yeonpyeong island in the
Yellow Sea off the countries' west coast Tuesday afternoon, setting
houses on fire
. South Korea returned fire, according to residents on the
island speaking on South Korea's YTN television network.  A spokesman for South Korea's joint chief of staff confirmed the
exchange but didn't have details except to say "scores of rounds" were
fired by the North." The response: S. Korean military says it is on highest non-wartime alert after the North's shelling of island.

More from the WSJ:

The artillery—more than 50 rounds, according to island residents speaking on YTN—was fired from positions south of the North Korean city of Haeju.

The attack started at 2:34 p.m. local time, according to residents who were speaking on the TV network. There were no immediate reports of injuries.

About 1,200 people live on the island, which is 10 kilometers south of the tip of North Korea's south coast.

The attack is the second by North Korea this year against South Korea in the maritime border area of the Yellow Sea. In March, a North Korean submarine torpedoed and sank a South Korean warship near an island about 40 miles west of the island that was hit Tuesday.

And these tidbits coming in from Reuters:

  • Witness says power failure on South Korean island hit by shells; Residents evacuated to bunkers
  • Television pictures show at least four plumes of smoke from S.korea island
  • Witness says shelling continues on S.Korea island, a few houses have collapsed

...This pearl:

  • S. Korean military says it is on highest non-wartime alert after the North's shelling of island

And let's not forget this:

  • S.Korea top presidential aides meeting in underground bunker at presidential compound

Yen goes parabolic on the news:

In other news Netflix prepares to trade at one trillion forward PE as recently uncovered North Korean centrifuges are about to be put to the ultimate test.

Real time video feed from Al Jazeera:

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Bartanist's picture

Is that like saying the US does not control Afghanistan or Mexico because if they did then they would stop the CIA from running drugs into the US?

i-dog's picture

Oh, dear ... the CIA junked you!

RockyRacoon's picture

He's on the "disappear" list now.

i-dog's picture

"China uses North Korea as a wedge against the United States."

Exactly. Just another tension point, among many, to periodically generate some chatter and sabre rattling so that the US military can top up their funds and push their allies to do the same. In this case, however, it is probably 'Herro, Hans' looking for more funds for food to shut him up.

Contrary to popular belief, China is not a natural aggressor. They prefer to use political manoeuvering (and maybe an occasional provocative missile launch to push the US to "put up, or shut up").

Sorry people ... no war imminent in East Asia. Watch the magician's other hand. :)

Green Leader's picture

"Watch the magician's other hand."

Very well said.

sschu's picture

no war imminent in East Asia

One would certainly hope so, our last couple of military adventures in Asia have not been all that productive, Vietnam and Korea.  Not sure I would call WWII an Asia ground war, although if we had not dropped the big one(s) on Japan we would have learned.  Many suggest 1M US casualties if we we required to invade and subdue the Japanese in 1945.

Lets hope our leaders recognize that a land war in Asia is a REALLY bad idea.  IMHO, if there is a war to be fought it will be over resources (oil, food or water) and will involve the Chinese (lebensraum) along with the Russians/Slavs/Indians and Muslims in some weird configuration.  It reminds one of WWI alliances ...

But we just may be so poorly led that we decide to give it a go.  Hope not.

sschu  

DoChenRollingBearing's picture

All of this worries the Bearing immensley.  As does everything else.

Hide out in gold/silver/platinum, maybe a foreign pit-stop for your assets?

Scary times, THINK how to secure your family...

Hook Line and Sphincter's picture

My heart resides the same place yours, submerged under a very dark, creepy, dank blanket of very negative energy.

The timeline is what keeps bothering you. Are you thinking, 'Have I already made a mistake by my hesitation?' Yet, you keep hesitating. 

The wings of Peru await...act now.

DoChenRollingBearing's picture

Hook, at least we have SOME assets in Peru, it would be a reasonably comfortable landing there.  But, I sure would miss some American things I am accustomed to (books especially).  And the weather is not good some 8 months per year.

And we have some gold, very well hidden, there.

But I like (and/or have liked) USA-style freedom, at least until recently.

At least our daughter no longer bitches when I mention that Peru is our escape hatch.  Maybe I should just wire another $50,000 there...

ThreeTrees's picture

Books are keeping you in America?  Dude, this is the internet. You can access it from anywhere and everything is free if you know where to look.

Hook Line and Sphincter's picture

I'm currently investigating numerous relocation sites. So far, Uruguay is looking like a good place to sojourn. Much business done in English, yet the main language is Spanish with a coloring of Italian spoken (imagine that!). Nice weather, and no recent juntas. Best beef on the planet as well. 

It just keeps grating at me though... is my lack of decisiveness due to that part of me that just doesn't want to believe my lying eyes. I've never been so slow at the draw.

 

Green Leader's picture

I tell my friends to pray asking for wisdom and swift decisiveness in their actions.

 

Oh regional Indian's picture

I'm a decider.

You can ask me. But, if you fool me once, shame on you.

Fool me twice, I'll be nice.

 

Butt, in all seriousness, now is a time to be sharpening the in-stinct, the sixth sense, the  voice in your belly.

It's never wrong and it's mostly never heard. If you can silence your mind, stop the inner chatter, the path becomes clear as a forest in moonlight, just bright enough to be perfect, never blinding.

Ponder that.

ORI

http://aadivaahan.wordpress.com

Green Leader's picture

Keep reading these forums and the chatter/static won't go away. Perhaps is in the design...

I need to go back to meditation. At least air quality has improved & can get back to working the land.

cossack55's picture

Montevideo, on weekends you can dive the Graf Spee.

anvILL's picture

I've never been to Peru but its easy to buy books from the American Amazon in Japan.

Green Leader's picture

Maybe you could start manufacturing and/or assembling bearings in Perú, perhaps @ a smaller city where hydropower is available.

I see global supply lines disruptions in the not so distant future. Manufacturing should be localized around the Caribbean basin region: Perú, Colombia, Venezuela, Dominican Republic, Cuba.

I've been checking agricultural equipment made in Perú:

http://www.lamfenixjgu.com/

 

 

PolishHammer's picture

What would keep me away from Peru is their not-so good looking women

DoChenRollingBearing's picture

Also, our Peruvian bearing import company imports over 65% of its bearings from South Korea, which to now has worked out great...

Will our importing from Korea still work out OK...?

Hope so, have to see.

...

As I replied on another thread, it looks like things are moving faster out of control.  Best batten down the hatches, stick with hard assets, and pray for the best.

I feel more paranoid than ever before...  And I was worried under Jimmy Carter!  FWTIW!

Hook Line and Sphincter's picture

Paranoia is a condition based on an unrealistic perception of the outside world, sometimes enhanced by a unbalanced self-image. That, DCRB, is NOT what you are experiencing.

Concern does not equal paranoia, although it is a perjorative that will be leveled at you by those absorbed within the CesspoolMatrix.

blunderdog's picture

"an unrealistic perception of the outside world, sometimes enhanced by a unbalanced self-image"

Oh, come on, that describes the majority of the US population.

Just because it's rampant doesn't mean it's healthy.

GrouchoNotKarl's picture

It's funny I have to watch aljazeera online to get this news and no US news site is even covering this even at this time.

traderjoe's picture

They're still probably covering the bullish GM IPO. /sarcasm

http://www.cnbc.com/id/40329168 CNBS picked up a bit ago...

chindit13's picture

CNN International was on this about 20 minutes after the first shots were fired.

GrouchoNotKarl's picture

Admittedly the US version of CNN is markedly dumbed down and only US-centric vs. CNN international which seems actually relevant/informative.  I get the dumbed down version.

UncleFurker's picture

You get the dumbed down version of everything. Even "Dancing with the Stars".

 

Just switch over to HLN and watch re-runs of Natalie Hollaway and go shopping. There's a good chap.

 

 

Id fight Gandhi's picture

True, bte earnings from hpq, netflix price hikes, fluff stories about how well the s&p will finish the year.

WWIII nope, nothing.

Id fight Gandhi's picture

Actually try filmon.com works on the iPad in the browser. Sky news, bloom, CNN international, BBC.

PolishHammer's picture

AlJezeera is top notch, my fav news channel atm

A Proud Canadian's picture

Well, Dancing with the Stars was on last night!  The US media is holding for reports of more TV shootings in response to Bristol Palin still being on.  One MUST prioritize!

Do you suppose that Kim was angry about that too?

revenue_anticipation_believer's picture

East Asia Co-prospertity sphere...run by China, proxy war staging by North Korea...GOOD no war-declaration needed, since no peace treaty was ever signed... Its a 'test signal' application...safe controlled applied force adjunct to diplomacy...not Sarejvo July 1914...all pretty much the 'next steps' in determining who controls the sea lanes, the trade, the mineral/oil/gas rights...all that stuff... And, China, Coveting North Korea since June 1950 certainly is NOT going to allow the irrational N.Korean leaders to disorganize the situation...N.Korea a useful proxy to become a chinese controlled province...S.Korea...like Taiwan...'partners in co-prosperity'...'Japan, too'... Peace and a new normal with China Politically/Economically 'in charge'...WAR...there can be no question, it is impossible here...nuclear war is MAD, not tactical/strategic.. ALL VERY INTERESTING...back to 'risk off' dollar up stocks down...wonderful..QE2 guaranteed to work...

i-dog's picture

Good analysis ... though a little disjointed :S (Didn't they cover sentence construction at your school?).

suteibu's picture

China in row over Japanese island, now this.  Obama is being tested.

PolishHammer's picture

It did happen around 3am, did Hillary call him?

chindit13's picture

I am going to guess and say that the "Crown Prince" is behind this, just as he was behind the torpedo.  He needs to prove that he has graduated from microwaving cats to doing manly sort of aggression;  otherwise another strongman will end the reign of his family over N. Korea's National Death Camp.  After it came to light that the PRK has another high speed centrifuge facility previously unknown, the Northies had to flex their muscles lest they be called out again on violations of agreements they had previously made.

Before this blows over---which it will---and ignites the next equity relief rally, expect the Northies to lob a missile over Japan and into the Pacific east of Tokyo.  The main problem with that is that the guidance systems are not all that good and the PRK only knows the landing spot within +/- 250 miles.

In closing, this is not the end of the world.

nopat's picture

Agreed, however as with any change in power, there is a high degree of uncertainty. I don't think it is fully known/understood how KJI's son will respond to US tactical nuclear weapons back on the peninnsula. South Korea is in the VERY tricky spot of having China as it's biggest customer, but needing to respond to provocations to one of China's allies at a time when the markets are less than favorable. This much is certain: South Korea doesn't want to deal with the North problem a fuckload more than China.

China knows this.

NumberNone's picture

The US has been fretting over N Korea reactors for years.  Does the US miraculously now get a greenlight to take them out over this incident?  Coincidence this story came out on Sunday?

http://www.cnbc.com/id/40296291 

Lapri's picture

Japan's Nikkei newspaper reports North Korea fired more than 200 artillery shells, and South Korea fired back at least 80.

Homeland Security's picture

Do not be affraid - the US is prepared to shoot down any of North Korea's No Dong, Taepo Dong, or Long Dong missles. The US is even prepared to shoot down the dreaded Long Wang if required to protect its broke-ass citizens.

Rusty Shorts's picture

Watch out for the Short Dong missle, (aka "Stub Muffin").

RockyRacoon's picture

The dreaded Dong Twat missile has multiple warheads.

Sabibaby's picture

The DongDP penetrates two different locations at the same time. It's similar to the DongShocker only the DongShocker is manned by one person and the DongDP is actually two people.

TruthInSunshine's picture

Koreas Trade Fire Near Border
http://i1.nyt.com/images/2010/11/23/world/23koreacnd2_337-span/23koreacn...

South Korea Scrambles Fighter Jets

By THE ASSOCIATED PRESS 20 minutes ago

South Korea said it has returned fire after North Korea shot dozens of rounds of artillery onto an island near the countries’ western border

Glasgow Gary's picture

This is not a good development if you are a financial institution trying to manage a large short position in silver and gold, with a series of expirations dead ahead.

GG

PS Didn't some guy on here named Archduke Ferdinand say "Don't worry, I'm about to get shot."

revenue_anticipation_believer's picture

...... a large short position in silver and gold, CUTE revenge so sweet,

with a series of expirations dead ahead.

 

 

ha ha ah ha had been had, too bad...