South Korea Proposes Full Oil, Currency Blockade Of North; China Says No

Tyler Durden's picture

Unable to make de-escalation progress using conventional diplomatic means at the United Nations, on Monday South Korean President Moon Jae-in proposed that the U.N. Security Council hold serious discussions about imposing an energy and capital blockade on North Korea, by cutting off oil supplies to Kim's regime coupled with a block of North Korean sources of foreign currency, the South Korean president's office said. Moon discussed the idea with his Russian counterpart, Vladimir Putin, during a phone call, according to South Korea's Blue House.

"It's time for the U.N. Security Council to seriously consider ways to block North Korea's sources of foreign currency, including a halt to oil supplies to the North and a ban on its exportation of laborers," the office quoted Moon as saying in the wake of the 6th North Korean nuclear test.

According to Yonhap, the South Korean leader also said Sunday's nuclear test "was different from past experiments in size and character, and expressed his heightened concern over North Korea's claim that it was an H-bomb that can fit atop an intercontinental ballistic missile."

Putin, who is attending a BRICS emerging economies summit in China, sided with his South Korean peer and said that North Korea's nuclear and ballistic missile programs destroy the international nonproliferation regime and pose a "real threat" to regional peace and stability. He also noted that the leaders at the summit adopted a statement condemning the latest test. Moon underscored his commitment to resolving the North Korean nuclear issue diplomatically and peacefully. Putin, in turn, said the leaders at the summit agreed there is only a diplomatic solution to the problem.

"In order to do that, North Korea must refrain from additional provocations," Moon was quoted as saying during the 20-minute talks. The leaders agreed to hold further discussions at their summit in Vladivostok, Russia, later this week.

Meanwhile, in its populist tabloid Global Times, China's ruling communist party similarly slammed Kim's decision to demonstrably escalate tensions, writing that "the test marks another wrong choice that Pyongyang has made in violation of UN Security Council resolutions and against the will of the international community. This test will result in a new round of escalating tensions on the Korean Peninsula and heighten the risk of the situation spiraling out of control due to possible miscalculations by all sides."

The article's condemnation continued: "The latest nuclear test and its recent launches of intermediate- and long-range ballistic missiles prove that Pyongyang is determined to obtain a nuclear strike capability and will not yield to external international pressures. The North Korean nuclear issue has now reached deadlock" and added that in the face of such a complicated situation, "China needs a sober mind and must minimize the risks Chinese society has to bear. The security of China's northeastern regions is a priority."

We need to make clear to Pyongyang through various channels that its nuclear tests can never contaminate China's northeastern provinces. China's strategic security and environmental safety is the bottom line for China in showing restraint. If North Korea crosses this line, the current framework for Sino-North Korean ties will break down."

And yet, despite the far more somber take on its wayward neighbor, the Global Times said that "despite the anger of the Chinese public toward North Korea's new nuclear test, we should avoid resorting to rash and extreme means by imposing a full embargo on North Korea." Why not a full embargo?

If China completely cuts off the supply of oil to North Korea or even closes the China-North Korea border, it is uncertain whether we can deter Pyongyang from conducting further nuclear tests and missile launches. However, confrontation between the two is likely to occur. If so, the conflict between China and North Korea will transcend any conflict between the US and North Korea, and take center stage on the Korean Peninsula.

And the punchline: "Then Washington and Seoul can boldly shift the responsibility of the North Korean nuclear issue to China, which does not fit China's national interests."

Unless, of course, Washington and Seoul are right, and North Korea's action and behavior has indeed been a "Chinese issue", although as Bill Blain noted earlier today, "North Korea is no longer playing to the Chinese script."

That said, there is certainly an industrial-strength element of truth to the Global Times conclusion:

If North Korea's nuclear activities don't contaminate China's northeastern regions, China should avoid imposing overly aggressive sanctions on North Korea. The root cause of the North Korean nuclear issue is that the military pressure of the Washington-Seoul alliance generates a sense of insecurity for Pyongyang who then believes that owning a nuclear strike capability is its sole guarantee for survival of its regime.

Yet while spot on, this observation does not make the de-escalation of the N.Korea crisis any easier, since the likelihood of the US and/or S. Korea "retreating" in the face of North Korea is nil. Which is also why the Kim regime will continue poking the US with ever greater provocation until one it reaches the breaking point, at which point the military incursion will begin.

In the meantime, South Korea's weapons just got more deadly, because also on Monday, President Moon and President Trump agreed to remove the limit on the payload of South Korean missiles under the allies' missile guideline in a move to enhance South Korea's own defense capabilities against North Korean provocations, Seoul's presidential office Cheong Wa Dae said Tuesday. The agreement was reached in a telephone conversation between the two leaders held late Monday.

"President Moon held a telephone conversation with U.S. President Donald Trump between 10:45 p.m. and 11:25 p.m. (Seoul time) and discussed countermeasures against North Korea's sixth nuclear test in-depth," Cheong Wa Dae spokesman Park Soo-hyun said in a press release.  As an "effective" countermeasure, the two agreed to remove the limit on the payload of South Korean missiles under the Korea-U.S. missile guideline, he added.

The U.S. president agreed on the need for what his South Korean counterpart earlier called the most powerful and practical measures against the North that the communist state can feel keenly.

And then, there was this from Reuters:


Well, at least the US military-industrial complex is profiting from the latest nuclear-armed geopolitical crisis... as usual.

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tyberious's picture

US tested 1000 Nukes!

Truther's picture

This is getting HOT. The USSA is making sure of it. False flag coming right up.

Ben A Drill's picture

Still going to need the draft.

wee-weed up's picture



The ChiComs will veto anything that could help lead to the possibility of US troops in North Korea - thus on their border...

Little Kimmie knows this and will continue to act like a kid with his dangerous toys.

overbet's picture

This is basically a hostage situation with those in Seoul and surrounding areas. Why not just put up a huge bounty on Kim and have his own people plot against him. Can add that new regime will have US support similar to SK. 

Dame Ednas Possum's picture

Yeah... let's do a Madge Albright and blockade their negligible little country until more children starve to death 


This is like climbing over someone's back fence and beating the crap out of a baby in a pram. 

Sick fuckers. 


beemasters's picture

Isn't that special...meanwhile no leader dares to call for the blocking of ISIS oil sale, fundings, banking, Facebook posts and US weapon supplies/CIA training.

Déjà view's picture

Could easily be solved with import tariffs on Chicom...WHY WAIT?
Guess Wall Street and endless consumption of Chicom junk have priority...rinse and repeat...when broken...filling landfills...

Ben A Drill's picture

When I was a kid I almost burnt down our house playing with matches.

Blue Steel 309's picture

Or maybe the Chicoms have enough common sense to not put NK in a impossible situation. You corner an animal and you get attacked, even if that animal is human.

gatorengineer's picture

A country with a $9 billion dollar GDP, is running an agressive manhattan project, and a rocket development program that is outstripping the combined efforts of every nation on the face of the earth....

If people here on the hedge arent smart enough to realize the bombs and rockets are made in China (with Ukrainian parts), then you are beyond help.

This is China flexing its muscles and the rest of the world cowering.

Only a matter of time if this is unchecked for the Norks to ""sell"" one of these to arabs who sail one into a major western harbor.

TahoeBilly2012's picture

I am going to invest in a case of night vision scopes. Good trade.

Grimaldus's picture

It is worse than you know. Corrupt Chinese criminal communist despots want war. These are the same Chinese murderers that killed tens of millions of their own citizens, remember?

The Chinese will get their war using NK stooges to start it. They really do not care how many have to die.

The Chinese stupid, it burns.







Librarian's picture

Curiously, all the draft local board positions were filled during the past two years.  So don't you worry at all about that, Citizen.  This could be switched on and put into motion literally in days.

BrownCoat's picture

@ Ben A Drill,

Never going to need conscription again. Never. Never. You have to wait for the Vietnam era people to be buried at least a century before you can get a criminal sociopathic politician to think about a draft.

Besides, outside of cannon fodder for fuking warmongers, conscripts do not perform as well as volunteer soldiers.

Bank_sters's picture

Maybe the planet is a maximum security prison for the Universe's worst life forms.   Just a thought.

cynicalskeptic's picture


Seems pretty obvious.  It hardly seems like an ideal environment for achieving enlightement.....   It seems like the whole population of Earth has been fed the 'Suffering is good fo you' line since time immemorial but seriously?......really?   Look at the planet's history - most people have been slaves, serfs or simply lived miserably hard lives.   When you're focused on survival how are you supposed to 'advance' spiritually?

You've got a psychopaths running things.  THEY are rich and pretty happy with their lives.  Or have they just sold their souls to the Devil?

pliny the longer's picture

cynical u seem, well, cynical.  that being said, u r totally right.  often friends and i joke that the illumaniti have sold their weak, feeble and thin souls to satan:  soros, bush sr, buffett, mccain, these fucking toads just never actually die.  they hang on FOREVAH and inflict harm every.  

Winston Churchill's picture

Close, but I'm thinking the universes hospital for the criminally insane.

BlindMonkey's picture

Winston is channeling his inner Douglas Adams I see.  Very good sir.

Librarian's picture

Yes, it would even be some comfort to be the best in the universe on either end of the spectrum.  However, I suspect that the universe is largely indifferent to our condition.  

lolmao500's picture


Its war folks. Its coming.

Tsipras the Great's picture


Wake me up when something blows up (or by the end of the month).

Laughing.Man's picture

Not yet.  When you see nations shutting down their diplomatic missions then we'll know.

peddling-fiction's picture

Ask the Russian Consulate in SF for their opinion on that far fetched scenario.

Librarian's picture

Not necessarily.

We are still in the sabre-rattling phase.

The check for a war with Russia had already been endorsed and presented for payment (Soros).  But processing has been delayed due to "technical difficulties".  (HRC is not and will never be president)

If things are worked out with China regarding who will do what and to whom then you can expect to see KJ suddenly dead from what will be diagnosed later as a brain tumor in his prefrontal cortext.

None of this is inherently difficult to fix.  It's just delicate questions about power and control that need to be resolved diplomatically or otherwise.

Debugas's picture

Russia drew its Tor air defence systems to Vladivostok near NK apparently to shoot down incoming US missiles

EuroPox's picture

Funny how 5 years ago, the worst outcome for the US would have been an alliance between China and Russia... so that is just what they did.  Step by step, Russia and China have been forced into an economic AND a military alliance - what a clusterfuck!

opport.knocks's picture

Yes, but note that the leaders of Russia and China are taking different positions with respect to NK's tests. It appears to me that the US is trying to make this a wedge issue between Russia and China. I wonder what was promised to Kim by US unofficial envoy Dennis Rodman in his last visit ;-)

All this BS escalated quickly after that.

sinbad2's picture

If you want to read all about them, and look at the pics, check out the link below.

Fiscal.Enema's picture

History shows sanctions are usually a prelude to war.  

Winston Churchill's picture

Because they are an Act of War perhaps ?

Sanctions that affect the general population are also a War Crime.

But only if anyone but the USA does them, or so it seems.

cynicalskeptic's picture

Hmmmmm....  didn't that incident with Japan in 1941 start with the US embargoing oil and other supplies?

Winston Churchill's picture

Indeed, so far from being an unprovoked attack, the USA had already declared war on them under

international law as it stood at the time.There was no legal cover hiding behind the league of nations, because neither

the US or Japan were signatories.

bonin006's picture

That was the purpose of the embargo, as stated in since classified documents. USSA had to do something to get its uncooperative citizens in favor of another war.

arbwhore's picture

Should be good for another 1000 points on the Dow. War is profit!

DarthVaderMentor's picture

We need to find a way to take out Kim Jun Un "Gangman" style!

OutaTime43's picture

Bomb his cheese factory. Worst thing you can do to Kim Jong Fat.

JimmyRainbow's picture


let me guess? special credit line?

cossack55's picture

Close.  It is a Bigly Beautiful Special Credit Line.

Duc888's picture



This is all about letting friendly SK liquidate their useless UST's

PitBullsRule's picture

The Chinese are right.  Trade sanctions, tariffs, all of that is bullshit, it doesn't hurt Kim Jung Un at all.  He doesn't give a fuck if you starve his people, they will just rally behind him.  

The Chinese are right, you better listen to the Chinese or you will be in deeper shit than you already are.

knotjammin2's picture

I agree about the tariffs being bullshit but China has had their chance to reign in Kim.  It's time to take Kim out regardless of what China or Russia say.  

BrownCoat's picture

@ PitBullsRule,

China is a paper tiger. China wants to be a world power, but it cannot even keep FatBoy on a leash. That doesn't even pass muster for a regional power. LOL

yellowsub's picture

Why don't they just block shipments from Ukraine...