Breakthrough: North Korea Ready To Denuclearize "If Regime Safety Is Guaranteed"

Score another diplomatic victory for Trump, whose hard line negotiating tactic appears to have generated a dramatic - and favorable for market - outcome. Moments ago futures spiked, 10Y yields jumped and the USDJPY bounced about 106 on what the FT dubbed a "diplomatic breakthrough" that North and South Korea have agreed to hold direct talks between their leaders with North Korea signalling it is willing to abandon its nuclear program "if regime security can be guaranteed."


The headlines come from South Korean National Security Office special envoy Chung Eui-yong, who is speaking to reporters in Seoul after returning from Pyongyang. Remember he and another envoy, National Intelligence Service chief Suh Hoon met North Korean leader Kim Jong Un in Pyongyang on Monday. Chung confirms that North Korea is indeed ready to stop the jawboning and negotiate:

  • Kim Jong Un open to frank talks with U.S. for denuclearization: Chung
  • North Korea to suspend provocations during talks: Chung
  • Promises not to use any weapons against South Korea: Chung

Next step: a summit in April between the two neighbors where details will be ironed out: "North Korea, South Korea agree to hold summit in April", Chung says. Pyongyang vowed not to test any ballistic missiles or make further provocations during talks, according Chung clarified.

The easing of tensions between the two Koreas and this clearly positive geopolitical development has triggered a broad based risk-on move. Fixed income is selling off sharply here, with Bunds flying. As the spot KRW market is closed, the NDF space is in focus. The 1m NDF has traded from 1076.0 to 1070.8 at time of print. USDJPY is spiking higher at 106.10 at print. This move may have legs especially as early NY begins to come in

The question now is whether this unexpected diplomatic victory for Trump will further empower him to demand similar concessions on the trade side, and launch the "trade wars", even as the market is now fully convinced that the US president will backtrack.



UndergroundPost Dilluminati Tue, 03/06/2018 - 06:27 Permalink

Li'l Rocketman yesterday: There is no change in our stance that we will not budge an inch in our march toward strengthening our nuclear force.

Li'l Rocketman today: North Korea is willing to abandon its nuclear program if regime security can be guaranteed.


"The whole secret lies in confusing the enemy, so that he cannot fathom our real intent." -Sun Tzu

In reply to by Dilluminati

Kafir Goyim Zero Point Tue, 03/06/2018 - 14:37 Permalink

Your enemy is China.  Not NK, who is too small to bother anybody.  Not Russia, who as the largest, most resource rich country in the world, does not look to expand it's borders and thus is only an enemy in so much as the US wants what Russia has.

It is China that the US will eventually go to war with, as it pursues to expand it's control over more and more of the adjacent oceans and countries to feed the appetites of it's huge and still rapidly growing middle class.

The US may go to war with Russia as well, but it is greed that drives that, not actual defense of allies.

In reply to by Zero Point

EddieLomax Kafir Goyim Tue, 03/06/2018 - 15:16 Permalink

Perfect summary.  Russia has more land than it can defend or develop, and in some areas the population is so diverse it is a struggle to keep them in the same country.  Despite all this the Russian bogeyman has been threatened many a time, today eastern Europe is militarily strong enough to hold the Russians back alone without help, if they had the will.

But China has a very different feel to it, they really do resent the west in a way that mirrors Japan in the 1930's.  While things are okay then it will be peaceful, but one big shove and I think they'll pick the violent option, Japan, Korea etc don't want to let themselves be caught napping, the US alone isn't going to be enough with peacetime troop levels.

In reply to by Kafir Goyim

Shemp 4 Victory Stan522 Tue, 03/06/2018 - 16:09 Permalink


Nice try on finding a rewrite of history....

Seems that you never bothered to read the article to which you posted the link above. It aligns with the conclusions of the article that I linked to, and even cites another article on the site.

Unfortunately this is a common problem that people don't even bother to read what is written. How can a non-reader claim a history rewrite without having read any history to establish a baseline for comparison?

Here is another article which addresses some commonly held myths about US nuclear diplomacy with North Korea. The site is also cited in the article you linked to, unsurprisingly. Although you are not likely to read this article, others will, so this is for their benefit.…

In reply to by Stan522

Blankone silverer Tue, 03/06/2018 - 10:22 Permalink

Off Topic:
A russian transport plane just crashed in Syria killing all the troops on board.
Some group of people really like their numbers to send messages.

The model number of the Russian airliner that recently crashed was AN 148 = 13
The call number of the Iranian airliner that recently crashed is EP-ATS. MSN 391 = 13

This russian transport drops on landing due to "technical issues" on March 6 = 3/6 = 666

All 3 planes just dropped suddenly. This plane lost control on approach to where it could not attempt to glide in. Someone's having fun with Russia and Iran. (Let's not forget how the Russian military choir suddenly dropped out of the sky, on Christmas I believe.)

In reply to by silverer

veritas semper… Shemp 4 Victory Tue, 03/06/2018 - 18:42 Permalink


This was most likely an accident . I doubt they "pulled it" for a military transportation plane. Russia had thousands of these fights in the last 3 years since they've been there.

The plane with the Red Army chorus I think was sabotaged .It made the mistake to land for refuel in Crimea when the US cruise was doing exercises there . (They )will pay for it. One of the greatest politicians of all time ,Otto von  Bismarck told us this :

  " Do not expect that once taking advantage of Russia's weakness, you will receive dividends forever. Russian has always come for their money. And when they come - do not rely on an agreement signed by you, you are supposed to justify. They are not worth the paper it is written. Therefore, with the Russian is to play fair, or do not play. "



In reply to by Shemp 4 Victory

sessinpo tmosley Tue, 03/06/2018 - 11:09 Permalink

tmosley greven40 

The US government reserves the right to initiate violence to steal your shit.

Indian tribes didn't have a concept of people owning shit, and they would just kill anyone that tried to stop them from taking this or that thing.

But I don't expect a retarded loser like you to comprehend the difference.


The concept of taking this or that thing and defending this or that thing by killing them, is by definition, a recognition of property rights. Indians didn't recognize English law. As humans (Indians included) with intelligence far beyond self awareness, we all recognize property rights to some degree.

Yes, you are right it all comes down to who has the physical power to enforce that thought. The Indians didn't have enough power to enforce their right over the perceived rights of others.

In reply to by tmosley