Do-nothing Malcolm declares war on North Korea

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Via the AFR:

“The reality is we are facing on the Korean Peninsula the gravest threat to peace since the end of the Korean War,” Mr Turnbull told ABC radio on Monday morning.

…That response should include China cutting off its supply of crude oil to North Korea.

“That absolutely would be a lever that China could pull, and that would put enormous economic pressure on the regime,” he said.

…Mr Turnbull agreed with former prime minister John Howard’s assessment the rogue nation’s dictator Kim Jong-un was evil.

Foreign Minister Julie Bishop said a Chinese ban on oil exports would be unprecedented action.

“It would have a significant impact on North Korea. This is the type of measure that would have to be considered,” she said.

Cutting off oil supply is a declaration of war. Moreover, it is hardly in Australia’s economic interests to elevate tensions, offering cover to the US to impose sanctions on China, as well as pressure us to do so too.

We would do much better to call for calm and talks.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.