Would a War With North Korea Somehow Prop the Dollar Temporarily?

Miscellaneous General
1

My only guess is that this war is begining to be staged to perhaps prop the US dollar up for a little longer?

I would think it would help destroy it, but maybe they have a few tricks up their sleeves that will push it up or keep it where its at temporarily and dely the fall of the US dollar?

2

My only guess is that this war is begining to be staged to perhaps prop the US dollar up for a little longer?

I am currently writing an article on the current Korean crisis, but I don’t think it has anything to do with this. Rather than being staged by the West, the crisis is probably being staged by North Korea. There are two hypotheses I’m analyzing:

  1. Political instability in the form of insurrection. The past years have been noteworthy, because they have seen very marginal liberalizations. There has been a growing middle class in North Korea, thanks in large part to the black market and recent trade liberalizations. The late tightening of interventionism probably irked a lot of people, including officers in the military.
  2. This has something to do with an attempt by Kim Jong-Il to guarentee the succession of his youngest son to power.
3

Even though all fiat currencies are inherently unsafe in the long-run, the dollar is the safest currency because it is perceived to be the safest currency. Uncertainty causes a flight to safety. So, yes, anything which increases the apprehension of investors worldwide will contribute to demand for dollars which helps mask the Fed’s rapid increases in the supply of dollars.

This is one reason why the dollar did not immediately devalue when the Fed doubled the money supply back at the end of '08, beginning of '09.

Clayton -

4

Is there a reason to seek reasons for war? The military industrial complex that Eisenhower warned about [and he should know, right?] always wants war, as much as possible.