I would like to believe that one of the multiple of triggers for WW III has been eliminated. Looking at the historical actions of North Korean compliance starting with the Clinton/Albright fiasco shows us why we are in the current situation:
Recall that in 1994, faced with the threat of North Korea producing plutonium for nuclear weapons, the U.S. sought a diplomatic solution. Taking a cue from an exploratory trip to Pyongyang by former President Jimmy Carter, the Clinton administration wooed North Korea with an offer of lightwater nuclear reactors to be used exclusively for the peaceful production of electricity. All Pyongyang had to do was give up its nuclear bomb program.
North Korea was labelled one of the axis of evil countries by George Bush but nothing was done under his administration to eliminate the nuclear threat. Under the Obama administration, nothing was done except to lie to the people concerning this threat. I believe Trump will handle this threat better than presidents in the past. He has no choice but to address the failures of the past.
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.”