Jim Cramer: There May Be No Stock Market Implications Regarding North Korea

 | Jun 12, 2018 | 10:57 AM EDT
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You can't process the stock market implications to the North Korean disarmament talks because there may be no implications at all.

North Korea is a small country with big weapons. The goal must be to denuclearize the country but if North Korea is denuclearized and they let go all of the hundreds of thousands of people thought to be in their gulags then the country my fall. Obviously no leader, even as strange as Kim Jong-un goes into talks with the most powerful nation on Earth in order to dismantle his country. But then again few thought that West Germany and East Germany would get together to form a new Germany that's been dominated by the west ever since. That was bad in 1990 when the Soviets were still a power, although the empire was waning.

So anything is possible. Remember, North Korea, like East Germany, is a client state and if the Chinese want Kim to disappear he will disappear. I don't think President Trump would have the success that he has obviously had if the Chinese didn't want it to be so. The media is quick to say that this deal will be the same as the others, we will give him money and food and he will keep the nukes. I hesitate to say it, but that's a little premature. If China lives up to its behind the scenes word, then an East-Germany-West Germany scenario could see a redux on the Korean peninsula.

That said, the break up of the client states in Europe brought about a level of prosperity and investment that resonated all the way to our country.

That will not be the case in North Korea, there aren't enough people to make a difference and the spoils will go to the likes of Kia and Samsung and LG (LPL) and Hyundai.

The main context here is on China trade. How much did China do to make this happen? If it asks for anything that will be poorly received. All the Chinese can hope for is a softened blow. I don't think they will get one, especially as Larry Kudlow is laid up and Peter Navarro fills the vacuum.

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