It's a tough situation. China loves to use North Korea to antagonize us but I think even they see this as a very dangerous situation. North Korea will not back down in my opinion from obtaining a nuclear weapon. I don't think this ends well for anyone.
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I agree, N. Korea won't back down and I hate to say it, but I think we should take them over. China doesn't really want to muck with us because we import so much product from them. Either way you look at it, it's going to be bad.