It's not stupidity it's taking calculated risk on the presumption that the South is not so eager to retaliate in full scale war and the fact that US economy and military are under strain hence the hesitancy to commit a new war to support her allies.
South Korea reacted weakly to the Cheonan sinking and they knew it was a clear message that the South would not risk war even to their small detriment hence this small island target. And if the South kept its usual way of reacting which is mainly media wars and stern bluffing the North will exploit this further betting that the South being so reluctant to commit to war when US is under strain economically and militarily.
One thing we need to appreciate of the North leadership is that they are not the type of cowardly bullies that some other nation leaders are. They struck at their strong enemy. To me that needs to be commended. And in all cases it's them who hold the initiative prompting the South to be reactionary all the time and making South Korea leadership and the west to appear weak and stupid. Why this is so is because while the South is trying to merely maintain her strong economy the North is fighting for her survival.
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