The U.S. is imposing new sanctions on North Korea—including restrictions on its trade in arms, counterfeit cash and luxury goods—as punishment for sinking a South Korean ship in March. Starting Sunday, the U.S. and South Korea will hold joint military exercises on a larger scale (about 8,000 forces, 200 aircraft, and 18 ships) to deter the unpredictable North. Other exercises will follow over coming months. Secretary of State Hillary Rodham Clinton and Defense Secretary Robert Gates traveled to the Demilitarized Zone Wednesday to commemorate the 60th anniversary of the start of the Korean War; they said they wanted to send a clear message to the North. During his confirmation hearing to become director of national intelligence, retired Lt. Gen. James R. Clapper Jr. called this a “dangerous new period” in relations between Washington and Pyongyang.