I think the president again, as commanderinchief, i think he felt it necessary to issue a very strong statement directly to north korea, but i think what what is the president was reaffirming the United States is full kay capable of defending ourselves from any attack and our allies and will do so so americans should sleep well at night. Connell sleep well at night. We have a show of force of u. S. Bombers flying over the Korean Peninsula. Group of south dakota airmen are ready to fight in guam if needed to. With that as the backdrop, lets turn to our expert. Former advisor to Vice President dick cheney, john hannah, and Hudson Institute fellow, Rebecca Heinrichs is here. The secretary of states choice of words we all should sleep well at night. What do you make of that . I think clearly the secretary is trying to tone down heated rhetoric from yesterday to reassure allies and reassure the American People but ive got to say we cant avoid the fact that this crisis is escalating. That north korea is getting closer and closer to being able to hold hostage a major American City to a nuclear strike. That is a very deadly serious matter, and i think the president and his National Security team are right to treat it as such, and they need to Start Talking to the American People how serious this challenge is. Connell want to talk more about that in a second. With the options such as they are for us dealing with it, but, rebecca, on the heated rhetoric question as john brought up, the president yesterday with the fire and fury comments the New York Times reported that those comments were entirely improvised, came as a surprise to many of his aides. If that is true, does it change your thinking on that today . No, it doesnt. Im hearing general kelly, the new chief of staff has been in regular communications on this, that fire and fury was something talked about before. Well get all kinds of conflicts reports who has control over the president. He is his own man. He is not foolish. I dont think he is reckless. I think he understands the threat coming out of north korea. He is working with his National Security council team and working with his new chief of staff, what he is trying to convey, the reason the rhetoric is different this time compared to previous president s, in the past when north korea would threaten the United States, they had the will to do it but not capability. Now we see with two recent icbm tests, combined with news they have a miniaturized Nuclear Weapon to put on the missiles they have the capability to make good on the threats. The president has got to convey, were not bluffing. Neil were serious, we will not let you maintain that capability. Connell john, you said a few minutes ago there has to be more of a conversation with the administration and people, exactly what were dealing with and what we will do about it . I think were getting close to the time where the president needs to Start Talking to the American People, perhaps directly in some kind of a president ial speech or address he clearly identifies the priority he attaches to this threat of a north korean Nuclear Weapon being able to threaten the continental United States as well as our allies in northeast asia. That we are going to this is a dangerous situation. That the United States he is determined to protect the American People an our allies in in northeast asia against any kind of north korean aggression. That we are prepared perhaps, and need to be ready to take very tough measures, particularly economically, visavis china, to increase the pressure on bejing to use leverage only it has to bring this crisis to a peaceful resolution by bringing the North Koreans connell this address is something you think is called for . I think were getting close to that because these headlines, i think are scaring a lot of people. I think it takes president in a sober address to the American People to provide this with some context, some degree of assurance he has the situation under control. That there is a real strategy to pursue it not only with allies in northeast asia but with the u. N. Security council and others in the international community. Connell say he does that, rebecca, what should he make his priority, the president , in terms of what is the big message you want to get across there, that preemptive military action is on the table . Were told over and over talking to more folks throughout the show today, there are no good options, right . If you take preemptive action that our allies in places like seoul, south korea, or tokyo would be at terrible risk . Even though it is said to be on the table it really isnt. What should the president talk about . I think it is past time the president to do those. He needs to do Something Like what Ronald Reagan gave with the famous sdi speech. President trump has vision president reagan had, this would be a great time to calm the American People, capabilities we have to defend them, this is Missile Defense system. We have limited Defense System to provide protections against some kinds of missiles like those in the north korea to protect the american homeland. He should state that. We have to do more. We have to increase defenses to make sure the United States is not held hostage. That is only a piece of the puzzle, we have to make it very clear, communicates to the American People, when he gives a big public address, he understands china is listening and north korea is listening, that mess should be were willing to use force. Even though it is terrible thing and we dont want war on Korean Peninsula, we have to make sure the North Koreans understand we are willing to use force so they dont connell john, do you agree were willing to use force . Going back to the earlier point were sleeping well here in the United States and all those American Cities, aforementioned cities like seoul or tokyo, if we use force they would be dealing with something catastrophic . Yeah, there is no question, as secretary mattis has said, this would be absolutely devastating any kind of war on the Korean Peninsula particularly to our allies in south korea. Connell does it take use of force off the table in your view . No, i dont think youve got, the only way you get to resolve this peacefully is one critical baseline piece has to be the credible threat to use military force to counter any kind of north korean aggression against us or our allies. I think you have to have that. You have to build up our capabilities. I think rebecca is right, we need a manhattan style Crash Program now on next generation Missile Defense, ability to have unlimited shots at any kind of north korean array of missiles that might be fired at us. Connell well talk more about this as we continue. John, rebecca, thanks to both of you for your time. We do appreciate it. Now there have been critics calling the president s rhetoric reckless. We heard that from a number of people over the last day. He has tweeted earlier today, the president how the u. S. Nuclear arsenal is now far stronger and more powerful than ever before. That was a tweet from earlier in the day. Lets bring in from fox news my terri analyst colonel david hunt who joins us. Colonel, continue the conversation. Im sure you heard the latter part on use of force and whether preemptive military action is on the table. What are the consequences of that, to the point whether we have any quote, good options here . Lets understand a couple of things. Weve been historically 40 years under the threat of Nuclear Attack from china and russia. Well get through this, okay, with a lot more missiles than north korea supposedly have but what is happening is, people talking about preemptive strikes or decapitation as if they will be 100 successful with no repercussions. In all the war games weve ever done, if we decide to do preemptive strike the North Koreans will get six to eightminute warning. Six to eight minutes is enough for hundreds of thousands of rounds to go 30 miles south of Demilitarized Zone of north korea. Connell right no the other thing if we go on the ground, we have to move soldiers and move marines and aircraft. It will not be a secret. North korea will not lay down. We would win the war. Not issue who would win. We have greatest military we ever had, phenomenal, however, so civilian consequences would be a million casualties plus in first three or four days alone. That may be too much for anybody to swallow. So, talking tough to me doesnt work as well as preparation. Last point, we do not have a very good Missile Defense. It is shooting a bullet down with another bullet. Were less than 50 on our tests. So, yeah weve got to get on that if we seriously will do something. As hard as we want to hit north korea, they get to punch back. Connell if they fire a missile, our chance of shooting it down is about half . Or less. Which dont have a lot of them. Our tests, this is very, very Difficult Technology to do. And we certainly can do that. Connell so what is the least bad option by the way . What is the least bad option, youre not only one saying this. A lot of experts have the same line of thinking. What is the least bad option available . There is no least bad option militarily. Anything militarily we want to do there is retaliation of seoul. We have 28,000 soldiers there. The issue, what do they want, how do you get them there . This has to be discussed, talks. We have former active military advising our government. These guys have been to war. They dont want to see it either. Connell talking about mattis, mcmaster and kelly . Of course. Everyone of those guys has combat connell what about confidence in the president himself . I think six months is too early to tell. Im very confident in the three guys you just mentioned all have serious combat, led soldiers and one lost his son in 2010, kelly. Connell right. I think it is too soon to tell. This is the first real military crisis the new administration has. It is a big test. Connell colonel hunt, thank thk you, sir, for your views. Talk to you again soon. In the market today for all this talk weve been having for the last ten minutes, were not selling off like crazy by any means. Were down, the dow is down 52. Not like another record breaking day, doesnt look like it right now, certainly something short of mass hysteria on wall street. Well take that up after a quick break in terms how the market interprets this type of news overseas. Maybe why it is not down more. 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Gary, were off the lows. Maybe secretary of state Rex Tillerson calmed people down a little bit, even before his comments we werent down a ton. As i said disney has more to do with it than anything else at least on the dow today, so what do you make of that . Look, bullish markets are hard to get hit to the downside, simple as that. Something with north korea doesnt do anything. You have got to realize Interest Rates are still low. There is printing of trillions of dollars across the grown. Earnings are pretty decent when i scope through. You have stocks like boeing that was moonshot on earnings as well as a few others markets are good stead. Im not worried so much. Connell what is the read, mark, that Market Participants are making calculation this is a lot of talk about north korea, but as we all hope there wont be any action but is there a bet there wont be any action . Is that it . Anyone that tries to predict the future is foolish because no one can do it. My message to investor dont worry about going into war, its a scare proposition, longterm equities make 20 on upside. They are up three out of four years. When theyre on the downside, down about 13 . Hardest thing for investors to do, to sit on their hands. Diversify globally and rebalance if we have dips. Connell talk about that, i will go back to gary in terms of what our Risk Appetite should be. We see a riskoff trade today, not as violent if you were just looking at world news headlines. Everybodiries treasurys are up in price, stocks are modestly lower, so what is your personal appetite for risk, mark, right now . Each investor has to look in their own heart and determine anytime you own equities you have to be prepared for a 30, 40 pullback because you never know when it will happen. To the extent you cant take that full risk, you own fixed income, rebalance when it crashes. Dont make the mistake when it goes down to sell it off. Look at 2008 and 2009 everybody panicked and got out. If you cant stand the heat you shouldnt be in to begin with. You cant predict when it happens. Next 30, 40 years, stop trying to predict the outcome. Connell when the debt crisis and hedge funds blew up in august of 07. Gary, how do you look at things because there is, to marks point about pullbacks and about 30, 40 , any kind of a pullback seems due here at some stage, right . We havent had one some time, no . 30, to 40 is not a pullback. That is big bear market. Connell that is a crash. Are we due for some sort of a pullback at some point . Let me say this, we have had, the markets had its way because of ridiculously over the top easy money that is around the globe. I worry about boom bust cycles based on Central Bank Interference which has been going on since 98. We have not had gardenvarietity bear markets. We have big bear markets. When 20 trillion printed and rates are still low and theyre still printing, especially complacency is at highest ever tiles 10 at this juncture, leading to passive investing onesided trade where everybody feels comfy all the time. All of sudden boom. I can tell you this second, markets act fine. Im beta type guy. I like high growth stocks. Theyre acting great for me. As long as theyre acting in good stead im ha epguy. Connell for example, gary, north korea is not the catalyst for that type of thing. Do you worry about some sort of world event . Is that when youre talking about . In north korea does shoot up something that will be a catalyst for something in the short to intermediate term. Bear markets happen because a, valuations get stretched beyond imagination. Connell are they close to that now . Potentially, not even close to 99. Were up there in the trees. Also because of recessions or interests rates are starting to back up. God bless Central Banks, they have been able to control Interest Rates for a good eight years. They still print to keep them down. As long as they have control, were in good stead. If Interest Rates are out of whack upside, markets take a hit. Connell god bless the Central Banks he says. Mark, gary, good to talk to you both. Netflix has been done. The stock price is down. Were talking about disney earlier. One of the things disney did announce a competing service, a streaming service. Disney is down as well. It had a revenue miss last night. The dow wouldnt be down nearly as much as it is, down 20 instead of 50 points if it