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Gdp ratio of the u.s. david is saying he thinks it needs to be well more than that because he believes that economic growth is going to be much worse than what the cbo or others have predicted. but if you take simpson-bowles that you need $4.5 trillion, we've done half of that already and this, if you passed it, would go more than what was in simpson-bowles. i think it's at least a perfectly good starting point. >> david, what do you say to people who argue you've been crying wolf for a long time and the wolves haven't come. the bond markets continue to lend us money at the cheapest rates in h...

Why a south african native isn't worried. >> it's like it's normal to them. like crying wolf. >> reporter: hoping the talk stays just that, talk. south korean presidential office dismissing the latest threat against foreigners, saying that this is just more psychological warfare from the north. but certainly, people are paying attention as is the stock market. it continues to drop as does the korean currency. >> lots of concerns in korea, south korea to be sure, kyung lah in south korea for us, thank you. we're joined by the chairman of the senate armed services committee, sno carl levin. sena...

But most of the residents don't believe they'll ever have to use them. why a south african native isn't worried. >> it's like it's normal to them. like crying wolf. >> reporter: hoping the talk stays just that, talk. south korean presidential office dismissing the latest threat against foreigners, saying that this is just more psychological warfare from the north. but certainly, people are paying attention as is the stock market. it continues to drop as does the korean currency. >> lots of concerns in korea, south korea to be sure, kyung lah in south korea for us, thank you. we're joined by th...

Kyung lah how are these playing in south korea? >> it's not breaking news here, it's breaking news on american channels but not seoul. we're an hour's drive from the border, from the dmz, anderson. and this is a country that has for more than a decade heard this threat out of pyongyang directed to seoul that we're going to melt you down in a sea of fire. they're used to it. it's like the boy crying wolf. the difference here is the messaging and who it is directed to. this came out, the statement you're referring to, came out at 4:00 a.m. seoul time. north korea is not speaking to the peninsula...

Threats. the north koreans have become masters of the ham handed bluff. but even if the nuclear part is bluster could this ignite a conventional war? kyung la, how are these playing in south korea? >> it's not breaking news here, it's breaking news on american channels but not seoul. we're an hour's drive from the border, from the dmz, anderson. and this is a country that has for more than a decade heard this threat out of pyongyang directed to seoul that we're going to melt you down in a sea of fire. they're used to it. it's like the boy crying wolf. the difference here is the messaging and w...