Market volatility jumped as traders reacted to growing tensions between the United States of America and North Korea despite US Defence Secretary James Mattis saying that any conflict between the two nations would be "catastrophic".
President Donald Trump "was informed of the growing threat last December and on taking office his first orders to me emphasized the readiness of our ballistic missile defense and nuclear deterrent forces", Mattis said.
On Tuesday, Trump warned North Korea not to make any more threats against the United States. He said that while the USA is pursuing diplomatic solutions, the combined military power of America and its allies is the most robust on Earth.
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An armed conflict between the U.S. and Pyongyang would be a catastrophic event, U.S. Secretary of Defense James Mattis told reporters on Thursday evening.
North Korea "should cease any consideration of actions that would lead to the end of its regime and the destruction of its people", Mattis said in an August 9 statement.
That impetus has only grown among administration officials amid reports this week that Pyongyang had built a nuclear warhead small enough to fit atop one of the country's long-range missiles.
'But of course if North Korea decides to carry out some of its violent threats, then obviously awful consequences will follow, and there's no point ducking that inevitable outcome, ' he said, promising Australian military support for the United States if it was attacked. It is now far stronger and more powerful than ever before.... "Hopefully we will never have to use this power, but there will never be a time that we are not the most powerful nation in the world!"
B-1 bomber planes have carried out a series of 11 practice runs on the Korean peninsula near the DPRK's border, in coordination with South Korean and Japanese forces since the end of May. "So the American people should sleep well at night".