liz: disney reporting not so great earnings. stocks down 4% after the bell. thanks for having us in your homes. gerri willis with "making money." gerri: another night of fast-moving developments from wall street to the white house. stocks fell fast on news north korea successfully produced a miniaturized nuclear war head that can fit inside missiles. president trump warning north korea they will be met with fire and fury like the world has never seen if north korea invades the united states. reporter: this has gone from what appears to be a working vacation to almost crisis management as we learn from the

washington post article that the north koreans have the capability of producing a miniaturized nuclear weapon that could be placed on a missile and hit the united states. the president tweeted after many years of failure countries are finally coming together to address the danger posed by north korea. we must be tough and decisive. but during a press briefing the president was much stronger in his verbiage. >> north korea must not make any more threats to the united states. they will be met with fire and fury like the world has never seen. he has been very threatening beyond a normal state. and as i said. they will be net with fire, fury and frankly power, the likes of

which this world has never seen before. reporter: so the president taking a hard long stance in defense of the united states of america. but then you get democrats like senator dianne feinstein who issued a statement and said quote isolating the north koreans has not halted their pursuit of nuclear weapons and president trump is not helping the situation with his bombastic comments. she goes on to say they would prefer to see negotiated talks with the north koreans. but the president pointed out that has jts worked in the past -- that hasn't worked in the past with two other administrations. so it's crisis management. gerrigerry, bruce, thank you so much for

joining us. how important a leak in technology is this for north korea in their development of a nuclear state? >> it's very important. but they are things we have long been predict. but people seem to be continually surprised by north korean breakthroughs. when i was in the cia1999 we worked on an unclassified national intelligence element that predicted by 2015 north korea would have the capability to hit the u.s. with a nuclear weapon. gerri: first it looks like the cuban miss soil crisis. now it looks like the manhattan project. how concerned should we be and what kinds of protection do we have for ourselves, for our own people? >> north korea has been working

on its nuclear program since the 1960s. but under kim jong-un we have seen an exponential increase in the number of launches for the systems still in development and deployed systems exercising the warplanes. we have the icbm and intermediate range missile that can reach guam. also already medium-range missiles that can reach south korea and a japan already. we have ground based interceptors to defend the home landlord. gerri: i understand the north koreans have something like 60 nuclear warheads, we have 6,800. but the bottom line isn't the number because any one of these could do an incredible amount of damage. it just takes one at the end of the day.

>> exactly. since we think they have deployed warheads on the medium-range missile. that brings seoul and tokyo and the rest our allies under threat today. gerri: there is a lot of talk in-house and i hear the left, the media rumbling about the president's comments about fire and fury. were they too strong? >> they sounds like they were penned by pong a yang, it's reminiscent of the kind of rhetoric the north korean regime gives. they seem to have affirmed the u.s. is considering a preventative attack. we saw h.r. mcmaster earlier this week saying the president has asked them to prepare that opposite. a preventative attack could trigger an all-out war on the

korean peninsula and we saw secretary mattis say it would have catastrophic consequences. gerri: this is a ball we kind of lost track of and now it's rebounding. stay tuned for that. thank you, bruce. president trump was addressing what you might consider the worst crisis inside the u.s. the national opioid epidemic. joining me for more, my panel of medical experts, howard samuels and answer thesial just -- and anesthesiologist. welcome to you both. great to have you here. i want to start with tom price, hhs, had to say about this. dr.:tom price i will go to you first. he was asked, the head of hhs,

should this be designated a national emergency? he have 142 americans dyer day from over -- die every day from overdose. isn't this a national crisis? >> well, there is no question it's a national crisis. once again all we are hearing is talk. there is no plan, there is no proposals. that's what's scary here. i'm glad they are bringing it to everyone's attention. but we on the front lines are dealing with the death of our young people every day. i was in a hospital in l.a. just yesterday, and they are only getting 3 to 5 medicare in-patient only. gerri: that's what the head of hhs is saying, when need more money for treatment.

is throwing money at this the thing that will solve it? does the medical culture have to change in some way? if you are under the care of a physician. i was treated recently for breast cancer in 2016. i got all kind of drugs. i was shocked at what the doctors were willing to give me. >> the american society of anesthesiologists is trying to educate the care between the surgeon and the interoperative and post-operative care. the anesthesiologist, we want to be the person in charge your pain. we'll talk to you beforehand. here are pain medications that you can take that are not opiate based. we have anesthetic medications

to give you for post-operative care. gerri: it's interesting you say non-addictive. we thought the opioids were non-addictive. that was the word, everybody can use this because they are not addictive. how could we have been so very wrong? >> well, once again it's the medical community that did not pick up the ball and did not educate the patient. now, i must tell you, we are beyond that, i have people dying i have day on the streets of l.a. from heroin overdoses. gerri: they start with prescription drugs. that's exactly how this starts. it's not necessarily people stealing it from mom and dad or even buying it from people who are using it. these are folks where a doctor writes a prescription for

opioids and 30 days later you are addicted. dr. john? >> you are exactly right. people in the pain medicine community are starting to educate physicians and patient and surgeons on medication. the medications we are talking about are truly non-addictive. it might be misleading in terms of the opiates. we thought it was a panacea. the government said we must treat pain aggressively and if they don't physicians will be penalized. gerri: doctors are getting evaluated, their salaries are dependent upon how popular they are with patient. the more you write prescriptions the better off you might be. there is incentive for the doctors to write the prescriptions. but i want to address one more thing to you, dr. howard.

you are in the streets to see what's going on. medicaid folks are getting a lot of these drugs. it's because i believe medicaid doesn't have the money to treat people long term. so these drugs are a shortcut. 25% of medicaid members have an opioid addiction. >> well, you know what, gerri, i have to totally agree. they throw opiates at the problem for their pain. yet they won't throw treatment that's acceptable for the detox and the recovery. gere require' more expensive. >> that's why we have to change the philosophy before more people die.

gerri: dr. john, a quick last word. >> how do these people get addicted. i run two methadone clings. they are here to treat their pain. we are trying to educate, hopefully the federal government to get anesthesiologists who can practice appropriate pain medication. gerri: thanks so much. the cost of healthcare is expected to increase even more next year, believe it or not. we'll tell you all the numbers, break it down for you, coming up. where to get in... where to get out. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find

smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. with some big news about type 2 diabetes. you have type 2 diabetes, right? yes. so let me ask you this... how does diabetes affect your heart? it doesn't, does it? actually, it does. type 2 diabetes can make you twice as likely to die from a cardiovascular event, like a heart attack or stroke. and with heart disease, your risk is even higher. you didn't know that. no. yeah. but, wait, there's good news for adults who have type 2 diabetes and heart disease. jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit. jardiance is proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and heart disease

and lower your a1c. jardiance can cause serious side effects including dehydration. this may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. ketoacidosis is a serious side effect that may be fatal. symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. do not take jardiance if you are on dialysis or have severe kidney problems. other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. tell your doctor about all the medicines you take and if you have any medical conditions. so now that you know all that, what do you think? that it's time to think about jardiance. ask your doctor about jardiance. and get to the heart of what matters.

so it only made sense to create a network that keeps up. introducing xfinity mobile. it combines america's largest, most reliable 4g lte with the most wifi hotspots nationwide. saving you money wherever you check your phone. yeah, even there. see how much you can save when you choose by the gig or unlimited. call, or go to xfinitymobile.com. xfinity mobile. it's a new kind of network designed to save you money. you're searching for something. whoooo. like the perfect deal... ...on the perfect hotel. so wouldn't it be perfect if... ....there was a single site... ...where you could find the... ...right hotel for you at the best price? there is. because tripadvisor now compares... ...prices from over 200 booking... ...sites ...to save you up to 30%... ...on the hotel you want. trust this bird's words. tripadvisor.

the latest reviews. the lowest prices. gerri: the cost of your health insurance plan at work is set to soar next year according to a new study. cost of healthcare plans will grow 5% to an average cost of $14,000 per employee and that makes a fifth year in a row the costs are listen 5%. more shares of those -- your share will likely be $4,400 in premiums. but your employer shoulders 70% of those costs. phil, i'll start with you. how much of this can americans take? >> at the ends of the day i

believe the system by which employers provide healthcare had been a great thing for workers for americans. but this seems to be testing americans. >> i think we are coming back full circle to the original fundamental problem in the healthcare system in america which has been too expensive. we got a bait and switch by the democrats who said they understood the problem with costs. but the cost drivers if anything have gotten worse. gerri: prices going up. here is what i thought was interesting today. the national association of insurance commissioners. a peer group, they were meeting and among the suggestions for making the obama care exchanges work wassed the idea maybe what you do is tell the insurers to raise costs across the board on all of their products.

that means 5% next year. that may look like a song. maybe it goes to 10:00. 10 -- to 10%. what do you say? it's going to impact even more what's going on for everybody else. >> it's not just people of on the exchanges. anybody in the individual market will see their premiums go up. they are feeling if the real pain. not the people who are poor and subsidized by the federal government. gerri: when i talk to people about their healthcare coverage, it's people who own their own business and get hammered in that individual market anthem is pulling out of obamacare exchanges in more states. many, many counties in nevada. where is this all going? are these exchanges going to be able to stay in business in

2018? >> they are near collapse in many places. 40% of the counties in america have zero or one insurance company left. anthem pulling out is a big dale. the problem with the way obamacare was designed. they told states, dump everyone in your high risk pool, put them in the individual market. everyone have a preexisting condition come into the market. they are high cost. why would you bite if you are young and healthy? gerri: one of the things the insurance commissioners are worried about is some of the consumers will be signing up for zombie plans at the end of the day, and will you really get coverage? the bottom line is having

coverage is no guarantee of treatment. >> with the largest insurers pulling out of the market, they will be crammed into smaller plans in limited networks. gerri: it's already happened, it's just getting worse and worse. people who just want to get coverage, the options are narrowing instead getting better over time with obamacare. thanks so much for coming on tonight. i really appreciate your time. president trump is always fighting with the mainstream media about the democrats. but now he's up against his own party. we'll get back to north korea in a moment. stay with us. rethink what's possible. rethink your allergy pills.

flonase sensimist allergy relief helps block 6 key inflammatory substances with a gentle mist. most allergy pills only block one. and 6 is greater than one. flonase sensimist. ♪ when you're clocking out. sensing your every move and automatically adjusting to help you stay effortlessly comfortable. there. i can also help with this. does your bed do that? oh. i don't actually talk. though i'm smart enough to. i'm the new sleep number 360 smart bed. let's meet at a sleep number store.

♪ [vo] progress is seizing the moment. your summer moment awaits you now that the summer of audi sales event is here. audi will cover your first month's lease payment on select models during the summer of audi sales event. when this guy got a flat tire in the middle of the night, so he got home safe. yeah, my dad says our insurance doesn't have that. what?! you can leave worry behind when liberty stands with you™. liberty mutual insurance.

gerri: on the political front the internal gop battle is turning into an all-out war with president trump on one side and his consciousal colleagues on the other. they are speaking out about what they say is his chaotic leadership style. tammy bruce and former south carolina senator jim demint. senator, i look at this and think, this is like an amazing evolution, right? the party fighting openly with each other over some of the most of important topics on the agenda. can anything get done if the gop is shooting itself in the foot? >> the president has done what he could. he nominated good constitutional

judges, he has done more enforcement on the borders and taking more regulations out of businesses and allowed them to prosper. he's been tough on foreign policy. the president was in a position to repeal obamacare in the first week because they already passed the bill before. congress is not getting their job done and they are complaining about the president who is rightly frustrated. gere require's as though the president is treating the president as the opposition party. tammy: he started embracing them. remember hot chief of staff used to be. very, very much embracing gop establishment. that did not work it was priebus and mike pence who were supposed to make the legislation work. that didn't happen.

that tells you it was effectively intentional. they had the materials passed and they chose not to do it. the congressional approval rating is at 10%. the president's rating. gerri: i want to under line that. i think that's amazing. the american public is saying, hey, congress, you are not doing the job, we don't support you. only 10 per around of us -- only 10% of us think you are effective. we need tax reform. tammy: trump wanted deals to be made. they knew the big deals had to happen. one out of every ten people, those are probably the people who didn't take their meds. the president's approval is back up into the 40s. senator flake is going after the president. his approval rating is 18% and

the president is 40% in arizona. in this fight the president will win. gerri: the congress is on vacation and the president on vacation. congress out on vacation. and when they get back, there is a load of stuff to do to get done. first all we have to raise the debt ceiling. we have to get a budget. there is only 12 days in september. 28 days of vacation scheduled through the end of december. when is congress going to get it act together and try to come together on some of these issues. is he just fundamentally dissing the president? >> you can count on the democrats making it hard for the republicans to deal with this debt limit and funding the government. if the republicans don't get a tax cut, a basic tax cut in

place before thanksgiving or soon thereafter. the effect on the economy is not going to show prior to the mid-term elections. the congress needs to come back to work and get some things done. they can get tax cuts done. they probably can't do the reforms a lot of folks would rant. they need to get the rate down and get the economy going. gerri: i think it's clear they cannot do tax reform at this point. they keep bringing up ideas i haven't heard before out of the blue. if we are moving to consensus why are we talking about changing the way charitable deductions are done? nobody is talking from the same page despite what leadership is saying. tammy: with obamacare, everybody had ideas, then there was little things coming up and what it is

is theater. it's like -- gerri: a bad movie. tammy: the american people see what's going on. they don't like the and they know who to assign blame to. and it's congress. gerri: thanks so much for helping us out today. appreciate it. president trump's choice word on north korea is putting pressure on the stock market. we'll lay it out for you coming up. copd makes it hard to breathe.

so to breathe better, i go with anoro. ♪go your own way copd tries to say, "go this way." i say, "i'll go my own way" with anoro. ♪go your own way once-daily anoro contains two medicines called bronchodilators, that work together to significantly improve lung function all day and all night. anoro is not for asthma . it contains a type of medicine that increases risk of death in people with asthma.

the risk is unknown in copd. anoro won't replace rescue inhalers for sudden symptoms and should not be used more than once a day. tell your doctor if you have a heart condition, high blood pressure, glaucoma, prostate, bladder, or urinary problems. these may worsen with anoro. call your doctor if you have worsened breathing, chest pain, mouth or tongue swelling, problems urinating, vision changes, or eye pain while taking anoro. ask your doctor about anoro. ♪go your own way get your first prescription free at anoro.com.

gerri: righters reporting north korean state media is considering a strategy to strike guam. joining me, j.d. gordon. and back with us, bruce klinger. north korea says it's seriously considering a strategy to strike guam with mid to long-range missiles saying it will be carried out in a strategic and successive way once kim jong-un gives the order. >> it's very scary. the situation on the peninsula

is getting dicey even by north korean standards. they have two missiles in development that can range but warm. range guam. gerri: we know this is property of the u.s.a. this is territory of the u.s. there happens to be an american base there. we are trying to figure out how many americans might be there. this is a critical headline. north korea saying publicly it's seriously considering strategy to strike guam with mid to long-range missiles. >> i think it's alarming. we have to pressure north korea to stop their missile and nuclear program. george bush and bill clinton and

barack obama tried with diplomatic pressure and it didn't get the job done. we have to pleasure china to do more. the sanctions are important. north korea will lose a billion dollars a year if the sanctions are even forced it's time to sanction banks dealing with north korea. gerri: we have been doing a lot of this and it isn't getting us anywhere. as i understand it there are 12,000 u.s. military folks in guam who could be in harm's way. north korea is saying a strike on guam will be carried out in a successive and strategic way once kim jong-un gives the order. people are saying we need a change in tone. the tone the president gave us this afternoon was pretty combative. >> it's not a question of the tone, it's the actions.

kicking the can down the road doesn't work. the trump administration recognizes the threat. this is a very real threat. in the past we didn't believe the north koreans possessed technical assets to reach the united states. if you are asking me what should be done? i would say say to the japanese. you have got article 9 in your constitution that prohibits the development of nuclear weapons. the chinese would be at the negotiating in five minutes. gerri: bruce, do you agree with that? >> no. if you talk to the japanese government. all the polls and the populace, they are reluctant to go down any nuclear path. >> i understand that, that's a political problem.

gerri: let's get down to brass tacks. we have saber rattling going on and it seems to be fairly serious. north korea is saying in their sites is guam. we know 12,000 americans are on a base there and it would put them in harm's way. should we walk back? the president's comments tonight pretty incendiary. he said fire and fury like the world has never seen if north korea were to use this new technology they have which is miniaturized nuclear warheads. where does this end? >> i have been to but all before when i was assigned to the pacific fleet. it's a major hub for our stair force and navy. our past approaches have not worked. since the 1990s, they haven't worked. president trump is right to take

a tough line with north korea. kim jong-un is not the average president. he should be on notice. gerri: let me tell you. i look at what's going on. this is not someone you can predict what he's going to do. he's not an unknown quantity but an unpredictable quantity. he's irrational and erratic. that makes the notion of deterrence difficult. when you have rational players on both sides of the equation, then you can talk seriously about deterrence. the only thing you can understand is the force of the united states. that is one of the reasons why the trump administration has gone about this in a different way than his predecessors. gerri: it's hard to know what we have done wrong in the past with north korea but we have to start with we are and decide what the

next action should be. what should we do? >> we do need to increase the pressure on north korea. perception that north korea is the most of heavily sanctioned and cut off nation on earth is flat-out wrong. we haven't done the things to north korea that we have done to iran. last year we sanctioned asment north korean entities as we did on i am bac -- on zimbabwe. they are not using the authorities they have to go after the chinese banks and businesses facilitating north korean behavior. gerri: i'm getting news of head lines in my ear i want to share with you. north korea is urging the u.s. not to regret today in the future and the operational plan

to be soon reported to the supreme commands. they are in process of deciding what to do. it is concerning it is worrisome. the idea that north korea is seriously considering a strike to strike -- a extra injure to strike guam. to me i feel like what are the next steps and what do we do to protect mayor chance in guam and elsewhere. >> we have to keep investing in missile defense at sea and on land. we are doing that but we need to continue investment in missile defense and technology. we need to keep pressuring china. 90% of north korea's trade volume is with north korea. 237 it's a leaky border between

north korea and china even when there are sanctions. gerri: dow jones reporting north korea makes rare explicit specific threats on guam. it looks like this reporting is true. >> whether the north koreans choose to act is another matter. but the point made by your two other speakers is right. china controls 90% of all the food and fuel that goes into north korea. if pressure is going to be applied. gerri: how do we get china on board. everybody was saying they were so helpful with these sanctions. really? i don't have a lot of confidence in china to put these across. >> north korea constantly makes

threats and we are always parsing which are real and which are not. in the past they threatened guam with missile attacks. we'll have to see how different these are. they are sounding more specific than in the past. and we have a thaad missile defense battery on guam to defend it. but getting china to act. we need to divorce law enforcement from diplomacy. we try to induce china to fully implement u.s. sanctions. but the majority of all international transactions in the world are denominated in dollars which means they have to go through a u.s. bank. the majority of north korean entities are coming through u.s. and chinese banks. you can use u.s. laws time pose fines. we imposed $12 billion in fines

on european banks, we haven't imposed a single penny on chinese banks. you can seize and freeze assets and declare money laundering concerns. gerri: one other headline we are getting. from jow jones. kim jong-un ordered the guam plan after u.s. pair force flyovers. this is coming from the north korea state media. we'll be bringing you any other headlines that come. the long-term market impact of rising tensions with north korea. we'll break that down. there is a lot of impact on stocks. we'll tell you all about your r 401k coming up. well, because it tells us something powerful about progress: that whether times are good or bad, people and their ideas will continue to move the world forward.

as long as they have someone to believe in them. citi financed the transatlantic cable that connected continents. and the panama canal, that made our world a smaller place. we backed the marshall plan that helped europe regain its strength. and pioneered the atm, for cash, anytime. for over two centuries we've supported dreams like these, and the people and companies behind them. so why should that matter to you? because, today, we are still helping progress makers turn their ideas into reality. and the next great idea could be yours. is everything ok?adt, i could hear crackling in the walls, and my mind went totally blank. all i remember saying was, "my boyfriend's beating me"

and she took it from there. when a fire is going on, you're running around, you're not thinking clearly, so they called the fire department for us. and all of this occurred in four minutes or less. within five minutes. i am absolutely grateful we all made it out safely. it's kind of one of those things you can't even... you cant even thank somebody. people you don't know actually care about you. to protect what you love, call 1-800-adt-cares gerri: fast moving development

reports that north korean state media says the rogue nation is warning of a potential strike on guam. you too, unnecessary er visits. and hey, unmanaged depression, don't get too comfortable. we're talking to you, cost inefficiencies and data without insights. and fragmented care- stop getting in the way of patient recovery and pay attention. every single one of you is on our list. for those who won't rest until the world is healthier, neither will we. optum. how well gets done. poallergies?reather. stuffy nose? can't sleep? take that. a breathe right nasal strip instantly opens your nose up to 38% more than allergy medicine alone. shut your mouth and say goodnight, mouthbreathers. breathe right.

gerri: reports tonight that north korean state media reporting that the regime is warning of potential strikes on guam. this after the president threatened them with fire and fury and it put an end to if the dow's win streak. joining me to ken mahoney. welcome back to the show. you and i talked about what could derail this market. it got detailed today. we'll have 10 consecutive days of new dow highs. >> joe dimaggio's batting streak came to an ends. but this is a story you don't want top come to an end.

gerri: this is what happened today. when "the washington post" story became public and "the washington post" story said that north korea had reached this key threshold in becoming a nuclear nation by being able to produce miniaturized nuclear warheads, the market has been up 60 points and went down 60 points. so rebounded a little bit. >> it increased. gerri: we'll have to leave it there. my apologies. thanks for being with us. we'll be right back. is this a phone?

or a little internet machine? [ phone ringing ] hi mom. it makes you wonder... shouldn't we get our phones and internet from the same company?

that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. [ laughing ] so all you pay for is data. see how much you can save. choose by the gig or unlimited. call or go to xfinitymobile.com introducing xfinity mobile. a new kind of network designed to save you money.

gerri: report that north korean

state media is saying the rogue nation is seriously considering a strategy to strike guam with mid to long-range missiles. back with us, bruce klinger. and peter brookes. now the national security affairs fellow. peter, your reaction to what we are hearing from the rogue nation. how concerned should we be? i this unusual? will it never happen? >> it's very troubling. the situation, i'm sure any colleague bruce klinger has shared with you is increasing. there are some steps north korea needs to make to make it a

greater threat including the accuracy of it missiles and a war head being able to withstand flight. this rhetoric we cannot dismiss. it's very troubling, and the possibility of greater tensions ahead. more reporting coming out tonight. kim jong-un showed north korea has warheads small enough to fit on a missile. this was testimony in may. this has possibly been out for longer than we think. does that mean they are further along in their development. >> it seemed at least in one of the statement it was conditional that north korea would attack if

they detected provocation. that's consistent with previous statement where they will have a bombastic threat. but it's usually if the youth does something. that's less worrisome than a non-conditional one. but any threat to u.s. territories or allies is concerning. here is the quote from the state media. it could carry out preemptive operations once the u.s. showed signs of provocation. to your point, it's like if this happens, then we attack. so how are you feel being this now. does this assange your worry or concern at all. >> this is a far more specific threat than some we have had in the past it's very worrisome. because of the contingencies that you made reference to, it's obvious the north koreans are looking for a way out of this.

they may feel if the united states is not engaged in what they consider provocative acts, this needs to be taken seriously. thinking about thaad and a variety of mechanisms necessary to withstand any potential attack. gerri: nsa chief mcmasters said we need to explore all options. do you agree with him? >> absolutely. we need all options on the table. kim jong-un worried about decapitating trike from navy seals. but i think he has a mo -- us to attack our market. he hurt our economy by rattling our markets. gerri: sure does. that's a good point.

peter brookes back to you. people are talking about striking guam. did we miss something? has there been a slow burn going on with this for a long time? >> i think the intelligence community has known about this for a long time. assuming the report in the post is correct. the intelligence agency will agree or potentially disagree about the state of things. we are being brought in on the conversation today if the story is correct by going back last year this spring we had a pretty good idea they were making moves in this direction and they are confirming it today. but there are capability they need to develop to finish out that icbm program. accuracy, warhead reentry capability. things along that line.

gerri: this "washington post" story apparently japan has also said this is the case, too. japan intelligence also saying if it's true. going over the headlines in case you are just joining us. north korea says it's seriously considering a strategy to strike guam where 12,000 americans are on a military base with mid to long-range missiles. north korea said it will be carried out in a successive and strategic way once the leader gives the okay. the story on north korea, it seems like we went from the cuban-style military crisis to the manhattan prong. >> one of the reasons it happened was because of the u.n. sanctions provisions. this alarmed the north koreans and put enormous pressure on them. it was passed with the support

of russia as well as china. to some degree that might have been surprising to the north koreans. it may have triggered this response on the part of the north korean government. gerri: iron, ore, most it gets sold in china, some to russia. does this make those sanctions meaningless? what does it mean for the u.s. sanctions. we were talking about this weekend being a big break through. >> they are a big incremental improvement over the last 9 or 10u.n. resolutions. each one is better than before and each one the strongest in history. but other steps could occur the u.s. would have wanted but it was watered down by china. with rising tensions, those of us working north korea, we feel

like we are on tension for years on end. even a tactical level clash on the korean peninsula can escalate to a strategic crisis in the blink of an eye. you have three militaries in close proximity to each other, each talking about preemption. then you could stumble or miscalculate yourself into a crisis. gerri: i want to take you to one more thing before we go. the president has been saying north korea should not be allowed to threaten the u.s. did he inherit the philosophy of kicking the can down the road with north korea. >> you saw this with several presidents republican and democrats. clinton actually said the crisis was over because the food that would be provided to north korea. i think we miscalculated one after another.

gerri: and on and on it goes. thank you so much for your help. appreciate your time. lou dobbs is coming up next right here on fox business. lou: good evening new warnings that north korea is closer than ever to becoming a full fledged nuclear power. u.s. officials concluded that moore, oklahomnorth korea. president trump today reacting to north kore north korean thre. >> north korea best not make any more threats to the united states. they