By Boluwatife Ezekiel Olaleye
 
...as tensions continues to grow, we can only hope for a peaceful solution.

President Donald Trump warned the regime of Kim Jong Un on Tuesday that any more threats to the United States would be met with “fire and fury like the world has never seen”.

However, North Korea believe that only "absolute force" will work with Trump and have begin plans to attack Guam Island with missiles by mid-August.

The lives of people that will suffer from a nuclear war are what always come to mind but apart from the millions of civilians that might die as a result of this crazy tactic, the worst foreign policy decisoin taken by Donald Trump, Dynamic Minds take a look at the effect it might have on World Economy.

 There is no denying the fact that North Korea has successfully built medium-range missiles that could completely obliterate cities in South Korea and Japan and Kim would not hesitate attacking Korea capital city, Seoul, a metropolitan area of more than 25 million people, and put Tokyo and Los Angeles at risk.

ALSO READ: US tells North Korea, "We are not playing anymore"

South Korea accounts for about 1.9 percent of the world’s economy and is home to companies including Samsung Electronics and Hyundai. A severe drop in business activity due to war on the peninsula would cause widespread pain in the region and globally — and that’s without deployment of North Korea’s nuclear weapons against its neighbour. Global financial markets would also suffer a tremendous shock in the short term, with flight to safe haven assets such as gold, the US dollar and the Swiss franc. “The humanitarian crisis and economic reconstruction of the Korean peninsula after such a nuclear conflict would require large-scale international co-operation led by China, the US and the European Union and it would likely take over a decade to rebuild the economy,” according to Rajiv Biswas, chief Asia-Pacific economist for IHS Markit.

"The increased tension between the US and North Korea is the factor that is keeping markets on edge right now," according to ANZ Bank's Daniel Been.

"But we think that the underlying setup in the market at the moment is as important as the trigger.
"While Korean tensions could fade, the market remains vulnerable to other surprises."