Tensions on the Korean peninsula are at their highest point in decades, brought about by allegations that North Korea was responsible for the deadly sinking of South Korean warship in March.

On Tuesday, the South resumed propaganda broadcasts into North Korea after a six-year halt as part of a series of sanctions announced by South Korean President Lee Myung-bak. The move was in response to the torpedo attack that killed 46 sailors.

The South has also cut off all trade with North Korea and banned its ships from South Korean waters.

In retaliation, North Korea announced Tuesday it would be severing all ties and communication with Seoul for what it calls a "smear campaign."

CBN News Senior International Correspondent George Thomas appeared on the CBN Newschannel's Midday program to give an assessment of the situation on the Korean Peninsula. Click play for his comments. 

In addition, North Korea's official Korean Central News agency reported that Pyongyang would be banishing all South Koreans working at a joint industrial park located in the border town of Kaesong.

Earlier Tuesday, a monitoring agency in Seoul reported that North Korean leader Kim Jong Il has ordered his army, comprised of more than one million men, to prepare for war.

Despite the North's claims of innocence, a team of international investigators concluded last week North Korea is responsible the March naval assault.

U.S. Secretary Of State Hillary Clinton is in Beijing this week, pressing the communist leaders to condemn the attack.

"This is a highly precarious situation that the North Koreans have caused in the region," she said.

"The evidence laid out, is overwhelming, and deeply troubling," United Nations Secretary-General Ban Ki-moon said.

China, who is North Korea's strongest ally and number one trading partner, has remained neutral in the dispute so far.