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secretary austin seems to have left president biden in the dark. a secret stay in the icu of walter r we'd hospital -- reed hospital, lasting almost a week, we wish the secretary a full recovery but calls are growing for him to step downing we talk -- step down. arkansas governor sarah sanders and kellyanne conway, first, seven days before iowa caucus, let's go to washington, d.c. for great white house correspondent peter doocy what is the latest, how is austin surviving? reporter: there are important details they are not telling us, officials will not disclose whether or not secretary austin ever lost cop consciousness as he was rushed from his house to walter reed in an

am an ambulance, on january 1st. >> it is not something that we can speak to right, this is his own medical -- it have a private thing. reporter: here is the thing pentagon carried out a airstrike in iraq while austin was in the icu, we told it was authorized before he went in. and republican senator tomctom cotton said that secretary of defense is key link in chain of commanding between the president and uniformed military. there must be consequences for this shocking break town it true. we're told austin did participate in a secure call with the president on january 1st, the day high went to the hospital for post surgical issues, but white house situation room, which needs to know where people on these calls

are located, did not' exactly where he was. >> it is generic, peter, what town they are in dc . that is the process, issue of when a cabinet official is hospitalized it on agency to inform it is happening. reporter: austin has no plans to resign. and white house officials tells us that president biden would not accept a resignation, they are not telling is why this major breach of transparent see in this case is easy to excuse. larry: one last follow-up, you mentioned the situation room, the people in the situation. this is my experience, people are fabulous. they are among the best people you will meet in government, they are supposed to know where all

cabinet-level people are, all of the time, this is a part i do not get. reporter: it really, very key parts of this story do not make sense. in t the situation room they have a board that will show locations of the president, of the vice president, and the key cabinet members, including the secretary of defense. but for whatever reason when they checked in on secretary of defense, the location was given as the washington d.c. area. it is unclear who was providing that, why it was not more specific, we know at some point austin told his colleagues he would be working from home for a view days after this elective surgical procedure, maybe there was a thought he could sneak into the hospital and no one would notice, but we don't know, they are not telling us more, sometimes in austin's circ circle

thought they did not have to tell president biden and they didn't. larry: peter doocy thank you. >> all right a couple more words about this story, joe biden can p blather on hospitalization much as we wants about republican insurrectionism that never excited. the votes public could care less about a protest rally that's went bad 3 years okay mr. trump was not charged or convicted of insurrection, there is a biden red herring to distraction from all biden policies gone bad. it will not work, besides inaffordable bidenomics, 3 trillion will do articles of regulations -- trillion dollars of regulations stifling small businesses,

and even jobs reports have been revised lower by 443 thousand in last 4 months, here is another biden policy blunder, as we just talked with peter doocy, in middle of two wars, arguably three if you count southern border catastrophe, joe biden forgot to talk to his defense secretary for a week or nearly a week, now lloyd austin and the white house are scrambling to paper this over, first, he was in the icu, which is not the best place to manage booming missions -- bombing missions over iranian-backed terrorist groups or manage u.s., and israel alliance with american hostages still held by hamas. then the defense department tries to c tells us that responsibility of the shifted to deputy secretary of defense, miss kathy hicks but she was in puerto rico

on vacation then spooning out that chief of staff had the flu, she could not tell us, there are two more troublesome issues, what about the president's daily intelligence briefing? has he been getting that without any dod input or lloyd austin input or is the secretary of defense supposed to be hooked in to that briefing at the very least? did joe biden not miss general austin. then the matter of the situation room, sit room staff they are supposed to know wherever cabinet member or cabinet level senior staffer serve day, the -- staffer is every day, because the president might call, from my own experience, the sit room people are very good. i worked for a president who was calling at all-times, one sunday evening he tracked me down in a w washington d.c. movie theater, sit room people and

white house operators are usually as good as it gets, how could this communication chain of command broke down in there is something wrong with the biden operation, it has nothing to do with insurrection. bidens need to look at themselves in the mirror and recheck their badly managed operations. and they should think about changing of their failed left wing policies. that is my riff. all right. more on this. bring in ohio senator jj vance -- jd vance, good to see you, your quick thoughts, they could paper this over, and try to cover it up. but this -- you know what this reveals major, m, major problems, what do you think? >> first, i am thinking, i can't imagine another time in mist history of our government, run by democrats or republican where you have a major cabinet official who

is just gone missing, joe biden ran on restoring basic decency and law and order to white house that was his claim. they promised good government. what they have delivered is a missing secretary, how do you lose secretary of defense for 3 days without anyone asking sere serious questions, there are so many things we don't know, it gives lie to the biden promise he would return des decency to good government, the the. >> first. there should be hearings about this. there should be. and it should be step by step, there is a chronology that is missing from these accounts. to the bottom, bottom line, do you think senator vance, it's tim for mr. austin to

resign biden will not fire him, the question is should austin resign, this comes from ou austin's own office, which was shall we say miscalculating. >> he should resign and be fired by president of united states, and congress has to look into this, there are so many unanswered questions, did we have a break down in our nuclear deterrent. we should check in with secretary of defense, god forbid there is no weekend at bernie's situation, he should resign, this is disgraceful, i have never seen anything like this, but beyond him resigning we have to have a stark set of questions to biden administration about who is actually in charge over there. if you lose the secretary of defense for days, it suggests thats engine is running but no one is behind

the wheel, that is the story of biden administration at a time of extraordinary chaos for united states across the world, there is a big problem. larry: as i understand it, senator, that president biden did not talk to his secretary of defense for almost a week. we're in the middle of several wars, as you know. including southern border. but we're in middle of ukraine war and israeli war and a houthi war or iranian terrorist war, is it possible that the president in wartime, has not talked to his secretary of defense? for almost a week. i can't imagine, that but what say you? >> i can't imagine this either but this appears to be the case, it is not justin direct conflict -- just the indirect conflicts buwe have american troops that have been firedo across the world, my question, who is the president of the united states talking to at

the world's most powerful military, is it chairman of joint chiefs of staff or someone else at department of the defense and why is lloyd austin not involved in these conversations or very least telling people where he is, it is important to recognize no matter your politics, that is the most important official in the government outside of the president of united states it is a real troubling thing we just lost him, and that no one in the united states government actually thinks it was important for the president to talk to leader of the armed forces, this a really worrisome situation, this suggests break downs at multiple levels much military, under the biden white house. larry: switching gears slightly, a couple weeks ago front page in the news, nippon steel company taking over u.s. steel companies, deal has not been consummated yet, i believe

you were opposed to that, even though japan is an ally, i think that si thius committee, what is your take on this, it is old, senator vance but we never had a chance to talk. i think it's serious if all of our manufacturing is being taken over -- we still might be friend bus it is still serious. >> you are right, that my point, cfius should look at national security implications, i love japan, it is great, beautiful people you are right they're important. but we have to ask, if let's say, there was app order for a -- an order for steel from a january-owned firm does that firm respond to japanese order first or american orders first at a time crisis? what if we need to build a ship that requires that style, who gets steel first

and remember, that japan is a great country, but it is fundamentally within china's spsphere of influence, if you walk this path 10 years down the road and there is a major conflict in east asia can we be confident to get the steel that we need to som manufacture things, this raises a lot of concerns, we have to learn lessons of last 40 years, allowing too much of our manufacturing to go overseas, it made our country weaker, i would like to see us reverse them. larry: on the border, cat as cat ca. >> this is major war going on. i don't know whether biden is plugged into it or not. >> it is most important thing happening in the country if we don't get control of the southern

border, tens of millions of illegal aliens now in the country, tons of fentanyl killing over 1 hupp thousand people, we don't -- 100 thousand people, we don't have a country any more if we don't get control of that border. in a lot of ways we're trying to solve a problem for the president. that he can't solve himself, he can't secure the border because he has crazies on his left flank who want an own border, we republicans are trying to solve the problem, if we have an open border it will continue to destr destroy the country, i would love to see us make real progress, but the problem is that the president is in charge of border enforcement. he has to come to a jesus moment where we released this is unacceptable. it has to stop, and president has to do something to take it stop. larry: all right senator jd jvangs of ohio -- jd

vance of ohio thank you. >> coming up one week until iowa caucus, we have arkansas governor sarah sanders, she will stump for former president trump in the hawkeye state, weather permitting. she will join us next. we will talk about that. we might have to talk about lloyd austin, miss sanders knows a thing or two about the situation room and white house operators and presidents that call all-times day or night. where is lloyd austin? all points bulletin, where is secretary austin? i am kudlow, i am right here on set, you can get me any old-time. commercial auto quote online. so you can get back to your monster to-do list. -really? -get a quote at progresivecommercial.com. nexium 24hr prevents heartburn acid before it begins.

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trump, who just might call you you know any time, day or night, and often did. how do you lose a defense secretary? governor sanders? how? for almost a week? >> you know it is beyond my comprehension, like you having worked in white house, they can find you anywhere. and not just they can, but they do. often. the idea that the secretary of defense was hospitalized and the white house did not know and president was not aware is truly beyond comprehension. however, it is sort of seem like it may be status quo for this place. joe biden doesn't know where he is half of the time, not surprising he would note know -- not know where is staff is, another reason so important we make sure that people in iowa and then across can country get

out and vote for donald trump, we cannot continue down the path and allow our country to be guided by someone who does not know where he and his staff are and lead the united states. larry: one night, you will remember this, you were consoling me, on a sunday night, late, i was tracked down in a movie theater in washington with my saintly wife, because he didn't like something that i said on one of the sunday talk shows, i tried to go missing.. >> larry that does not sound like you. larry: it was in west end on they found me. that is why this whole lloyd austin story is so implausible. i'm laughing now, i wasn't laughing then. sarah nikki haley is fighting hard, i'll give her credit, she said god bless don't ddonald trump, who just having a temper

tantrum about he every day. can you r react to that, i don't know what she is getting at, she worked for mr. trump. >> you have to ask her. it is very unclear what temper tantrum she is talking babout, he is probably happy looking at same poll numbers that the rest of america is with a commanding lead. and set and poised to win this primary, there is a clear contrast between story of 4 years of this country under president trump versus couple years we had under joe biden, one is a story of success and prosperity, and security not just at home but abroad. secure borders, a booming economy is great trade deals versus someone who has

literally screwed up in every place they have engaged this con dr contrast is clear, i think that president trump is living the high life and pretty excited as he goes to final days before the first votes are cast that will put him further solidifying him as nominee for republican party. larry: you know sareh, as you said this -- sarah,something that i have said. trump is running on the issues. it has made a difference, i believe he is the clearest whether the economy taxes, regulations or drill, baby, drill or southern border, strong foreign policy, i assume that is why you are putting yourself out to go to iowa or wherever you go to cam for him. i think in nikki haley should be very careful, trump's record on issues and promise to do more of the

same if elected. >> he sit out when he first ran in 2016 with a very ambitious agenda, then he delivered. he gave the goods that is why his numbers are where they are, there is a very clear contrast between the two candidates, a lot of people in 2016, i think, thought that donald trump was all talk, but then he showed high could show up, do the job, and deliver on that really ambitious agenda he laid out, he is doe together again, he is really i think hammering home where he succeeded as president that is why he is doing as well as he is. larry: governor sarah sanders from great state of arkansas, thank you, we appreciate it, if you need a snow plow we'll find you want to get you on iowa. best regards to your father. >> larry if that is what takes to get to arkansas we'll invite you down.

if you need to bring a snow plow to come on arkansas we would love to see you. larry: i'll be there little rock, i love it happy new year. >> on kudlow, isn't donald trump only candidate to take on washington establishment. and drain the swamp? i know, that is really i think the biggest issue, separating him from the others in the republican primaries. and, joe biden who can't find his own defense secretary. i'm kudlow. we'll ask kellyanne conway, next up, please, stick around. h, warm hot dogs! when i'm not selling hot dogs, i invest in a fund that advances innovations like robotics. fresh, warm hot dogs, straight out of my torso! one for you, one for you. oh, you're a messy one. cool, right? so cool. anyone can become an agent of innovation with invesco qqq,

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larry: all right welcome web, trump on issues, why is he so far ahead of nikki haley and ron desantis, hint, drain the swamp,

welcome kellyanne conway. author of the very good book, here's the deal. you know kel kellyanne conway, donald trump always knew where you were, he didn't lose you for a week. he didn't lose me. he -- as i said before with sarah sanders he tracked me down in a movie theater one sunday night, because high he didn't like something i said on a sunday talk show. anyway, weigh in, you were senior staff, you were in touch with the president all of the time, all of us on guard, he could call any time, how the hell do you not talk to your defense secretary for a week? >> larry, it c con founds me, they include, always

include the president's daily brief that will include members from pentagon, secretary of defense himself. so the question is, while we're at war in ukraine and at the border in the most middle east, why not only does the president not know where the secretary of defense is, but why hadn't the president or vice president for that matter reached out to secretary of defense on any number of issues, i want your viewers to realize there are people in situation room whose job it is to know where the secretaries and deputy secretaries are at all-times. so, i think that lloyd austin's excusings and his reasons that he wants privacy are terrible. we have to into why is there no on going communication between pentagon and white house. i think sarah hit it, a lack of transparency and account accountability by this administration.

i'll take it one step further, when trump resided over that people miss and crave is -- you had a president under wing. you had him inviting press to oval office, and he showed up at different things open press, he made himself available that meant that the -- we had an administration where people whether you are the plumber on the job looking at your home or mom watching your news from home or you -- everyone received a presidential communication at the same time. whether it was on twitter, now truth social or president's own voice, we're starving for that again, i think that plus draining the swamp and lack of promises and delivery that president trump will do again, i think that is why he is ahead in

polls. larry: i want to say, by the way, your point about availability is crucial. you and i saw it daily. sareh too. trump would go, sometimes he would go to the briefing room, he would do it by the hillary cl the hillary clinton held, on the -- on the, helicopter, there were times. joe biden does not want to do any of, that other you thought your daily briefing, intelligence briefing, defense department, and various white house staffers, you should not miss your defense secretary, those people in the sit room, and those white house operators are terrific that was my experiencing. they are smart, they do their job. so, is it not easy to slip one guy. dod had to be in shut down mode than in order to

prevent the situation room staff or white house operators. they had to be in shut down mode, i think that should be part of an investigation, i asked jd vance about, that they need a investigation, kellyanne, look, one there are thing, i know everyone that wants to cover the primaries, horse race polls and et cetera and et cetera, polls show trump winning handley, we'll see polls or not votes, but, but, it occurs do me, one of the troubles with former governor nikki haley, not bad person, she is a bad republican and et cetera, i may disagree with her on certain things. particularly haley, she will not over turn the washington establishment or drain the swamp, donald trump wants to drain the swamp, he devoted himself to first term and smarter now and wiser and learned from mistakes and

has a better shot at overturning the swamp in the second turn. that is a dmz issue. >> this huge. we're paying for them to do the same job, not well, as personnel policy, president trump probably line offed from first term he was able to affect wait some of the draining of the swamp, you can't replace it with people who are skimm swimming in the swamp, the swamp is quicksand, people are career nonpolitical appointees they are wired into media, they are not bl blameless, i think making sure that we root that out where we have duplicate people working on the same things, we don't need all that, a true

businessman, an outside er. >> vivek ramaswamy would live the swamp bone dry, all i hear ron desantis say that donald trump failed to drain the swamp, and i don't think that nikki haley talks about it that much, i'm surprised to see ron desantis pushing a flat tax, he talks more about fauci than his flat tax, if he would push that more, a lot their position look like donald trump's positions we're back to the beginning, if you get the same thing policy wise, voters say why go with those who are promising it when you can go with the guy whoy li delivered it. so many rank-and-file voters looking at this cage rematch, donald trump is leading among independents

he will get more hispanics and many more african-american, he is doing well among first time voters some are young but new citizens. they are come off the sidelines it is ironic that the person that is still positioned as biggest outsider to the swamp, is the former president. much more so than -- you have people like no labels, they are courting governors and senators and congressmen by their definition they have labels. so, you are left who one guy an outsider to the system, it looks like people'ed that for a while, they got own obama then president trump, they went back the other way then they got the lacloch ness monster of the swamp in joe biden, he has been here over a half century. you contrast the two presidencies, it is a very clear choice. not a referendum but a clear

choice for many americas. >> we will leave it there, i think you are right, if you find a defense secretary let me know, please, send hear help. >> amazing. larry: kellyanne conway. >> see you in iowa. larry: switching gears on capitol hill. speaker mike johnson may have a deal with sensor chuck schumer over the weekend, possible our own edward lawrence is live from the white house. with all of the details, edward, what you can tell us. reporter: yes, some of the details, there is no language as you know on this bill, this bill top line mirror fiscal responsibility act, that was possed by then former house speaker kevin mccarthy, and president biden last year. but let's look at top lines of this bill, looking at 773 billion dollars in nondefense spending about 8 quick 86 billion for

defense spending, chuck schumer said there was a lot of rid red lines that republicans did not cross. no changes to government assistance, passed under the inflation reduction act and leaving defense spending unchanged from national defense other authorization act, all they have to top line, but they are looking forward to seeing what type of border protections will be added. >> we're letting people flood in, what dis do we do about debt and deficit that we have, we will have 50 trillion in december in less than a decade now, i'm looking forward to reading the fine print seeing what that deal is about. reporter: no specific language for the bill, other wins for republican paying are for some domestic spending by diverting money

from unused covid spending and more than 20 billion in irs stunning to be used to offset, that is 26.3 billion offsetting for 1.6 trillion dollars in spending, under the grime, president biden says that this is making sure that people are free from what he calls extreme policies. larry: edward. i read a lot of this stuff, committee staff sends me stuff, understand what of it, some i don't, 10 year budget window, mccarthy and biden deal, was supposedly to reduce spending from some baseline, i'll call it say reduced spending by 1.5 trillion, the baseline issued is way too hard and takes too long, has anyone done a 10 year scoring of this deal? that is the way you have to look at these things.

reporter: not as of yet, we don't have language or fine print on this, the cbo is still projecting 1.7 trillion dollar deficit next fiscal year, and 1 1.8 after, that spending is not slowing down on this republicans do get the win on this and diverting some of the money already spent. the fine print,. larry: all right we'll look at this and revisit it, edward lawrence thank you. >> staying with the economy. and various nuts and bolts, we bring in the great art laffer. reagan economic adviser and medal of freedom recipient, author of taxes have consequences, art you are listening to edward lawrence. no one bid better but no one really knows what? the deals, that say problem with washington, when kelly

and i talk about cleaning the swamp and donald trump wants to drain it, that say problem, public has no idea what the numbers mean or context or baselines. i i looking for sim sympathy. >> all of my sympathy to you, none of the congress know what is in there and president does not. you have a huge you getitty bitty changes on the margin, we need will happen in november of 2024 this year, we'll need a big cataclysmic change in the election, to change the direction of america, these things are nice. but we need to have a change in america on economics. larry: we need growth, growth, growth, growth, growth, growth. >> yes. larry: you know counting angels on the head of the

pin, with all of that phony bologna jargon, i don't like debt. we need growth, we need tax rates, lower regulations, open the fossil fuel spigots, we have talked about it a million times, i'm saying that the budget deals are interesting. >> that is what we need. larry: i hope they are less rather than more. but we need is growth for the next 10 years, the next 20 years, you know. >> that is it, we we need growth and growth solves all sorts of problems crime problems, solves family problems and all sorts of problems in addition to prosperity, and happiness to be frank. and we can do that, we need to lower rate broad base flat tax like you and president did we need spending restraint, and sound money and free trade and minimal regulations, and

energy deregulation to be producing the energy, we need transparent see, they will be in play in election of over in 2024, this is why trump will shine like a star, and i think we'll get that big change if we don't, you know 8 a problem long-term for u.s. >> real quick, i'm out of time, from john carney at breitbart, twice as many americans say they are worse off economically after 2023's bidenomics, the other thing is, the labor department put out jobs and employment, revise lower over the past 4 months, by 4 free thousand that is a big number. downward revisions of jobs. >> a huge number. >> we knew it was there, even though numbers showed otherwise, now they do corroborate, we understand that the people are really disappointed with the

economy. they -- bidenomics does not work, they don't understand why, that is why they would out the it, you are -- tout it you are right larry, looking forward to future. larry: great art laffer, we'll be right back, i am kudlow, we have charlie hurt on the other side, stay with us, more to come. ♪3, 4♪ ♪ ♪hey♪ ♪ ♪are you ready for me♪ ♪are you ready♪ ♪are you ready♪

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larry: joining he now great charlie hurt, fox news contributor. charlie happy new year. not enough attention paid to biden's terrible speech in south carolina. playing a clip to let you comment on that, check this out. >> maga republicans, lead by a defeated president is trying to s steel history now. they tried to sty steel eligible. larry: they might be trying too steel lloyd austin because no one can find him. what is biden doing? does he think this is the path to victory? >> yeah, well i guess when you compare it to what is

happening in the economy, the biden campaign files like this is their only option, to go full de desperateo, what was purpose of giving speech at that church, exploiting horrific dates of 9 parishioners 10 years ago? i guess that is better message than he has about the economy or anything else that currently matters to politics right now. because that is how -- that is just how big of a mess he has made of the place. all of it, you know between that and his harang, at valley forge, where i guess he was trying to compare himself to george washington or something, i don't know,e the idea he will attack supporters of donald trump and accuse them of being threats to the country, we never have seen anything like this, our politics is usually, one

politician goes after the other. i do know remember any politician going after the supporters, voters american citizens who support an opponent like this. this is crazy, this is new territory. i think this a reflection of how desperate he is given what terrible shape the things he is supposed to be in charge of are for most americans. larry: you know, charlie, we'll get you back, come back and critique the primaries with us, this is a rid -- r red herring, detracts from failure of other policies, charlie, i am worried about lloyd austin, if you see him, sos or telegraph. >> ill a report him, silver alert. larry: someones that to find him. >> i'm kudlow, be back in a second with my last word.

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