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political issue in both iowa caucus and new hampshire primary was illegal immigration and open border. probably will be number one issue across the country. and now it appears that negotiations in senate and white house have broken down. republican senators have overwhelmed leader mitch mcconnell, who is finally throwing in the towel. so we have an all-star panel, tammy bruce, liz peek and caroline downey to talk about this and all other issues this the election campaign. later on kevin hassett on new economy numbers, does joe biden deserve bragging rights. but first, to fox news peter doocy live at white house with latest on the illegal immigration catastrophe. what can you tell us. reporter: we can tell you governor greg abbott in texas thinks he has the constitution on his side here, wrote a long letter to

officials, requiring president biden protect individual states and stuff on the other side of the u.s. border, people on the other side of the u.s. border and abbott said that president biden is not doing that. >> hard for me to tell what is go on. what is clear is that joe biden has from the time he took office, he -- during the time he was campaigning, he had no intents to secures border, he talked about open border policy during the campaign and now allowing it with. reporter: in in letter, abbott writes failure of biden administration to fulfill duties imposed has triggered article one extent, reserves to this state, right of civil defense. and now, white house is undecided on democratic calls for president biden to seize patr control of texas national guard.

>> administration -- considering federalizing the texas national guard. >> i don't have any decisions with respect to that to speak to for the president. i don't have any comment. reporter: president biden talked for more than 20 minutes today in wisconsin, this never came up and it coming unless and less on capitol hill, mitch mcconnell was telling leaders behind closed-doors republican leaders, that the politics thiso this have changed, mitch mcconnell was a senator pushing for a border deal tied to money for ukraine fight gain russia and israel fight against hamas and gaza, now it seems that thera less and less of an appetite by republicans on capitol hill to do that. they are -- there is thought now that they should just be pushing for border money everything else can wait or be done separately. larry: peter, the sound did not come through here for

the john kirby quote. was that saying that the federal government could seize the texas national guard or stop the texas national guard? i missed that point. >> someone asked if the president would federalize the guard, and kirby's answer, he did not say no he said, don't have any decisions with respect to that, and to speak for the president, he does not have anything on that. but, down there the texas national guard guys, their orders to layout razor wire, to keep people out of the u.s., they are next to the cvp officers whose orders tor cut the wire -- to cut the wire if there is something they need to get on other side, somethings that to give, there are democrat in congress who want president biden to take over texas national guard, they will spend a lot of time before the supreme court over the next kim w couple weeks, it seems. larry: fabulous, peter

doocy, appreciate it, right back to the illegal immigration catastrophe with super star panel, tammy bruce, liz peek, caroline downey in a moment but first, i want to spike for a-- speak for a second on president biden selling bidenomics in wisconsin, yes, i'm an honest broker, he got a good 3.3% gdp number 4th quarter following a good 4 f 4.9 in third, if i were he, wow -- i would brag about it too, all is fair in love, war and politics, brag when company i get it, i've been there. but, mr. biden can't help himself, then he goes hog wild with dumb things about donald trump's economic achievements d here is something biden said. >> my predecessor, he chose a different course. trickle down economics. cut taxes for the very wealthy, that is what

happened. he stripped good paying jobbed and shipped them overseas. larry: he can't help himself, these attacks are wrong as i have said hundreds of times, just for starters, the trump tax cuts increased average real wages by over 6 thousand dollars bidenomics seen typical family income drop by 4 thousand. the studies of corporate tax cut shown again and again they produce po more business investment higher wages and help lower incoming and minority groups more thans upper incomes and they paid for themselves. now, then, there is this bologna about a thousand billionaires, and how they only pay 8% tax rate, this is wonderful -- i've done this a hundred times based on an unrealized capital

gains we we'll tax that was -- wealth tax that was never immi i'm implemented into law, does not exist, but biden and his staff keep including the unrealized income. there is no unrealized capital gains wealth ta tax, there is no income to be counted a platt out lie, staggering. biden's gdp improvement is a good thing, i'll admit it. but without stepping on his line too much, the second half improvement this year offsets the gdp decline, in first half of 2022. now, mr. biden also right to brag on lower inflation got it but what is troubling about the gdp reports is that buyingest contributor -- biggest chris

contributor to growth is government spending. in last two quarters, government spending had biggest growth rate of any of other ma major categories in the gdp, including consumer spending this is unhealthy and it will prove to be inflationary, economic joe lavorgna pointed out government spending last 3 years under joe biden comes with ke com cumulative excess of 3.3 trillion, 7 1/2% growth of spending under biden verse 20 year trend of 5 1/2. sum total federal spending is rising faster than gdp and deficit last year for this year, will come in around 2 trillion dollars per year, big government spending that stimulates demand, is not matched by manufacturing or

business equipment. which has been flat. for two years. now, stay with me, jean bap abaptiste argued and wrote that supply creates its own demand. we must produce in order to consume. unfortunately bidenomics thinks that consuming stimulated by government spending will do the job. it won't. that is recalled too much money -- that is called too much money chasing too few goods that ch causes inflation to go up that is the big risk in the economy story, i do know deny mr. biden's mini boom buty deny his massive government spending will produce a healther economy in longer

term that is my riff. now, to our super star panel. no laughing? back to illegal fiasco, and leave jean baptiste align, we welcome liz peek, and we welcome great tammy bruce, fox news contributor and growing great caroline downey reporter at national review, ladies terrific. tammy bruce, mitch mcconnell finally throwing in the towel. after howling conservative senator said you can't have this terrible deal, couple things, work permits for illegal migrants, 5,000 per day, influx of 5,000 per day is okay. i guess that less than 10,000 a day. increase number of visas for

family of high school labors -- high sc skill labors and betts betsy mccaughey on show last night, talking about her great column, illegals who want to flying they don't need a picture i.d. card, no i.d. cards just go ahead and next thing they will vote. tammy, welcome to the show. >> thank you first time, i appreciate it. larry: all it is all. >> you know you mentioned jean baptiste i think of paris, i get distracted. larry: i knew him, he wrote in 1801. >> there you go, 5 thousand a day does not sound like much, wouldn't 50 thousand a month -- 150 thousand a month, you think about who is already here, numbers that have happened. we're still talking about incentives, the idea is someone can get in, maybe i can get in we can make if

happen. the the coyote and cartels say we have to get more money, we can get you in on that, that is huge. as is green cards, health care, the nature of just being able to stay and never leave, we have to eliminate the incentives, to make it clear, that is not happening, this kind of a deal this is -- you know par for the course this status quo from before it reveals is that they still after everything over the past 3 years, do not understand what is happened to the country, it is not even theoretical, not philosophical it is the nature of the damage that has occurred because of policy translated to rel lovelife that has destroyed lives not only of americans but those immigrating, the lives of children, the lives of the americans and others who overdosed here. and that is the r reality, they are still a

bubble like at very top of the eiffel tower looking out among other people. larry: i think politically caroline. mitch mcconnell folded his cards, he was thrown in withed by in, i'm reading stuff, and balking to -- with biden, i am reading stuff talking to people on the phone last week senator langford of oklahoma a good guy, he was comingous with stuff, that basically sound like biden's open border would remain open. and then you know you have conservatives senators, i think pretty much half of the conference rebelled against this stuff. and then, trump is running on the issue he was opposed to any lousy deals, what you can tell us politically from national review, i used to be a senior editor. >> sounds like mitch mcconnell recognize that trump will be party's nominee, and border is his forte. the issue he thrives , at

crisis flooded to our country and schools and hospitals. all of local shelters, you can think of every city has been captured there is a reason why the republican governors call it an invasion. and i say politically, you know, i think trump is running on the border for a reasons and mitch mcconnell falling in line for a riengs. reasons. larry: liz peek, you write in the hill, joe biden immigration avalanche is about to bury him. in the new hampshire numbers, immigration was. >> number one. larry: again, like it was in iowa. and new hampshire is far north, the northern border is a problem as well. >> yes, to carolyn's point there is a nationwide problem, i think that unsung hero of this story is greg abbott, he is the 57 person who started busing people too chicago, boston

and new york and philadelphia. and all of the people saying wait, we didn't vote to have 20 or 30, 40 thoughts people dumped in our laps, it is now a nationwide proob limb, problem, and northern border is just as unprotected. maybe more so. i have to say, it makes me laugh, to think that joe biden is basically going to war with greg abbott, this is like remember the alamo, what is he thinking? he is not allowing as peter doocy said, one group of people putting up a razor wire and the other group cutting it it is just between the legal ports of sense entry this is illegal people coming in in the unsafe ways, 1700 m migrants have gu died of trying to get to texas under president biden. >> what was -- we'll bring

what was missing from this deal this was being negotiated. >> securing the border. larry: title 42 is missing. and build a wall is missing, catch and deport, just a few details. were missing, from this deal. so, no wonder the senators were in full revolt. hang on, we'll talk more about, that. bringing in oklahoma governor kevin stitt. has liz peek reminded it, federal different wants to federalize the texas national guard. i know you are governor of oklahoma, the great state of oklahoma, so you can, next you or top of texas. you are north of texas. and you have one side wants to add barbed wire and the other to cut the barbed wire, and they are arguing about the constitution in the middle.

governor kevin stitt, can you clear this up. >> first, thank you for having me on. just like you, oklahomans we can't figure out what joe biden is doing. i think one of your gifts said this razor wire there are 28 points of entry on swswsouthern border, you can legally seek immigration, all we're saying down illegally cross, that is what the barrier is for, fact that joe biden cutting razor wire to let people in, that is a head scratcher for most americans and oklahomans, we don't know what is happening there. larry: this is a c constitutional issue, i want to ask, if it is clear, that the federal government is not doing its job, and responsible to protect the country with roundries and

sovereignty, is it legal constitutionally in judgment, that the states have to do it. that is an argument, i think it will is a powerful argument that is out there. what do you think? >> we stand with governor abbott, i think 25 republican governors agreed we sent a letter up support for governor abbott's position, the st states create the federal government w. we have a right to defend our state. >> i have been to the border. all of that we're trying to do is keep illegal immigrations from crossing illegally, go to airport the port entry, most of this stuff is common sense for 95% of americans.

and joe biden is just turning this country up side down. larry: as a governor, down there, you are close to the border, a governor in oklahoma, what will you do, what can you do? what have you been doing? on the ground? kicurbside view, what steps can you take in oklahoma, and other governors? i know texas and arizona, you know they are on the front lines, i get, that but as liz peek said, this is now a national every state issue. illegal immigration is showing up in the iowa caucuses and also in new hampshire primaries. there are issues about northern border, as y you may know, potential that terrorist will come in over that border which is porous. >> yes, first, i have sent our national guard to the southern border in surplussed support of governor abbott,

we have done that and looking to do it again, texas, oklahoma, we're having to spend state tax dollars to defend against fentanyl crisis, potential terrorists that are coming across, and the feds are not doing their job, but i want americans they have to understand they are cutting the barrier and letting people in. that is what the joe biden and democrats are advocating for, it is a head scratcher to most americans we don't understand what is their -- why would those do that? why would we not want secure borders, last time, when i flew to mexico, i to land in airport, and guess, they checked my passport to make sure they knew who was coming in their country. >> we don't do that. >> united states does not req. we used to do, that yes. so, you have no common sense

governor, you want them to check your passport, next thing you want a photo on an i.d. card, known of. somehow that was missing from biden's offer. governor kevin stitt from great state of oklahoma appreciate it, sir. >> thank you so much. larry: you bit. >> let me ask a question run with our panel. you will stay here, leave from one minute come back do the whole show. tammy, one side cutting the wire. the other side putting up the wire. that is really among stupidest, i have been in and out of government for many years that is stupid. who is the winner? who is the loser? what are politics of this? >> i think it is greg abbott, you are correct the man who is really the man of the hour. showing americans what is going on, not just limited to just texas or arizona and et cetera, what is

perplexing biden administration is now saying, and even biden said there is a crisis at border, they are trying to figure it out, when you have federal officers or somebody o associated with biden administration on orders from biden administration to continue to open the border, as you argue it is a crisis and you want to shut it, greg abbott is smart. they are saying because, that is not a legal point of entry it is illegal that is dangerous. that is crazy, i will tell you about the terrorists and northern border, according to representative kelly from republican out of pennsylvania, last year in november, 85% of all suspected terrorist encountered at land border ports have crossed to u.s. from northern border. larry: hang on. you will come back, real quick, liz, idea that the federal government will

federalize state national guards, that came up in this kirby business with peter doocy. >> not just texas. i think now there are like 10 or 12 states that are sending national guards to texas. are they nationalizing all of them? >> a great point. >> this is insanity. you know. the governors said is right, the feds are not doing their job, to your job, don't attack your states this is stupid. >> caroline, last real quick point. it is interest fing to me that mitch mcconnell folded on this issue. he is a hawk on ukraine. that is his big priority. i don't agree with that, but others may. is this interesting that he folded on this issue. it is now in january dead. >> issue is reaching a political breaking point,

biden administration is engaged in an open conspiracy to co sub vert our national sovereignty. >> you will be mere for most of the show. >> we'll be okay, kevin hassett is joe biden's bragging rights on the economy up next, stickknow around, i'm kudlow. get help with j.p morgan personal advisors. hey, david! ready to get started? work with advisors who create a plan with you, and help you find the right investments. so great getting to know you, let's take a look at your new investment plan. ok, great! this should have you moving in the right direction. thanks jen. get ongoing advice; and manage your investments in the chase mobile app. if you try vaping to quit smoking, it might feel like progress, but with 3x more nicotine than a pack of cigarettes - vapes increase cravings - trapping you in an endless craving loop. nicorette reduces cravings

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larry: president biden bragging about the economy, in wisconsin today. let's ask kevin hassett if he deserves self praise, fellow at hoover institute. author of the drift. most important book in the 20th century. kevin, 3.3% gdp today, and 4.9 in third quarter. last year's number, lower inflation biden is bragging, what do you think. >> the numbers were good and they have been better than we expected. really for a few months. inflation is worse than the market thinks, we have to you know pause and think, not just unis biden lying about the numbers. but why are they like that, he has not done much to the economy.

he regulated a lot and lets tax hikes come. it is booming, i think for me leading theory, i have been digging into it, that the productivity gains from artificial intelligence spreading to production everywhere in the economy are bigger than i expected, there is science out there, eric out in stanford, that showed that productivity goes up 15 to 20%, a company hires someone like snowflake or a big company that helps you better. the way to think about it, there is chess a.i. that can bite very best c chess players, if you get a business a.i. to come in u.n. run the business it will be better. larry: the business side has been flat to down, the biggest contributor is government. government. >> and contiontion. consumption. larry: in last quarter.

in th third quarter, strong 3. point%, government 5. 8%. annual rate, how long can that last. >> there will be a reckoning for that. but, gain, i think that there is something else going on that is stronger, one thing that we have known that we have been talking about since way back in the day, back who you worked for president roosevelt that -- >> i first worked for roosevelt. teddy? >> the big spending does not necessarily give you the gdp you think, keynesian models with high government, they don't work because thethere is crowds out, i think we're going to a 90 technological change that will make the economy stronger than people think. for a while. regardless who was is president, i think that really politically impactful, if we get a quarter like this surprise on upside this is good for

president biden's prospects, people say, economy is not that bad. larry: it will -- >> i'm saying a fourth quarter gdf grdp growth it would be hard. larry: we'll leave it there kevin hassett being honest. you got it the numbers are the numbers, you have to give credit where cre credit is due, i have to get ut. kevin hassett. big new chair at the hoover institution, coming up on kudlow, president trump running an issues focused campaign and organization ally the strongest he has been, we bring back tammy bruce, liz peek and carolineli downey tngo talk about it, i'm kudlow we'll be right back.

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sara federico: at st. jude, we don't care who cures cancer. we just need to advance the cure. it's a bold initiative to try and bump cure rates all around the world, but we should. it is our commitment. we need to do this. larry: all right, what is latest on fulton county district attorney fani

willis fiasco in georgia, steve harrigan with details. reporter: another hearing in atlanta this time about meetings between white house staffers and district attorney office here. in atlanta. now d.a. office said that those meetings were standard, but defense attorneys say they were an attempt by biden white house to control and direct the prosecution of former president trump. >> white house has its fingerprints on all 4 criminal proos pros prosecution of president trump, now this case. reporter: his attorneys joined legal that will to try to remove d.a. f fani willis from the case, she is to give testimony on february 15 to answer charges she and her chief prosecutor, krum

corruptly used government funding to enrich themselves. larry: all right, we have more ladies n night out, caroline downey, and tammy bruce and liz peek. tammy, fani willis. i think she is in trouble her legal case is lousy, now an ethical case. >> this is what americans see is we see politicians behaving in a manner whether they deposit believe that don't believe that rule apply to them, they enjoy their positions, people that want to do what they want and never held accountable, we see that unfolding. it is unusual when someone is caught, but in this case, she more in front, she is doing something that many people think is not legitimate in certain ways, there are eyes on her, i think it hurts not only her

but the nature of when americans are thinking about government in general. certainly law enforcement both the state and federal level, considering what appears ts to a persecution of donald trump. larry: why did they have to go to white house liz to be briefed before the suit. >> i must say, the they did -- they spent a lot of time in white house and her boyfriend, was he was remuneratived for spending time, i would not spend him time in this white house you might have to pay someone to go. >> look, i think that tammy is right this is part of the general soft corruption two standards of justice. today, was a notable day, that peter navarro was sentenced to 4 months in jail no one has been sentenced or sent to jail on contism o contempt of congress for 50 years

this is second trump aide this is the constant pile up of legal attacks on president trump is one of the reasons without a doubt that his approval has turned. larry: from white house o oracling stra "s-- rourke straby the white house. >> what is you make of, that we were told when president trump was in office, his department of justice was politicized, i have never seen a department of justice so corrupt by president as this one. larry: peter navarro, he and i agreed and disagreed. but he should not be going to jail. >> it is ridiculous. larry: this is en santee, unless they want to throw hunter biden in jail. >> that is the comparison. >> a double standard. larry: donald trump has to talk about that, peter navarro versus hunter

biden. larry: caroline to the other thing. the economy. that other thing, affordability is still the economic achilles hill of joe biden, because over his 3 year period, even though inflation is come down, level of prices way up, up 17% over 3 years, and that has eaten to wages, but are up about 14%. so, real wages are down. people can't afford daily living, there is a number in wisconsin that i found today. average typical family has to make 10 and a half thousand dollars more to make ends meet, i think that is where biden's poll on the economy is low. >> biden administration keeps resort to the desperate defenses that inflation is moderating, look at number bidenomics is kicking in my generation

says we don't care, see our purchasing power is under mined year-over-year, household commodity, i have said, i could not afford to live in the town where i grew up. where my childhood was. because of the appreciation in real estate, and you know, there are some bubbles with, that but, generally speaking everything is way up that makes us less powerful as consumer. larry: and less politically potent, i think. >> yes. larry: you don't buy and sell gdp, you buy and sold sell gr groceries and gasoline. other thing that is coming up, i think it was axios, not sure, tammy, could have been punch bowl, i get all of left wing. >> what is the difference. larry: i get it through date daily caller. but look, the trump campaign

is -- trump best organization ever. this year, better than 2016, better than 2020. suzie wild in the lead, i don't know him, he is a terrific campaign manager. trump is all over the place where the power campaign, does not get enough credit for that. >> he is also cared by macamerican sensibility here, rejecting the persecution of him, he has the wind, the issue is choice, we want trump to be trump. the transparent see of who he is, yes, a de deeply flawed man, but we're all deeply flawed. we don't have to guess about what we are getting we know his strengths and weakness, and he does took we're getting the same guy, he knows what he is against, he understands what people are cabe able of, i think he loves country more and he understands like we do he

lahas to win to save the country, i remind people about biden comment of november 22, we have to dim sdemonstrate that high trump will not take power, making sure does not becam the next president. that is the fani willis dynamic the persecutions, and americans -- sne. >> this is the winds. >> it could happen to us. >> it always happens to many people, certainly disenfranchised people there are always complains in particular with black men about system against them, now we have seen it inly will time, in general -- real-time in general, i think that trump is this a tremendous opportunity not just for his reelection, so for his personal success, but for the country itself. >> it was axios that talked about. larry: axios. >> the new organized professionalism of the trump campaign. and i heard this from people in campaign, it is incredibly important, it is

why it is helpful to him in iowa and new hampshire. one reason, he had people in every single district, every precinct in iowa and new hampshire, this is a new trump organization. and unbelievable,. larry: it r was axios. >> important as you layout a national campaign. >> you love i w read the left wing sites. >> i do too. >> but -- this is really an important thing, in 2020, actually, "new york times" did a head on attack on president trump, one thing they don't like is he is better organized. heritage foundation and other groups laying out the people that might be added to a 2024 win in former president trump white house, they hate that. larry: one last one, caroline, on this, the "wall street journal" wrote an editorial thrilled that nikki haley was going to

continue to run. they don't like donald trump at all. maybe the leading never-trumper. in the editorial said by the way, you really should have something on the issues. nobody knows what your issues are. they had about 3 pair paragraphs, i think that has been trump's strength and that has been ha nikki haley's weakness, she has not said much or anything about issues. >> trump's policy focus is what is galvanizing voters, nikki haley a success, it was not terrible in new hampshire, it is because of the you know independents and democrats that flock to her not because they were enthusiastic about her but it was a vote to defeat trump. which does not say a lot about her loyalty. and i also read that haley lost a major paili

billionaire donor, but she has enough to keep her campaign going, she'll suffer a humiliating defeat in south carolina her home turf. >> i have to get out, tammy bruce, liz peek, and caroline downey thank you to. >> folks coming up, why doesn't chuck schumer close the border. what does he have against chewing tobacco or whatever it is. no tobacco, you can have a joint on the street in new york city, but chuck schumer does not want you to chew any tobacco or nicotine substitutes or anything, i'm kudlow we'll be right back.

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larry: busy week on capitol hill. boeing airplanes, performance getting wracked. and then chuck schumer dud not like chewing tobacco, zyn over whatever it is, grady trimble will give us the story. reporter: hey, boeing ceo david calhoun stopped on hill this week, be the beginning for him, senate commerce committee wants him back but for a hearing, that i want to hole hold

hearing after ntsb findings what went wrong. >> do you have concerns about systemic product production issues at boeing. >> positive possibly, we need to follow the evidence. >> i do. i do believe him he said he is trying to fix it we see there are problems. reporter: alaska and united are looking to get max 9 planes they have in skies next week, after required 99 inspections, several airlines are expecting fewer delivery of max planes. and another story, getting buzz this week on hill, sense chuck schumer c calling for feds to crackdown on zyn nicotine

packets, he wants home look into product and company's marketing practice, he is worried they could be targeting to kids, several g.o.p. lawmaker are crying government overreach. >> i'm going to error on side of more freedom and personal choices of those things, more than half a million americans die every year from smoking and tobacco, or, you know tens of thousands die from alcohol. and i think there are bigger issues that address than that product. reporter: fitt fetterman did say keep that out of hands of kids, we reached out to philip morris, they said they exceed all regulations on the industry and they don't market to kids. larry: grady, chuck schumer, you can smoke a joint in new york, you can smell marijuana everywhere you go and no one can do chews

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at st. jude, the mission is just something that everyone can truly get behind. look at our little st. jude pin there on the fridge! we're just regular people donating. yeah. and i think it's cool to be able to make a difference in someone's lives in a way that is meaningful. larry: that's it for kudlow, thanks for watching, folks. [music - inner circle, "bad boys reply"] get out now! get out of the car. get out of the car.