opposite. it tells you the federal authorities still don't know what the target was, or they wouldn't be urging extra vigilance at place where is they didn't think the target was. it's a situation where they haven't identified everybody, they don't think. they don't know precisely what the target was, so why not have a word to the wise. that's the thinking here. >> pete, where's this coming from? who's involved in this alleged plot? where is this information coming from? >> well, the only thing we know for certain is that they've identified a young man in denver who drives an airport shuttle bus. they believe he's the center of it. they're questioning anyone he had contact with in colorado and in new york. they're tells us when he was questioned, federal authorities said he tried to mislead them. he said at one point, i was thinking about attacking a big

box store outside of new york. but they believe he was trying to mislead them to throw them off the scent. they still think his target was somewhere in new york. they just don't know what it was. >> so the rumors of a big box discounter outside of the city, what do you make of those rumors? >> well, i make what the fbi tells me of them and other federal law enforcement agencies. which is they don't believe that it was the case. they think that he was trying to throw them off. >> who is this person? >> he's najibullah zazi. he drove a shuttle bus at the denver airport. on a laptop they found nine pages of handwritten notes that contained formulas for making explosives.

according to the justice department and the prosecutors, he told the fbi he went to pakistan last year for four months and attended an al qaeda training camp where he got instruction on explosives and weapons. >> do we think he's acting alone, pete? >> no, i don't think they think he's act age loan. he's apparently tried to tell federal authorities that he was only in on his own but they don't believe that for a moment. and that's why so much investigative attention is to try to figure out who else was involved. >> between kings and denver? how did we find him? >> i think it's fair to say that he's been under lots of scrutiny for at least the past year. we don't know -- we don't know definitivety precisely how he came to federal attention, but my guess is anybody his age that goes to pakistan is going to get some attention. there may be other means of keeping track of people once

they go overseas and who they communicate with but, you know, the fact is they've been watching him very carefully for probably the past year. >> and last one, you've been absolutely wonderful and we appreciate it very much. homeland security, this national alert you mentioned, luxly hotels, sports venues, entertainment. is this nationwide or localized or new york or what? >> well, it is nationwide in the sense that they're saying to anybody who runs security for these operations, you should probably be a little extra vigilant. these things are always written, larry, as sort of history lessons. they say look at the fact that al qaeda has been interested in these targets in the past. look at what's going on around you. word to the wise, be extra vigilant. i think it reflects two things. they don't know what the target is, but secondly, they don't know who all was involved. and i think the concern of something like this is when you start to put the heat on the center of people is that going to be a call to arms to other people who might have been involved because they don't know who all is involved. they can't say for certain where

the potential attack will take place. who's in the soend, who isn't in the zone. joining us on the telephone, kw we have evan coleman. thanks for joining us, sir. >> my pleasure. >> let me get your initial reaction to the report, if i may. >> the fact that the terrorists are going after soft targets like brigt, tunnels, transportation systems, even stores, regular commercial enterprises, that's not really a surprise. there hasn't been that much attention paid. there vob some terrorist cells, some squall, some home grown, that have found particular targets here in new york, even one cell establishing a camp in canada as a pretext for

launching attacks here in new york. they looked at the chase mabt building, they looked at the brook lib bridge, they looked at wall street. these aren't targets that have an immediate military necessity or value. but the point is these people know whether they're part of al qaeda or whether they're independent or part of another movement entire ly, but that's going to draw a lot of attention, going to cause panic, fear, and really going to -- it's going to cause a really intense message to be broadcast around the world. >> evan, just let me pick up on some things pete williams mentioned. first of all, he asked the question rhetorically, who all is involved in this. you mentioned home grown cellblocks. maybe al qaeda influenced, maybe not even though this naji person is denver based, are there groups based here in new york city? >> well, look, i think the one thing that's figuring most

importantly in terms of whether or not this is part of a larger conspiracy is the supposed admission by mr. zazi that he attended an al qaeda training camp in pakistan last year. now, that -- i mean, that is ground zero for al qaeda and for the taliban. if they was there and he really did attend a camp, then there is a presumption there that he was also given instructions about what to do when he returned to the united states. so we start to wonder whether or not this is coordinated. it's difficult to determine if it's coordinated out of denver, new york, out of afghanistan. if there is a plot. the point here is that unlike a lot of the home grown cells we've become accustomed to, this really has an international dimension. it has an international connection and so we have to start asking ourselves, you know, is this possibly something being directed by al qaeda central? >> all right, let me just ask

you, home grown cells, i want to come back to this point. i'm assuming zazi is incarcerated. is anybody else incarcerated as this thing unfolded? >> well, yeah, they're also holding another suspect immam in new york who provided false information to the fbi about the location of mr. zazi and about the various disclosures that mr. zazi had made. we know that there are other people the fbi right now is looking at. they' been showing people photographs of several other men and women apparently connected to this case. i think there is a sense among law enforcement and among pretty much everyone observing this that there may be other people involved here. and the hope is that we can get as much information as possible. so if there are ancillary members of this cell and these people are, you know, potentially trying to carry out an act of violence, we can still stop them. i mean, i think it's important to recognize that, you know, we

stop people in the past and in the case of the 9/11 hijackers, we may have even stopped one guy trying to enter orlando international airport but the plot still took place because other members were in place. >> evan, i don't know what you know because we have limited time with pete williams, but what kind of weaponry or bombs. to we have any sense of what they were cooking up so to speak. >> well, there are reports of a possible explosive tests that turned up positive. >> whine of explosives? any sense of that? >> well, there have been some warnings put out by the fbi and it's hard to know what the connection here is, but about papp. but, you know, it's hard to know without -- you know -- look, without the body in the bag, it's difficult to say what it is. i don't think anyone here has found the explosives, but there are particular things these people did, and things that were in their possession apparently that are strange, backpacks,

scales. things that, you know, you might put into a bomb or use to construct weapons with. but i think in the end we're going to have to really see what the fbi can produce in open court because that will tell us whether or not this is a real plot, whether it's being directed from abroad and whether or not there's a real danger here to the american public. . >> today is september 22, the eighth anniversary of 9/11 two weeks ago. is there a coincidence here? or is there a link here in your thought? your judgment? >> well, look, it's hard to know, but i can say this much -- there's no doubt that al qaeda and al qaeda sympathizers and supporters do place an enormous amount of importance on the an verse vi of 9/11. each year on the anniversary, there's a statement from bin os bin laden. each year there's a video from squall on 9/11. there's a significance to the date.

if someone was looking for chaos or again to make a powerful statement that reverberates around the world, then 9/11 is the perfect date to strike on really. >> evan coleman, thank you so much. we appreciate your input on late notice. one more follow-up, will there be a stock market impact tomorrow. john, what is your quick thoughtses on this linkage between terrorist bombing potentially, rumor, what have you, but certainly a lot of evidence that something was being cooked up and how the market might receive this information? >> well, you know, in times of uncertainty like this, there's always a flight to the real. i think this could be a dollar negative where you could see gold rise much like you saw on 9/11. i think much the same. if this is a credible threat you could see it in dollar weakness and harder assets that people can touch during times of uncertainty. >> john, the memory lives long.

i myself always have a heart ache on these 9/11 anniversaries, what it did to these countries, to new york, to the families and victims and so forth. as far as the stock market, let's be materialistic for a minute. what happens, how do people think about this? what do you hear about this kind of reaction? do people automatically think the worse? >> i think there's probably a tendency for that, the closer people were to new york city on the day. you know, it's hard to be materialistic. but i think we essentially have to be. people have to make adjustments based on what's going on in the world. if this is credible, this could be a big stock negative tomorrow and a big gold positive. not good for the economy, uncertainty never is. >> i mean, the homeland security department, there were rumors, and they were just rumors a big box retailer was being targeted. homeland security broadens that. luxury hotels, sports venues,

entertainment. mayor giuliani saying to people, when you go outside, look around you, be aware, that sort of thing. do we expect to see that, hear that tomorrow? >> i kind of doubt it, just because i think people are a lit bit daetenned to it. what sit about eight years since it happened. for good or bad, i think that's true. i think there's a false or correct sense of security among americans this is not going to happen again and i hope that's the case. >> do you think realistically as far as tomorrow's open it's going to be a major impact? i know it's a tough question. we're going to hear reports tonight. the police department, ray kelly who has a phenomenal anti-terrorist unit here. we're going to hear the fbi, we're going to hear homeland security. can the authorities calm these concerns john, such that we might have a normal opening tomorrow? >> i certainly hope so. i always trust the message of the market. i think if you see the stocks open up tomorrow, that's a good sign that this is something that

is passed. if they open up way down we probably have a reason to be a little bit nervous. >> all right, john tamny, there's more breaking news apart from the terrorist threat. question, could there be an unbelievable september surprise in tomorrow's federal reserve policy minutes that would suggest draining bank cash through something called reverse repos. essentially pulling cash out of the economy that would set up an unexpectedly early exit strategy? there's a late-breaking report to the effect that the fed has been talking to government bond dealers about this. we have no idea about the timing. we frankly have no idea about the depth of this story. but it comes out of the blue. the fed's announcement is 2:15 p.m. tomorrow. if an exit strategy to drain cash, who know, two, three, four, maybe $500 billion to

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if we get any additional news or guests who can shed some light on this, we will have it during the course of the show, but we've got to go to a second breaking news story away from terrorism. is the fed going to have a near-term exit strategy after all. here now is former fed governor, our great friend lyle gramley and a senior economic adviser to john tamny, just commenting a few moments ago. john, thank you staying. lyle, thank you for helping us out. let me just read this for the benefit of the viewers. this is the late breaking story. they've talked about withdrawing cash injected into the banking

system. they're looking at so-called reverse purchasing agreements to drain some of the $1 trillion they pumped into the economy. they're having these quiet conversations with the 18 primary bond dealers. let me get your first though and response. >> this isn't the first talk of reverse repos. this is something they've been talk about repeatedly. think about what the fed's forecast is. they're forecasting the unemployment rate at 9.5% at the end of next year and 8% at the end of 2011. the last thing you want to do if that's your forecast is start worrying markets about the exit strategy and the beginning of the rise in interest rates and

the shrinking of the balance sheet now. it's going to be tranquil. >> the fed policy statement will not contain any hints of this? because you put your finger on it. mr. bernanke himself in a wall street journal op-ed in july talked about reverse rps, which essentially means selling bonds to the primary dealers and taking the cash out of the system. joan tamny is there another side to this story. lyle is a distinguished federal reserve governor for many years. given the chronic condition of the dollar, commodity indexes have been rising. a lot of talk of inflation in

the air, despite the fact that the unemployment rate is high. could we be in for an interesting surprise, a september surprise at tomorrow's meeting by the fed. >> i hope so. there's a myth that the fed can create growth by flooding the market with money. money is not wealth. that's a measuring stick that allows us to put value on investments and awe allows us to exchange goods. the idea that you can flood the economy with money is putting the heart before the course course. they need stable value today and tomorrow. that will be stim live. >> do you think in the vernacul vernacular, i'm going to be very cried here, that helicopter ben could turn into king dollar ben. is that what you're implying? >> i would love to see that. i'm not going to predict that. the problem here as we discussed before is bernanke does not view

inflation the way we do. bernanke thinks too much economic growth causes inflation. the reagan and clinton years were pretty much uninterrupted economic growth with very little inflation. so why the fed believes this will remain one of life's mysteries. >> in this article, they make two other references. i want to get your thoughts on this. >> you think this is very premature, but they could start withdrawing cash by these rev s reverse agreements. they could do this without raising the fed kargt rate. they're talking to the dealers about accounting issues and june dating the government books. there's quite a lot. something like $500 billion or $600 billion of these rmps. they're updating the books and the accounting issues. does that bring us closer or

further away from a surprise fed action? >> neither, larry. this just gets ducks lined up so when they're ready to move they're ready to go. the dealers need to understand how it's going to work. they need to make sure they don't put pressure on the operation by their funds rate. wouldn't it be nice if the president could lay out an exit strategy for the federal deficit? if we had that on the government side we would be in good shape. >> let me ask you a follow up on this fed story again from -- i'm going to give credit to bloomberg news. could this be a trial balloon? the fed knows what it's doing. they're talking to dealers on the eve meeting.

cnbc.com is running a story, rueters is running a story on all this to protect the dollar, let's say, for beginner, or to calm the chinese worries on the eve of the g-20 meeting to show seriousness about an exit strategy. is there a deliberate, deliver communications strategy, sfliel you yourself were at the heart of that process? >> i don't think so. i think the last thing the fed wants to suggest to markets right now? that with something is going to happen very soon to drain liquidity out of the system. the fed rants to keep the markets to prime the markets. keeping the market moving up. they don't want to scare markets, no. >> let me ask a couple of quickies here. first of all, if you pick up the fed policy statement at 2:15 and

they mentioned that they have been discussing ways to withdraw cash through these reverse rps, essentially taking the loans out, would that be bullish or bearish in your judgment for the stock market? >> i think it would be bullish swuns again. even if they removed this kind of liquidity. 2/3 of all dollars are overseas. banks can easily recover the dollar this way. i think anything that's good for the dollar is going to be good for the stock market. we cannot get a sustained rally with the gold price the way it is. >> although the trade has been the reverse sooz many commentators could say. today we had another great rally today in stocks and they're about up for a high for the year, last year, and the dollar is down for the year. some people say this is the risk trade and so forth. and so a sinking dollar is really great for stocks. >> i don't see any evidence supporting that. if you look throughout history in decades where the dollar is

weak, stocks do poorly. in decades where the dollar is strong, stocks do very well. long term this is negative for stocks if we persist with a weak dollar. >> and lastly, lyle shot down my trial balloon about a fed trial balloon. sliel a savvy kmlv -- lyle is a commentator so i don't want to go against him. is this a trial balloon on the eve of the fed meaning to calm dollar fears? on the eve of the g-20 to calm dollar fears from china and elsewhere. >> i hope it's on the eve of g-20. the china question is big for the dollar right now. but my guess is that lyle is correct. the fed has no intention of doing this for a while because the fed still believes it can create money. it's wildly incorrect, but that's what it believes. >> thanks for pinch-hitting tonight twice. coming up, folks. gary schilling versus v-shaped recovery. keep it right here with "the

kudlow report." this is going to be big bang recovery number two. i'm still pushing that argument. maybe the fed is listening. who knows. it's not the new lexus. it's not the new bmw. it's not the new audi. what it is... is impossible to resist.

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>>'. >> last night we talk about the

rise in the leading economic indicators. tonight, part two of a possible barn burner. another leading index, the strongest in 40 years. let's do a quick kudlow 101. fist of all, this is from last evening. the index leading indicators from the conference board. just to make it real simple. you can see tremendous gains in the last five months. this is something worth noting. we haven't had this in quite some time. several years. i want to bolster this with this one. this is from our friend at the economic cycle research indicators. i think they're still up in columbia. he is showing, listen to this, on his weekly leading index, which is difference from the conference board. he is showing a 25% increase in

the growth of his weekly indicators. you have to go all the way back to 1969 and you still do not see anything quite as substantial as that. so something is going on here. the conference board is showing it. the economic business cycle institute is showing it. i've got to give him a shoutout for his great work. we call it barn burner one and barn burner two. our highly distinguished guests have a highly distinguished disagreement. gary schilling, ryan westbury, chief economist,. a barn burner of a recovery gary schilling. what's your quick take, my friend? >> i don't think so. you still have to worry about the consumer. consumers retrenched. inventories are probably going to give us a pop in the economy, but watch out for the fourth quarter and into 2010. >> brian westbury, barn burners?

>> you're going to burn the barn down and the field. it's a barn burner. we're going to have at least 4% growth in the second half. it's going to carry into next year. the consumer is strong. retail sales have been up sharply. even taking out cash for clunker pms so i would call gary a denier. >> gary schilling, are you in denial? >> a barn burner denial. >> you're saying there is no recovery. we're going to stay in recession. these kinds of leading index moves, what if you had 6% growth for a couple of quarters? normally, i mean in the early 80s, we had 80% out of that. gary schilling, what do you make of the thrust. >> whether i'll be off this year or not remains to be seen, but a

lot of people last year denied the depth of the recession. they dependent see it coming. maybe i'm going to miss the recovery, but i still think there's a lot of problems in the economy. >> both you and i did not see the depth of the recession and i give him credit. is gary schilling overstaying his recessionaire welcome? >> i think so. i did miss the recession last year, but i think it was a panic. we really haven't had one of those since 1907, and that's why this is a v-shape red coverry. and i think it's going to last longer than an inventory recession. >> but what's going to spur it? you've got the consumer that's 70% of the economy, 70% of gdp, consumers who are in retrenchment. we've done our own analysis. if you take out the cash for

clunkers, auto sales dropped again in july and in august. there's -- other than that, and that was a one-shot deal, other than that, there's no evidence that consumers are doing anything to retrench. >> fair enough, let's leave it there. you're all going to come back and talk much more about the business side of this equation. is there a barn burner? we're calling it barn burner two this evening. this is "the kudlow report." we are barn burner two. please keep it right with us. if there are any more terrorist updates about this terrible story, we will be right in with it. stay here.

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the best in 40 years, gary, schilling, you were telling me about consumer weakness. on the index of leading indicators from the conference

board. manufacturers index. the nondefense capital has been rising for five months. >> with the excess capacity, i think it woib difficult to see a big capital spending boom. and one more thing to note, these leading indicators are after all the revisions. if you go back and look at what they originally announced. for example in the 1973-'75 recession, the leading indicators never turned down. they never turned down. why? because they were all in current dollars and inflation was raging. there were a lot of reasons over type. you're looking at back all theed a judgments and those patterns that looked like they were forecasting recoveries. boy, they're different in terms of how they matched up.

>> there are some people who don't live and breathe with the conference board. i myself give them more than the benefit of the doubt. tornado, last-minute fans, business cycle research, he called great turning points. it is business that could lead. one thing i mentioned, new orders for consumers and cap ex has been going up. supply deliveries have been slowing down. that's another sign. are we estimating, not only the business recovery, but the business to business commerce transaction that's something of a sleepner this grand scheme of things? >> absolutely. one thing about gdp that's interesting is we don't count business to business. the only thing we really count is final sales. there's actually more dollars

activity in the business to business world than business to consumers. the idea the consumer is 70% of the world, only in gdp time is that true. if you look at the checks written, the dollars, the transactions in the economy, business is way more important than the consumer. what's interesting is they're coming off this really panic low right now. that's happening, but even businesses have been a little tentative. i think they're falling behind. businesses are too low. we're going to be rocking here. there's a really good chance this barn burner could see better than 4%. >> you could run 4%, 6% on that scenario. gary, what about the argument that deep recessions breed strong recoveries. that there's a certain math to it. shallow ones don't but deep ones really do. how do you react? >> you have to look at the structure of the recession and the recovery. the one thing you have now, which is really unique and it

dominates is the consumer retrenchment. . >> i think it's very different feature. if you don't have the consumer, which not only dominated the u.s. economy and indeed the world, i don't see how you have that kind of growth. >> brian westbury, does the stock market rally and the wealth creation therein -- now we had a pick up of a couple of trillion dollars in the second quarter, it looks like we're going to get a couple trillion more from the stock in the third quarter, does that ameal yat the consumer problem that gary shiling is pointing to? >> well, i'm not a big believer in the wealth effect. i just don't agree that savings -- you know, over in china, supposedly savings lead to faster growth in the economy. so i don't understand how if we increase savings here that's

going to hurt our economy. what are you saying? that on that side of the international dateline, savings is good, on this side it's bad? >> i'm saying china really depended on the u.s. consumer to buy their exports and that's what drove their economies. in china, their consumption is 39% of gdp. here it's 71%. their exports are 42% o gf dp. and in this country, it's 12%. they're an export-led economy. their middle class isn't big enough to be self-sustaining domestically, not yet anyway. >> i guess what i'm saying is you can't just add up gdp like that. entrepreneurship you can't just add it up. and the reason we've grown. if you go back to the 60s and 70s, when you had a 10% savings rate and 60% debt to dk ratio, we had faster nominal growth in the economy. >> sure, because savings is what

goes into investment. >> that's what i'm saying. >> here's just my final point. take that line of reasoning. savings equals deferred investment. if that money is invest through financial intermediation and the banks are working better, what if a business buys a computer? what if a business to business transaction, that's a point that jerry boyer has made. these are sleepers in this consumer demand argument. >> well, we just redid this whole modeling, looking at all the factors affecting capital spending. and you look at profits, you look at cash flow. the one that dominates is capacity utilization. you don't have a strong base for capital spending. >> barn burner two. gary schilling versus brian westbury. >> v-shaped is going on. >> tim goldman scored a huge interview. we're going to have a market drill down with our top notch investors to talk about that

interview and everything else including the barn burner of a recovery and what the fed might be up to tomorrow. keep it right here. we are "the kudlow report." have some fun with that truck. vroom... vroom. okay, time's up. here ya' go ! that's a nice one, i made that. that's a piece of junk. yeah. i want the red truck. well, you can't have the red truck. see, that was a limited-time offer only. it's, ah, right here in the fine print. even kids know it's wrong to hide behind fine print. why don't banks ? we're ally, a new bank who always gives you a great rate, with nothing buried in the fine print. it's just the right thing to do.

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. >> i want to update you on this dramatic terrorist story. zazi is the prime suspect that was arrested by the fbi. the rumors are around about big box retail stores, mass transit. he has been captured. he has been incarcerated and under interrogation. let's bring in kroroger cresse. what's your thought on this breaking news story? >> the most important thing is he's in custody and he's given us credible, accurate information on the program toefrs a plot. what we don't know is probably the most disturbing stuff. were there other individuals who are part of the plot that law enforcement hasn't identified. are there facilities such as

warehouses or storage facilities where either bomb components or actual bomb are now being stored? and what were the specific targets that they were intended to hit. all these issues have to be figured out, but it looks like we've sbruptsed something significant. >> were there any bombs found? >> we know there were a number of backpacks found. there were notes on his computer about per red sox side based. there's credible evidence that prior explosive techniques wrt ones zazi and his associates were looking to use. >> we're going to get steve emerson in with you. i want to ask you real quick on the geography. most of the news seems to be

focused around new york city. do you think it's broader than that? >> i think it's the tri-state area. i think they were looking at soft targets. there was not a high level of security. there were large numbers of people, transportation, stadiums, hotels, like the department of homeland security has identified, but it's important for everyone to understand that this looks like a plot that was not at the execution phase. that it was interrupted far before that. that's the good news. the bad news is there's still elements of this plot and conspiracy that the law enforcement community is still trying to identify. >> steve emerson, terrorism and counterterrorism expert and great friend to the program. steve, welcome. let me go to where roger left off. we got this thing before it was completely hatched, but there's so much we don't know about it, steve emerson. the issue of home grown trel krels. the issue of al qaeda involvement. there are so many moving parts, steve. what's your thought? >> what you put your finger on is the date that occurred between nypd, new york police

department intelligence and the fbi in terms of rounding up the cell, either prior to them trying to execute it or at an earlier stage which they did right now, which leaves, as roger pointed out, many unanswered questions. however, it's clear from the wire tarngs the foreign intelligence surveil advance act wiret wiretaps, they were in contact with at least seven or eight other people around the country, in afghanistan and pakistan. so the conspiracy is at least, you know, three-quarters of a dozen people, number one. number two, the question as to what the carpet could be, i think it was a coincidence the homeland security issued warnings about the stadiums today. that was about a jihad manual released earlier this week. however, it's theer they were trying to detonate on a massive

level. >> on sunday night football? is that possible? all these people in stadium. the giants were away, the jets were home. i don't know if there were other cities involved or not. >> larry, that's too much of an advanced guest. we may find out tomorrow. there's another screw here, a dirty informant working for nypd that tipped off the conspirators about the fbi's search to find them. we're going to hear a lot more about thim in the next few days. >> we fingered this guy zazi. steve emerson is speculating there might be quartthree-quartf a dozen other people. are there other people out there who might have bombs? >> it's conceivable. my professional assessment is no right now. i think the identification of these other individuals is the

number one priority, but what strikes me is that if they were ready to go when zazi was arrested, if they had the capability, they would have launched it already. they haven't and i think that's important to remember. >> the rest of it is up to the information supplied by the authorities. gentlemen, we thank you ever so much for your contributions. roger cressey and steve emer n emerson. we decide to turn in early. we just know. announcer: finding the moment that's right for you both can take some time. that's why cialis gives men with erectile dysfunction options: 36-hour cialis or cialis for daily use. cialis for daily use is a clinically proven low-dose tablet you take every day, so you can be ready anytime the moment is right. tell your doctor about your medical condition and all medications and ask if you're healthy enough for sexual activity. don't take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. don't drink alcohol in excess with cialis. side effects may

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first off, hattings off to all the authorities, the homeland security, fbi, new york police department, whoever involved to break thup plot before the bombing happened. using wiretaps, computer taps, interrogations. putting this guy zuzi in jail. hats off to our authorities keeping us safe. part of the post 9/11 story eight years later. second, we will see what the stock market does with this information in the morning. we may get lot mrs. news this evening. and finally on the fed story, it may be a barn burner of a recovery potential out there as we've been discussing on this

show the last two evenings. the fed may drain cash and move earlier for an exit strategy. who knows. they may surprise with us a more aggressive exit strategy directive at their meeting tomorrow at 2:15 p.m. i'm "llarry kudlow. thanks for watching.

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>> it's part of the global landscape. 1,000 stores around the world. tonight, cnbc's carl quinanilla shows you mcdonald's like you've never seen it before. >> we have really elegant flavors. >> go inside the test kitsch wherein new creations live or die. see. >> unfortunately there's work that needs to be done. >> see how mcdonald's arms its

workers. from a few smau hamburger stands, see how ray crock created a food empire. >> we were serving hamburgers for 15 cents, french fries for 10 cents and i said that's for me. >> $21 billion a year in revenue, 2 million pounds of beef a day and a lot of controversy. >> big mac, large fry and a large coke. 1,430 calories. 59 grams of fat. >> well, you have to make choices about what you eat. >> mcdonald's is a business and its job is to sell more food and not less. it doesn't care what kind of food it sells. >> and take a journey to the next frontier where it's out with the old and in with the new. >> i look at china's 1.3 billion population. the opportunity is endless. now the cnbc original documentary --