villanova university school of beings and the home of the students in villanova, you are the reason i get up and do this show every day. just for you, everybody, i'm jim cramer! good evening, everyone, i'm larry kudlow. this is "the kudlow report" and this is a night filled with dramatic developments on several fronts. first, it sure looks like the red line has been crossed. the u.s. says syria has, indeed, used chemical weapons with the assad war with the rebels. what will the obama regime do? will the president keep his promise not to attack? the whole world is watching. second, we learn a suspected marathon terror bomber told the fbi he and his brother were planning to attack time's square in new york city t. question is, would the new york police

department have stopped the terrorists before they have killed anyone? given their track record and math moth operation, i believe the nypd would have stopped it dead in its tracks. and is the pain on the plane about to end? the push continues to overturn the flight delays. we could be getting close to a deal. "the kudlow report" begins right now [ music playing ] [ music playing ] first up, the u.s. government confirming today it now believes syrian president assad used chemical weapons against his own people. nbc news amman naldene jones us now. >> it came from chuck haggle, he was traveling in the u.s. emirates. in the past two years, the u.s. intelligence "assesses the

regime has used chemical weapons. as we are about to hear from the secretary of defense, that statement was unqualified with a lot of uncertainty. here's what he has to say. >> the u.s. intelligence community assesses with some degree of varying confidence that the sir yam regime has used chemical weapons on a small scale in syria, specifically the chemical agent serin. >> now the importance of that statement and the qualifications railey hinge on who ordered or if the le jet stream actually ordered the use of chemical weapons. now, as we heard from the secretary of defense there, they're not sure how the chemical weapons were used. they may have been used by a rogue element in the military. programs they may have fallen in the hand of another group. right now, all indications are they were used on a small scale. this is something that has been substantiated before, including israeli, it's certainly

something syrian opposition rebels on the ground has been saying has been taking place for the past several months, now the question; how will the u.s. government respond to these allegations that they are, themself, substantiating? >> aman, in reading these reports and listening to you, the first step the obama administration is going to do is veestigation by the united nations. that, itself, may be criticized heavily by republicans in congress. are they going to the u.n. first? >> this is something the u.s. administration wants to happen. they need the backing for there to be any possible intervention. the united nations investigators who have been trying to get access in syria are denied so far. they are currently in cyprus. they have been unable to enter syria. their only investigation is to talk to refugees who have left these areas. you can see or understand the

criticism the u.s. investigators who are not on the ground inside syria probably would not have the same intelligence the u.s. has been able to gather along with its allies. so there is some criticism to what added value an investigation on the ground could do. at the same time if the u.s. is going to use any type of military intervention, it is going to need the support of the international community. that can only happen through the united statess. >> aman, we appreciate it. so, have they crossed president obama line? here's what he saidant syria when he was in israeli. >> we have been clear na the use of chemical weapons against the syrian people would be a serious and tragic mistake. the assad regime must understand they will be held accountable for the use of chemical weapons or their transfer to terrorists. >> right. first of all, let's bring in retired u.s. army general and nbc news analyst barry mcfirst

halfry. we welcome back secretary of defense heritage foundation senior fellow peter brooks. gentleman, you see these descriptions, the confidence level is varying degrees of confidence. it was done on a small scale. yet, you already have senator john mccain and others saying it's time for the united states to arm the rebels. what's your take on this, please? >> well, we put ourselves in a very complex and difficult position. you know, 70,000 murdered. we've now publicly stated this is a red line employment of chemical weapons. it's very likely they have been employed already twice an will again, but, the use of u.s. military power in a situation like this is inadvisable. what do we do? we go against scud missiles, artillery units, mortars, syrian air force. it's hard to imagine military power from the air, a clean strike as having any real results. so, you know, it's hard to bluff

in public on the employment of u.s. military power. by the way, we're cutting back sequestration, carriers not deploying to the region. the signals aren't good. >> general mccaffrey, quickly, as a follow-up to that, i am read income various reports, it would take tens of thousands of american soldiers to retake all these chemical weapons. tens of thousands, sir. >> basic -- basically, you have to get in the country and take the fire articles away from the military, it's a huge civil war with 70,000 dead. that's what we would be intervening in. you wouldn't want to do it from israeli. how would you even insert allied forces assuming the europeans would even get involved in it. the american people are sick of war. vacate,000 killed and wounded. this just isn't going to happen. there's no vital national

security interest at stake for the u.s. and syria, anyway. it's a humanitarian problem from our perspective. >> peter brooks, again, welcome back. i want to ask you, what exactly is a red line? what was president obama referring to? >> well, a red line is a metaphor, for like a line in the sand, a threshold that a country or a person cannot cross over without some sort of response or action. of course, the administration never told us what na response might be and they never told us exactly what that red line meant. you know, was it substantive use of chemical weapons, whatever. if you look at their language and what they've said, they've left themselves plenty of wiggle room. right now they're saying as the general mentioned, they're going to investigate it, they've looked at it. they made a poke of the bush administration saying we've had bad intelligence on things like this before, referring probably to iraq. so they're going to slow roll this. they're in a bit of a box.

they're probably not happy they have to do something. now that something might be going to the u.n. for a resolution of condemnation more sanctions. >> that ain't much. going to the u.n. look, i'm no expert on this i'm just saying, you are hearing already quotes, for example, senator john mccain. mccain says no boots on the ground. but mccain says the so-called red line has been crossed and he is endorsing, he's not alone, he is endorsing providing aid and assistance to the rebels, whoever the rebels are. and some of the rebels may be kwaetd. is that -- may be al qaeda. is that what we are thinking of dog, rearming the rebels? >> i can't speak for senator mccain, certainly, if i understand his comments, he's talking about rebels we feel we can support. in other words, there are a lot of bad actors there, al qaeda, foreign fighters, including chechens and libyans. he wants this i have said myself over the past few years, we should develop a force that will

support intour in the long run. and the administration has done nothing beyond nonlethal aid. there may be training going on. it's murky, it's not clear. we aren't using the assets we can use to make it beneficial to u.s. interests in the end. it looks very, very grim right now, larry. >> general mccaffrey, okay, maybe a training force of some kind. you know, sir there is a lot of radical islamists and al qaeda types out there trying to take advantage of this i'm worried this is going to be another muslim brotherhood situation, the united states will end up on the wrong side of history on this i don't know what this bluser is from team obama, i don't get it. >> i'd be honest and sympathetic to their project. it's hard to imagine the outcome. the british are about sending armored vehicles to support the rebellion. probably the most effective piece of it is sleer e clearly an al qaeda 12 fighter force from all over the arab world. so there aren't a lot of good

options. this is a time for diplomacy for cia involvement, hopefully an intervention, but not for u.s. military power directing -- >> what kind of intervention by the cia, sir? >> they're tremendous courage. they got funding. they've got the right skillset to get in there and try and sort it out on the ground. i'm sure they're doing if best they k. i think essentially we've told the saudis and ua and others, you send them guns, we'll send them other things. you know, we can't sort these poem out -- these poem out on the ground. these are the sunni civil war with the christian and others trying to sort out which way it's going to break. it's a blood bath and it's going to get worse. >> larry, we could have been in the game to a certain extent earlier an before it got to this potent, the general is right, it's very, very difficult now.

if we've gotten involved and tried to do something before this, two years ago and 70,000 deaths ago, we'd be better off. >> i'm saying militarily it's tough enough, militarily it's tough enough. politically, the use of that red lean may come to haunt president obama. a lot of people will be asking what that means. general mccaffrey, peter brooks, thank you very much. now, we learned today the boston terror bombing intellect did tell the fbi he and his brother were hoping to attack new york time's square. all right. speaking of new york, the new york police department's counterterrorism operation seems to be head and shoulders ahead of everyone else when it comes to fwre venting -- to preventing these attacks. we will get more details on the nypd and these attacks, folks, don't forget, free market prosperity is the better path. speaking of free market prosperity, see what they did

today, they slashed income taxes by 5%. they totally repealed the state's inheritance tax. that is the way to do it. that is the kudlow model. in fact, "the kudlow report" is coming right back. .

[ music playing ] the two brothers tied to the heinous boston marathon bombings last week apparently had plans for a similar attack in new york city. wnbc's jonathan deets joins us with the details. >> good morning, larry. the new york police commissioner said it was a spon takenious decision just after they had killed that police officer an carjacked a victim's car. the surviving brother telling the fbi in his hospital interview that, yes, they talked about going to new york, driving in that stolen car to new york city with the six bombs they had left and to try to set them off in time's square. what happened? the car they were in ran low on gas and they pulled into a gas station and that's when the car jacking victim fled, called 911 and as a result police responded. we know what happened next with

the shootout and the massive man hunt that took place. but they say based on their interview with that suspect, the younger brother, he claims that they talked about wanting to come to new york to carry out a second type of attack. >> jonathan, if i have this story right, the information comes from the fbi's interrogation of the suspect, is that not true? >> that's right. during the news conference today the mayor and the police commissioner said over two days, the first day the suspect was kind of groggy, he was on medication and spoke about how nay wanted to come to new york to party. on the second day of questioning, they say he was lucid and they were able to drill down lots of questions with him. they say that's when he provided that detailed explanation. is there any other proof they were planning to come here other than those statements? as of now, no, investigators think they need to take this terror suspect at his word. they are running down possible

leads as a precaution. they appear to be lone wolves, again, the investigation continues here, in boston and overseas. >> jonathan dienst, appreciate it. the big tragedy for me, part of this story is that the fbi did not have its chance of questioning this suspect and the mirandaizing put in by the justice department was way too short. this is now coming out. the fbi is sending its sources out there. they were interrupted. we are not getting the information we should be getting from that interrogation because of the decisions by the u.s. justice department, who knows? that's one of the tragedies, anyways, under surveillance cameras are an anti-camera tool. they have roughly 6,000 cameras city wide, but in the wake of the boston tragedy, is that enough? here's more from mayor bloomberg's news conference today. >> we've made major investments

in camera technology, not withstanding the objections of some special interests and the attacks in boston demonstrate how valuable those cameras can be. >> we want to expand our cameras, the number of cameras we have and we'd like to also, in that universe, expand our smart camera capably. >> all right. joining us now is the former director of intelligence analysis with the new york police department, mitch silver. he is currently executive managing director for intelligence at k-2 intelligence, mitch, welcome back. i want to refer to the wonderful article by my classmate judy miller, "how to stop terrorists before they kill." first of all, in terms of the camera under surveillance, do you, does ray kelly, does the nypd think they have enough right now? >> i think you can never have enough of those cameras. those cameras need to cover a significant amount of square mileage in new york city.

we know the threat can emerge from anywhere and, you know, those cam ares are an important part of the deterrent. >> let's go to these two nutty jihadist terrorists in boston. they might have done it here in new york city t.nypd devoted phenomenal resources to kournt terrorism. do you think that they would have seen the fbi list originally and seen this guy on the list and followed him and trackled him while he was up in boston? do you think that that would have been part of their operation? >> let me tell you, at the nypd, one of the key things we were looking for is signs of radicalization. if a tip came in, even from overseas, an individual was potentially radicalizing, that would have put someone on our radar screen. we would have looked if there was additional investigation garnered for investigation to open up an investigation, jewett news that person further. one of the key factors that we were always concerned about was travel overseas. that might catalyze somebody

into action. if they came back from overseas, especially a zone of conflict, that night be the point. we would open up a full investigation to find out what happened overseas. >> you have to wait for the fbi, if cia, the nypd can do it, itself. one other thing that struck me in my conversations with the nypd, they do surveil and monitor the muslim community. because that's where these home grown radicals come from. all right. that's just a fact of life in this age of counterterrorism. they have programs to go and visit with businesses. they go to bars and stores and shops and they try to get local information. tell me more about get it sounds like the nypd is just mingling right there inside the muslim community looking for tips. >> look, the job of the nypd is to progressive conservative the city of new york. it's also the responsibility of the nypd to know the city. because that's the area that we police. so part of that means

understanding the neighborhoods, understanding the demographics of the neighborhood and when 9-11 happened as well as nypd thought it knew the city, clearly, there was an opportunity to get to know different neighborhoods better. one of the things we learned from the 9/11 report was that some of the hijackers particularly wanted to stay in certain communities so they could blend? >> right. >> so this was a concern of ours. >> they circulate, nypd, counterterrorism agents will circulate here to the ground. that i can pick up a lot of intel. >> there are two different things. one is to be able to do reconnaissance, understanding the human geography of new york city. the nypd is allowed to go go into any public institution. in a power role, we're able to go on any online unit. >> this is the cyber unit. so they're monitoring all the social networks, all the -- they would have seen, they would have seen these crazy kid, what he's

watching on the -- so all the radical jihadist things he was watching, they would have known that. >> and, in fact, that would have been one of the pieces of information that would have allowed us to open up an investigation. only when you open up an investigation, have us satisfy a certain predicate, then you can use informants and under cover officerings. you can only open an investigation if you meet certain criteria, opening the web sites, seeing who he was endorsing, that would have helped you get there. >> lastly, from judith's article, you were saying it was exactly correct. you were in the middle of this in your day, are other cities out there borrowing nypd tactics? >> we always had an open door and spoke with a lot of cities that wanted to adopt certain parts of it. nypd were ready to share. there were cities interested in learning more and doing more to progressive conservative their cities.

>> so they're spreading the wealth, the intelligence and knowledge, mitchell, thank you very much. we appreciate it. now, all five living u.s. presidents got together today for the grandopening of the george w. bush presidential library and we have some of the highlights coming up for you next on "the kudlow report." [ male announcer ] it's simple physics...

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there to pay tribute to president bush's legacy. here's president obama remembering one of his predecessor's finest moments. >> we also know something about george bush, the leader, as we walk through this library, obviously, we are reminded of the inyebl strength and resolve that came through that bullhorn as he stood amid the rubble and the ruins of ground zero, promising to deliver justice to those who had sought to destroy our way of life. >> and then president bush gave stirring address about what makes america great, freedom. >> i believe that freedom is a gift from god and the hope of every human heart. freedom inspired our founders and preserved our union through civil war and secured the promise of civil rights. freedom sustains dissidence bound by change.

believers huddled in underground churches and voters who risked their lives to cast their ballots. freedom unleashes creativity, rewards innovation and replaces poverty with pros period of time. and ultimately, freedom lights the path to peace. >> all right. so between the library opening and his recent jump in approval ratings, it seems like people have a growing appreciation of the tenure of george w. bush. i will say this as a personal friend who interviewed him many times, say what you will about mr. bush's varies policy, he kept america safe after 9/11. now, we are still waiting on some kind of deal to put anened to the faa furloughs resulting in airplane delays across the country. we are about to talk to one of the senators who was trying to make a deal. that's just ahead on "the kudlow report."

[ music playing ] welcome back to "the kudlow report"ment i'm larry kudlow. in this half hour, another good sign for the economy as weekly jobless claims come in much lower than expected. this should tamp down the swoon talk about a sink in the economy. plus, it's the moved loved and hated rifle in america. we already have a chrisically

acclaimed documentary about the ar-15. that's coming up in just a few moments. you do not want to miss this. first up, call it the faa furlough fiasco. now the ceo of the largest airline is joining the critics. jim simsek, i am going to quote, we are disappointed that the faa chose this path that maximizes customer disruption and damage to airlines instead of choosing a less disruptive method to comply with the budget obligations. all right. he's an unhappy camper. in walk, there was some sort of compromise that may have changed. chief washington correspondent john harwood joins us now. >> geechlt it's been a crazy day. the administration predicted flight delays would happen and the fallout would be there. congress went ahead, chose not to do the sequester.

now, 30 days after the furlough notices went out. furloughs have taken place. the sequester has hit. flight delays are happening. congress today had got deeply into talks about trying to avert those flight delays. the talks collapsed in late afternoon. now they're back on. i just got off the phone, larry, with a democratic leadership source, he says before your program goes off the air, the senate may have it by unanimous consent agre to a provision that would give flexibility to the secretary of transportation ray lahood to move money around and prevent further flight delays. only $253 million. it doesn't resolve, of course, the other aspects of the sequester. but on this one, it appears, not certain, but appears that congress is going to -- the senate is going to do this tonight, the senate would be expected to act tomorrow. >> john, $252 million. this is dealing right with the faa issue, right, no other issue regarding the sequester? >> exactly. it wouldn't resolve anything

about food safety or headstart on the defense budget, which has been cut proportionally more than domestic spending. it simply allows for the furloughs to, the controllers, which has caused the traffic to stack up and the flights to be delayed, that to be averted through the end of this fiscal year. only through the end of this fiscal year. the thinking of those on the hill, certainly at the white house and democrats on the hill is that more and more consequences of the sequester will pop up after this and will create momentum as we get closer to that debt ceiling vote in august for negotiations to resolve it with a broader package, we have entitlement reform, democrats want increases as well. all of that is speculation about the future. what is happening, what appears likely tonight is a deal on this proposal by john thune the senator from north dakota and jay rockefeller from west virginia by resolving this $250

million to avert flight delays. >> all right. we'll leave it there. we'll see if it comes through. john harwood, appreciate the update. here now we have kansas republican senator jerry moran who is an open critic of the administration's short-sided decisions to close 149 control towers. he's also co-authored to "protect our skies act." mr. moran, as always, welcome back to "the kudlow report." is there any kind of deal that will end this faa furloughs and all these flying delays? >> larry, isn't this just the kind of thing the american people hate about washington, d.c.? and i hope we can overcome that with a deal to be struck and that work is ongoing. the senate, of course, is in session. there is an effort to get a bill or an amendment on to a bill that's pending before the senate that brings republicans and democrats together. this clearly is not a partisan issue. in fact, in many ways, this is the congress versus the

administration, but republicans and democrats in the senate are clearly working together to find that solution. >> well, you know, as an old budget guy, i worked for reagan's omb many years ago, there are two things important, one is reprogram. the second is subaccounts. they have the authority to reprogram subaccounts and, hence, shift money into the controller's account. why don't they just do that and stop all this rig ma role that's making up our whole air traffic system. >> this is craziness. it started with the closing of 149 control towers followed by furloughing hundreds of thousands of employees, controllers within the faa. i've asked the administrator that same question that you just asked me and there is no good answer of which just lends itself to the fact, the alit that this administration wants to make the reduction and the increase in spending, this political issue, so there is

pressure upon members of congress to eliminate sequestration or raise taxes, whatever the goal is. no business would operate this way. every business person would try to accommodate their customers and there are millions of dollars that don't affect the control towers or the controllers that, as you say, the faa could take money from to pay for. the amendment i offered on the senate floor was out of unspent money, unencumbered balances and, in fact, mr. warda, i asked him why they don't use them. he said, we don't have the authority to do get i said, if that's true, why did you not allow me to give you the authority? as you may recall, the secretary of transportation told me that the administration opposes my amendment to take money out of unspent accounts. >> see i think -- >> and put it into control towers. >> i think he's got the budget authority. i think he'd get it from the appropriations committee. what he's saying is he doesn't have the political authority from the white house.

because you tell me if i'm wrong, i have seen this from day one as a battle to stop the spending cut sequester and, instead, substitute a $1.2 trillion tax hike. i seen it as plain as day. all these games and shenanegans inside the faa and others could be fixed. they want to raise taxes, not cut spending, is that fair? >> i think that's fair. larly, i would say have the debate about taxes and spending. don't hold the american people hostage, their safety, their convenience, to try to score a political point i have no explanation for what's happening here. incidentally, the amount of money if faa has is more than currently is more than what the president requested in his budget. >> right. >> there is no reason for this except a political effort to try to congress to do something that the president wants us to do. the sad thing is americans shouldn't pay the price for. the last five years, they've had gigantic budget increases.

we all know get let me ask you to summarize this thing, is there going to be a deal, is there going to be a deal that somehow gives the department of transportation or specifically if faa more liberalization, more flexibility. how do you read this? the head of the airlines is getting angry. they say there is no cooperation between the faa and major air carriers? how does this end up and when does this end up? >> first of all, they don't need additional authority. because they won't use the authority they have, i think congress will give them and mandate and solve this problem. the difference is that members of congress, republicans and democrats respond to their constituent issues and pressures and the white house wants to create a political issue. >> to when? are you off next week, so that's not going to do it. >> this is in the works as we speak. >> all right. let's hope so, senator jerry moran. i appreciate very much so. thank you for your time. >> thanks, larry.

>> as we speak, maybe even tonight. now, let's focus on good news. the jobless claims this morning points to a stronger economy and may quiet all that talk about a spring swoon. we will talk about that, the sharp jump in gold this week and other things next up on "the kudlow report." changing the world is exhausting business. with the innovating and the transforming and the revolutionizing. it's enough to make you forget that you're flying five hundred miles an hour on a chair that just became a bed. you see, we're doing some changing of our own. ah, we can talk about it later. we're putting the wonder back into air travel, one innovation at a time. the new american is arriving. ♪

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hey, look at this choort. the precious metal is up in the past ten days. is now the time to buy gold? i personally don't think so. for more wisdom is our trend macrochief investment adviser. not only do i like gold, i don't like commodities, either, you tell me. >> you are right, larry. the problem is, you are two years late. the talk in virtually every commodity was actually the friday before osama bin laden was shot on sunday, may 2nd. that marked the top of a fen-year super cycle. >> that's what i was saying, is the super rally finished? >> it is for two reasons, all these commodities during the

terror of 9/11 and nailing bin ladin, there had to be a risk built into all commoditity, you never knew when there was going to be another terrorist attack. it's been a global tax cut to have commodity prices, in general, falling for the last two years. >> great point. >> but there are problems, too, which is over that same nine years following 9/11, we had a super cycle of growth in china, which was a huge commodity commander. >> that's a precious commodity even more. >> that's over. so, there's good news and bad news. >> yeah, i get get and, in fact, as this article in the wall street journal said last one, three and five-year stocks have outperformed the commodity index. very interesting. some additional good news, finally, on the jobs front, american jobless benefits fell nearly a five-year low. my point here is it's a key economic indicator. it tells me the spring swoon may be overrated. i can't be clever enough to predict a new quarterly gdp.

but jobless claims are an important indicator. 339,000, down 16k for the week. what's your take? >> i'd rather see them down 16k than up 16k. however, i believe that is the only good macrostatistic we have seen in the past 16 weeks. >> wouldn't you like it that i pulled it out? >> optimism, but the reality is of all the statistics. >> housing starts pretty good. >> housing is recovering. it's been recovering for two years. well, show me the money. when is it going to move the needle on the whole economy? as far as jobless claims, unfortunately, layoffs were never what was wrong with the great recession. the problem is na we're not creating new jobs. the problem is with the security of existing jobs. this economy is not creating new jobs and people are falling out of the labor force in droves. >> so you are not, you are not overwhelmingly excited by

today's drop in jobless claims, bottom line? >> it's good news, i believe it's an irrelevancy. >> finally, let's meet janet young, top story in new york times, replaces the top chair to replace ben bernanke. his term ends january, 2014. he said he was not going to the jackson hole caucus we all know he was going to retire. brilliant economist. >> smartest as anyone in any room. >> husband is a nobel prize earner economic. some people think she's a pro-inflation dove. what's your take? >> i think it's a pro-genital dove. that's not bernanke. yelin is more of a liberal, bernanke is a conservative she's a big government girl. she believes if qe doesn't work, you do it bicker, if it doesn't work, you do it bigger still. i don't think that's bernan ke's

philosophy. >> i say this seriously, because a lot of people, including myself, in recent years have worried that the growth of the fed's balance sheet would create a higher inflation rate. that has not occurred. i was wrong. i have written a couple articles about that saying you know what all this money got squirelled away at the fed the vel loss if i the turn dwroefr money is falk. therefore, in that sense, we have all been too pessimistic about inflation. maybe janet yelin was right. maybe ben bernanke was right. your take. >> i think that's true. let's admit it. we together were wrong four years ago, we got flipped out with inflation, do the numbers. i wouldn't give yelin too much credit. because i think on this one they got lucky. yelin's priority is jobs. she is on a jobs target, not an inflation target. it's bernanke who is an inflation starter.

yelin is willing to accept any risk any time if it can buy jobs. that itself the problem. the day will come when the economy does recover. velocity will pick up. there will be an inflation threat from all this money created. will janet yelin? >> i understand. ben bernanke can do the exit strategy. so he's going to retire. can someone do the exit strategy? can janet yelin? >> it's easy. you can do it. i can do it. what it takes is the will to do zblit and? >> it depends on whether she can buy one more job by crank tak printing press one more time. >> let's say you are going out 12-to-24 hour months, you are a buyer or seller of stocks, putting all of this together that we've discussed. >> can i make that into a trick question? u.s. stocks or japanese stocks? >> actually, i was thinking of u.s. stocks, but i love japanese

stocks, too, that's a great play. how about u.s. stocks? >> i'd be a buyer, why not be a buyer of japanese stocks, right? there is an inflation story you can live with. these are guys who will ine improve their lot, they're reverse. >>-2 or 3% cpi, you want to get them positive, we're at 1.5. >> that's a complete regime change. that's a turn-around. >> do you buy both markets? curious? japan is pumping out a lot of money. it's probably good for world growth. would you buy the u.s. market? >> yes, i would. specifically sectors, not metals. >> not commodities. >> honestly, i think the leaders of the first quarter which has been the so-called pensive stocks, i think they're grand jury to continue to be leaders. the reason why is every time bernanke and yelin prints another dollar, it takes money out of the market, if money comes out of the bond market and has to go into the smashing, where does it go?

it goes into the most conservetive bond-like stocks. it's been the winner. it continues to be the winner. >> you are not optimistic about the growth of the economy, i take it. >> i'm not pessimistic. look larry, we can get 3% with no recession the rest of our life, we'd never catch up to output. >> covered all that ground. wow. reviews are out. they are raving about the brand-new cnbc news documentary about the ar-15. this is a must-see event. it premiers tonight at 9:00 p.m. even. we have a special preview just for you coming right up. please stay with us. [ music playing ] i know what you're thinking...

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the ar-15. it's the most popular rifle in america, but it was used in the horrible massacres in newtown, connecticut and you a roar ro, colorado. that's why the ar-15 has become so controversial. our own cnbc's brian sullivan has been looking into the controversy surrounding it and the popularity. brian, let me start off the top. this is one of the most widely used weapons in america. it's got its contradiction and it's got its supporters. what did you take away as you did this whole documentary that we will see later on. what did you take away from this? what was your instinctive take-away? >> there is nobody that doesn't have an opinion one way or the other. it's one of those lightning rod

areas. everybody has an opinion, on not only gun rights and gun control but on the ar-15. it's a rifle. it looks like a machine gun. it's semi automatic. a lot of people think the ar stands for an assault rifle. it doesn't. it stand for armalie. this gun has been used in awe roar ra, colorado and newtown, connecticut. so this has really become, larry, the lightning rod of the gun control debate. that's why we dug in. >> i think it's good to dig in. you may have a clip, you told me women are actually buying the ar-15. you want to show me that clip? >> one thing you are trying to do is a myth about gun owners. others, it's the macho-commando type. the market is women. they are becoming an increasing percentage of ar-15 buyers. look at this. >> we have them for sporting.

we have them for hunting. we have them just in case. >> reporter: on ranges around the country, people like julianna crowder are evangelists for the gun. >> i think there is a bit of status on a gal that owns an ar-15, especially right now since they are so hold to get ahold of. >> reporter: women make up a small percentage of the ar-15 buyers. as the sites go, people like gun goddess are adding a twist. >> when a girl can say i got my new baby, i got my new rifle, all the gifrls -- h and ahh over it. >> reporter: it's over a billion dollars when you factor in all the accessories. that's one market here. we're going to hit all kind of angles on this thing tonight. hopefully, everybody watches it. >> all right. let me ask you about who is cody wilson? who is cody willson and why is

he becoming an important playner this story? >> this is fascinating. cody wilson is a 25-year-old law school student at the university of texas in austin. he's a self-described anarchist. when you look at a gun, the lower receiver where the trigger is has a serial number. it's the only part of the ar-15. what he has done is put three printers online you can download. he makes gun parts, the lower receiver and gun magazines from a 3 the printer, larry, they are light weight, they're nonmetal, which means they will not go off in a metal detector and they do not have a serial number, so they cannot be traced. we speak with him why he's doing this. he wants everybody really to own a gun. he doesn't want the state involved in anybody's business. guess what, the federal government has just given him his federal gun making license a couple weeks ago. >> all right. last one, quickly, some people call this the barbie doll for

men because it's got so many accessories. can you give us a quick rundown on get i never thought of that. >> think about a jeep, where you buy a jeep, you tweak it out, put on headlights, bumpers, that's the ar-15's popularity. that's why we're going into this gun. a small percentage of gun crime is committed by rifles. a fraction of those percentages are committed by ar-15s. the problem with this gun is that when something does happen like aurora, it tends to be big. by the way, i'll leave you at this, we had a 23-year-old in awe roar remarks she today up. said she tried to run, she realized her stomach was hanging out. she lived. we re-united her with her e.r. surgeon. he said we need more background checks, people who are victims of gun crime didn't say ban all guns. that's how passionate this

industry is. at 10:00 tonight, i hope all people dune tune in. >> america's gun the rise of the ar-15, 10 eastern and pacific on cnbc, my great pal. >> thank you. >> that's it for tonight's show, thanks no brian sullivan. a fascinating thing. watch that at 10:00 p.m. i'm larry kudlow. with restill for free market capitalism and for freedom. we'll see you tomorrow night. [ female announcer ] working together means working efficiently. and a lennox home comfort system may just be the perfect example.

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>> the following is a cnbc original production. [ music ] >> marijuana is the most profitable illegal narcotic. >> this is a huge business. uh, in california alone, it is the number one crop. >> and there's at least 13 gardens within a mile radius of our home. >> thirteen gardens right around your house? >> mmm-hmm. >> yes. >> wow! >> thousands of growers, millions of users, and a market in the billions. >> how much money was coming in to your marijuana smuggling operations every year? >> about 50 million. >> it's a multi-billion dollar business rife with guns, gangs, and plenty of money. i'm trish regan. join me for an unprecedented look inside america's marijuana industry. [ musi