encyclopedia crameria strikes and you're better for it. i'm jim cramer and i will see you next time. will we or won't we? after secretary of state john kerry talks tough president obama walked things back today. is the u.s. attack on syria coming sooner, later, or not at all? the markets meanwhile are clearly rooting for no attack. any time kerry or president obama made hawkish comments stocks fell. when they were more dovish stocks rallied back. stocks finished on another down note. considering all we've been through this summer, the markets have been pretty resilient. meanwhile another conflict in washington gearing up. the fight over debt ceiling, government shutdown, sequester,

taxes all that continues. meetings between the gang offing eight and white house negotiators broke down. all that and more coming up on "the kudlow report" beginning right now. good evening, everyone i'm larry kudlow. this is the cut low report. you heard my interpretation of today's speeches. john kerry talked tough in a stroke and brilliant speech. president obama on the other hand seemed to walk it back. let's go cnbc john harwood. he's live in washington for us this evening. first of all, thank you, john and second of all, good evening. what can you tell us? >> reporter: i don't think president obama was walking back those remarks from john kerry. they had different missions. we saw an acceleration of a momentum for a military strike on syria.

john kerry came out saying the u.s. had evidence that syria had weapons to kill 1400 people. president obama tried reassure the american people that any u.s. response would not be open ended like the war in iraq. >> without considering any open ended commitment, we're not considering any boots on the ground approach. what we will do is consider options that meet the narrow concern around chemical weapons, understanding that there's not going to be a solely military solution to the underlying conflict and tragedy that's taking place in syria. >> reporter: now the reason it was so important for the president to reassure the public, we had a new nbc news poll out this morning showing only 42% supported the idea of striking syria because of chemical weapons. you also had yesterday in the house of commons, the british legislature rejected the idea of authorizing force to go along with the united states.

that was a setback for the president. he did get strong support today from the french president who said we cannot afford not react to the use of chemical weapons. >> john, may i ask, is there a battle inside the white house? i'm going to be very crude about this but a battle between the bombers and the negotiators? you know, are there two factions in the white house going at it right now? >> reporter: i don't believe so. the white house is set on taking actions. there's misgivings. there's concerns about risk. one aide said the unknowable repercussions of this is something that makes me v-very nervous. there's a lot of people nervous in the white house but there are only bad openings in this situation and it seems clear to me beginning with the president they have decided that a military strike is the least bad option. >> least bad option. john harwood in washington. thank you very much. now let's go the middle

east. what are they saying about what could happen this weekend. nbc news ahmen is in beirut. good evening. >> reporter: despite the case that was laid out today by the u.s. secretary of state john kerry there still remains a lot of tension and perhaps some reservations among the closest allies of the united states here in the middle east. a lot depends on the nature and scope of a possible military strike. lebanon, a country that has not been immune from the type of violence that has spilled over into this country they are concerned that a military strike could destabilize syria and the region. hezbollah said they would defend the regime until the end. that's a concern to some. on the other end a country like turkey a member of natural jobs they say a military strike should be aimed at toppling the regime of president assad. that's something that the u.s. mass denied. said it's simply trying to exercise punitive measures for

the regime using chemical weapons. or, another country that's buckling under the weight of refugees pouring across that country's border, they are very much concerned what the humanitarian consequences of a syrian attack could look like and what it would mean for them if million of syrians poured across the border into neighboring countries. back to you. now the white house briefed members of congress and their staffs this afternoon about the intelligence it has gathered so far. joining us now is house armed services committee member brad westrop. a republican from ohio. a former army surgeon and currently a lieutenant colonel in the u.s. army reserves. god bless. thank you very much for coming on the show. let me ask you this -- >> thankyou. >> there's a lot of protest. we had republican members, democrats on last night. they want authorization from congress before the president act. i believe you signed one of those letters that suggested the president must go to congress.

let me ask you this, if tonight in an hour, before this show is even over, if we learn that the bombing starts, that we're taking out the air force, we're taking out the airfields, we're take out the command and control and taking out all capabilities for chemical weapons, if we learn that tonight, wouldn't you back the president or would you want him to still come to congress? >> well i would like him to still come to congress because our constituents need to know why the decision were being made. that was a step in the right direction today when we had an opportune to hear their side of the story and share some of the intelligence that's been shared with the american people. congress in general still feels they would like to know what the whole strategy is. i certainly understand and the world understands that we want to deter the use of chemical weapons not only by assad but throughout the world. how are we going about accomplishing that? what are our national security interests and be risks involved with this? identify served in theater, and i have a concern, of course, for

our troops and for any repercussion. >> all right. i know you served in the theater. god bless for your service. i come back to this other issue which i think is still very important. the element of surprise, the element of speed. frankly i thought the president would have acted by now. perhaps he will tonight. perhaps he won't. i don't know. we don't want to give assad a chance to go to aleppo, the biggest town, a lot of talk that they will drop chemical warfare bombs on aleppo. you go to the congress later, he's already starting to consult with you all but sometimes the element of surprise which you know better than i because you have, sir, is a terrific war strategy. >> that is a terrific war strategy and it's one that we have concerns about. you know, we can see on the news every night where we're positioned and often we know what our options are and then they know what our options are. that's a concern.

perhaps there's more out there that we don't know about. we haven't had a top secret type of briefing yet. we had an unclassified briefing. as far as congress goes and on behalf of our constituents, we're not really able to share with them what we think might be the best move. >> can you share with us the unclassified briefing? what were the high points? >> i can tell you today there were many opinions that came across, the administration feels very certain that assad was the one who used the chemical weapons. of course the u.n. team that's in place right now will not really have the results for a couple of weeks and it's important to know that they will not say who used them, they will merely say they were used. i think that the data that we have of those presented to the hospital and those live on the scene would say chemical weapons were used. so we feel pretty certain about that. the administration was making their case they feel they have to act and perhaps unilaterally. that's where the debate comes in and we heard many opinions from many congressmen on this phone

call. >> what was the generic sort of overview. if we have to act alone -- i don't even know what it is. i wish i knew more then i could decide whether i'm in favor of this or not. i'm looking at it from defending the united states, i regard myself as a patriotic conservative hawk if you will. i hope this is the right thing to do. i don't know. i'm just saying, you say kerry made the sale today. i tend to agree. i thought it was john kerry's best speech of his entire career. i've known him a long time. if we have to go it alone, why not? you tell me we have to wait two weeks for the united nations which will never help us anyway, will never get it through the security council because of russia. why not act alone if that's the game plan and god help us i hope it's a good game plan. >> i agree with you there. they made the legitimate case today and john kerry did it very well and i agree with you it was very outstanding speech on his

part and, you know, we're certainly saddened by the destruction that's taken place to men, women and children, innocent people. but going it alone, that is the question, right? i think it's important that the president speak to the american people and make his case. but you also bring up a good point, how much of the case your going to make as far as what intend to do but i think those of us in congress would like to know what you intend to do and why. >> i mean would just say again as an amateur here, we have telegraphed so many of our punches it's awful. just awful in my opinion the things we won't do like regime change or going after assad, or take out or crippling his military. we telegraphed so many things that i'm hoping against hope that it's all kind of a head fake and that when the actual shooting starts, when the missiles start it's going to be much, much tougher than that and we'll cripple their air force and their chemical warfare. that was my hope.

is there any chance that hope will come to fruition. >> you know as much as i do in some regards because what i know is unclassified whether it's a head fake or not i don't know. i do have a concern of what's in the best interest of the american people and for our own security and for any potential fallout especially for turkey, israel, jordan. these are people that are friends to the united states. we have to make sure we don't do something that puts them in greater harm's way and ruins that relationship that we had with them and makes it more difficult for those nations. it's not only the united states and what's on the line for us but what's on the line for our allies. >> the stakes are very high. well put. thank you ever so much. we appreciate it and good luck. now president obama says there's still other options outside of military action in syria. couple of times today he mentioned negotiations. with whom? what exactly did he mean by that? we're about to ask former u.s. ambassador to syria. that's next up on kudlow.

seems far fetched not really. don't forget free market capitalism is the best path to democracy. if we had more free market in the middle east we would have less violence. trust me on that, i'm larry kudlow. we'll be right back. [ male announcer ] come to the lexus golden opportunity sales event and choose from one of five lexus hybrids that's right for you, including the lexus es and ct hybrids. ♪ this is the pursuit of perfection. ♪ license and registration please. what's this? uhh, it's my geico insurance id card, sir. it's digital, uh, pretty cool right? maybe. you know why i pulled you over today? because i'm a pig driving a convertible?

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we choose to live in the world where a thug and a murderer like bashir al assad can gas thousands of his own people with impunity, even after the united states and our allies said no and then the world does nothing about it. there will be no end to the test of our resolve and the dangers that will flow from those others who believe that they can do as they will. best speech i've ever heard john kerry ever make. he's been a guest on this show. he ran for president, didn't make it. he was terrific tonight. tough talk from the secretary of state. but has the obama administration made its case sufficiently for war. white house declarifying some of the evidence that bashir al assad's forces used chemical weapons. okay. yet i still find it somewhat baffling, no plan for regime change, no plan to take out

chemical weapons or cripple the syrian air force or knock out their airports and runways and frankly declaw assad and his military so he won't be able to pull this again. those are some of the things that worry me about this action. joining us now from washington, former u.s. ambassador to syria, now president and ceo of the nonprofit a mid-east. before i get to my list let me ask you how you interpret southeast things that the president said today particularly. all right. no boots on the ground. i get that. i get that completely. here's what i don't get. limited, narrow, tailored, not open ended. what do you think that means? >> i think it means this president doesn't want to get in the mid. a sectarian civil war in syria particularly when the opposition is riddled with al qaeda and al

qaeda-like elements and the opposition has shown no ability to organize itself to govern. so this president would like to still bring the russians along to a geneva conference and try to get a political settlement of the war through negotiations. >> but that can't be realistic. the russians will do everything they can to thwart us and vex us. you know that better than i do. putin can't stand us. he thinks he's back in the old days with a strong soviet union. negotiations -- i don't get negotiations. why did -- when i hear -- let me start again. limited, narrow, tailored not open ended. what resonates there when the president and other spokes people tell us there's no regime change, they won't take out assad, they won't cripple the army and the air force. that's the part i don't understand. and is that what he means when he talks about limited and

narrow and tailored and not open ended because if that's true, sir, it will be a lousy mission. it won't be a successful mission. >> he's trying to lead the a needle. he's trying to do enough damage to hurt the syrian armed forces make them think again and again before they use chemical weapons as they did in the damascus area. but he doesn't want to basically change the balance of power to the point where he provokes the russians and the iranians and the like. so on one hand he's trying to give the israelis for instance confidence that our word can be trusted because we told the israelies we won't let iran get nuclear weapons capability. he wants to send a message win in the and north korea. but he doesn't want to oust assad just yet because the opposition isn't ready to govern. >> all right. so, i take that. okay. ate good point. i get that.

is there a way -- see my point about crippling the army and the air force and stopping air power which is their biggest advantage, assad i think you would agree with me, air power is their biggest advantage. my point is if you do cripple them assad will still be there but can't do anything with chemical weapons warfare. you can cripple their chemical weapons warfare operation. in other words, you and i want to stop, the whole world wants to stop assad from doing this again. he's liable to do it again in a couple of weeks. to stop him from doing that don't we want to cripple all their armed forces and their advantage? >> you know, you talked about a head fake. i'm hoping that he will do more damage than his remarks would seem to imply. because i agree with you that this has to hurt. this has to make a real impression on assad's military and they have to say wait a minute, guy, we don't want to fight the united states. you know, we're fighting and

dying enough right here at home. and we don't need to take on the world's only super power. so maybe we'll see a tougher hit than we've been toledo believe. >> all right. quite possibly. that's a good point. i hope you're right. may i ask, sir, your thoughts on when this bombing will begin? >> well, you know, i think john harwood on another segment made the point that maybe they have to begin it now. >> right. >> because tuesday he's going off to russia for the g-20. i don't think he wants to be sitting across the table from putin and a few other fellows like the chinese when we're still sending cruise missiles on to syrian airfields. >> my hope -- i'm not an expert. i would start right now. right tonight. kerry made a speech. obama made his talk. now let's go. let's go. otherwise they may go into other towns, right? they are talking about going into aleppo, if i have the

pronunciation right. they are talking about killing more people using more chemical weapons. i think we need to go right away. >> i hope you're right. i think they will. because, you know, if you're going to do two and a half days of bombing you don't have much time. you better start. >> thank you very much. we appreciate it, sir. now, folks, the markets just wrapped up their worst month of 2013, but the financial picture not so bad. in fact, you can make the case that stocks have been very resilient during a challenging summer. that includes all the curves that the syria story is throwing at us and that's what we're going look at where stocks may be going next. we have washington battles. we have tax battles. shutdown battles and profitable companies are holding their own. i'm larry can you identify, low we'll look at the markets next. hero: if you had a chance to go anywhere in the world,

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i always said one day i'd go to china, just never thought it'd be today. anncr: we're giving away a trip every day. download the expedia app and your next trip could be on us. expedia, find yours. we've been spending a lot of time talking about syria tonight because in large part this is a huge story for markets and money. markets are moving up and down based on every bit of news on this topic and if you don't believe me let's ask cnbc ace market reporter bob pisani. good evening, robert. >> there's total confusion on what the u.s. will do in syria. the markets are not confused. they are worried about the unintended consequences. what would happen in the event of an attack. if it happens during the market hours the whole market would selloff but particularly

emerging stocks. the question is to what degree. a surgical strike that last as couple of days as advertised would see the safe-haven trade be very short-lived and markets would return back to a focus on the federal reserve. it's unlikely this action would be self-contained. that's the worry of protracted conflict will ultimately hit cyclical waves. a protracted conflict you expect oil stocks to rally along with defensive stocks. pressure metals would rise. commodity stocks would drop. along with consumer discretionary stocks like retail and home building. if some kind of a bombing begins this weekend or in the next few days and there's still some conflict with the u.s. two weeks from now, for example, it could be impactful for fed. they could consider not tapering. see the worries. that's why traders are nervous about this event. by the way, today was the last trading day of the summer and it hasn't been that bad of a summer

from memorial day to labor day the s&p was flat that's not bad considering all the worries over tapering and we're still up 15% for the year. back to you. great stuff. many thanks to cnbc's bob pisani. i really agree with bob. i want to pick up on his last point. we got through the summer stock market pretty well. not just dealing with slower fed bond purchases or 125 basis point interest rate rise but new threats coming out of washington for a government shutdown, debt ceiling crisis, let's not forget important point holding up stocks prombgfits, the mother's milk of stocks. yesterday, for example, the gdp report showed that profits are rising 5% year-on-year and 7.5% year-on-year more domestic earnings. stocks may not rally but i don't see a lot of down side either and i don't know how we figure out this syria thing.

let's talk to senior vp of investments at ubs and welcome to the set a good friend of the show, casey mulligan an economics professor from the university of chicago. i am tempted to say that since no human being can figure out when syria bombing is going to start, where, when, how, why and all the rest, that maybe investors just can't make any investments and shouldn't worry about it. just keep a long run view. >> i think what you're on to something there, larry. first of all, there hasn't been much volume. investors are not selling en masse and institutions are not selling en masse. in fact what's happening is they are selling bonds. we saw tremendous amount of money come out of bonds this summer. lot of that did get allocated in stocks. when you look at asset classes and pensions and all-big institutions have to choose what asset classes anthony in, commodities have not been strong, bonds are very weak,

u.s. equities are still relatively attractive. we have these issues in front of us, the taper, fiscal fight, sir area the fact that september has been the worst month of the year over the last 60 years. these things are still in front of us. i don't see people dumping stocks. i don't think they will. this turbulence in september sets the stage for a good fourth quarter. >> what's your take on this stock market, casey. profits are important and are rising. i think that has bolstered stocks against worst performance. where do you come out on it? >> profits are number one. number two, i would put what tax bite comes out of those profits. and we had pretty good news on the dividend tax, could have gone up more. went up just a bit. corporate tax, there's noises that that could be cleaned up and rates cut and that would be huge for the stock market. >> huge for the whole economy. all right. president obama has said from time to time take the corporate

tax rate from 35% to 28%. okay. but he wants to use any loophole closing revenues for more spending. and secondly, he really doesn't want the repatriation of earnings abroad. i don't know what the penalties will be. that's whatever a trillion and a half dollars, that's like putting free money into the economy for investment. why can't we do that? >> i don't think there will be any choice to do it your way. we're in a competitive situation with other countries with very low tax rates and if we want activity here in america we're going to have to give a good deal for the money to come back and money to stay here. >> jim -- >> the reason we don't do it is because it's a political agenda. they are more concerned about appearing to be friendly towards corporations and big business and money than they are about whether this would impact the economy. this is all about appearances. everything they've done is all

about politics. none of it is about the private sector. they don't even understand what the private-sector is and so i don't think it will happen any time soon. >> let me move back to the first question before i lose you. you got people out there, they are home from work, they know all about syria in the sense of being a big issue. but nobody know, i don't know, nobody know, i don't know if president obama knows when the bombing is going to start. where the bombing is going to go. what the bombings intentions are. the strategy may be very unclear. okay. tell investors what the heck they should do. it may start this weekend. so we have to wait until the market opens up on monday. what should they -- should they really make investment decisions based on syria? >> absolutely not. if you look at what's happened in desert storm and the iraqi

war it was the build up rather than the bullets started flying. the markets took off. this will be limited. it spills over into iran, spills over into iraq and i'll prices spike then maybe they've adjust their portfolio, raise a little bit of cash. we've already raised a little bit of cash but we're still net long because ultimately, i think, investors can't outthink this. they can't out think the politics of this. >> that's it. obsessing about this syrian thing. i understand why. but i don't think that's a fruitful productive way to look at the market. and i would say this, jim, last point here. we may be fooled and the president may have a tougher agenda on the military side to really cripple what's going on in syria. and in that case i think it would be super bullets. i think it would be in some sense like iraq. like iraq both times in 1991 and in 2003. anyway thank you, jim. appreciate it very much.

casey mulligan will stick around. a lot more economics to talk about. we now go from stocks to the economy. today, unfortunately we had a terrible consumer spending and income report. i don't see a second half rebound. we have to ask this question, should you rush to fill up your gas tank now? where is the oil trade go as we wait on some action for syria. we'll try to get you some answers next up on "the kudlow report". [ kitt ] you know what's impressive?

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well, of course, as tensions in syria escalate oil prices remain volatile. aaa average gas price sits at $3.59. will high oil prices hit an already weak economy. let's bring in an exert, dan dicker. casey mulligan, economics professor from the university of chicago is still here. dan, give me your wisdom on this. i don't see how you trade this syrian thing no matter what asset. >> i think most of the traders are using the outline they saw in libya in 2011 and that is to buy product at least until the bombs fall and everybody feels that they are going to be able to get out. in fact the day that bombs begin

to fall. in that i think they are going make a big mistake. there's a lot more going on in the middle east than just syria. this is obviously the flash point that everybody is could be scene at any rating on right now. we should know there's a civil war that's been breaking out in iraq. there are rebel force -- >> let's hold there. civil war breaking out in iraq. >> that's not 300,000 barrels that syria is about. >> that's a key point. >> people forget about that. in libya there are alternate factions that took control of certain pipelines and trying to extort from the government release that supply. that's a million barrels. >> i want to get casey in. let me ask you. do you have nyad vice for people who are trading? >> i'm of the belief that all the risks to toil wi s ts to to bombing, without a bombing,

that's what's going on in the capital markets. as long as the stock market looks like every rally needs to be sold at least for now, as long as the taper talk keeps the bond market skittish, as long as gold is not having the kind of year it's had for the last 17, tropical system one hard asset where everybody is rushing in. >> you got a point there because oil prices, i was checking the charts, oil prices started rising well before. >> exactly. there's been a lot. >> so maybe it is. casey, we got consumer spending and income numbers today very important point and we had, of course, gdp yesterday. consumer spending was terrible in this report. consumer income is terrible. consumer spending and gdp is terrible. business investment is pretty terrible. we're growing at 2% maybe. can you get me out of that? i don't want that to be "the new normal". get me out of 2% growth. i'm a reagan guy i want 4%.

>> i'm not sure that can happen what we have in place now. you talked about oil that's a resource we use. more important is human resource. our people are workers and we have policies that keep coming online that are misusing those resources, putting people to part time that should be working full time or knowledgeable skilled people doing those sort of things and that's misusing america's biggest resource. >> why, in your judgment do we have so many part timers? >> you think we have a lot now we'll have more next year. obama care will reward part time work at the expense of full time work in a number of different ways both in the subsidies it pace to families when they work part time but not working full time and penalties they less via on employers when they hire full timers than part timers. >> they work fewers hours which mean less income and spending less. >> yes.

>> why don't the businesses that are flush, a lot of cash and profit, business profits have been terrific, helped bolster the stock market despite these uncertainties why don't they want to make commitments, longer term, five and ten year commitments for factories and warehouse and office buildings. >> why do you want to build cubicles for people not working as much. that's the number one thing. invest elsewhere where workers are ready and human resource is being used wisely. here they are not being used wusly in the next two, three, four years we're moving in the wrong direction. >> will the energy revolution, shale and fracking revolution how powerful can that be? >> you know, it will make the impact of an oil shock a lot different because there will be a lot of domestic benefits from an oil price spike that we didn't enjoy in the '70s because we're producing so much oil and oil substitutes. >> if he's bright and this is a

bull market for oil people come in, more production, more hires. >> wyoming and places like that, texas will really do well. >> we can do it in new york if we had better political acumen. >> casey mulligan thank you very much. dan dicker thank you very much. foolish on oil. now free market friday panel will attack this serious. how do they think president obama handling this politically. that's up next on kudlow when we return. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online

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when it comes to syria we've heard from president obama and secretary kerry. what do the american people want? a new nbc news poll says 40% of people disapprove of the president's handling of the situation in syria while just 35% approve. when it comes to military action, 80% say the president needs congressional approval first. i just want to add one other point, however. when you add the question in that it's just air power coming from naval ships and no one is going into syria then the approval rating does go up to about 50%.

here now to discuss our options in syria, my free market friday panel, democratic strategist and former clinton white house senior adviser. former george w. bush aide and a republican pollster. sara, i want to start with today. john kerry's best speech today may turn out to be historic speech. hillary clinton never made a speech like that as secretary of state ever. they let kerry do it and he delivered. now president obama did not have a formal speech but his remarks really sounded to me like he was pulling back from what kerry did. and i don't know that the american people may be confused. what's your take. >> i think the whole world is confused by what this president is saying and how he's saying. he's the reluctant president on this issue. and when you look at what's going on in syria, and the mess that it is, and mess in some regards by the president's own making. you know, let's remember this

isn't the first time assad has used chemical weapons against his people. the president put a bright red line in the sand and then allowed assad to use chemical weapons again a second time. >> right. so, americans don't seem to want to do this, although i'm not sure they one what is it. richard, assess this for me from the standpoint of president obama. is this a winning issue for him ultimately or is this a losing issue for him? >> i think it's a very serious moment. you know, putting aside what may be the republican party talking points on this issue, it's a very serious moment. our country is about to engage in a military activity against someone who has committed serious crimes against humanity. we cannot let it go unaddressed. so i think the country will rally around him. >> rally around the president. >> rally around the president. i don't think it's the kind of thing we look at in terms of

winning in the polls or politically. i think the secretary of state gave a great speech. i don't know we have to take a dig at hillary clinton because she made many great speeches. >> no she didn't. >> yes she did. but this is a very serious moment. it's not a moment where we should be about democrats or republicans. >> whatever you're going say hold that thought. why did president obama have john kerry give that speech? it could turn out to be pivotal speech in terms of gathering support of people in america. >> i think he was -- >> rather than himself, obama giving that speech? >> i think he was laying the foundation for military action which i think he'll probably start to see tonight or tomorrow. >> really? i support that. >> think that's probably the obvious timiintiming. >> i was going to say the american people won't rally around the president unless he

gives a forceful case why america needs do that. the president may send john kerry out because john kerry has more credibility in congress than the president. it may have been a better move if he's trying to get congress to get behind him and get behind whatever plan he is in fact -- >> kerry really looks like a kansas city. he's been rehearsing for this. >> jim, i get a little cross sometimes, you're going to love this, at some of my republican congressional friends. i really do. because here's why. if george w. bush were the president and he acted quickly, which the element of surprise is so important -- >> no question. >> all right. republicans would back him. now it's obama. and republicans want authorizations and votes and a lot of democrats, anti-war democrats. in other words if richard is right and president obama starts the action tonight, which i

would welcome, frankly, republicans are they going to let him. are they going to back him. are they going to stop this nitpicking? i don't like it at all. i don't think presidents have to stop during the beginning of a war all the time. >> for the most part all the comments i've seen from the republican leadership have shown a willingness to want to work with the president. but the biggest problem is this president time and time again doesn't try to work in a bipartisan manner with the republicans and on an issue like this and, richard, you're right it's a very serious issue. a lot of republicans think we need to act, we need to do something militarily. not just for moral reasons but to help stabilize the middle east again. >> no, no, no. i think you're right on the first part. but they are going out there and they are signing this letter with democrats, most of whom are anti-war democrats. they are in bed with exact italy wrong people for god's sake and

they want the president to come with an authorized bill, all right. a legislative bill that has to get authorization which means money and missions and things that the white house doesn't want to talk about and, you know what? i don't know whether i'll like this or not. i'm worried about that. i'm just saying presidents in general have no obligation to inform every little weenie in congress. in the reagan years we used to call this 535 secretaries of state. until reagan put an tointd. right now i'm backing obama's executiveness because i think you can't do anything. >> john mccain is right on this. yeah. >> the big problem is not only the republicans in congress don't have confidence in this president. just like british parliament didn't have confidence in this president. i think if they had confidence in him they would have said yes we need to do something. but the french are out there more than the british are and

more than the united states. >> very amusing that the french are getting their muscles up. >> i'll agree. i often agree with you although i don't often like to admit it. and i want to say that i really think it's a mistake to analyze this moment in terms of partisan political left, right. and, you know, the republican -- republicans are coming out now who are laying on obama, you know, he's going to make what he thinks in his -- >> best judgment. >> best national security. >> we should be, if nirks trying rally around him. because he's trying, assad is committing crimes against humanity. that case was not sold well until kerry sold it today. i don't know if i'll like what obama does. but this is not the time for congressional legislation and nitpicking. >> i'll bet you the response is much more aggressive than is

being told. >> let's hope so. >> i got to get out. one of the former ambassadors said the same thing. head fake going on. starting next week the fight gets started over the budget and the debt ceiling. questions, will president obama shut down the government because of the hatred of the sequester. what about defunding obama care. the free market friday panel has one more debate to join and that's next up on kudlow. what about defunding obama care.

"the washington post" reports today that we're one step farther from a budget deal in congress. a group of eight rec senators dubbed the diners club on capitol hill recently reportedly walked away from budget talks with the white house because much a dispute over taxes and other things. so we got to ask is a government shutdown more likely than ever and what about busting through the debt ceiling? i'm back with our free market panel. sara, you're closest to this thing. what's going on? senator corker no common ground on budget talks. what's happening? >> both sides are just dug in. you know republicans are not going to tolerate another tax increase. the president is demanding a tax increase. and, you know, we're having the same debate over and over year

after year after year and what's happened, those since the last election is that republicans have gotten more dug in. many of these house republicans particularly and senate republicans are deathly afraid of a primary. >> a "tea party" primary. >> they have no wiggle room in this. the fact that the president seems not to understand that, strikes me as a little tone deaf >> he needs to give a little bit. >> he's going give a little to get this. >> richard, is there any cross roughing between syrian thing and the budget? i mean will the budget hostilities cease for just a little bit while we try to take out this horrible anti-humanity dictator? >> i mean, maybe for labor day weekend. >> maybe for 20 minutes. >> but i think that the temperature, the feeling, the environment in washington now is so poisonous and with republicans really insisting that there can be no big overall budget deal without some kind of

repeal of obama care, it looks very bleak. i mean i think we could have a shutdown. you know the democrats think that if the republicans force a shutdown of the government it's going to make the republicans look bad. which i think it will. but the republicans, you know, don't steam have very many options. they allowed themselves to be boxed in by the far right of their party. >> can tell you this. whatever -- wall street hates this. wall street hates shutdowns. wall street will go beserk if the debt ceiling is violated. >> but you know when wall street will go even more beserk or hurt even more if barack obama raises taxes again. every time this guy has a problem he wants to raise taxes. and what have we gotten for tax increases, 20 million americans unemployed, looking for work. we've got 14% real unemployment rate. his tax increases haven't worked and it's what's killing -- >> that's such an overly

simplistic. >> it's not. >> larry kudlow -- >> first of all -- >> the american economy -- >> the economy -- >> got to get out of here. i don't see it. i don't see it. i want to come back. i see 2% growth. i'm sick of 2% growth. thanks to richard, sara and jim. that's it for tonight's show. i'm larry kudlow. thanks for watching. we'll see you monday. [ male announcer ] it's time. time to have new experiences with a familiar keyboard.

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