despite the syrian denials. it is day 84 of the trump presidency. we have joe johns with more. >> reporter: good morning, alisyn. more evidence that approaching the first 100 days, this administration is acknowledging what sounds good on the campaign trail and what works in the oval office. >> i said it was obsolete. it is no longer obsolete. >> reporter: in a stunning reversa reversal. trump abandoning his hardline position on nato. >> in my opinion, nato is obsolete. >> it is obsolete. >> reporter: asserting it was his criticism to prompt the alliance to start fighting terrorism. >> i complained about that a long time ago and they made a change.

>> reporter: despite the fact it has been a central focus of the military alliance for years. this about-face coming as trump seeks support on u.s. allies over russia. >> we are not getting along. >> reporter: he resisted criticizing in the past. >> i think i get along very well with vladimir putin. i just think so. >> vladimir putin says nice things about me. >> reporter: the president now hardening his tone, but stopping short of going directly after the russian president. >> i'll see but putin over a period of time. it will be a fantastic thing. >> reporter: however, mr. trump made his feelings clear about the syrian brutal dictator. >> that's a butcher. >> reporter: stark contrast to comments last week who said the priority is not toppling assad. >> president xi wants to do the

right thing. we had a very good bonding. i think we had a good chemistry together. >> reporter: telling the wall street journal chinese are not currency manipulators. >> grand master at currency manipulation. nobody has ever manipulated currency like china. >> china a currency manipulator. >> reporter: offering an olive branch to janet yellen after saying this. >> i think she is very political. >> reporter: trump telling reporters he prefers that yellen keep interest rates low. >> i think our dollar's getting too strong. >> reporter: the president's comments causing a sell off of the dollar. and health care. >> i want to do it. i want to do it right. >> reporter: it was last month

where the president was abandoning the issue after the defeat in congress. now threatening to wcut off federal payments. a move that to trigger turmoil in the insurance markets. despite the flips, the president insists we are keeping our promises. not to be overlooked, the support for the export/import bank which is a big back slip when jim acosta asked sean spicer about this, his answer was circumstances change. >> joe. thank you for all that. cnn is learning u.s. intel agencies intercepted communications with the syrian military and chemical experts. evidence of a coordinated chemical attack. we have cnn's barbara starr live at the pentagon. >> reporter: good morning.

the pentagon is not officially commenting. cnn has learned they have communications intercepts of syrian officials and military officials in syria talking about the chemical attack before it happening. the planning of it. this does not mean the u.s. had knowledge. they went back through the intelligence they had after the attack and able to sift out and locate due to the time, date and place of the attack, what they were looking for. that is an important piece of intelligence that they have the intercepts the syrians were talking about the attack. what about the russians? we had reported in the past a russian drone over the hospital that got bombed. that russian drone taking images. the theory now the u.s. saying, it was taking images of the injured people at the hospital. that provided information for another plane to come in and try to bomb the hospital. they are looking for additional

evidence of russian involvement. they know there were russian chemical experts in syria. alisyn, chris. >> barbara, i appreciate it. let's discuss that and the trump shifting positions with david gregory. cnn military analyst and retired military general james "spider" marks and reporter for the wall street journal carol lee. david, how do you read the new positions kind of a recognition of pre-existing fact on all of these different things? nato, syria? >> the president was never an ideological guy or principled when it was views of the world or governance. on major policy positions, he did not have that kind of experience. i think he played fast and loose with the campaign for effect.

i think he believes a couple of things. one, unpredictability and flexibility are his strength in negotiation, but also in how people will evaluate him friend and foe alike. i think he finds advantage in that and finds a way with change in position to bring people around because they can't pin him down a little bit. i think there are dangers as well in terms of being that unpredictable with allies. with what can people expect? that is the big deal? i have a different view now i'm governing. there is something to that. okay. campaign is one thingme. you get in office and you deal with other things. he is getting credit for flips. he is flipping to a moderate direction. >> carol, you just had a wide ranging sit down with the president. 70 minutes long. you asked him how the 85 days in office have changed him. what did he say?

>> he had a very interesting answer that i think is reflected in the changes we are seeing him make all of the things you just outlined. he said this is a whole different world. that the thing that struck him is not different, but the decisions are so big and magnitude of the decisions are so big. he is faced with life and death decisions. if you don't mind, i'll read you the quote. you are not talking about you are going to make a good deal. that was the way he talked about it diuring the campaign. i make great deals. that's why i'll be a great president. what he was saying is he realized that 84 days in, it is not just about that. these are actually really big decisions and all of the different complicated parts, particularly on foreign affairs, have consequences when you take one step versus another. one of the first things he talked about was the relationship with china. he said when he decided he w

wasn't going to name them currency manipulator is because china is no longer doing that. also that why would he do that when he wants china to do something for him on north korea. now is not the time. he is just recognizing that while in a campaign, you can take a hard line on one thing or the other. these pieces all relate when you move them around and you can't just say you will do something like label china a currency manipula manipulator. >> this was the criticism of him during the campaign. he had situations wrong. he was talking tough to belie the facts. let's play an example with nato. >> nato is obsolete. over 60 years old. it is many countries. doesn't cover terrorism. >> i complained about that a long time ago and they made a change and now they do fight

terrorism. i said it was obsolete. it is no longer obsolete. >> the problem and shift, general, is that each of these cases, the president had it wrong. we all know. if you know anything about nato, it is not obsolete. the only time it invoked the article was after 9/11 to help the united states. he said they don't pay enough money. it is about commitment to defense. he had things wrong on each issue. now he has them right. is that necessarily a strength or reflection of his challenges? >> i hope it would be his strength and our president is evolving. you campaign in poetry. you govern in prose. that is what we are seeing. i'm glad to say our president is adjusting his position. there is nothing more important to us than have a unified europe. we can do that. if we are doing these one-off

bilateral relations, that opens doors for malfeasance. we hope to have a europe with a focus to the west which it has had forever versus the east. it is to our advantage that the president is raising his hand and said i may have had it wrong. we need to be able to create these positions where we can find interests with russia so we can have a unified picture in all these problems we're confronted with right now. >> it is stunning. i didn't realize they were huge decisions. what did he think he was campaigning for? i didn't realize health care was so complicated? there is a transparency that will be looked at differently whether you are supportive or critical of him. it is striking. the way he brings you in to decisioncarol's interview.

he wants the wall street journal there and new york times there. he wants the dialogue. i think that openness exposes areas where he was wrong. by the way, nato hasn't made changes because of him. it was always us. >> are countries contributing more? >> it is not about it. >> that is something he did make a cornerstone. >> are you making an prop yacht? >> of their own defense of their own budget. it is how much money. you don't give money into anything. there is no increased contribution. >> it is not your budget. it is nato's budget. >> so it is nato's budget. have they given more since mr. trump started talking about it? >> the secretary-general noted that. >> we are interviewing him today. he has things he hangs his hat on. he said i talked about it and

things changed. >> my point is about this flexibility that i think -- you can criticize him because he doesn't have the defined view. most presidents don't. carol can speak to this. i thought it was interesting. the bit with president xi. i want him to do more in north korea and he told me the history of china and north korea and realize it is not so easy. in some ways is he building a relationship with the chinese leader that we didn't think was possible. >> we are calling this an evolution or recognition of existing fact. china is a good example of this. let's play the sound. >> china, which has been ripping us off, the greatest abuser in the history of this country. >> president xi wants to do the right thing. we had a very good bonding. i think we had a good chemistry together. i think he wants to help us with

north korea. we talked trade. we talked a lot of things. i said the way you will make a good trade deal is to help us with north korea. >> again, similarly with nato and "spider" you are right. the way nato sees the collective picture is the individual states and commitments to their own defense. it is not about, oh, we just saw that poland put an extra $50 million in. we're in good ship. with china, they haven't pushed currency down for a long time. he was wrong, carol. it worked during the campaign, but factually inaccurate. now he knows the truth of it. is that a benefit or burden for him in terms? >> i think if you are china, you don't really care the reason he is giving for changing his position. you just care he is changing his position. similarly with nato, it's probably a little more complex

because on one hand hearing the president say and to be clear, that was a strongest statement they gotten from him on his commitment to nato to say specifically nato is no longer obsolete. that was the big thing that made people nervous. so on one hand, they hear what they want to hear from him. on the other hand, it raises questions of what do we hear next and when does he flip again or which excuse does he use? to go back to david's point on the president's comments about being changed on china's ability to help him on north korea based on history lesson from president xi. that was interesting in the interview. he was candid about that. he went in and said this should be easy for you. you should be able to help me. china can easily deal with north korea. he said xi went into the history of china, korea.

within ten minutes, he thought it is not so easy. so that was the theme i think we are starting to see develop and we will see develop more in his presidency as the days unfold. >> maybe his staff could brief him so he is not learning from the other world leaders. panel, thank you very much. >> coming up on "new day." nato's secretary-general will be with us about trump and the military alliance. president trump making threats that could hurt the quality of your health care or affect it. what is he saying? that's next on "new day." tfeaturing a high-efficiencyng trimmer,brushless motor,. it runs up to 45 minutes on a single charge.

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president trump says he is considering withholding payments to health insurers in an effort to force democrats to the negotiating table. he tells the wall street journal, i don't want people to get hurt. what should happen is the democrats will start calling me

and negotiating. we have david gregory and carol lee and joined by alex burns. you sad down with the president, carol, for 70 minutes. explain how president obama had been, i guess, billions of dollars for subsidies for the lowest income people to bridge the gap. donald trump is threatening to get rid of those. chuck schumer says he will be hurting low income people. what did the president tell you about his plan? >> he left it very open. he said he hadn't made a decision about what he wants to do and he put it out there. he did it several times specifically naming chuck schumer. saying the democrats should be smart to negotiate with me. he is leaving it open for negotiating room hoping democrats will negotiate. he has things he wants from democrats. including health care and other

issues. and so he's using it as large to try to get something going with democrats which he has not been able to do. at the same time, he doesn't want to hurt people. he left it undecided and laid it down as something as to try to get negotiations going with democrats. >> david, this is another example of how the president makes his magic. facts first. you can't not pay on existing contracts. you can delay it. that could have almost a definite reverbration of slow walking service. that would have ripple effects. it would hurt people. as a tactic, how do you see it? >> i think he is trying to push off a door that's not willing to be open. i think he thinks he can create leverage and create a new negotiating partner on capitol

hill since his republican party bailed on him when it came to health care. i don't know the democrats are inclined to do that. number one, i don't think they feel they can trust him. he may come out with a negotiating position and completely switch it. i think republicans are worried about that as well. i will tell you this, i do think it is smart of the president to look for ways to confound his adversaries. look for ways for democrats to negotiate with him. i don't think he has a particular alliance other than achieving a ruesult. in that way, he could be tactically difficult for democrats. >> and he will say something inflammatory or make a threat and it does get attention like chuck schumer and he backs off because the negotiating begins. >> i was speaking to somebody a

couple days ago who represents the tense situation with the payments. they were saying we feel pretty good about the direction things are headed in. i don't know there's a tremendous impulse to take the president's words or threat at face value you. the one thing the president hasn't really tried with the democrats in terms of trying to bring folks from the other party to the table is dangling stuff in front of them that's genuinely popular with their constituents. you do have six, eight, ten state democrats in red states that president trump won last november. >> what could he give them? >> even democrats acknowledge things that need to be changed about the health care law. many said on election night said they were hopeful to work with the president relating to issues on infrastructure. the president hasn't gone down that path. one of the tests is how do the democrats respond if he does?

>> in terms of leverage, carol, the president gave something away in terms of leverage. it is known to lawmakers of left and right alike, they need to get health care done first. they believe the federal scoring system that will lead to tax reform is important and then fix out how to fund infrastructure. now people know this is a meaningful first domino. he has a reason for the democrats and freedom caucus to dig in. >> it was interesting when we talked to the president yesterday. we asked about tax reform for instance and if he would put forward guidelines or principles on tax reform. he said absolutely not. he said he will instead move forward with health care. that as you said is a signal to not only republicans, but democrats, that this is something he really wants and he will make another effort at it. they can hold out for what they want.

if you are a republican and promising to do something on health care for as long as you have, it is really hard to explain back home why you weren't able to do that when you have the white house and house and senate in republican control. republicans have an interest in doing something on heths caalth. the president wants to do that first which is different from when we saw after the first effort failed and he said we're moving on. >> david, another interesting tid-bit with carol's sit down with the president. steve bannon. what the status is. this is what president trump told them yesterday. i do my own policy. i'm my own strategist. i have people i respect. i have people i listen to. i have many people. i'm saying bannon is a good who works for me. he's a good guy. i don't have people making

decisions. >> doesn't that quote start out with i like steve. i like steve. >> here the dirt. >> you don't want to get bigger than the boss. especially with this guy. that's the bottom line. bannon is getting bigger than the boss. dark world view. great manipulator of trump. trump doesn't like it. jared kushner is his son-in-law. i don't think we understand the contours of kushner's influence on the president as we as ivanka in all kinds of ways on president trump. i think at the moment, at the very least, bannon is being marginalized. i think bannon is the keeper of the flame of the bannon base of that fringe element of this conservative movement. we have to see how it shakes out. i think he is in some trouble. >> those who have been a student of trump are shocked by the

small circle. >> there's rona. >> there is something neglected in the bannon analysis. he's on the way out. fighting with the son-in-law. what happens if bannon walks out? he is the most dangerous person that the president could have out there. he would be able to expose him as a hypocrite and fraud to his base. who knows what he has heard? >> breitbart produced all kinds of headaches on health care and relationship with paul ryan and foreign policy. that's with steve bannon in the white house. i think it is important for longer range context for people dismissed or shown the door from donald trump's world. i'm old enough when roger stone was shown the door in the campaign. these are folks the president has never stopped talking to. >> remember, bannon has unique access and unique power on the outside. they have to think about that. >> panel, thank you very much. >> tensions with north korea are

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tensions increasing this morning between the u.s. and north korea. satellite images picking up a high level of activity at the north korea nuclear site suggesting a nuclear test is imminent. we have cnn's will ripley live in pyongyang including his report on the mysterious assignment. >> reporter: alisyn, we got a phone call telling us to dress in suits and leave our phones behind. they didn't tell us where we were going. we were put on buses. five hours later, we were among the streets with soldiers and civilians of tens and thousands. the military band played the tune that sounds when kim jong un appears. he was standing a short distance opening up a high-rise apartment

complex that he has built in spite of u.s. sanctions. trying to prove to the world north korea has the means to grow the economy. there are new images coming out of kim jong un at a special operations military exercise where his commanders were jumping out of aircraft. north korea trying to send a dual message they are growing economy and advancing militari y militarily. and analyzing data from the satellite that shows the nuclear site is primed and ready for potential sixth nuclear test at any moment. we learned that radiation sniffer planes are being deployed to okinawa. he has the ability to launch nuclear weapons, but sarin-gas

tipped warheads. this is western propaganda. they are trying to peacefully protect the nation from the u.s. as "the carl vinson" is closer to the korean waters. >> this is interesting to see for the anniversary of the dynasty and the armada from the u.s. which has the heavier influence. will, thank you. stay safe. back here. we just saw the u.s. dollar tumbling all because of something president trump said. steve forbes joins us to discuss next. p br ♪ (phone ringing) they'll call back. no one knows your ford better than ford and ford service.

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the secretary of the treasury a currency manipulator. >> china. they manipulate more than any country in the history of the world. there has never been a better or smarter currency manipulation

than that by china. >> we are going to label china a currency manipulator. >> of course, now he isn't. that is how donald trump felt about china on the campaign trail. present day, he is not going to label them as a manipulator. one of many shifts. here to discuss is steve forbes. >> playing injured. >> respect that. >> i couldn't pitch for the yankees. >> let's wait for mid season. that's when they usually collapse. what we saw with the dollar. explain to us what the effect was of trump saying this dollar's getting pretty strong. >> what it under scores is whether the dollar is weak or strong is not good. we have to stabilize the thing. it hurts investment. >> let me read what you said so we can get our heads around

this. yesterday, he told the wall street journal, i think our dollar is getting too strong. partially that's my fault because people have confidence in me. that is hurting. it's very hard to compete when you have a strong dollar and other countries are devaluing. >> i take that in a sense of good news. the border adjustment tax the crazy house republicans are pushing. crazy. they are counting on a strong dollar to undo the damage of that. wacky economics. what the president is saying he is not going to buy into the border tax because of the supposition it will make the dollar stronger. that's good news. on the terms of what it tells the federal reserve, the dollar weakens or gets too strong, both are disruptive. both have consequences for the economy. all of the changes you are seeing. people don't care if you deliver a strong economy.

how you get there, they don't care. whether you win it, good. they will not second guess you. >> sometimes you have a disconnect with what sounds good or what is good for you. you point out the border tax. you will punish the companies. the ckoconsumer over here. what do you make of the proclamation? the dollar strong when markets are open? >> what it means is he realizing that strong dollar what it does is hurts companies and helps companies. so what you want is you want stability. so what the federal reserve was doing the job it should be doing. it should see the volume activitiv volitility. we see who he appoints to the fed. >> will he do things that will manipulate the markets?

>> it is not manipulating the market. the treasury department sets the dollar. not the fed. >> what he says out loud has a ripple effect? >> sure. every time a president says something, it has an impact. i hate to say this as a republican, one of the huge mistakes from the bush administration is weakening the dollar in the early 2000s. that sets up the comedy commodi housing boom. >> and janet yellen talked about colluding with president obama and suggesting he was going to get rid of her. now he likes janet yellen. he says he respects her. is she staying? >> that depends on the end of the year. if the economy is doing well, he might be in the mood to keep her. one thing the federal reserve

has done and gotten little recognition is what it has done with the interest rate policy hurting lending to small businesses. the so-called raising of interest rates is not a tightening. it is allowing the credit markets to come back to life for those who were not getting credit. the old soviet union. heel health care is free, but you can't get any. let the credit markets come back to life. that's a good thing. it is not how you get there, it is how you deliver the results of the strong economy. that is where they should go. leading with tax cuts rather than the swamp of health care. >> they say they can't. they need health care first. politically you can argue whether they need that because it will embolden their adversaries. >> this is where they got to get away from worshipping the congressional budget office

which scores these things which is nonsense. they should go with a big tax cut as reagan did in the early '80s and gone to health care. people have to feel the economy is getting better. you saw in kansas, a warning shot across the bow. if the economy is looking like it is not get better, people feel it is getting better. republicans will be in big trouble next year. go for a big tax cut now. the heck with the cbo. you have to deliver. >> steve forbes, thank you for being with us. president trump is heading back to mar-a-lago today. how much does it cost you? we have the numbers. do you care? ugh, rs. oh no, looks like somebody needs a new network. when i got this unlimited plan they told me they were all the same. they're not. verizon has the largest, most-reliable 4g lte network in america.

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alisyn, they are $25 online. >> he is a fan of king tut. born in back lobylonia. >> moved to arizona. >> i knew you would have it. since becoming president, donald trump has already spent six weekends at his florida club mar-a-lago. wait until you see the bill you have been paying for it. that's next. ford supe the only high-strength, military grade, aluminum alloy body heavy duty pick-up. it takes first place in every measure of tough: best-in-class towing. best-in-class payload. and best-in-class torque. winner, winner, chicken dinner. this is the all-new ford super duty. 2017 motor trend truck of the year.

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fmy doctor recommended ibgard. abdominal pain and bloating. now i'm in control of my ibs. nonprescription ibgard-calms the angry gut. president trump has been in office 84 days and his numerous trips to his florida golf club cost more than $21 million. the president is on pace to spend more money on vacations in his very first year than former president obama did in eight years in office. let's talk about this. let's bring in the executive editor for bloomberg uand the author of trump nation. let's just pull up the graphic

one more time. it shows that president trump in just 84 days has already spe spespent travel costs. $21 million in 84 days. president obama spent $97 million in eight years. he will spend more in one year than obama did in eight years. republicans were upset anytime president obama played golf. what is going on with this price tag? >> what is going on is hypocrasy. he is fairly flagrant about it. you know, he is traveling, he is engaging in the activity of golf. >> country club. >> that he owns. taxpayers are paying to protect. not really showing any desire to cut back on his own budget at a

time when he is asking the federal government as a whole to watch its waistline. >> that's look at that waistline. here are the thing that president trump is asking taxpayers to sacrifice and where the federal budget should cut. you see the irs. he wants to cut by $239 million. essential air service. $175 million. housing. public housing, $35 million. science, $102 million. loan guarantees, down by $1 million. his travel in the first year or two will out pace all of these cuts. drew, how does that math make sense? >> the math makes sense only if you are supporting president trump on the basis you don't like belt tightening. the list goes on. there is medical research costs and contributions from meals on wheels from the federal budget. the federal budget is a big

thing. the spending that goes toward mar-a-lago and trump tower is a drop in the bucket compared to that. if you care about where your tax money is going and you care about government waste, you will care about the fact that president trump is going for the seventh weekend to mar-a-lago this weekend. he has not changed the trump lifesty lifestyle. ex-tr e extravag extravagance. >> we have the sound. let's play it to remind how outraged trump was about president obama's leisure activities. >> obama, it was reported today, played 250 rounds of golf. he played more golf last year than tiger woods. i love golf, but i don't have time. >> i will be working for you. >> i won't leave the white house very much.

these little trips. th they cost you a fortune. >> he played more golf last year than tiger woods. that's a classic line. i think trump at some point may or may not be held accountable for all this. >> by whom? >> ultimately it matters by his voters. i think his core supporters want jobs. there will be an issue to what extent jobs trump everything else in electoral math. if he claims to be a multibillionaire, why not cough it up and pay back the public for the use of the jets. >> drew, it is not just president trump's trips to mar-a-lago. obviously any president can have down time. we want them to. it is their prerogative. it is also how much it costs to protect the large first family. melania, the first lady, stayed

in new york city. new york city officials say it costs about $140,000 a day to protect melania and barron because they're not living in the white house. furthermore, you know he has five adult children or four adult children. they travel. all of them have secret service. they do international travel. that all costs a lot. who is going to be crunching the numbers and alerting taxpayers to it? >> like you said, this is a very big family. president trump is 70 years old. he is has children and grandchildren. even the youngest get secret service going to day care. all of this is choice. we want the president to have down time. we want him to be protected. we want the first family to be protected.

the first lady and child choose to live on trump tower. it comes to choice. the choice we want to pay for that level of protection or keep him in the white house and save money along the way? >> drew, tim, thank you very much. thanks to all of you. our international viewers. for you "cnn newsroom" is next. for the u.s., "new day" continues now. >> we are grateful for the supportive nato members. >> the president doing a 180. >> nobody manipulated currency like china. president xi wants to do the right thing. >> changes policy more than he changes clothes. >> i have to do health care first. >> he is grappling with the reality of what's in front of him. >> the enoughnew evidence. >> we are not getting