obama will say, it is the other guys that did it, it's not me, and the blame will stick. lou: is it that republicans don't understand resident obama is playing smartly and for keeps? it is like the republicans do not understand that this is not a dress for her soul. it is a reality. it is now. it is urgent. >> we have seen a lack of consensus in every level. the republicans are ready for someone to stand up and say, wait a minute. lou: all of our colleagues on this network are sayng it.

give us an answer. >> the democratiparty in 1984, they just got beaten by in the 1980s. and then they had one more loss in 1988 before they really woke up and change their children under the direction of bill clinton in 1992. it happened to republicans as well. lou: we will take our comfort in his report onight. judith miller, hank sheinkopf, thank you for being with us. coming up tomorrow, we will be joined by congressman nunes of california and ambassador john bolton. please join us, we will see you tomorrow goodnight, from new york. neil: all right, china. we are warning you. one more time wi this

nonsense. maybe if you don't mind, it's not a big fine. after all,,you do own a big chunk of our debt. but it's enough. even though you are in your right to tell us tough luck, beijing. neil: do you ever feel like a beggar when you can't get user? welcome, everyone. a crackdown on china for cracking into our computers. step back and ask yourself how china managed to crack into a sensitive defense contractor computer system. scores of other industries and their computers as well. a former president, getting hacked. even apple, yes, apple gets

hacked. ask yourself not whether we punish the hackers, but how we had so many getting out from the most sensitive to the most mundane, and everything that everyone in between, supposedly the most technologically advanced country, it is pretty well everywhere. it is embarrassing and humiliating. a very fair commentary. the hackers appeared so measured and delayed and that this stuff keeps happening withuch efficiency and speed. more on those attacks in a minute. first to the chinese. it the folks behind this unsettling defense. it has the white house on guard and first off, china is denying any of this. how sure are you that they are

lying? >>t's nice when you have a lot of evidence. you don't need to worry about a lot of the hand raising and the propaganda that is being skewed. i report back yesterday, i was extremely detailed. some six years in research, we lay out 141 different organizations, we even gave 3000 digital indicators that we encourage others to take and look at themselves. despite china yelling for the contrary, we just went back to the facts every time i am it is not all china led or inspired, but it leads me to this. how the heck do you get in defense contractors? because i would imagine that they have a couple of concerns. >> they almost make it look

easy. but the fact is it's not about firewalls. you can have the best firewalls in the world, but when it comes down to it, the weakest link in any organization is a human being. this group that we tied back, those guys are really masters, not just in computer hacking, but the art of engineering. it is very elaborate, well thought out. it looks like they come from up here, organizations that you know, people that you know or a anybody you know from the gym. neil: obviously warnings must go out. if you are getting an e-mail that appears to be coming from a colleague or a source or friend or what have you, at the very least that freezes them. in and of itself, it compromises our defense the way, doesn't? >> you cannot be too careful.

the bottom line is that we all have human beings or their organizations. and we all have sensitive types of e-mails. but the bigger is whether we open e-mail or not, we are having a very well-financed resource adversary. so we are going to find another way in. neil: they didn't, they don't then and i just respond to it, now i ve given them access to my company. what are they going through? >> they are looking for specific intellectual property. they are not just browsing around looking at the technology that you had last fourth of july. there are no blueprints or chemical formulas. talking about the big acquisition, you give them that toehold in a quickly pivot. >> but should the e-mails be sent back and forth anyway?

isn't the better part of that in this crazy world to find other venues for which these high-tech companies exchange information? >> it does not even have to be in an e-mail though. they could quickly turn into a filesyem. what is worse is that they can usually go anywhere they want to once they are in their. neil: that is scary stuff. what do you think of their response? they know that they have been caught red-handed? but they are saying that we don't care? >> they are saying that we don't have a political dog and a spy. you know, we'd like to find and eradicate this considerably. it's interesting that china says these accusations are professional. we provide evidence that points back to a particular neighborhood in shanghai and they get to talk about this.

>> now to our official response to all of this. we will fine you if needed. okay, maybe not. leaving aside hundreds of billions of dollars. do you really think the most rapidly enriching country on the planet result in a few million dollars in fines? many do have their doubts. the official response was essentially denial and even in the face of threats, i don't think they seemed to fear fell. >> i just read the latest congressional research reports. it currently holds $1.2 trillion. what happens with inflation in thiscountry? what happens to our currency? they have interest getting into a major companies and finding out what is getting to this

country. they have a serious bargaining chip. all of the other foreigners that own our debt could get out as well. we are in serious trouble if that happens. >> part of our arrogance in this response. they need us to still be chugging wine and losing a lot of money in the process. this is just noise. this whole defense brouhaha. >> that is not the case. honestly we are a major competitor for china. we need to understand u.s. mentality. you get into the intellectual propty. one analyst actually said that china has stolen as much intellectual property, about 50

times the amount of information in the library of congress. we are talking about major information that they are getting and this has been going on time and time again. these major, sophisticated technology companies such as apple and facebook and such as google, yet, they are flat out denying it with what we do know, for example, in 2010 when google announced that they had major intellectual property. the state of bombing came out and they said clearly it was from the chinese government that has storm is property. these are allegations that they are going to continue to deny. but we do know that there is one thing about a communist government. and they are rigorously knowing what is going on and what these hackers are doing. neil: they can't be leaving these fire, so is are going we

do know the chinese anything like we owed them today. >> china is a much more serious threat. to hear the white house say we are looking at this seriously and we are possibly going to impose fines and china, first of all, we do not even have them at the point where they are admitting this. this is also a slap on the wrist when you look at china. they don't have anyone to interfere. if it's wrong what they are doing, are they admitting it -- no, we don't have any answers at the end of the day, the president of united states announces that we are going to find you every time we do it, what does that really mean to china? how heavy a weight is that

remark that they will get a fine here and there. that is not a threat to. neil: i could argue that there is nothing in our posture in response. >> i agree with you. obviously we had this administration and they want to avoid confrontation with china. so i think that again, when you look at what the relationship is withchina, we are in the weaker position. this is a very serious threat to our national security, our economic security, and they have what they call logic bombs are like minds out therethat could destroy our infrastructure in our power grid, and it could really paralyze our country. i think that te companies are taking this very seriously. at the same time, the government needs to include the

administration and congress collaborating with companies to make sure that they put something in place that can really protect ourcorporation. >> they are having a little fun with it, too. the jeep chrysler thing. neil: it is like they literally have a number. [laughter] ladies, thank you very both. if you think the dream liner is a nightmare, it could be your nightmare pretty simply the folks that helped to build this thing are planning on striking. you will not believe over why. and town hall people are madder than ever

today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest citi. siemens. answers. from capital one... boris earns unlimited rewards for his small business. can i get the smith contract, ease? thank you. that's three new paper shredders. [ boris ] put 'em on my spark card. [ garth ] boris' small business earns 2% cash back on every pchase every day. great businesses deserve unlimited rewards. read back the chicken's testimony, please. "buk, buk, bukka!" [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose 2% cash back or double miles on every purchase every day. told you i'd get half.

wh's in ur walle ♪ many hot dogs are within you. try pepto-bismol to-go, it's the power of pepto, but it fits in your pocket. now tell the world daniel... of pepto-bismol to-go. neil: okay, they make that dreamliner, and now they want a dream retirement.

union workers are looking for better retirementbenefits. many are threatening because they don't want employees who have 401k plans instead of the pensions that they are used to. [talking over each other] >> okay, four o. one kays are okay for most folks, but apparently not for these folks. >> there was a study done where these kind of plans were really difficult to sustain going into an economic recession. i think that they might need to get with the financial times. >> rules go into effect for new

hires, it was grandfathered in, the president -- what message do you think it said? >> they say, this is for our survival. this is justoutdated, they really need to get with the program and have a job. neil: maybe you and i are the only ones, rick, that can remember these workers that were lamenting of switching away from benefit pensions. and th ended up getting no pension. they would pay pennies on the dollar. and in the process, is it true that history could repeat itself? >> this is a defined benefit that they currently have.

it is absolutely going to be better for them. if they do switch to a contribution plan, they are actually safer because the money is under control as opposed to the company. i am always amazed that anyone is surprised that the union wants to continue to advance. they are just like the rest of us, they want the next deal to be better than the last deal. that is not really reasonable. >> you see to be saying they are trying? >> well, they end up doing much better. >> exactly. >> that's exactly right. neil: i hright. neil: i have seen this before and i understand the logic. i think in the meantime, they are ignoring the reality or alluding to it at the outset.

these regular pensions that came as a golden egg in the past, like a dodo bird now. so i'm wondering whether that helps us get through where they feel that boeing is doing well enough. and there are enough down the pipe that the company can afford it. >> well, that is obviously going to be an issue of communication. i mean, you do have to take into account the sequester and whether or not that please into effect at the end of the year last year. in addition to that dreamliner storyline, you also have the fense storyline going on as well. even though the commercial side of boeing is doing well, the industry is changing based on american situation abroad. >> most of the contracts are locked in. it had everything to do with

finishing a certain amount of work on the dreamliner. neil: longer-term, this is a more viable turn for the company? [talking over each other] [talking over each other] >> that is what the ceo would say. but the reality is that the markets continue to improve, then boeing should be fine. everybody should be fine. they are placed under severe stress only when the markets are crazy like we have seen in the past. then they are on the hook. neil: what do you think? >> units are killing business and companies and that is what is happening now. neil: the guys who helped build them, and continue to build them, i don't know if i understand that. >> i'm not saying they would sabotage. [talking over each other] >> they're going to be much less happy. if they don't have jobs, they need to think about it. willing to go out of business like a lot of other companies.

>> a lot of indestructible companies forhom such a demise was unthinkable. >> exactly. and to make a point about the defense contracts, they are still my mom used to work for mcdonald's. neil: we look forward to having you guys back in a few minutes. if the spending cuts are going to wreak havoc next week, step back, mr. president, follow their actions, maybe you won't be so istracted by their words.

my mother made the best toffee in the world. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. go to legalzoom.com today and make your business dream a reality. at legalzoom.com we puthe law on your side. so we created the extraordinarily comfortable sleep number experience. a collection of innovations designed around a bed wh dualair technology that allows you to adjust to the support your body needs - each of your bodies. our sleep professionals will help you find your sleep number setting. exclusively at a sleep number store. sleep number. comfort... individualized.

at the ultimate sleep number event, queen mattresses start at just $599 . and save 50% on our limited edition bed. ends sunday!

>> the weight of this sequester is achieved is destructiveo our nation's security. >> thousands of educators and teachers will be laid off if we do not achieve something. neil: come on, folks. both sides saying that automatic cuts would be an absolute disaster. why are they not acting like a?

congress is break and the president is on the local media blitz to warn us about the pending tech to come. my next guest says that a source of jobs being lost in the debate. one step at a time, governor. always good to have ou. i generally think of it is such an urgent matter, first of all, i'm surprised that 85 billion and it is causing us great consternation. but the other thing is mr. president, you were golfing this past weekend. if you cared so much. your republicans are on vacation this week, everyone is. so obviously you would move hell and earth to avoid it, right?

>> nobody thinks that the sequestration is the right way to reduce spending and the deficit. president obama, who promoted it and put it forward back in 2011, he talks about how terrible it is. the only thing worse is not reducing spending. for the sequestration to go into effect, the republicans will do they arenot want to agree to tax increases. president talks about this balanced approach to sequestration and he didn't mention tax increases when he proposed the sequestration two years ago. >> i do see your point. i understand there is a strategy. letting these cuts come, they are a lot better than letting tax increases come. i can see that.

>> we will all be eating horse meat, i mean, is that an appropriate role of a commander in chief? >> let's just say that the american people know that it is a gross exaggeration. the american people are not out at the ramparts thing that we can do this. >> i don't know, i think a lot of them are saying, gosh, we won't be able to eat or go out in public. a lot of mentally ill will be out on the streets killing us. this is off-the-wall stuff. >> we are talking about a tiny fraction of the federal budget, which is, as you say, $3.5 trillion, $100 billion of that is less than 3%. and the american people know the government can save 3% in a

heartbeat. but what is wrong with the sequestration is the way it will be done. we have already voted to cut defense spending nearly $500 billion over 10 years. here is another cut at large. spending on that site has exploded. even when you make these cuts, mostf them will be far higher than when barack obama came into office. so i hope and believe that the republicans will allow the sequestration to go into effect so that we can start down a path to get control of spending and reduce the deficit by savings. unlike most americans, i do not think that we have a trillion plus deficit every year. it is because we spend too much. after this, we will go straight to the continuing resolution, which is funding the government on a temporary basis that expires in march.

i expect the republicans to get to the point of more savings there. our country has to do that. the idea that we are going to raise taxes on industries that are creating jobs, like the oil and gas industry like you mentioned, during the recession, 120,000 jobs were created. and now is not the time to be killing the goose. >> that's exactly right. it is not like we are undertaxed. it pays 41% of his income to the federal government in income taxes. the average is 26%. i think that that is probably too high. 41% is huge in taxes. >> they want to tax them all the

more. >> because they think that they are politically unpopular. >> this is one industry that is growing jobs while increasing security in this world. >> the only way to get out of this mess is to draw ourselves out of it. it is an industry grows. governor, it's always a pleasure. thank you so much. haley barbour. >> you are doing nothing about it. >> look at w is back. here i bet you thought the angry town hollers had gone again. i know it is not groundhog day, but look, they just popped their heads out. politicians beware. maybe you should go into high gear.

neil: listen to the. >> do you want to round up 11 million people and send them back to their country? you are not going to do that. >> we are putting this up with

about $600 million worth of appropriations that we have. >> people are very happy that i have town hall meetings. that is what this is all about. neil: okay, that went well. tempers boiling over big time. all of this happening at a town hall meeting. these folks are mad because they feel that washington is once again upsetting him. this time has become famous a couple of years back. some say hey propelled the new congress. >> that is because it never went away. this is the next level. the tea party movement when local. we cannot ignore the beltway. >> what you see here is many

people won't go out and face the people. 130 billion per year, $52 billion spent on education,. >> particularly they are dealing with this nonsense that they are dealing with an uptick and they are looking at the rest of the border if they get cmprehensive amnesty from obama. we are not solving any problble. we are putting up a webcam we can watch people run across the border. use technology, use enforcement, go after the companies that hire illegals. punish them. >> [inaudible] >> they don't have the strength of the major urban environments. they don't have the tax rate.

how can you afford it with the federal government, when they selectively enforce you around the country. this is not good federal government policy. >> you articulated this better than most. and you are a very good spokesman on behalf of that. now they have lost their way, they have been minimale if not marginalized by this new hot seat. >> you are mad and not when you take it anymore and. >> yes, we will continue to push. the natural thing to do tend to kind of it a little. neil: to get dispersed? not a bad way. we went home to work. you have to get a new team, and that is what we are missing in the republican party.

you see a bunch of whiteheads running the country. thirty years plus since the reagan amnesty. in the '90s we were the environmentalists. now we don't have a good energy policy. we are talking about the foundation of our economy. energy, the foundations of our life, border security, national security. neil: how do you win that crowd back? >> they have done a very good job. >> go out and engage work on them now. 17% of u.s. population is hispanic. very fast fast-growing population. you have to talk about policies that are good for them. the largest chunk comes from the south of the border. the american problem that we need to do, republicans have

been terrible at that. what we need to do is putpeople in the communities and do the hard work and take the hits. it is going to take a lot more hits and obama has done a good job of changing us to a class warfare or ethnic warfare. it is one country, when the country goes down, everybody loses, especially those who are on the low end of the socioeconomic ladder. neil: in the meantime, teddy turner running for congress and running away from his more famous dad. to his credit, he is not running away from us. it could be a congressman here in asked.

neil: congressman ted turner. he is running about as far away from his little data as possible. teddy turner is running for congress as a republican of south carolina. demand you cannot go around and reference it. [laughter] neil: i guess he felt that you need extra effort to say your dad is great, but you reminded folks that you are yourself, you have conservatives and credentials and you have been in conflict, you know the media

well. you know a lot of our enemies well. but you still can't get past that. [talking over each other] [talking over each other] neil: your dad is one of the richest people on the planet. neil: and he was hardly a popper as you were growing up. >> yes, but we were not raised to not work hard. i worked every summer for my dad

or somebody. we worked hard from fifth grade on. so people like to think that i've never done anything in my life, and it is just not true. >> it is very impressive. there is that experience that has gone forward. so my hats off to you there. once when i think when i look at it, maybe you are working too hard, everyone knows you are your own man and god. that the sun doesn't equal the father. you don't have to explain, do you? >> you do because you are asking me about it. the press is asking about it. >> you have a name and i guess that comes some vals along with that, right? >> we live in a very conservative district. i am very conservative.

people unfortunately hold your appearance against you. they only do that if your parents happen to be famous. so i am not separating myself from my family. i'm separating my politics are my doubts politics. he sees the world at have a different view. he thinks that we should all have world peace and global climate change on this kind of stuff. i see it from a different level. i spent time in aghanistan and the soviet union and i know the threats that we face. it is scary out there. he is not worried about whether he is going to make his mortgage payment next month. he is not involved about whether his job will get cut back to part-time because of obamacare. it is not against him, i love him, he is one of the world's greatest geniuses. but his politics are different. if people hold that against me, it's not there. neil: the bottom line is the tea party is having a tough time, republicans in general are

having a tough time. any record that republicans in general, how they get their motives? >> well, it is very important that we look out for minority groups and reach out to everybody. the left has done such a great job of pinning us in a corner because they don't listen to what we are saying. they take a shrt statement and make it an issue. >> as a teacher, that was my job. to work with students of all backgrounds and try to get them to realize, especially in economics that there is a world out there and people are not telling them the truth because politicians can't tell them the truth. they are worried about getting elected. neil: teddy, you are an impressive guy.

>> do not dismiss him. do not dismiss him. meanwhile, what are inmates in california suing for? with the spark miles card from capital one, bjorn earns unlimited rewas for his small business take theseags to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] great businesses deserve limited reward here's your wake up call. [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button?

neil: before the break, we asked you about california exercising.

>> before these gatherers is the black mask of death. neil: that's right, you guessed it. he now presents female prisoners say that they are not being tered to enough. >> it depends on whether the courts agree with them. but they actually are trying to establish religion in the present system is actually picking one religion over another, they are helping to make it so that these are the real religions and they are picking the winners and losers essentially. neil: you are not afraid that they are witches? you are going to go right down the food chain? >> it is a long shot. >> they have enough of the case to go back to the district courts to have the opportunity of the case being presented. if they can show that this wasn't done in a neutral way, that this was done and they are

just preferring the catholics over the weekends, then we needo address that. >> i think that all religions need to be treated equally. especially where people are looking for a source of religion. stability. most people in a country were placed where we are the most incaerated place in the world, they should have the opportunity to do so. remember, a terrorist was recruited to become a muslim terrorist imprisoned. and that is a huge problem. i think that our justice department needs to look at. if the people have actually been a part of this recruitment. >> it depends on what it is being used for.

neil: so we are right up there with catholics and prtestants? [talking over each other] [talking over each other] >> i agree. neil: my goodness. >> they have to show that wasn't done in a neutral way. neil: what if they say that i never thought about this? >> essentially if they were fair and reasonable, -- neil: there is a line of religions though, right? there may not be that many that subsibe to it. >> it is supposed to be the fastest growing. [talking over each other] [talking over each other] >> i think that they should be considered. obviously, it should be looked at to make sure that there is not some alternative motive

going on. some alter your motive. a plot or plan within the prison system. neil: will without plot or plan be? >> these are factors that will be looked at by the court. neil: thank you ladies, we will see what happens. neil: the post office is neil: the post office is breaking into the fashion all stations come over to mission a for a final go. this is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one.

standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more monethan a stranger, you need an ally. ally bank. your money needs an ally. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. never really thought i would make money doing what i love.

[ robert ] we crted legalzoom to help people start their business and launch their dreams. go to legalzoom.com today and make your business dream a reality. at legalzoom.com we put the law on your side. [ ma announcer ] whenou wear dentures you may not know it, but your mouth is under attack. food particles infiltrate and bacteria proliferate. ♪ protect your mouth, with fixodent. the adhesive helps create a food seal defense for a clean mouth and kills bacteria for fresh breath. ♪ fixodent, and forget it. neil: from stamps to lose swag postal service lighting note -- full yeltsin men's clothing to make some dough

it lost $16 billion last year is this the best plan going forward? by a panel is back as well. >> i cannot think of anything more uncool then to wear clothes from the post office. this is an institution that has lost billions of dollars am probably the least fashionable place on the planet. i don't think it will work actually it should go to ups because they deliver things on time. neil: you are a fan of the brown? >> brown is the new black. [laughter] >> i am biased.

it's a good little business. who can object to the government bringing many in? i don't know why anybody would want to wear branded clothing but if it works works, whose to complain? neil: there is that. the. >> i will give them points for creativity. it is about congressional mismanagement not letting the agen do what it needs to do to make it viable. so you are stock. neil: they get a bum rap because of mike faxed or ups , they have to deliver every where even to the hut in alaska and fedex says we

will not go there. it is no wonder. know i know i will hear from conservative friends but a look at the future, maybe they should be held accountable. >> i have stuff with the u.s. logo on it. they had a racing team wih the name we should not mention was leading it. you have to work very hard to have to have a problem come on. >> it has to be fashionable. but they're not addressing like a postal worker out there. [laughter] neil: you know, if a final look will be dorky