that is willis report, thank you for joining us, dvr the show if you can't catch us live, have a great night, see you here tomorrow. lou: the republican ark travelled. to now, perhaps rolling back the most successful fiscal policy since 1980. the sequester, dde to a spenterred republican party, established g.o.p. in senate and grassroot conservatives in the house, who now emerged as leaders, frustrating president obama, harry reid and the old guard of the republican party, i am lou dobbs. good evening, day 14 of the

government shut down, three days away from a well a make believe deadline, to raise the debt ceiling this is where we're tonight. a deal is emerging. between senate leader reid, and minority leader mcconnell, fox news confirmed that deal would fund government until january and suspending debt ceiling until february, senate democrats willing to accept spending levels until january. and an effort to have a battle over a new round of sequester spending cuts that kick in at the beginning of the year, medical device tax, imposed by obamacare, stays at the assistance of the white house. and senator reid. but a requirement that the government verify income eligiblability for obama carry subsidies is in the deal. senators reid and mcconnell have all but forgotten about

speaker boehner and house conservatives he must persuade to push this agreement through the house. unless speaker boehner relies n house democrats to pass the legislation. that would be a violation of the so-called hastert rule, and that requires a majority of majority support to bring a bill to the floor, does the speak or that. >> we'll find out. a violation could cost him his speakership. >> fox news, mike emmanuelle on capitol hill with the report. >> reporter: bipartisan leaders of senate said their conversations were headed for success in final hours. >> i'm optimistic. we will reach an agreement. it is reasonable in nature this week. to reopen the government, pay nation's bills and begin long-term negotiation. >> no discussions continue, i share his optimism that we'll get a result that will be acceptable to both sides.

>> reporter: reid's goal of a longer term debt ceiling with a shorter term government funds bill t to fight sequester cuts, and mcconnell side, favored a longer term package, so g.o.p. be argue something to do about debt. >> the 6 time that president wants a debt ceiling increase, they want a million dollars a minute for the next year, beyond the 2014 elections, unchecked. >> reporter: democrats have cite criticizes republicans for overreaches, republicans warn that reid of going too far over the weekend in trying to repeal the budget control act. >> democrats, have been wanting to break the budget caps that were put in place in 2011, i think you know first time since

1955-56 we have two years in a row of reduced spending, they don't like that. >> it would not help win republican support in senate, but senators who work on trying to find a bipartisan deal, sound upbeat. >> we'll get it done, i feel confident they have an outline of what they want, it is just puuting the dates and times and things of that sort, making sure it works for everyone procedure alley. >> reporter: senate republicans were to pleat this evening -- meet this evening, they will meet late in the morning, as leadership eads have been telling me, for something this big you want everyone in the room, lou..@ lou. thank you very much. and on wall street today, despitef the talk emanating from the president and the white house. and an effort to talk the market down to provide support in the negotiations, the markets instead liked what they heard. although there was light trading on this columbus day, and bond

market closed. dow jones gained 64. s&p up 7, nazdaq up 23. the politics of government shut down, having an impact on a wide range of potential presidential candidates for 2016. senator ted cruz, standout in that group, winning value voters presidential straw poll over the weekend. others, like senator marco rubio just well, fading into the background a bit. all the while, strong crop of g.o.p. governors are angling to take advantage of washington disfunction. fox news chief political correspondent carl cameron has our report. >> reporter: texas u.s. senator cruz joins sarah palin in national mall this weekend, to rip president obama and democrats for closing veterans memorialing as part of the shut down of the government. >> this is the people's memorial. >> reporter: cruz champions tea party backed house strategy to

fund the government only if the affordable care act is defunded or delayed. >> our veterans should be above politics. enough games. >> reporter: potential 2016 g.o.p. rivals, senator rand paul of kentucky and marco rubio in florida locked step with cruz this year. hoping to halt obamacare through the budget process, they have since piped down. rubio made no mention of it friday, and since the shut don began, paul has been emphasizing negotiation. >> both partying the bie the --, they will look for us for a a negotiation. >> reporter: interesting g.o.p. governors is growing. walker backs obama carry, but not shout down politics. louisiana governor bobby jindal

has been dissing his partiy behavior. new jersey governor chris cristy there week cast it as a ridiculous shout down of both parties. >> compromise is not a dirty word. >> reporter: before the shut down, peter king was first 2016 white house hopeful that blast cruz as a fraud. >> ted cruise weather dunn that pack. >. paul ryan, has not ruled out a rent, but as house budget committee chairman he is stuck trying to find a way out, depending on how it goes it pay more may not lead him back to the campaign trail in 2016. >> carl cameron thank you. lou: projects slow that people who rely on social security may be in for a disappointment for a second straight year, cost of living adjustment will be among

smallest increases since automatic increases were adopted in 1975. so-called cold a -- cola increae averages to $17 month for each check next year. >> obama administration signals an end to sanctions on iran, and netanyahu calls this a historic mistake. kt mcfarland next. thank you it raises the price of fishmeal, cattle feed and beef. bny mellon turns insights like these into powerful investment strategies. for a university endowment. it funds a marine biologist...

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lou: secretary of state john kerry signals a shift on u.s. syrian policy. calling for a traasitional government, and bashar al-assad's removal from office. also, china saying it would be a

good idea for the world to as they put it, de-americanize. talking about these issues and more, fox news national security analyst, kt mcfarland, we begin with idea that john kerry is signalling a shift in obama administration's policy toward israel. your reaction? >> israel, and syria, your head spins they change their mind so often. maybe it a negotiating tactic, perhaps it indicates that things are not going so well with syria. he is looking for an out. lou: and any indication from inspectors that part of this relationship that is now ongoing, is breaking down. >> no but it is always going to be complicated some, chemical areas are in -- are in areas that are contested where people are fighting. that is not happened yet, there

was going to be a lot of break down, a lot of opportunity for things to go wrong, including the syrian decides that hole us up. lou: tomorrow begins talk, to denuclearize to use the chinese expression anyway. before they actually get the weapons, do you believe it makes sense to do 20% increment on slowdowns? >> come on, we're being so taken to the cleaners, we're talking about easing up sanctions as goodwill, guess what they are doing? they are spinning their center fuges faster, i think they have decided that iranians they want us to drop the sanctions and keep the nukes. now are they going to keep the nukes? they are not getting to a point

that a nuclear weapon completed on the shelf. lou: why should there be a discussiin, if they are talking about slowing their development. ofs uranium enrichment this bizarre stuff. even for an administration that has sometimes seemingly spontanious foreign policy. >> you know, we have to be tougher when we negotiate with these country, president obama certaanly shown he can get elbows out and be tough with negotiating with congress. but when negotiating abroad whether iran or syria, he really is sort of a nice old you know, he is not playing hardball, he %> it since assaulting andhiffl.

annoying and worthy of a respond this president will sit there quietly, and meekly, and pretend somehow he is powerful, even though he is feeble by the opposition, in in case, china, and his lame duck status. >> every president in the last two years of an 8 year presidency is usually in trouble at home whether lbj ornyx owner reagan or clinton he looks abroad for a big treats some big achievement. that is what obama is doing, as a result, he is vulnerable. on iran and israel and on china. lou: and he is vulnerable further and unlike the previous presidents, with over a trillion dollars of our debt called by the chinese. and a lot of protests that emanates from white house i suppose, the more he would be he

thinks he would be offending our bankers that is sad. >> it is. you don't pick a fight with your banker, chinese are scared, they don't want to see their holdings in u.s. debt deval youked, and they are -- deval youked. you.that would annoy me this president. he does not seem to have much of a response to powerful arrival and opponents, he crushes the weak, of course. kt good to have you here. >> thank you. lou: more on china, iran and syria with the a-team, coming right up. stay with us. >> government shut down day 14, compromise at hand or is one side surrendering? congressman john campbell with the view from the house. next.

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lou: breaking news, new reports that army is scrapping the heavily criticized uniforms. look at that, after less an a deb add of use -- decade of

use, feature so-called universal cacamouflage pattern in 2004 thy cost $ 5 billion, and they were meant to blend in with any environment, critics say this cacamouflage was ineffective particularly in afghanistan. not the most military of uniforms. according to daily news spending 4 billion for a replacement design to be worn by a million members of active duty and reserve forces. >> returning to government shut down, and battles my next guest has a number of concerns about the plan emerges from senate, joining us new congressman john campbell. also a member of the republican policy committee, congressman good to have you with us.

>> hey, lou, great to be with you. lou: we're getting intt whatever degree we can reply upon, a blurry outline of a deal in prospect, framework is that debt ceiling would be suspended until february 15. government funded to january 15. and medical device tax, one of my favorite, out of deal all together. this is among straussty -- monstrousty both parties should understand has no place in public policy what say you? >> i agree. let me give caveat, as you said, there are negotiations ongoing in senate, i'm not in those negotsnegotiations. what i know is what i see on fox business. and so that is what i know about it. at this point. but given who i know -- what i

know, i don't understand why we would want to do this, why -- we're in the middle of a great debate right now, why would we want to shut it down, and open it back up again in january? what makes us think if we can't agree on these issues now with government shut down, with the pressure of debt limit that somehow we'll all kumbaya and get along and january and fix it then? i don't understand why we would want to do that as you suggest. medical device tax, which is something, in there are reports out there is a senator reid, does not -- won't accept delays or repeeling the medical device tax inless he gets something in return. i don't understand, 79 senators voted to repeal the tax,does heg that 8 out of 10 senors want.

-- senators', this surface on this, this u.s. is not dowbd goosoundgood to me. lou: and budget control act, sequester rolled back, caps lifted? apparently if the president, has his way. and senator reid his way. will they have their way with the house on that issue? >> well, here is the thing, i would hope not. but here is the thing that has become clear. as much as we republicans dislike obamacare, the democrats dislike the sequester, they really, really want it to go away, because they believe that the wind is on the their back, they now want to take what they said we should not be attaching things, to the cr, but now they want doing but they want to attach their own thing, that is repeal the sequester, that is spend more money, we went into this by trying to get it so the debt, if we extent the det limit we did it with conditions that

reduce our debt going forward, what harry reid is talking about now ii increasing our debt going forward by spending more men on the sequester, the sequest ser something that was negotiated in 2011 that those of us who don't want the country to collapse under fiscal calamity, we should got give it up. lou: i agree you should not give it up. but, at the same time, i have to say, that your position there sounds a bit like president obama's, he talks about obamacare subtle law ignores fact with the stroke of a pen and an executive order he has delayed on set of businessman dates within obama carry. despite the law he has written all sorts of waivers and e. eexemptions to business friend, special groups prominently labor

unions, now you say sequester law, you make the law, everything we assume would be reasonable to change if there is a political toll do so. >> lou, you are 100% correct, only reason i would want to sound like president obama circumstance when i am throwing his open words back at him. and the fact is, that like obamacare, the sequest ser the law of land -- sequester is the law of the land, obamacare can be changed and repealed, and so can the sequester, but this majority do not want to change because it is the one thing we have been able to do in last 3 years that caused the deficit to go down, the president brags about the deficit going down, this is why it is going down, now he wants to get rid of that one thing that is bringing the deficit down. lou: most economy fifth public fiscal policy since 1980, in a

time when we looking at unfunded liabilities and excess of $ 87 trillion, and yo unsustainabe trajectory of spending defkits and debt -- deficits and debt. they have climbed over course of two fiscal years, this is a serious business, and response to be, well, hell, let's just spend more money. is -- well i just don't understand why the republicans cannot mount a message that is compelling and persuasive to american people, i'll be dog gone, you are all operating on radio silence on the radio. >> well, i like to think we're not, i not -- mostly say host on television, do not think the way you do. and so i often say that as republicans we're always playing. lou: you didn't have to praise those other hosts on television. >> like we're always playing an

away game, the crowd is cheering against us, just the way that mainstream media is. generally today, it hard to breakthrough, but it is reality, deal with battl battlefield as . but we've been saying that -- when we're fighting for here, what we're trying to fight for is people talk about the debt calamity, we will have a debt calamity in the future if we don't reduce the deficit not boerborrow as much. lou: that message is great, can i offer up a thought, convertible of that language, if i may, about deficits, and debt, and budgets, to the impact on jobs, that is president refuses to focus upon. the creation of those jobs, and republican party immediately will change its appeal, with that change in message in my

opinion, meanwhile, i have to say, we're out of time, you get the last word quickly. >> okay. well, we have been talking about jobs all of the time, in the end this all is about, is the qualify of love for americans -- qualify of life for americans that involved freedom and opportunity that america has provided that is part of this overall -- that is what we're doing all this for. lou: congressman john campbell, we if you for being here, and sharing the message, thank you, sir. >> thank you, lou. lou: up next, some of our elected officials have been so silent of late. they might has well be in the witness protect program, john mccain told to us think about it that way, others refuse to shut up, we will tell you which class he is in, next on the. [talking over each other] , stay with us. when we made our cmitment to the gulf, bp had two big goals:

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shut down now 14 days long. the eve verify system has gone dark that employers use to assure the newly hired workers to legally work in the unittd states. chris christie jumping on in-state tuition the republican governors is weekend endorsing what he calls to we should eat quality signal illegal immigrants should be allowed to attend public colleges at the same tuition rate as other presidents of this date. while. senator mccain says he knows how to solve the washington stalemate here he is making another appearance >> i am hopeful that we will get negotiants i hope the president will be coming gauge maybe we need to get you to the witness protection program because

he has relationships we have not heard very much. lou: we haven't. bided has been out of sight with the budget standoff reportedly because the vice president gave away too many democratic priorities in other last-minute deals he is a vaulted. with the witness protection program that is where he is. but then of course, there is reggie love. former friend and bodyman? he revealed they were playing cards during the seal ticked -- seals six team rated weehave never heard from him since another witness protection program person. another. there he is.

jeb bush to generate a lot of headlines even put out a book when immigration that did not so worth a darn and neither did his ideas. but try to talk about drumming up interest for running for president in 2016. senator rubio joining the gate of fate'' and took a big hit the he has not fully recovered we would like to get him out of the program but there are others we would like to put in their. we will start with none other than senator john mccain. the country needs a little break. at times he looks like an aide to president obama and not just a u.s. senator also signed on to a bipartisan letter saying he is open, this is awfully nice

nice, but to suspend sanctions against iran if they agree to suspend enrichment. isn't that a wonderful thought? we would not ask him to go anywhere without his buddy lindsay gramm who signed the same letter that went on to say that best tting for the republican party is the deal that does not delay or defund obamacare. is it fair? it is bad public policy of the cost way too much but you have a brilliant idea. it is hard to imagine but gramm could be even more irritating than mccain but debbie wasserman schulz offered hee sexist delusions' although the media did not to say a word about that she just said we just have to get the female

members together of republicans said democrats could get this resolved in a few hours. isn't that clever? isn't that cute? but there will not be a peep out of the national liberal media. house speaker gets to be the last entrant because if he sits up to harry reader seven recall with the blessings of president obama you can bet conservatives in the house will do very short-term order to be disadvantaged. you were thinking if we did this with politicians to irritated as the witness protection program would get so big we would need a bigger budget, four or five times the present size. that is something to think about. go to our social sites. lou dobbs.com e mail me at

lou@loudobbs.com and follow me on twitter. checkout fox business.com the with a partial government shutdown has stopped what keep martin from making a deal and good to see that business is rolling in the army is cared for. with a category that obamacare was never considered is next. stay with us. customer erin swenson ordered shoes from us online

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lou: three american economist one of the economics nobel prize for research into market price says blood dash prices nasa bubbles. from the university of chicago sharing the 1.2 million dollar prize. netflix reported working on

deals as cable providers to work are those with cable boxes in the stock as the paper saide blown the two buses to get what they want since day number one and in early christmas president -- present to the president. to talk about this budget impasse a wall street legend or even icon michael holland. >> did i say those things? lou: that is a charge. [laughter] >> yes. from someone who does not know nearly as much what a gift not only to you as part of the witness protection program but the democrats as

dumb as the art they are blessed with the republicans as the opposition. i will be indicted next week lou: will you talk to people about this? >> that is cool. [laughter] they're happy. lou: the idea that the chinese cruz make a crack tells us everything and how do we have a president who sits there i have the greatest admiration for the chinese but when people talk nonsense to suffer in silence? >> do you think reagan would have the same reaction? no. we have been through this before great shoes for those people there were people who

fed up with what is going on and you used to read history now we have lived it again. >> but wondering about the grand kids in the great red kids to talk about get rid of the budget caps are the budget control act? his concern is about spending more money aid to do so ready encysted a poll. but at what point do you think rationality might prevail? but not in this budget deal. >> not yet. the market's have not provided that common-sense view we have a crisis.

if they actually went over the cliff, they would be there. and they would have to do something for right now the market say that is okay. lou: first call -- first of all they don't buy it that october 17 = schaede defaults. they are right. but to insult the intelligence of everyone in the banks and wall street go with it because they say they are full of it but to their crrdit they say it is nonsense. >> but we will not default i cannot imagine this to be

the only president in the nation to take this down the j.p. morgan seo said if we -et to that point the world this confetti at that point. the unintended consequence. lou: otherwise? >> the damage is already done of the fourth quarter. we have had a couple of shutdowns the market and the economy have both recovered. lou: it was a boom. maybe they are genius. >> novell. [laughter] they really are that stupid no. @%aughter] lou: looking at the weekend box office the warner brothers overtaking in another 34 million raising the two week total and

captain phillips debuted in second place in cloudy with the chance of meatballs that is the great title was of $40 million. reverend al sharpton is up next getting criticism from his own backyard. stay with us.

lou: en trouble brewing in harlem with al sharpton being the target in fighting with the 100 local churches bidding together to reduce his influence in the manhattan region. coalition calls it speak out and say loud while his

parishioners are struggling to eat he himself is just sitting around the country pushing his book and barely watched cable news show. lou: i do think it does fairly well by msnbc standards. [laughter] he says he doesn't run an organization but a civil rights organization. >> we have a special assistant to george of you bush stand ryan christie and fox and news contributor jetted dyak, that thank you for being here and also warrant ashburton. let's start with your reaction to what did the are saying is in never of a part of the president to roll back the spending caps of sequester? >> we are proud to have a

deal. how long do we have to wait for this to happen? they canceled a 3:00 press conference because they want to keep the optics out and try to work on the deal but is not quite clear if we will fall off the cliff for not sticking to republicans caved on this then they came on the sequestered they have no business being the majority party. this is the first time we have had any meaningful reduction of spending if the republicans get the white -lag and we give up on spending cuts that we don't deserve to be the majority. >> they don't get elected because they make that line is so slick and its people cannot tell the difference

they have no reason to go out and vote for them. that nobody would be surprised they he doesn't care about spending cuts. lou: those that still continue with some sort of negotiation with everyone so focused on constraining spending when one participant in particular made it clear what he wants done and at what price he is willing to pay at what price the country it should be prepared to pay. it is truly shocking. a and debbie wasserman schulz. [laughter] i don't know what to say. the chairman says all the women in office come together they could solve

the budget impasse and a few hours. does that sound vaguely sexist? >> the guys are not getting it done. all of that hyperbole is fine but she is trying to make light of a difficult situation although it does sound like the with better better than the men. [laughter] but there is one serious point are there women in these deals of high-level positions? i don't think so. >> of course there are. >> and the attempted to cave once again susan collins is up to negotiate for the senate republicans. >> just because the president rejected her proposal in the war on women and continuous. [laughter]

>> it is said gender stereotyping but though love to blames the right i am appalled and i hate when women say all women would act like this. we're also individuals put men or women or a combination and you may get the results you want it has nothing to do with gender. lou: it is a lack of genius. go to leon panetta who took a shot at the president it is broad sided empower fall. put that up as he faulted the president you have to engage in the process it is not enough to feel you have the right answer you have to look your sleeves and you have got to relegate the process that is what governing is all about. he puts the president in his

place? >> fastest thing because he served in his and registration and here is a guy you think might be on the president's side. but it is a damning sentence for him to say. lou: this is the most i have never heard any democrat say about this president. it is not enough to feel you have the right answers you have to work one thing about this president does not like to work. >> he doesn't his version of negotiating these are the things i want to know you cave and i will call it a day. it does not work like that. take a page out of the clinton playbooks to have the conversations. you are the commander in chief. lou: has it occurred to this president or the liberal media he has not gotten a lot done?

the reason there is a reluctance to get his hands dirty or roll up the sleeves he does not want to be over there working the leadership >> this is what you get with a community organizer with no experience nothing in the illinois state senate or nothing as the campaign does not know the art or form of negotiation and the country has to suffer as a lack of his desire to work. >> he likes the idea spee he does not like to sit and do the hard work. >> i don't think he does either. >> i think both parties are being damaged severely. >> it is time for a third-party. >> there you go lou dobbs for president. lou: let's and on that. [laughter] we appreciate every betty. we will and the broadcast by giving credit to a17

year-old honor student to massachusetts. stripped of her captain of volleyball team and suspended because she stepped up to help a friend and the high school suspended her for five days. good night.

charles: the clock is ticking, the deadline is coming, signs a tell might be brewing, welcome i am charles payne in for neil cavuto, senators harry reid, and macdougamcconnell trying to peal a deal. >> you are hearing a lot of numbers, when debt ceiling would be extended to, there are a number of different numbers they are influx. this is an ongoing negotiation right now, between the top democrat, and top republican in the senate. part of the negotiations is known as sequester, democrats want to fund government to january because they wan