lou: chinese aggression leads to an international incident in the south china sea. a stand up between the u.s. navy ship and chinese warships further raising tensions in the region. in the oma administration waited eight days to m.l. is the event occurred to the american people. i am lou dobbs. ♪ lou: good evening, everybody. a chinese naval vessel aggressively confronting the u.s. warship in the south china sea last week causing a tense military standoff that the government has just today acknowledged. the ptagon confirms to fox news tonight that a chinese warships try to interdict and

stop one of our guided missile cruisers. the u.s.s. comptons well under way in international waters. according to an unnamed defense officials th run in began while the company was conducting surveillance on the new chinese aircraft carrier. the chinese navy vessels sent a healing morning in order the u.s. ship to stop and ordered the ticonderoga class guided missile cruiser ignored leading to a chinese active aggression. a chinese tank landing ship sailed into the path and stopped , forcing the navy vessel to abruptly changed course to avoid a potentially catastrophic collision. this type of incident was actually predicted weeks ago by senior pentagon officials and joint chiifs chairman martin dempsey after china announced an expansion of its air defense on, and expansion that even the united states and our biggest

rally in the region, japan, recognizes. the president's apartment of defense in analogy only that this today and occurred. just a little over a week after it was leaked by a name navy officials familiar with the event. turning now to northern asia, the brutality of north korea on full display after the government of kim jong and released images of the dictators uncle being dragged out of pyongyang in chains. the former number two man in north korea was reportedly executed by his nephew for planning a coup according to north korea's official news agency. he claimed his uncle desperately worked to form a faction within the party by creating illusions about him and it winning those we can face while accusing him of womanizing, drug use and gambling, beating -- eatg at expensive restaurants and leaving the country for medical treatment. the report called m worse than

the dark, dangerous unresand a rogue nation with longstanding nuclear ambitions and a profound hatred of the united states. the presidential task force formed after the nsa spying scandal will reportedly recommend a dramatic overhaul of the government's buying program. according to people familiar with the panel's draft report that will be released sunday. among their reported recommendations, limiting the unisys surveillance tactics, transferring their records of phone calls made in the united states to a phone company or third party organization. another recommendation calls for the creation of an organization of legal advocat who would argue against lawyers for the nsa when they ask for authorization of the spying activities in court proceedings. those proposals come however, are binding. could change before the final draft submitted. we do know one thing.

it is obviously a bonanza for more lawyers. the senate will hold a critical procedural vote on a bipartisan budget bill tuesday. democrats are reportedly on the verge of securing enough republican votes to break a filibuster. fifty-three democrats and two independents are expected to back the measure. for republicans have said that they would vote to cut off debate. there are senators john mccain, susan collins, just like, and richard burke which would make the bill's backers just one vote short of the 60 needed to advance the measure. a final slate of pending presidential nominations to including janet yellen to chair the federal reserve will also be voted on next week. and health and human services secretary kathleen serious today dodging questions on the disastrous rollout of obamaca. first she was asked about her job security and in the event to promote the law. >> the initial rollout, your

resignation to the president? >> in not callingiscuss what i talk about to the president. lou: interesting. the white house would not discuss what they talk about what the secretary other. secretary jay carney said only that president oba has confidence in secretary sibelius sibila is also ignoring to questions about whether she thought the fact checking organization was wrong to label the president's pledge if you like to play can keep it to be the ally of the year. here is part of what became a two minute response that really did n answer the question. >> i think that this statement about keeping your plan was one that is applicable to the vast majority of americans in the health insurance market. lou: you bet.

nearly 6 million americans have lost their insuran plans because of obamacare. policy's canceled. vista revelations about the fate sign language translator worked the nelson mandela memorial tuesday. the south african government says it is investigating reports the man he was pretending to be a translator for the deaf face the murder charge justin years ago. that is according to a south african news organization that said that unknown whether the case was never close because the men's court documents are now missing. and in addition to the murder charge, the interpreter reportedly faced rape, theft, robbery, kidnapping charges and many of those charges were reportedly dropped because the interpreter who is being sought treated for schizophrenia was mentally unfit to stand trial. in those instances at least. the danish prime minister to

"what may be the world's most talked-about salvi said she will lash of the picture with the public. she told a danish tabloid that it is a particularly good picture. too bad. welcome a bitter cold temperatures flipping the nation getting ready for another round of sere winter weather. fox news chief meteorologist is in the parks extreme weather center and has our report tonight. >> it is uncalled for a lot of people, and there has been a lot of snow. snow has been extreme. that town of new york which is felt in the county, louis county , a three of those in the plateau have seen over 50 inches in some spots, 58 is the most. that is not the storm we're talking about. that is this area down here and across the southern plains into the mississippi river valley. the rain and snow building in.

a big area from parts of missouri all the way through new england under sunset the winter storm warning or watch for winter weather advisory. a big area will be a lot of snow . let's take this t and show you what will happen. overnight tonight rain to the south. heavy at times also across parts of the deep south. snow building in from around st. louis to chicago, indianapolis and detroit. overnight and by tomorrow morning, snow is heavy at times across much of upstate new york, pennsylvania, back toward the northern half of ohio as well as new york city. then we start to see the warmer air makes sense. by around 9:00 you see that line. you start to see a little bit of rain moving toward new york city . that rate will keep the snowfall totals a little bit lower across coastal areas. interior areas, a lot of snow accumulation. take a look. the total storm, areas across parts of indiana and illinois in the era of a 6-inch mark. the worst will be across much of

new england and ierior sections. so there is lot of industry and winter weather industry must be removed to a ski resorts, snowmobile places that like to get this note. we will have some good snow, some areas up to a foot, higher elevations of 18 inches. meanwhile, that i-95 corridor was no, certainly a slushy day, but nothing that will ground things too badly. any good news to this it is that it is happening on the weekends to book a ay, don't have to be on the road. lou: indeed that is the good news. thank you. much. snow in the northeast in december may not be all that surpring, but snow in the middle east certainly is. nearly 3 feet of snow falling in jerusalem. thousands without power. it is being described as the heaviest december snowfall since 1953. and their record winter storm in egypt as well. cairo hit with its first ever snowfall in more than 100 years.

that is almost more than ever. on wall street stocks ended mixed with the dow and the nasdaq stopping 83 day losing streak. the dow today up 16 points, the s&p lost a fraction, and the nasdaq and in three. all three indexes, however, their second weekly loss in a row despite strong reports on employment, housing, retail spending, and the economy overall. now, nasa, as indeed, all down about and a half%. investors ncerned about the prospect of fed tapering next week as they might well be because e fed will be meeting. much more aheadere tonight. recent economic news leading some to believe the fed might make this move to slow its easing money policies. we will talk with austria best -- was a veteran. a child actor turned successful hollywood producer now looking to conquer broadway as well with a new production of the story that made him famous. peter billingsly playing ruffian

the christmas story. you will see him here tonight. and u next, the tea party, well, they say that the speaker declared war on them. we are going to be talking with former republican national committee chairman mike duncan about his job security and, by the way, how is the war on cold going to wreck not as well as the preside might like. the preside might like.

♪ lou: and new development, a new wild card in the coming presidential race. the former governor of arkansas, mike huckabee, a colleague here at fox sells the new york times he is keeping the door open. a real opportunity for him.

well, the internet is apparently having a lot of time at the tip of a lot of fun at the president'expense after the white as tweeted this picture of the president smiling and holding a card encouraging young people to go get covered with obamacare because nobody should go broke just because they get sick. it has been since dozens of times. it is a ubiquitous means across the web. there is version with the president holding a picture of himself with the danish prime minister as well. a version encouraging folks to get covered because a obamacare canceled the planned that you had an light. the national republican congressional committee also participating, creating a version with the president holding a card reading had stag don't worry because i've got a trillion dollar coin to fix all this. the tea party official in an all-out war with house speaker. for whatever reason he decided to start the feud.

he escalated yesterday saying some groups ve lost l credibility. two-party patriots fired back saying they send out a fund-raising e-mail which is never good. especially when you are supposedly on the same side. saying the speaker delivered what they call a smug and pretentious rant. while. smog and pretentious. and joining us now tootalk about the not so civil war within the republican party in a much more, mike duncan, former chairman of the republican national committee who now heads up the president and ceo of the american coalition for clean coal electricity. great to have you here. we have allowed a politics to talk about. let's start with gold. this president has declared war on not only fossil fuels but cole the particular. he says if you own coal and if you have any plans for coal, your out of business. you are having quite a different experience. >> well, coal is alive and well in the world and the united states.

eastern kentucky we have lost over 6,009 jobs. lou: so why in the world is the industry putting up with it? there was a time when you saw people of getting screwed like this and they stood up for a. you know, and the politicians and they're clear, loud voice. there are just getting role here. >> well, the industry is fighting back the reader trying to fight back in congress. congress has been somewhat dysfunctional, and even if you win in congress and the still have to veto. what he's doing is taking this deregulation process fists, using the epa to and he is getting ready to put out tenders for the existing lou: and wearing just about everybody else with the epa. you guys have cleaned up your act. clear cole, you are using it in much cleaner fashion.

and yet the epa says, the hell with you. >> in the last 40 years 90 percent of the particular have been removed from : this country. $110 billion as been spent. the next ten years, another under billion will be spent. coal is a fork to of affordable, reliable, and increasingly plain. lou: in congress is getting a little interesting reynaud. the speaker attacking the two-party then certain conservativv groups, heritage action. these outfits from a freedom works. what is going on? your party is starting to show some great, some life, some spark. i kind of like it, to be honest. >> one good candid it away from the presidency of the united states to having the unity within our party. what is going on right now is we are having a free flow of ideas, bringing more people into the party. lou: there seems to be, when the

speaker decides he's going to try to shut down away and call them basically it's, you know, and there is a war that has been declared, meanwhile, i don't see what the alternative was to what they did. by the way, i fully support the tea party. i think they're one of the strongest and most vibrant expressions of the popular will in this country in years, decades. so what is your view? >> i support the big ten but i also understand and expect government to work which is what you saw in the house. i think you will see that in the senate. maybe a little different process the american people want us to have a budget. lou: are you kidding? you have to be kidding. i have to tell you, there is nothing deliberate about it. it was was the case that the on immigration reform is now announce of bob good lead in the republican leaders in the house. the senate as true of everything

that they touched. i mean, they are actg, i think , bizarrely. >> i think we will get a budget. the senate and house both understand the american people want the government to work. lou: all right. good to have you with us. thank you. when that war. >> we're working on it. >> who would like to take a moment to get a sneak preview of a very important new book. i'm talking about something very big. it is called people. winning back the country with knowledge that an powerers, ides that matter, and solutions that work. the have probably already guessed that the author, one of my favorite folks. thisew book, it debuts on january 7th and is now available for pre orders on-line. beat the holiday rush. be the first in 2014 to get to amazon, to any one otheir bookstores in your neighborhood to order up people. and go to our website for links. you can send me a note about it all.

we are coming right back. stay with us. president obama's pivot to asia greeted by the chinese navy. harassing a u.s. navy vessel in international waters. former army four-star general on china's challenge.

♪ lou: the family of the retired fbi agent disappeared seven years ago now an analogy he was working as a spy for a so-called rogue cia operation. reportedly sent on the admission by a team of cia analyst who had no authority to run spy operations. as i say this to you, i want to be clear, i am not saying it is true. i am telling you, this is wha everyone is saying. it may be a reason they're saying this, and the reality may be entirely something different. but to continue the story, the family accuses both the cia, fbi, and obama administration of betraying him by not doing enough to gain his release. a highly anticipated report from

the united nations finds the chemical weapons were used as syria five times this year. the most devastating in august, more than 1300 people were killed. they grew with the government's rejection of a free-trade agreement with the european union. they are maintaining their demonstrations. they build barricades commend pinnace court that were previously destroyed by the police. the ukrainian government said it will soon sign the deal, but they have not given a date. they have not yet deliver on their promise. my next guest says the latest sentiment in which it -- incident in which a chinese or should try to force the u.s. guided missile cruiser to stop in international waters was likely staged by the chinese. he believes the united states response was, in fact, appropriate. joining us now, general jack sheehan, retired four-star army

general, former army vice chief of staff, fox news nuns to the military analyst. thank you for joining us. the way this ship had to maneuver, we don't have the specifics, but it is clear that the chinese seem to be intent on interdicting the ship and literally bring it to a stop. >> there is no doubt about it. the chinese are out there in the south china sea convecting naval maneuvers. they have acquired some new ships. their up there with their aircraft carrier that they've got from russia. and the fact of the matter is, we normally would surveils something like that, as they would do on our naval operations and i am suspecting strongly that is where the ship was doing. in international waters. we have the right to observe them. they clearly -- this is all about power and control. they've really what to regain control and influence in the western pacific, something we

have dominated for years, and they're going to find many ways to push back the air defense on that we have discussed in previous episodes as an indicator of that. this is another one. and these things are going to continue to occur more frequently. and do believe this scale will also increase. lou: the scale by my understanding of what you're saying, was egest scale means even greater jeopardy because that introduces a number of variables that cannot be controlled. is that what you are implying? >> absolutely. there are islands out and these genesee, for example. the south china sea as well that the chinese believe they are the appropriate owners of. that is totally contested by others who are living there in their own by other countries. i think one of the things that there will do in terms of

dramatically increasing scale is just popped out some troops on one of those islands and say, this is ours. and that will obviously present a challenge to our allie and also a challenge to us. there will look for these opportunities to force us to push back into western pacific. that is with the air defense so was about, so we would not conduct surveillance operations of what they're doing and what us too far out to be able to do that. we do that routinely, almost on a daily basis. now they want to push our shipping back so our naval ships cannot observe what is taking place. we have a right to be there, lou. every indication i have to you know, from our government and the pentagon is that we will stick to our rights and continue to have the influence of our allies. lou: that has to be reassuring to our allies as well as those who are interested, obviously, in this country preserving its prominence in the world to be

that the rescue, your interpretation of why this administration would wait more than a weeko inform the american people of what happened to between that guided missile cruiser of hours in the chinese navy vessels that were trying to block it. >> well, i cannot fathom why that was not reported. if we have a combat vessel or even obviously commercial vessel on our flag that is fired upon, that is of the american people have a right to know. normally that is reported within hours of the event was but they clearly have all the facts of the case. so there has obviously intent here not to report for reason that i cannot imagine. the american people have a right to know, and they should have known the day of the incidents. lou: the president is sorely

misjudging, i believe, the expectations of the american people. and i believe we're going to hear a great deal more about this from congress and from the senate in the days ahead. general jack keene, always good to talk with you. thank you so much. >> you talking to you,. lou: up next, this is a story you may not believe. strippers getting into the christmas spirit. we will tell you what they're planning to do for the needy. we are coming right back. stay with us. ♪ lou: a controversial ruling in a california court over a 60- year-old monument to korean war veterans. the "a-team" on the cross. jetted die, john fund, and ron christie are with us next. ♪

they said i couldn't dream. called me a piece of trash and swore that's all i'd ever be. said a bottle couldn't see the ocean. "give up." "go back to theumpster." but i didn't listen. i made my way.

and now... i'm what i've always wanted to be. [waves crashing on beach]

lou: the attorney for the woman accused in florida state

university of the case of sexual assault is asking for another investigation and the maneuver comes after the state attorney dismissed the case, citing a lack of evidence. patricia carroll says that investigation was riddled with problems, including nlected witness testimony unredacted medical information and a lackluster information of winston himself to put it kindly. the timing of the suspect with the unveiling of the suspect said that winston is projected to run away with it. espn calling the race between three other quarterbacksand aji mccarran and the last year winner, texas a&m university manzella. speaking of espn, the worldwide leader they say in sports and

engaging religious groups by refusing to air in a missouri children's hospital. the mentions of the words jesus and god, they didn't want that on the air. but after considerable pressure from christians around the country, they have now reversed the decision. those words are now permitted. and then select data and locally at california,, a korean war veterans memorial was implemented. ruling in favor of an aclu lawsuit, it was filed on behalf of thejews veterans of the united states, burns did his orders with appealing directly to the supreme court and my guess is he's exactly right. joining us now, jedediah bila

and ron christie. also, ron fund. the republicans trying to provoke a fight with the tea party groups and conservatives. they say that he has declared war upon them. >> good evening, and i have been here in washington. what i am hearing is that thee speaker and the leadership are upset with the tea party and outside groups making the they have been built a bad hand with a government shutdown. and they have said tat enough is enough and we're not going to let the tea party to get away with it. i'm looking at it from the perspective of the government spending far too much money and we need to put the brakes on it. so i thk you'll be very interesting concept of the

speaker and leadership capabilities outside folks. >> what about the idea that both the right? >> and on whether they can both be right. the reality that the deal stinks. john boehner is saying he didn't get a good deal. $20 billion in savings when you are looking at over17 trillion in debt. and you know, i think it was done because they want to look like thy are compromised and they don't want to be blamed for a government shutdown. lou: i think they wanted to get back to regular order and i think that this is a cheap way to do it. and by the way, an inexpensive way. it is a small potoes deal. it is short cotton, but leaves much taller cotton and i don't understand why the tea party groups and speaker john boehner can't calm themselves and understand where they are going. >> everyone was exhausted. lou: how sad. the poor guys. they need a vacation.

and they need to settle this with the american people next year. regular order, they are breaking every rule in the book. and it will follow after this deal. but policy wise for me have to give some of these tea party guys credit. but it doesn't fix the problems. >> i give them credit for great things and they have inspired the republican party. frankly crushing the tea party, which was the goal and the aim of the obama administration and you have some working together to crush the tea party. in my opinion, it is not wise. >> let us not forget that eric

cantor and the rest of the folks have the tea party to thank for the position that they are in now. so i find it a little bit crazy. >> that is exactly right. you and let's tur quickly to a surprising poll out of california. almost 40 million people out there, the population is growing and i wonder why. but it is extraordinary. but it's showing now that california believes that unions do more harm than good. >> i am a ntive of california, and this is very surprising and good news. because if you look in san francisco, there are two mass transit strikes. if you live in the san bernardino area, it rewrites the public pension will.

>> and so i don't think -- this shows that initiative could pass and that may be the first part of the healing of california. lou: that is certainly part of the process that we have in front of them. good to see you. stay warm down there. join the discussion and check us out on twitter. go to facebook page at loudobbs.com. a new book coming out. it is even pre-ordered. coming up next, he is my guest

next. the queen of reality television, kim kardashian, the incredible unbelievable story next right

lou: you may want to go out and buy a mega millions lottery ticket. the jackpot has jumped to $425 million, the fifth largest in history. you have a one in 259 million chance at winning and if you are listening right now, please go get a ticket. i don't care what the odds are. and strippers and arizona and illinois and florida are reportedly in a giving mood. you like that expression? adult establishments in those states are offering fre land dances for kids. a heavily label be effort choice

for they have label lbled them toys for tatas. and coming up next, a mixed day on wall street. investigators preparing what could be the end of easy money and we will find out about that. joining us now is chief quity

individual manager. we are all making a decision about quantitative easing and buying purchases in the direction of the monetary policy. is the market right to be scared to death? >> i don't think so. i think the market is going through what you would call a mid-december low. investors are going through this and it usually ends up representing a nice buying opportunity. buying at the low in and mid december, waiting for better prices at the end of january. lou: okay, is it so easy? it's unclear what they are going to do.

very clear what she said says she would do, and that is deserve easy monetary policy as long as we have high unemployment rates and absolute consonants with ben bernanke. >> i think that they are worried about this and my feeling is that it needs no backstop and they have this process back to

regular order. and therefore we can do whatever we want with monetary policy, including this. >> i tink investors are saying that, okay, there's a greater likelihood that the fed will be starting its program this month. not waiting until much as much had anticipated. lou: what is your judgment? are we going to see a market remains robust? and if so, can you tell us what that is?

also, why are interest rates a big deal here? >> i think that the fed will begin this in december. i think that the rate for the market, the s&p 500 in 2014 could be in the mid-to high sinle digits in flight, i don't and put it in cash, stock sometimes end up being the best alternative. lou: up next, he played ralphie in a christmas story. he is bringing the story with peter billingsley to the

hollywood mega-producer and lookout

lou: one of the most iconic christmas films is "a christmas story", the musical. continuing in new york's madison square garden. peter billingsley played the original ralphie in "a christmas story." thirty years ago, he is now a successful hollywood producer. we are delighted to have you here. >> thank you. lou: this is terrific. you have associated yourself with so many stories of success. so how does it feel to continue to move "a christmas story" and

to broadway? >> it's really gratifying. it's the 30th year since the film came out. it's a little movie, no one wanted to make it. but it took 12 years to get back then in 1983, there was not much lifer films outside the theater like this. lou: i am entirely different in this perspective. lou: it has developed this that none of us imagine could ever have been a part of it. so people have said, maybe you should remake it. but the notion of the musical was really intriguing. and it was creatively inspiring because it really follows the tones that you think of and we go into this.

lou: what is the secret? there are a lot of folks who are in this to go on and don't do much. but you have done immensely well in every medium that you push. what is your secret? >> actors don't have the greatest track record, but i had a really good family. and that is honestly the truth. i was raised well and i had an incredible experience and there were always views a privilege to be part of this. so turned into a business.

the movie wasn't a particularly successful then. did you make an amazing amount of money with the reruns? >> well, those residual contracts are from before cable. so the joy of getting to watch the film over and over again in the joy of producing the musical, we are nominated for two tony's last year and it's been a real joy to be able to piece this together. at it's a high-quality show and we really like it. lou: we recommend everyone seen the show. what a spectacular show and we are delighted to see you. and i think you may have given us a reason to remake a very good movie. >> it is certainly residual.

[laughter] lou: thank you for having come on the show. the musical running at madison♪

♪ gerri: hello, everybody, i'm gerri willis. tonight on "the willis report," a user's guide to taxes. your tax questions answered from estate taxes to obamacare. we've got you covered. this is your time to chime in. we're including your e-mails, tweets and your phone calls. also the legal battle over a cross erected for wa veterans. a judge orders it taken down, but will it be removed? we're watching out for you tonight on the willis report. ♪ ♪ gerri: welcome to "the willis report," your show, your money, your voice.