instead of dining on the remains of those party buffet. from all of us here, i am your host and we wish you a very happy drones goodnight e obama de resulting in inconsistent and confounding decisions of foreign policy particularly in the middle east. president oba first work day of this new year has brought us more of the same same, controversial statements on iraq, afghanistan, iran, and syria clouding the nation's foreign policy even further. i.m. lou dobbs. lou: good evening the president famously said throughout the 2012 election that al qaeda was on the run. a statement that we now know to be false.

reports that iraq today show al qaeda hasaken over the cities of fallujah and friday to iraqi cities that were stronghol when they joined the iraq war. secretaryf state john kerry made it clear the iraqi governme is on its own. jay carney confirming his sentiment earlier in the day putting the rponsibility on congress not the commander in chief. >> this is something forhe iraqis to take the lead on and handle themselves but that does not mean we cannot assist them and we have. i heard members of congress suggest this but if they suggest there are troops dying and fighting in fallujah today, they shld say so. lou: at the same time talking about afghanistan to keep our troops a their country to combat terrorism

calling on card side to sign the bilateral agreemt immediately. >> the best policy is to maintain a presence there focus solely on the mission that i mentioned. but he cannot and will not do that absent the agreement by the afghan government move quickly to signed that agreement which would then allow for preparation of 2014. lou: secretary john kerry confused his students even further suggested iran could participate in the upcoming syrian peace talks. a lonime state sponsor of terrorism yet will agree to dismantle the nuclear program despite the president's promise to veto any new sanctions that congress might pass. a confusing picture to save those least. we will take it up talking

with former pentagon official katy mcfarland. president obama back in washington after his hawian holiday vacation now he is beginning the difficult task to redo it the second term agenda. many of his items will carry ove from last yar including immigration form and gun control. but the administration reportedly will put a focus andn the ming months. the president is expected to lay out specific proposals amid jittery 2 stat of the union address. among his proposals, raising the federal minimum wage $10 or fryer that the administration officials say will have bipartisan support for a promise and the floor today harry reid kicked off the effort. >> wages of middle-class

families have fallen by almost 10% with food and housing and gas has gone up. the rich keep getting richer the poor get poorer and bn a class are under siege. lou: democrats wt to make income inequality the big issue of this midterm election year to take the focusrom the disasters of obamacare. on capitol hill the senate voted to have janet yellen service a the chairman of the federal reserve. the 56 least 26 wrote the first woman to lead the cental bank in a century long existence the chamber is also expected to vote on a three month extension of benefits with long-term unemployed but it has been delayed until tomorrow morning in democra have trouble secure the needed 60 votes to clear their procedural hurdle and move to passage. we have all the angles

covered. our political analyst want williams will join us to discuss the agenda and the hillary clinn shadow campaign for the presidcy. and al qaeda not on the run a matter what the president says and our pentagon official will update us and also joined by the top banking analyst to says big banks are essential to the american economy, dick bove is here to tell us about his new book guardians of prosperity. a massive danger is a frigid air known as the polar for texting the midwest today was life threatening temperatures sitting 23 degrees below zero in minneapolis da 12 in chicago dash nine in dianapolis and the national weather service say those will feel more like dash 50 degrees when you factor is of wind chill.

the cold blast prompted school closures minnesota and chicago in more than 3,000 flights were canceled is expected to reach the northeast by tomorrow temperatures expected to be in the single digits and officials are warning exposed flesh could be frostbitten within five minutes and stayed inside out of the cold. on wall street stocks finished lower down 45 points the s&p down for the nasdaq down 18. fourth quarter earnings season kicks off this week and a reco number of companie have issued the earnings warnings. nearly 90 percent of the s&p five accompanies have issued a negative guidance still expected to rse 6%. t-mobile has agreed to buy some spectrum licenses from verizon at 2.$4 billion expectedto boost their networks in major ties.

back to iraq are first guest says we invoice -- ilated the country but we stayed to build a new nation than we failed of both. joining us former pentagon official of national security analyst for fox news katy mcfarland. let's start with the united states has failed was both missions and has basically said with the leadership of iraq now matter what happens now you are on youu own. >> we will not get inlved with another ground war certainly sure we can give them intelligence but the fact of the matter is they are on their own. it is dictated by iran it is a new era of the dog of the middle east.

lou: how did the secretary of state sayhe is a role for iran in the discussion or negotiation in syria over syria and at theame time acknowledging iran is a state-sponsored terrorism and has been for decades and is influential in the oblems that iraq now with faces? >> they are flailing around. they look around for legacy. obamacare is a disaster so they lk abroad. nixon and clinton but what do they have to say? nothing they can point to. libya was a failure and relations of israel doesn't work. iraq, the great war that obam left two years ago now outside is back there is a very serious campaign in the major citiesrior ran

relive -- leave the region it is a factor nuclear weapon is syria was to be a success wrackedy civ war. there is no happy story than the one in e board to the obama is afghanistan? will have to shoot our way out. lou: the administration continues to insist with the bilateral agreement that the car's side -- karzai has made it clear that in april that might be a possibility but it is up to new leadership. afghanistan war has been a failure because of three things we could never achieve. a competent and honest government in the call and never seal the borders so the talin kept coming back we could never have enough forces anything there is

tempory. lou: you wrote a terrific column on precisely these issues. at the same time you were so complimentary of the leadership of u.s. military. i think of david petraeus in the other generals who are responsible for that conflict now even 12 years it is extraordinary talk about ng wars instead of victory this was doctrine for the united states army. unterinsurgency, though long war. those leaders must laments the fact and ient on changing it once th are in positi otop leadership. >> as a mother who has a child in the military i don't think we can work through the military to say your child sacrificed for nothing. lou: i did not mean to

suggest that nor did i suggest there was talking about the military but said general's to carry out policies in afghanistan particular the and iraq that i don't believe in a lot of sense wheth viory was achievedr not we can say that with great assurance. >> nation-building is another way to talk about it that was a complete and utter failure throughout the of the least. lou: good to have you with us. much more on the obama doctrine and failures but later we will take that up. we will be right back. pleasestay with us. >> obamacare is a bust. president obama and the democrats preparing to fight to the midterms over income inequality. fox news political analysts are here with their judgment on the new obama strategy.

[ male announcer ] this is the story of the little room over the pizza place on chestnut street the modest first floor bedroom in tallinn, estonia and the southbound bus barreli down i-95. ♪ this magic moment it is the story of where every great idea begins. and of those who believed they had thpower to do more. dell is hored to be part of some of the world's great stories. that began much the same way ours did in a little dorm room -- 2713. ♪ this magic moment ♪

lou: on friday we reported that fact checkers were calling up the obama administration for their claims they never had a goal of 7 million people to side of for obamare by the end of march "the washington post" awarded to pinocchio for that butover the weekend to the top economics advisers said yet there was not a concrete goal and repeated the same shall we say misrepreseation? >> first of all, there is no agic number the key is to enroll as many people to have us stable secretary. >> you never said 7 million people by march?

mimics excesses the ongoing strong market. lou: pulled the fact recreated that statement mostly false "the washington post" should consider up being fair pinocchio. of maybe eight or 10 but that is the possibility. hillary clinton is quietly helping to build a massive shuttle cpaign to lay the groundwork for her second run of the white house despite her public insistence of a decision on 2016 is months awa according to "politico" she met with strategist about a run last year and time magazine says you rented our e-mail list from her failed -- e-mail list to her super pac but eat because she is not yet a candidate it is perfectly legal. liz cheney says she will

dropper challenge against republican senator of wyoming. in the official statement from her campaign the eldest daughter of former vic president dick cheney says health issues have arisen in her family because of that she has decided to discontinue her campaign. she did not detail what those were. joining us now to assess the frustration and if it from obamacare to endicott on inequality, of juan williams columnist for the hill and former member of the george w. bush senior staff brad lachemann. good to have you both here. talk about income inequality that's go to 53 percent disapproval rating for this president with the latest daley gallup poll. key cannot see right now to do anything right.

what is the way to improve called numbers for the president? >> with the start of the new ear you have to get back to your base look at the decline of his poll numbers. what is outstanding much has come up from the democrats and independents. if he could start to get the democrats back in line to demonstrate some competence especially with the obamacare web site, making sure enough are registered zero they have a functional marketplace, i think that would make a lot of decrats very happy singing hallelujah. and independents have been turned off so if he could stop the bleeding he could help the numbers go up but there's not much with the republicans. lou: how were they in your judgment handling of the mess of obamacare, the

failure repeated in the media day after day? >> of great job. after the government shut down they realized the story the american people have to here is what they're feeling that obamacare is disaster forget the web site. what about dropping insurance. talk about the lies the president has told the american people that they now know are true. they cannot keep their health care provider or keep their doctor and will not save money on their insurance p policy. now it is not enough to be against something now they have this congressional retreat coming up they have to come out swinging. we know what the democrats will do it is the haves against the have-nots and republicans have to be better than that. lou: but i cannot figure out the republican playbook. it is not clear and bbehner

will not give a clear answer tomorrow after the senate votes to move pastf a procedural hurdle of closure what the republicns in the house will do. can you make sense of it? because of the benefits are paid for and other job-creating growth measures , what is he saying? >> we cannot do this right now. not only extending unemployment benefits they have the votes as of raising minimum-wage which 60 percent support. they say we are worried about the republic primaries before we are worried about the midterm election and the republican primaries what we e have to deal with are those tea party folks who say the number one priority is

government that spends too much money so to put this into extending unemployment benefits or raising the minimum wage is not on our agenda. is to cut e deficit right now. lou: the republicans are right to add lou@loudobbs.com months with a good ground me, from 2012 moving people into the polls not just raise money this time? >> you have to have people to vote. lou: why wasn't that a parent in 2012 to republicans? >> you got me. i am shaking my head as much today as it was then. that with that small minority they hijacked the party we have to take it back and tell them what we are r not everything we are against. we have to stand on

principle. unemployment benefits were supposed to be limited. what is the president's job plan? he just comes back to more money to give to people to sit at home and not have the opportunity to get a job. lou: a lot that i cannot fure out that why he wants benefits but does not apparently give a doggone about 650 million that stuff is not paid for? we talk about the moral equivalen that the republicans have not worked out the of the rhythm? >> i hope they will but 6.$5 billion over 90 days sounds like a small pittance but it is a principle to put this on the right course. the budget deal a few weeks ago was not a huge deal but a step in the right direction.

we have to start moving in the right direction. not so much today are paid for by a wire the extended in the first place? lou: you cannot move in any direction if you don't win the eleions. dole led to much of this get reduced we needed to party political system. >> i think you are onto something that is pragmatic real politics you have to win elections. people say you cannot have the tea party nominate extremist candidates to have theretain control but it what you are discussing right now is such an anchor around theepublican neck because most republicans would think raising the minimum wage is a pretty good idea. most republicans areot party to the extremist agenda. lou: you get the last word.

[laughter]]3 >> now you make me look bad. [laughter] >> one more last word. the president having the class warfare argument is he has a record and republicans offer the alternativehat will be the difference. lou: okay. you get the last, last gesture it wasnoble. it communicated a great deal. you get the last out loud words. >> but the bigger issue for republicans is where is their agenda where to the stand at the moment? it looks like they don't have much. lou: gentlemen, what moves mehis is an emotional moment for me to listen to juan williams concerned about republicans. [laughter] what a great nation.

what a great political system. thank you for being with us. the weekend box office frozen reclaim the top spot after losing it quite a feat considering it was released november 22nd it has surged nearly $300 million domestically. a new release this weekend paranormal activity came in second at 18 billion. bobbitt took third place in the fourth weekend out $16 million. up next we go to the chalkboard to reveal the most important themes of my new book with knowledge that empowers and solutions th work we will have guessed that we disagree we are about 180 degrees from one

another and we will take it up in the "chalk talk." [ male announcer ] if you're king multiple medicaons, does your mouth often feel dry? a dry mouth can be a side effect of many medications but it can also lead to tooth decay and bad breath. that's why there's biotene. available as an oral rinse, toothpaste, spray or gel, biotene can provide soothing relief, and it helps keep your mouth healthy, too. remember, while your medication is doing you good, a dry mouth isn't. biotene -- for people who suffer from dry mouth.

lou: look at that beautiful new book, "upheaval" by new book, it is published tomorrow we talk about that book. two-party political system in this nation, in dire straits, it has worked for a lock time but not now. democrats about group, and republicans we don't know what they are thinkg about, i wrote the book in part for republicans who are concerned about winning elecons, because it is critically important that republican party do so,n this midterm elect, book published tomorrow, called "upheaval, winning back the couountry." the book is in part based on our chalk talks here, here is a taste of what is in the book, some of my advice for g.o.p. by the way, they -- i do not know why, but reince priebus and the republican natonal committee did not ask me for

this. i just out of the charity of my own good heart offered it up to the republicans they need help, first give up idea that raising a lot of money is the same as turning out a lot of vots. republican packs raise 1.2 billion in 2012, not enough to win a job. think about, that presidency pays there are 400,000 a -- $400,000 a year. does not make sense unless there is something else going on. there ii a lot of something else. second, don't give up any voter. not a single voter to the democrats. yes, i am talking about the 47% that governor romy dismissed in 2012. don't dismiss anybody. the republicans have got to be an internettic - epe energetic,

vigorous party. thirdly, quit chilling for corporatetism in chamber of congress. be the party of american free enterprise, and capitalism in the national interest, but don't be schilling for associations, and promotion algroups for crying out loud, republicans have the opportunity to be the party of american middle class, to be the party of american dream and winlections baby! fourth, have the guts to lead. learn from leaders like house judiciary committee congressman bob goodlot, putting forward immigration reform that solves s illegal immigration. it makes sense for business ev even. without pandering. to any of those groups.

there are two numbers that i want to share with the republican leadership, numbers that are shouting out to everyone. irrespective of party aphi aphillation, 96% is how many foreign born immigrantses, say that teaching english to immigrants is very important, 96%, but political left uses s political correctness to crush the very voice of very people they try to represent in public arena. big banks, 12 banks right now, well we knew in 2008, after that experience that big banks were too big to fail. now we're learning they are just too dam big, period. >> that is why i called for a rereaction of the divide between comecommercial investment banki, consider this 12 largestanks in the country make up .2% of

all banks in america, but they control 69% of the total commercial banking assetss i think they create bigr jeopardy for the economy today than perhaps 6 years ago, not etch agrees with me -- not everyone agrees with me, dog gone it onnho disagrees is one of country leading analysts dick bovaparticulavat, and he wrote . >> obama long-term unwerement. the house follow, the a-team join me next. welcome back. how is everything?

there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex.

[ male announcer ] introducing fedex one rate. hey,uddy? oh, hey, flo. you want to see something cool? snapshot, from progressive. my insurance company told me not to talk to people like you. you always do what they tell you? no... try it, and see what your good driving can save you. you don't even have to switch. unless you're scared. i'm not scared, it's... you know we can still see you. no, you can't. pretty sure we can... try snapshot today -- no pressure. lou: my next guest, argues his new book, this is that book,

that our country needs bigger banks to compete in the global market place, to retain our status as super power. joining us now, noted barn analyst, dick bove. we've known each other for year author of the new book. why america needs big banks, dick, great to have you here, cone grat layings on the book, i recommend the book to everyone, it is a terrific read, even though dick and i disagree about the size, why do we need in your judgment theb in banking ? >> the global financial market, if you look at converted currency about 56 illion in size. it will be 81 trillion in size a number of years from now. if this market, these banks are

not the biggest in the world. 4 chinese banks are bigger than our 4 biggest in u.s. lou: who owns those banks? >> the chinese government, i assume. lou: they do. >> there is public stock in all of them, in canada, in north america of 9 biggest in the banks, 5 are canadian, 4 of u.s. >> tour our ever lasting disadvantage, i know that is your view. but these banks, these 12 major banks, control 69% of the asse assets. in commercial banking, this is astounding. we're looking at since 2008, a situation which greater power has been concentrated inhe hands of fewer banks, it may be as you say splendid for

international competitors. but it is not to me, it seems, manageable. we have thousands of thousands of compliance officials nesting in these banks. by the way i think that bankers are splendid people. it does not work. it does not make sense. >> think about it. j.p. morgan. lou: we love them. >> let's coul think about it the always mention as a bank too big to be managed. we look at 5 biggest companies fortune 500. number 5 on that list, in terms of property generation is j.p. morgan, you have to ask yourself if this bank is unmanageable, how did it conceivably get to a can i answer.

>> 495 companies are not making as much money. lou: if the other companies in fortune 500 could go to fed di discount window, avail themselves of all of the advantages given to our nancial system to these banks, we're looking as aost of funds on average for these epstitution institutions that is low in most cases they are securetizing their risk, and sitting back and clipping coupons rather than putting capital at risk. as was the intents, the presumed intent of regulators and leaders who gave them access to such capital in 2008 financial crisis. >> flip it, it was not the government that of giving money to j.p. morgan, it was j.p. morgan who was bailing out the government. they bailed out washington. u: that is fair. but, of course, at the insist stan of hank paulson, theyid

en uend up taking money. my view given there is so much public capital at risk, they are beneficiars of such public capital, whether that of federal government or reserve we have a strong and i think compelling interest as a nation, in makin certain that we don't simply make an institution so big it conditionail, as -- can't faith, but we can't make them so big they can't fail, or manage them, only reason is so we can compete in the world place. this is about who we are, about the kind of economy we'll have. >> look at alternative. it is that we don't have dig banks, right? let's look at. lou: we don't hav banks as big as all that. >> right, first off,. lou: quickly we.

>> 21 hours, from 1986 to present,e lost a small bank. we don't have any big motor gang companies any more, we have one big credit card company, we have one big commercial finance company, reason is because these companies cannot stand in business through cycles, they fail. lou: i think these -- that about 10 of the financial institutions amongst the top 12 commercial banks might have failed as well had they not be bailed out. the fact is those statistics, i woulday, they argue the point i'm making. we're seeing a greater coolidation of economic and financial power that is not good for america. it is not part of our valued system, it is not the economy that most of us have signed up for or society we have signed up for. but i take your 59 point, i want

you to know how much i appreciate year being here, the book, guardians of prosperity, he has a great argument in a bunch of gee wiz statistics, thank you, dick. >> than thank you veryuch. lou: dick bove. up next. state of nevada insights harsh criticism for allowing driver licenses for illegal immigrantses. that i so unfai. a new report that explains the justice of it all, about how difficult it really is to obtain those licenses. we take that up with the a-team, ron christie, judy miller and ebony williams join me

parents sure have their hands full... anthey could use an extra hand. now, every state offers free or low cost health insurance for your sports hero... or budding artist. kids up to age 19 can get check-ups, doctor and dentist visits, hospital care, prescriptions and more. your child may qualify based on your family size and income. it's one less thing to worry about. call or go online for more information.

lou: i really like dick bove, one of the best known banking analyst, good to have a disagreement with someone. and be abl to disagree, and you

know with a a class act. i appreciate him being here. i recommend his book. joining me the a-team. ron christie, and fox news contributor jud judith miller. and ebony williams, good to have you here, since i mentioned you last ebony, i turn to you first, sperling said it is false there was a quote, unquote magic number that after the washington post, had given administration two pinnochios for lying about 7 million. >> i have to say even as a left wing supporter that number was certainly -- out there. it was the target number, we heard from secretary kathleen sebelius, now this is an

opportunity for dang to kind of make a fuller statement, saying that was an ideal number we would be satisfied with continual yee enroll am. lou: a half million. >> well not a hf a million. they need more, but ty need more context on what the number represents. lou: judy, context, this dang has a hard time -- this dang has a haradministration has a hard e dealing with context. >> i think that is a very good theme for them this tale of two country, de blasio large theme, rich versus -- >> de blasio has just been in office for a couple of days, president for 5 years, democrats control both houses of congress for two o those. senate throughout th.

and the presidency throught. >> picky, picky. this is politics a hard number 7 million was a hard number to walk away from. they are doing it as gratefulo or gra leslie as they character i think they come back to strong points no fiscal crisis for first time in a long time. i think that inequality theme will play for him. lou: ron is shaking his head ever so gently issue with considerable class, but shaking his head nonetheless, we'll find out why. get your orders in for my new book, published tomorrow, book is. "up heupheaval." if you are in new york metro area, you can get that book signed in person friday at barnes & noble on manhattan upper east side, 7 to 10, 150 east -- can't believe i'm saying

this, kissingth street 86 the 8. we're coming right back. [ male announcer ] this is the story of the little room over the pizza place on chestnut street the modest first floor bedroom in tallinn, estonia and the southbound bus barreli down i-95. ♪ this magic moment it is the story of where every great idea begins. and of those who believed they had thpower to do more. dell is hored to be part of some of the world's great stories. that began much the same way ours did in a little dorm room -- 2713. ♪ this magic moment ♪

lou: as promised ron christie, s shaking his head, our colleagues were speaking. >> i'm shaking it because as judy said before the break this is about politics, want to talk about income and inequality, my parents did not have any money when i grew up, they did not go to college, my brother and i worked hard, we earned a scholarship. the notion that there should be

some income parroting in a capitalist society when you work hard you are rewarded, does not mean you have to go to college, you look at folks that go to vocational school but for the government to decide who the winners and losers are, i reject that. lou: ebony your reaction? >> you know, i agree with ron, i think that this is where administration needs to be more precise with its language, we need in this capitalistic society is opportunity equality, i think that is what ron is speaking to, have a very similar background, first person in my family to complete college education, worked my way through graduate school, and law school, you get what you work for, but we need aequal access. lou: judy. >> i. lou: there were a couple of big sighs. >> look at middle class,ot anyone's class, not george w. bush or obama, this is because

of global economic trendd the middle class is being squeezed. you cannot have a democracy without a middle class, i do think that president needs to talk about it. lou: no fault of public policy? no such thing, this is the result of policies that have been wrong headed this is result of a outsourcing of jobs, the result of run away stock options, and my friends in corporate america, i am a beneficiary of stock options. this is about the process and result and the unintended consequences. we have talk about the consequences. why our public schools are not workingor everyone. why this is disparity in income has occurred when president for 5 years has been leading a nation he said, he was guiding in the wrong direction. is the some point, someone has to take responsibility. i would re recommend that presit

do that to get things rolling. but we have to tax more honest -- talk more honestly about the problem. and set, set aside ideology for at least purpose of laying framework for the discussion. ande'll respond to it. whether as a republican, conservative, free enter fries capitalism or left wing democratic you know state advocates. we have to come together and be square with the american people. that would be a nice start. >> it would be great, i wish more legislators would agree with you. lou: i wish more folks in media would agree with me. >> good lu with that. lou: i want everyone to,a "glee" wita agreewith me. if you agreeith me at home or not let me know. ron, judy, and ebony thank you, that is it for us.

we thank you for being with us, we'll seeerm night here. good nig from new york.

neil: do you want a hot tip? what if i told you that place you cash your checks, your bank, yeah, your bank, chances are its booming. are you buying? welcome i am neil cavuto, thank you chip chip an charles payne y mcdonald and melissa frances forheir great work while i was out. have you been watching this. financial, the bank stocks that are not looking so stodgy, have been on nothing less th