neil: you know, i have always suspected that this isn't what it is cracked up to be. but don't say i didn't warn you because i have always said that any time a ceo or anybody sounds too good to be true, it is a good bet that it's not true. it is a big lie. this is one that i think that we should all watch very closely this year. the rattling of an economic

giant. >> welcome, i neil cavuto. and you are talking about what is going on. the country is slowing down a lot. no fewer than four purchasing managers in the index. and the chinese government is confirming what they are confirming. it is like authorities there have concluded that the jig is up and we are going down. so we might as well just admit it. i just cannot put that in enough terms. and at the same time, you can't hide it and it was a slow

resemblance. i think thaa that is still part of it. and in fact, it is probably half that and i wouldn't be surprised. because china in providing these numbers would be like me providing my way. even if we were dependent on what china was doing. and strikes that are coming, so many bubbles are popping. so if you were among those who said that the whole world was

part of this, your world is about to become unhinged soon. and so to the guy that was way ahead of me. gordon chang has long believed that china has been on the brink of a collapsed and it is increasingly worthless on the verge of a revolution and the thing is that gordon was writing this back when his vast seller was defying the world what a rising power of china. he is convinced that the day of reckoning is coming.

and they are creating debt faster than their ability to service debt, which means that the crisis is inevitable. neil: it always reminds us of these judgments. and the question is how bad that gets. >> i think it will be very bad. because essentially what runaway debt right now in the chinese government doesn't know what to do with it and we saw those two criiical spikes in june and december. that is because the central bank wasn't trying to tighten liquidity but it was not adding new liquidity. >> the chinese government doesn't know what to do and it has sort of just surrendered.

it means that this is a primary train is going to go off the cliff. because people are unprepared, it is going to take a large part of the global economy down with it. and this includes a relationship with the rest of the world. >> it doesn't because china has grown a lot. and it has gone for about 30 years.

>> and they haven't seen what has happened since the end of 2008 and this is what we have and that is just unsustainable to give you a sense of it. for every new dollar that china created, 80% of gdp. that was down 17 cents at the beginning of last year and that shows you how bad the situation as. neil: cordon, don't go anywhere. what you are saying is right. >> i think the best way to describe that is uneven. there are two factors. expectations of developing a consumer sector that fell short.

and so couple that with the regulation of coming down the pipeline to address those rising %-it's understandable that the growth has slowed over the next 12 months. neil: we have hitched their wagons in this way. >> we are basically a little too complacent in the other direction and if we are too optimistic on a country like china and it collapses, you're absolutely right. i think the reverse is actually true. and i think it's far from it. i can china basically doesn't think in your increments, but ten-year increments.

it was basically in line with the averages that average is that you have seen over the past couple of years. and a lot of it comes from the imf. we talk about beat that intended as an alternate to anyone else in the world. in some of its bad money and some of it's good money. but china has the urbanized a few million people and they need a place to invite them. >> clearly china will not have an argentina problem with a own money to the rest of the world. this is a local currency debt problem that they owe to themselves and that can cause a problem. it's going to be a different problem than what we have seen before. but it will be enormous. and there are a lot of companies

coming through here. >> no doubt about it they're going to be issues. and one of them is all of a sudden taking this off..@ and the issue of china right now is data. hard data and you can't argue with it. >> total trade volume. and by now it is ready to surpass this. >> it has been part of the fake invoicing. we know those numbers don't match up with the other countries of trade. >> we are talking about imf number is. neil: i want to bring lindsey in tibet. we're in crunch for time here. the both of these gentlemen are presenting extreme views of what could happen them what they china does stop being the

catalyst is a has been. but maybe not to the degree that i've seen. >> we have seen this in one of the developed sectors of the global economy and it makes us more competitive on a relative basis and in many fortune 500 companies are coming back to u.s. soil. so i think that that can be easily dispersed across many nations. neil: i wish that we had more time. unfortunately we do not. but thank you very much. and after this, i want to take a peek at the huffington post headline that is catching a lot of heat. and for now, we will show you these shots welcome back. how is everything?

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neil: drunk granny off a cliff? your member that one? that is just my thing. this according to the huffington post headline that frankly is over the top. blaming congress for letting poor americans free as the polar vortex comes on down. and it's like, all right, that is a little over-the-top. >> i don't think so. this has been the strategy and the liberals have had this in place for a long time. blaming the other party, making the other party seem coldhearted. and we are pushing for dirty water and we are also putting the poor out in the cold and what i think we need to start focusing on is about solutions. the president has talked today about the unemployment benefits. however, the problem is that how we pay for a? and i think that question keeps

coming up and they are dealing with a high debt right now. and basically trying to find these solutions like are we going to create jobs and pay for these different types of programs is. neil: what gets weird is if you are a prominent democrat any make this part of the income gap, it is widening dramatically under this president. and what i think that the president is trying to do is find his voice on the sense of income inequality and we are seeing that with new york city mayor in terms of figuring out how you will reduce income. in the first thing here is that we have to create jobs and we have to get the economy recovering where you have businesses investing in america as opposed to say we will keep going in this direction we want

the republicans counter this, or do they? can't narrow that gap by just keeping taxes on the wealthy to force the divide and make it smaller. >> you know, if the president is in charge he is trying to get away from the obamacare reaction. neil: with health care they are paying another percentage point and so if they deliberately ignore it. >> they believe that you create jobs by making sure you taxed more of the bridge and try to dismantle this inequality. in this includes the economy

that people are certain about and they can invest in. neil: all right, obamacare to the rescue. and if something keeping those the cost down? we report you decide.

neil: the health care law has been a disaster.

the white house is crediting obamacare with less than 4% in 2012. what is the expectation of the law being a part of that? to the great obamacare where the great recession. and if you want to have credit for the low numbers, you need to look at people opting for higher deductibles. and if not, like i said, it is

not a working wall. in these numbers that came out a part of this. >> people haven't even been able to sign-up. >> part of it is that paul ryan complained about this and that is part of obamacare. and what i find interesting is what is going to happen here. neil: you said most. are you talking like 80%? >> when you look at my actuarial tables. i don't know the answer to that. but i will say that it's interesting going forward. part of this law is that it is going to reimburse and incentivize doctors and hospitals for outcomes rather than the admissions. neil: they don't seem to be gung ho. the doctors.

>> the doctors aren't because now it's great. >> i see doctors and i know doctors. >> of course. but now they will be incentivized. as opposed to getting you back into the hospital. >> one of the things that i could change the equation is that if this does slow the rate down, it obviously means we are getting a lot of young people to sign up and we need to bring down these costs and leverage these savings. if you don't do this, it isn't going to happen. >> that is two-tier point. but if you are wanting that audience, then you shouldn't have made a lot the you should

stay on parents insurance through the age of 26. neil: okay, so where's all where is all this going? >> hopefully it is going the direction as i mentioned, actually having these costs. we will see if the economy picks up. anyone who says this is about obamacare is not being straight with you. >> i think the obama administration is grasping at straws. i failed policies and they are looking at anything to grasp the. neil: it has extra meaning when he you do it in a southern accent like that. [laughter] >> so maybe this is the year that we resolve this spying

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>> is the freedom to does come back all the way in the bottom line is that freedom goes down and the power of the government is going. and it's like nothing what the founders gave us 200 years ago. >> but they didn't have all of these cell phones and gizmos and all of these devices. >> that is one of the reasons that we had two different judicial opinions here. and one said that we will follow these supreme court decisions now. and another judge says that if the supreme court had to review this, they would say you need a search warrant when want to spy

on people. you can't justify spying on these americans without fixing the supreme court who has to decide this. >> maybe they will soon. >> you have different judges saying different things. because it can't mean different things in different parts of the country. especially when spying is as massive and pervasive is this one as. >> now we are hearing president obama who is inviting key lawmakers to discuss this and should we expect any end anytime soon on whether any of this stuff is part of it, what do you think? >> i think that we almost promised that we would go after the terrorists and the things that are really important without giving up privacy and civilrties.

and here we are where we are now saying that we really need to do this. and we now have everything under the world that has the technology associated with a and people say the we better stop these things because we have more information. >> so what do you think about this, if you have a clear part of this and you can cite that it has a number of incidents and when push came just shy of shove the administration had a hard time doing that. that that incident is part of this and ultimately they couldn't find even one. >> and there lies the problem. and generally have a good idea how you can find those people. but when you look at the audience is out there, to be able to say that we know

somewhere something that is going to happen, and therefore we have to show everyone. we would like that very much of other countries did this. but we would be screaming and yelling if they do that to us and we are as open about it as we are. neil: do you think a lot of this is part of this cool technology? of the one all this stuff, but the flipside is that we have to surrender a lot of stuff? >> yes, that is one of the things we have said. and just because he can doesn't mean you should do it. and there lies the problem. not because one judge and one district says one thing and another says something else. this will eventually have to go to the spring quarter because we won't have the various districts agreeing on this and the only thing is just because congress makes a law doesn't make that automatically constitutional and so that is really going to be complex and most people hope that this moves very quickly.

neil: howard, thank you so much. >> bc all of these gadgets and gizmos? have any of these consumer electronic show attendees bothered to make those gadgets and gizmos? and so who is eyeing who? and for what? we will have that coming up next right after this.

neil: if you could wear it, they will buy it. this year's consumer electronics show, high tech and going nuts for it. and the thing is that those very same gadgets are going equally nuts.

and that is what dennis kneale is focusing on tonight. the privacy that the rest of us are happily surrendering. >> is how much do we really want the world out there knowing about our inside secrets of how her body operates at a time when we are worried about the nsa spying on everything. all these of these new things we are monitoring and putting up. so just three examples here. we have the smart toothbrush that has been unveiled at the ces show. and how i ever managed to get a and how i ever managed to get along for all these decades with just a regular toothbrush. this thing, we are looking at an iphone dashboard, it tracks the amount of time you brush and hard to reach areas, it was up to 12,000 rpms and i don't want people knowing when i skip a day or two without brushing my teeth because i've been out partying too much. i have to tell you.

neil: i've never had that problem, but how many people are monitoring i? >> well, there's a lot of people. but every equipment maker today she's extra revenue and it turns out that you have a deed of making electronic toothbrushes, but you also have the data about those toothbrushes. >> the bigger thing that worries me is this. >> and alerts you when your skin has too much exposure to the sun and it monitors ultraviolet intensity and i kind of know what i've been in the sun too much. i start to burn and it gets really hot. and i'm not sure i need a bracelet. but what else is happening with that data? well, look at the user stats on bracelets.

and we need to raise rates on some cancer treatment coverages. and people will leave that benefit of the technology. against all of those risks and cannot in favor of the technology. >> we always do from the moment of the american express card. we are letting them know i must admit buying habits. do we give up that privacy because of the convenience of not carrying around a big checkbook. we are always sacrificing now. so are these new features being driven by the fact that consumers are just dying to know? and are they doing it just because they can and now they are hoping to talk us into thinking that we need it? >> it's very well put.

>> at least they won't have to. we will have that next. and there was a time when banking executives were targeted. and they could be the sort of focus du jour, remember it to be part of the last decade. the women who wrote the book on when the feds through the book at him coming up after the break. welcome back. how is everything?

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neil: jpmorgan chase ponying up to uncle sam. bernie madoff has declined for years and not doing anything about it. nevermind government regulators. the prosecutors never miss a chance to point the finger and make an example. and it certainly takes the heat off them. and then with we could have a plan but rise and the fall of dennis kieslowski. so you and i chatted before about this. and going into some of the details, making this the focus of a lot of peoples rap. and it was built on wealth and how we spend out well. >> yes, it was.

it is frightening and shocking if you look at the evidence. and so much evidence presented during the trial is about how they spent the money. >> it's a tough thing to prove. but in the end, it came down to the lifestyle. did he know about a? >> i think that he, you know, i thought he came from a humble

background. he very quickly started making a lot more money than most of us. and he thought it was risky to be outspending it. >> he was unaware that a lot of these expenditures were part of this. >> was a really headed out for him? >> yes. and he's an elected official and the public was outraged and it was right after the enron fall and everybody needed someone to blame. he landed on the radar and he

went after him. and he had been a very highly paid executive with the media capital of the world. and he was a great catch and would be great for his reelection and he was reelected shortly thereafter he was convicted. >> absolutely true. look at the headlines. and you know they are a lot of money. >> they are wiser than dennis was in the '90s because that would be my advice. after looking carefully at this

case. >> i hink because i have no agenda. i'm not selling magazines or newspapers. >> the tutor is what? >> the truth is that there are no crimes in this case. i just don't see the evidence. and i don't see enough evidence to convict him of a serious felony. the worst case there were some conflicts between him and the board of directors that could have been resolved with a civil action. the decriminalized the business decisions, it is just terrible.

so there are implications for that? >> yes, there are. and it's frightening when the government inserts itself there. everyone has been trying not to be the person who gets indicted and someone gets thrown under the bus. and that seems to be the case then and now with jpmorgan chase >> what is he going to do? >> i don't know. i don't know if you have solid plans in place. it's a lot rebuild. especially with the characterization over the past decade.

neil: she is unbiased. and that is why she got this access and she has the most revealing book ever. i urge you to read it. well, maybe if dennis were just better looking he could've avoided this. [laughter] neil: the new reports are to look the part. whether or not they are up to the task. sure, it may be great to see the anchor. but come on. surprise!!! um... well, it's true. at ally there are no hidden fees. not one. that's nice. no hidden fees, no worries. ally bank.

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>> all this time, it turns out being hot does help. if you are a ceo. the president chief executive who ranked highly. which gives her extra sway with investors who would sign high grades to such things.

two economists coined a term for it, the beauty premium. if you aringl are ugly, you dont it. beauty and brains both over this blitzing on what is beastly, what say you? >> number one, for picking stocks. people are quick to call shallow, and superficial, this is why we don't show up to work in a t-shirt and jeans, we want to give our shareholders, and employees and colleagues, the impression that we care. really, i think it is a simple as don't be a slob. you won't be taken seriously otherwise. >> i look at great leaders like winston churchhill, he was a slob.

>> he was? >> he was. i can say that. we wond wander around the white house in the nude, who doesn't. but. i know it is different corporate world, i grant that. but have we changed, have we become more shallow, soar is this nothing new -- or is this nothing new? >> i think that reality is, you know maybe some looks do get you in the door. but it takes more than that to republican a successful company -- to run a successful company. i believe if you take pride in the way you look, like lori said, and that you are polished you present well, that exudes a certain amount of confidence, which is then picked up by other shareholders, and the value of the company. there in lies of study, yahoo! needed a new leadership, marissa got in the door, but i think it

because of her success and pril brilliance,. >> should she be doing spreads in a vogue. >> in a sense i think that backfired on her, it made her look to celebrity as a ceo because of her persona and looks as opposed to her grit and depth, but she did not do that until she was in the be into several months, she did prove herself. you wasn't she has raised eyebrows with work at home issues, putting nursery in her office, whatnot. i think she is a celebrity ceo. she fits the bill, not most ceos are not. >> all right. is chevy crossing the safety leap or priceline -- safety line or price line. saying their partnership with priceline group will let their

drivers make reservations from the car. you are in the car! you are driving. >> those onstar operators will be privy to all sinful secrets. my biggest problem technology wants you to leave the house. it is like, there is no time to be home any more. it is not a bad idea. >> i love technology, but i'm thinking, i have to concentrate on the road, right? or am i just you want -- >> you know we're an instant gratification society. this is a great trifecta for consumer traveler, the companies have got it, they got what the consumer wants. >> that music, time for our

night cap, lory. >> goldman sachs put out a report questioning how frigid weather will impact the economy. watch out for a disappointing jobs report, they are lowering payroll added forecast to $175,000. so, we'll keep app eye out for that. -- an eye out for that. >> as a result of this, kimber kimberly? >> i'm looking at jobs report, also tomorrow, the fed minutes are coming out. to see what yellen does with this buyback. long-term, i think that investors need to hook out for what their allocation, is stay true, don't get mixed up in bumps and bruises of the market, stay focused. and stay diversified and your course. >> and stay calm. >> doing my best. >> ladies, thank you both very

much. wild monitor those develop the. thank you for watching. we are going to monitor that jobs situation, that freeze could put a freeze on a lot of things, see you tomorrow. >> what is old is new, what is new is cold? we're in grips of polar vortex. we'll get into the vortex, when we're good and ready. but what has us hot under the collar, a nags notion of what is mine is yours, i don't have much, i'm running out of patience with this clash warfa warfare. i am kennedy. nice to have you on a cold nig