>> thursday afternoon federal reserve will give a hint about whether or not it's going to raise rates in the near future before that meeting you have relatives stability on the market. dow is down just 70 points. my time is up. neil cavuto it is yours. >> that's it? neil cavuto it is yours? >> what would you like? rmingts here's neil! >> i can do it. here's neil! [laughter] >> there you go so desperate for attention. all right thank you, stuart we're looking at -- a market that is going to be fixated on federal reserve. take a peek at stocks they're concerned that this is the week that hikes rates or doesn't hike rates. in other words no matter what the fed does, market is beginning to interpret is negatively. i want you to take a look at a 30-year treasury bond on the 10-year treasury point. 30, very little movement.

yield now 10 years around 2.18 percent. % interest rates are very low. so here's something is that just got the market where it is good news for apple. preorders for this new 6s off the charts we're told. in fact, they think it will set a pace higher than the original six. so that means a consumer demand and building for more buying, and so we have room i thinking interest rates. we've got is to stocks here he'n following this better than anybody i know and worrying about it and trouble they see with candidates on the right and left, no one seems to be worried about underpinnings that don't look good like that nearly 19 trillion dollars in debt that is ballooning. just our special guest reopening segment good to see you. >> glad to be here. >> you were right now donald trump -- not any of the premier

candidates. much talking about that time bomb. >> yeah, it is the time bomb, and it's the heart of the issue. i'm talking about the fed and upcoming decision. i'm arguing that the jig is up. 80 months of zero, zero interest rates is enough to stop the jihad against sabers and retire. >> and do what -- >> allow the market to find an interest rates that makes sense. there are savers out there, millions. there are borrowers out there, millions. let them figure out the right rate not 12 people on the federal -- >> not appear on federal reserve but the market controls markets rates and market seems surprise that inflation isn't a problem. what do you say? >> zero interest rates are crazy under any circumstances regardless of inflation because

it says cost of money for 7 years running is free. that can't be true. the market is not setting -- >> you don't believe the test they use sayings inflation whatever it is, you get near that, above that. keep pages with jobs at that. you've got problems. >> no, 2% is totally a made up target that conveniently allows them to shovel free money into wall street. it never does get to wall street. the idea of interest rates is to get them jigy and spending but that doesn't work anymore because we're at peek debt. households have 13 trillion of debt. 90% of households are tapped out. they can't borrow regardless if the interest rate. same -- raising doesn't that make that situation even worse? >> it is fair to sabers we can't solve this comil by picking sides at the fed between savers and borrowers and say keep it at zero for borrowers forever .

>> not saying they have to savers or o debtors. >> should be neutral and not intruding in such massive way into the financial markets. so you bring issues. god bless way ahead of politicians or don't. they don't for good reason. they talk in the aggregate about oh, we've got to address entitlements but they really don't spell out details. and that worries you. >> yeah. >> see one of the evils of zero interest rates of this massive modernization of the debt remember in the last six and a half years that feds purchased 3.5 trillion of government debt and basically funded it out of thin air by

>> s&p touched at 666 at the bottom. >> agency number, but the point is the permanent earnings capacity at sustainable interest rates in a market that is deflating of s&p 500 i doubt is

$80, and 80 a share. not the 100 where it is today or 130 that wall street sees coming. if you put a normal multiple on that, 12 or 15 times, you get a stock market index crisis dramatically lower. pmpleght so i'm doing math backwards and you ought to operate a budget director. that is another 3 thorks down. >> i'm talking to get people to get a handle on it. we still have another few thousand -- >> hundreds of s&p points. trillions of market cap that isn't reality simply reflects the speculative mania that is being -- >> what has kept it unreal the idea that the fed has propped it up. low interest and before that all of this, throwing money at it, right? >> i'll throw money at it in the low interest rates. what do gamblers in wall street love borrowing money overnight

for five basis points and buying anything that might be going up and a taking the spread. or o borrowing anything that might have -- >> been very easy money. >> easy money. but it's very unsustainable, and it's very unreal money, and the very definition of a bubble. >> i understand you're arguing about the trade and debt, now closing in on 19 trillion. i think if you would have raised taxes, and cut spending in this delicate recovery now, you're going to compound the problem, snow shower not beginning to get that much revenue and you might make the debt situation worse. >> the answer to that is, the day has to come, and the more -- day is worse to reckon with. that will be quite painful. day of reckoning can use to years of stagnation and a turmoil in dislocation in our financial system. but the longer we inflate the bubble and deferral day of

reckoning the worse the ultimate ends game will be. >> you're talking sounds leak making 2009 a party back up there. >> i think sure, they said in 2007, it's gold dee locks economy don't worry, in the next thing we knew 14 trillion of markets -- >> still real estate is the chute. >> real estate that has income produces kability capability reduced investment. when monetary system breaks down, gold will be the monetary -- where do you get your money? >> safest place for money is in short-term instruments in cash, because we're in a global deflation crisis and in the deflation, cash is key. and we need this big reset when this big adjustment happens, those that have dry powder, those that have kept -- themselves in cash and not rolled the dice in the casino

will have wonderful opportunities to buy great things including apple you were talking about -- >> quite happy to spend hundreds of dollars even with this lease program on homes. they're leasing phones. >> yeah. the point is that -- that's one product. but whatever life there is in the consumer sector right now, on the margin, is being kept alive by sub prime autoloans or o least phones and all of the rest of it. there's no surplus discretionary income available in our economy because as i said, 14 trillion of household debt or 13 and a half is a lot of debt what is holding down the capacity of the economy to expand. but we incurred that debt over last 20 years. >> what do you think ronald reagan would say shed from the deficits in the debt that was in the pileup. what do you think you would say looking at the conditions now? >> well he might say i told you

so because he actually did worry that you can't build an economy on debt. that the whole magic of just getting people to borrow and spend when it was government or -- >> the impression that -- 8 of tax hike to address some of them? >> yeah. not enough to your liking. pmpleght not enough but at least leveled playing field. >> do you think he would look at this and say hey get serious? >> one great thing about him was he was to the core. he got educated in the 19 20s before cain invented if all of the malarkey that came out of the mid-1930s so i think he would be shocked at way this is turned out and probably on his watch, if he had really known what was going on it never would have happened. because she shouldn't have appointed green chairman of the fed. green span turned out to be greatest money printer in history. couple of months later we had a crash -- he panicked found printing press

in the building and said runging that thing at higher -- speeds. >> for the next 19 years. >> bernanke handed it off to yellen now we have a fed with a balance sheet that's staggering in size. four and a half trillion. when we got there you know how big it was, 200 billion. in other words it's up 22x. 22 times in that short span of green span bernanke yellen all of that money created artificial bubbles, and artificial financial values in our economy. >> i know your views personal views on this. but do you think that markets fell off by the end of the year it doesn't hike interest rates. so telegraphed in warning. >> i think we're nearing the end of the fed's credibility everyone some of the adults on the fed board if there are any could start to worry about the

absurdity of the grounds of an emergency when they wait. but when number they believe in, unemployment rate is at 5.1%. and that happens to be in the lowest 18% of observations, last 45 years, in other words we've had 535 job reports. monthly job reports since 1970. and only in 18% of them was the unemployment rate at 5.1 or lower. >> that sr. -- is considered unemployment. >> how in the world can they justify 0 interest rates at full employment by their likes? >> you put us all in a great mood you might want to take them out to debate what mr. stockbloom was saying and not coincidental that he has that beard on the street but one of the smartest minds i know. now some other smart minds to react everything to he just said. stick around, you're watching

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tand that's what we're doings to chat xfinity.rself, we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you.

we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. >> i'm arguing that the jig is up. 80 months of zero, zero interest rates is crazy enough. it's time for the feds to stop its retched jihad against the savers in america. and allow the market to findage a interest trait that makes sense. good move saying the budget director is that we're all voted to the economy, recovery, everything you know, the market still has few several thousand points to go. charlie gasparino, connell mcchain what do you think of what he was laying out, armageddon? >> tough on a monday morning buttening when you're

interviewing david i kept thinking the reason this doesn't become a huge political issue in this campaign is because -- it's so tough to deal with all of a sudden. it is just tough love, tough medicine. solution to it raise taxes and reduce sphengtding. everybody hates that so if you're donald trump and leading on republican side you're going to make a living as he's doing and telling people what they want to hear that's what he does. >> charlie does it better. >> what do you want to hear? [inaudible] >> takes few minutes -- but what he's saying is that trump has failed in that regard. i'm going to speak my mind and be frank -- >> trump has no economic plan other than he's lashing out at hedge fund guys. >> stocks -- >> well. >> maybe christie would at least let him. >> jeb bush out a comprehensive tax plan not saying that he's a great candidate. >> but nothing that would address -- >> how does he know? one thing that sort of people

like david stockmanning for the is because he was there when the revolution occurred is that to o a degree tax reform and cuts work, and they get the economy going, an you get more money in the bank. >> he said ronald reagan if you come back today would worry that we've gone too far. >> too far on what? >> that debt is out of control. >> that's true. but federal reserve is out of control. >> think about what we have, though. i think we have a stat last week where we were about to talk about if interest rates were quote unquote normal level. interest that we're paying on our debt is double what it is now. so on a yearly measure. >> right. >> so trillions more in our debt. >> right here's whatty -- i took away from this, stockman dungts think we're going to raise rates. that's a big question for investors out there because it's only 25 basis points they're going to make a move. >> not nearly enough to him. but market it is beginning to have some reaction in the market i think. he's sayinged fed is worried

about blowing up the stock market. >> enter a -- not critical about doing the market that -- what i would say is biggest economic achievement of the obama administration has been the stock market going from 6 or the dow going from 6 to 38. >> that has been federal reserve. >> i don't think this fed wants to mess with that. i think raising rates on tuesday if or on thursday when they meet again when they decide you know, this time anyway -- >> do you think it is this time guying? no. david was saying that and you saw him go nuts. missing an opportunity. way behind it. >> here's the thing that if they don't raise rates you have the to look forward looking a little bit. what does that say? that says that federal reserve is worried ab recession 2016 that's a xreaz ride. so at some point it is crazy for stock, negative for the economy. negative for savers who want to save money for social security. >> that's the story for so many years but intended to be.

bern bernanke wanted to take a risk. >> focus on these guys that's the whole thing. quickly guys fed doesn't hike by the end of the year then what? >> they will by the end of the year. i don't think they'll do it thursday. >> put a selloff. >> because they put it out there. i don't know. i mean, i'm the worst at predicting when stock market will crash. and i don't to be on the -- >> no answer for me. >> no, not on that. >> i think that they're in a box they have to do it at a some point. they don't want to do it now they should have done it a year ago. but think of it this way they're going raise rates as economy slows that's what's happening here. >> how does it work? >> for the countries that tried the same thing we shall see. thunk very, very much. chris christie now is jumping ugly on some republicans. remember when he rallied against speaker boehner at the time of sandy and slow aid? he doubled down on fellow

republicans. how do you think that's going down?

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neil: all right. well, new jersey governor chris christy is at it again. this time blasting the republican establishment, particularly the leadership and about the house and the senate not having the guts, and letting republicans down and not using and leveraging their majority in the house and the senate. obviously that is not going down well with all the rank, particularly those who oversee the rank and file. we've got republican strategist ron christy, no relation, by the way, on what he makes of this and how it's resonating right now. what do you think? >> i was born in new jersey, though, so there you go. >> there you go. >> i think it's the same for the governor. what we've learned from hillary clinton's e-mails, because benghazi was investigating and now we've learned more of what she was doing. if you look at the house, the

lawsuit with obamacare subsidies. so if you say that republicans aren't doing anything in congress, i think the governor needs to take a look and. neil: by the way, they've gotten stuff done on trade. and i can say john boehner, i still don't know how they agreed to this wacky way they were going to handle the iran thing. be that as it may, i know i'm going to sound like the pope here, but who is chris christy to judge. >> exactly. governor where the taxes gone up in a state where you're losing a lot of people in the state it's too expensive to live here. but i will say this. if you look at what the house of representatives is going to do this week, they're going to have a vote on the president's iran deal, something we didn't see take place in the senate. neil: they want to hold those democrats who were for this on the record. here's what you voted, something that won't happen in the senate. so i don't know how that will go. but is it your sense that christy, who is not an idiot, tapped into something?

people are upset with the leadership? we saw this last week with the protesters not only about planned parenthood and how they were handling that and obviously about iran. and if it were for donald trump, somebody like christy would be the beneficiary. >> i travel a lot and people are saying washington's broken, politics don't deliver. and that's when us ben carson surging. neil: how long do you see the carson thing happening? >> i think once we get into iowa and new hampshire of next year, his bubble is going to burst or he's going to catch fire and i don't think he's going to be much longer after that. these antiestablishment candidates, people are going to say we want leadership, we want experience. neil: i don't know about donald trump in that regard, though. 70 plus days he's been staying on top of the polls and building his lead even more. >> he knows how to manipulate the media and talk to people. i think his popular brand of we're not going to take it anymore, we need to have accountability in washington,

i think that resonates. neil: which is fueling my argument, i think he's here to stay. i don't think he's the michelle bachman type, he's already proven he's not. >> i think you're right. at the end,. neil: who does he hurt the most right now? >> the jeb bushes of the world, all the organization, he's suddenly over run with the trump phenomenon and a lot of people saying how do we break through? . neil: the money donors are telling me they don't know how this is going to work out, is that true. >> i think it's. certainly a lot of people in washington are looking to see how it's going to shake out. they don't want to maximum out the 2700 they can give for a primary right now. they're going to wait and see before they start opening their checkbook. neil: thank you very, very much. let's take a look at the dow right now. down about 80 points here. there are a variety of reasons where they said a snapshot is

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neil: all right. this sounds strange. you might not believe this.

part of the reason the dow is a little bit off is that apple new iphone sales, the preorders for this 6s. off the charts. now, that's great for apple, good for those looking for this device, but the perception is that consumers railroad still inclined to spend so man oh man is the fed green lighted. we've got jo ling kent here. >> yeah. we talked to apple this morning and they is it was extremely strong, positive so far and they're expecting to meet if not exceed the iphone 6 sales that we saw. neil: exceed the iphone 6, which were already record breakers. >> exactly. 10million last september in the first go. actually bumped up apple revenue by more than 30%, talking to dan over at fbr capital research and he says we are off to a white hot

start for it. neil: what did it? you were the first to see on this idea that you didn't need long-term contracts with these carriers, that helps; right? >> it does because with the $32 a month or more, you can start converting your phone faster. neil: but you have to turn your old one in. >> that's true. neil: a little coaster if you can't. >> the only people -- sorry. iphone 6, not 6s yet. i think this is actually going to be a big deal for apple. but what they didn't mention, if you remember tim cook get on stage and say this is how amazing we are. we've got no update on the apple watch. no numbers out, no sales figures. neil: but they did say 97% satisfaction. >> what does that really mean? . neil: it means i don't think it's true. >> yeah. it seems you talk about the satisfaction rate and not even give a ballpark figure. neil: exactly.

>> so we're waiting on that. neil: yeah. >> and meanwhile use my apple pencil to take notes. neil: i understand you got married. >> i did get married. neil: how is that working out? >> it's awesome. i recommend it. neil: excellent. on top of all the breaking news, if you need to know, she's married. >> thank you. neil: and if you need to know, larry says this is the kind of stuff that's worrying, people leasing phones and it's one thing to lease cars and all of that, but it confirms the trend where we'll stem like crazy and now the president is pushing parents to take out loans on their kid's brav, add it all up and we've got problems. why are you wary, larry? >> well, listen, more access to government money is not the solution here. and student loans, they're already the second highest household debt right now we have in society right behind mortgage debt. so we're going to have to do something to reign that in and

making it easier for people to get student loans certainly is not the solution. i'd rather see us do just the opposite. i'd rather see it be easier to get jobs, earn more money, teach people financial literacy and not that i want the government teaching people how to handle their money because they certainly don't know how to do it. so they can pay their own way for money that you've earned. you know the stuff is not as appreciated as stuff that you've earned. so we need tore create a different environment, neil. neil: larry, what happened to you? when you were a kid, did someone deny you something and you've never gotten over it? what happened. >> no. i just worked my own way for all of this stuff and paid for my own college, and i really appreciate it. the other thing, neil, i would like us to redefine success when it comes to college education. neil: absolutely. >> we have redefined success in terms of home ownership. you know, we have fewer people buying their homes right now

because that's not important to them. so why do we have to insist that our kids get a college degree in something that does not prepare them for the marketplace? that's the problem. in the past we have studies that says that people who have a college degree earn more money over their lifetime than people who do not. i think that's going to shift based on the fact we're not preparing kids how to earn money in the marketplace. i can get a french major a lot easier much than i can get a plumber. so we need more highly skilled blue color workers in america . neil: wasn't it cool if it was a french plumber that came to your house? that will be $500. all right, larry, thank you very, very much. my friend larry. gerri willis says there's a problem to this and this idea of a college scorecard. but this -- you know, subscribings me as something that -- i kind of like. explain how it works. >> okay. college scorecard put out by the government

saying, hey, i want a lot of information out into the marketplace so people can understand how much debt you're taking on and what you're likely to earn once you get that degree. all of that sounds great. neil: right? >> even promised, neil, he even promised that he would out the schools that were doing a bad job; right? so if you were settling students with a lot of debt with if you were giving the them big bills and these kids could not find jobs, he was going to penalize the colleges and hold back student aid. that didn't happen. neil: so the list is out today or whatever's out today this database is -- the bang for the buck you get, certain age is certain schools. does anyone come outlooking really nice in this? >> well, let's be clear here okay? there are a lot of private institutions that put together this exact same information with the exception of earnings; right? because the president has access to irs. neil: but u.s. news does this. >> the prinston review, they all do this. this information has been in the marketplace, i don't know why we're paying twice for this if at the end of the day

we're got an hold the college's feet to the fire of what they're spending. but i'll give you points of what you can find here. for example, if you want to look at the ivy. how much harvard, stanford, and prinston have earned. really low if you look at the state schools, these kids graduate with a lot more debt and then of course we had to look at such a big school with such a very large following. neil: how did theology majors do? well? not well? the bang for the buck there was what? >> so they earned $45,200 on average and $22,000 on average in debt, which is about what you see a lot of state schools. $45,000? is that right? gerri thank you very much. >> pleasure. can i just say one more thing, though? .

neil: please. >> i think that these students need to take it on themselves what they can afford and how much they should pay for an education and how much it's worth it. you can't rely on the government to tell you that? you can't rely on a college aid officer tore tell you that? they're not going to tell you that. they're going to keep you in school as long as possible and pay you as much as you can. it's on you. neil: and you kids don't drink in college. [laughter] i don't know what that possibly is going to mean fumble me recommending that. we'll have more after this

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. neil: donald who? we are just learning that arnold schwarzenegger has been named the new celebrity apprentice host. can you imagine that? you're fired. [laughter] perfect choice. that's a brilliant choice. arnold schwarzenegger getting a little bit nervous, donald trump? in case this presidential run falls apart?

good to know that. all right. also good to know right now that the outsiders are still very much the insiders when it comes to the latest polls. here's how confident bernie sanders is with these leads he's building not only in iowa but new hampshire. he's in virginia today. he's speaking at liberty university earlier today, reaching out. so he doesn't have to be in the confines of these crucial early election states to resonate and register. it was received very warmly at liberator. we've got with us right now where all the outsiders are surging not only in the democratic party but certainly as we in-in-out republican party. you know, every time you talk about this, the idea, well, this is going to be a short love affair. eventually people will get over that, always go back to mainstream guys. what do you think of that? >> well, you know, we've seen donald trump saying, hey, folks, i'm not going anywhere.

i think bernie may be holding a similar press conference very soon opinion this is interesting. not only in virginia as you pointed out liberty university where i think last time 90% voted voted for romney and he's saying, look, i'm doing quite a while well in iowa and new hampshire and it's time start spreading out. and he is. he's over 50% now in new hampshire. but over 50 is a magic number and up by at least 10 points over hillary in iowa. so the other side of this, neil, i think, you know, for her campaign, which i know has tons of money and they're having to spend more of it on advertising, they're probably originally planned to in places like iowa, also a distraction for her staff and campaign managers that they've got to start looking elsewher. neil: you know, i'm wondering with the donors and i don't know them nearly as well as you do. but they're keeping their prouder dry because of the bernie sanders and the

possibility of joe biden entering that race and with all eyes on donald trump. so whatever money some of the substantial candidates had, they still have, i mean they might be putting it away right now but they're not getting a lot of new money. >> yeah. neil: and somebody like rick perry found out the hard way; is that right. >> no. i think you are onto something there. i think a lot of folks are waiting to see what happened and many of them at the end of the day don't necessarily think donald trump is going to end up on top. they aren't sure who's going to come in number two and number three and, you know, there's a lot of good candidates. that's the truth. it's not like there's just one person to put and up challenge him. that's part of the problem. there's so many that it's hard for all of them to pull together and become this one force against him. and i think you're right. i think rick perry found out the hard way that you don't have the money, you can't pay the staff, it's harder to stay in something like this. neil: yeah, it is. thank you very, very much. >> thank you. neil: for those of you familiar with china, the markets and a lot of people saying, you know, they're not all what they've said.

so why are a lot of u.s. companies and big ceos still sucking up to china? well, because they need the market. and they need china. and they need very much the cash that comes with being a capital powerhouse, even if it's not the powerhouse it was. a definition phony. after this

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neil: all right. we told you arnold schwarzenegger has been chosen to be the new celebrity apprentice and donald trump tweeting out congrats to my friend who is doing next season's celebrity apprentice. he will be great and raise lots of money to charity and arnold schwarzenegger said, yeah, yeah, yeah, whatever. you know, our cameraman does

it much better. can you do it really quick? just yell it out? >> you're fired. neil: you're fired. all right. very, very good. scary. i generally don't like people out doing me on the show, so he will be our former camera operator pretty soon, but life goes, and you would think life goes on for china too and we don't have to cast out of these guys because it's been proven; right? so why are we sucking up to them all these years? and still seeing a lot of tech companies closing sucking up to china. jim, that's weird. why is that the case? >> yeah. there's a lot going on in china. the economy seems to be ricocheting all over the place, mostly lower and while the government is trying to exert more and more control they'll that they're losing control. so for businesses what they're seeing is fears of the chinese government and labor costs in china that are going way up.

now, in a way that's the way it should be when you globalize the economy those being dragged up to the other levels. but for u.s. businesses, it's met, well, let's move our businesses back to the u.s. because it's not as cheap to do business over there as it used to be. but they still want to do business, neil, and the reason is consumers over there are spending money. if you look at what they're doing with apple phones and you look at the consumer metrics, you're up about 10%. so while their industrial production economy is not doing sole, the consumers are doing a little better and that's why we're seeing businesses still want to be there. neil: you know, but you follow these numbers closely, and i've always questioned those numbers period out of china. i think they make a lot of them up. obviously, you know, a stronger economy is a stronger economy and i don't dismiss that. but i wonder if a lot of these companies want to do business there, operations there, cheaper labor there. whether they over do it. why not india? why not these alternatives

that have held up comparatively well, at least compared to china? >> well, i think they are. if you look at vietnam and some of these sister countries around there, they're starting to get more and more spill over business from china. and china used to be a really easy place to do business and now with wages going up a little bit and government inverting more control, it's less easy than it used to be. now, i know a lot of people may be looking at this show disneyland saying, well, what about the u.s.? it's not so easy to do business over here and the latest poll shows that we're number 15 on economic freedom. societies not that easy to do business here either and we should make it easier to do business here. but i do agree with your point, and i think we are seeing businesses move to mexico, to vietnam, to india from china because of the uncertainty and they've sure built that country on a lot of debt. so there's going to more uncertainty going forward. neil: who are we to judge in

that regard? always good to see you, jim, thank you very, very much. do you remember last week when germany said we're going to take in a lot of the syrian refugees? and then over the weekend they had to deal with a surge at the austrian border, the likes of which they've never seen in europe. anything like that. so germany's cracking down. do you ever get the whole world is cracking up? what to do with millions flooding european shores after this

neil: all right. put this under the category of no good deed goes unpunished. in germany there was an effort to take care of these millions of syrian refugees that are flooding europe right now over the mediterranean, and germany said, look, we have to do something for these people, and we, germany, will. we're take in upwards of 800,000 to a million of them. one country, like denmark, said, no, we won't. and france is dragging their feet.

something happened over the weekend, the border with austria, it was flooded. i mean, like our border with mexico on steroids flooded. and now they're cracking down. and for the first time this open sort of border policy in europe is being clamped down on, and that's because of these photographs. charles payne, hate to say i told you so, but, well, he told you so. this is what happens if you don't think through these otherwise very compassionate initiatives. they're out of control, right? >> they're out of control. and it's going to be out of control for a long time in part because of what you said. listen, in these other countries, slovakia saying we'll take them if they're christians. neil: by the way, hungary is building a fence. we're going to continue looking at these. this is happening all through europe. >> all through europe, and you've got this sort of march straight from out of syria to turkey, straight towards germany and the countries in between, obviously, straining like, you know, hungary. they want to build a big fence.

but this is a serious moment for angela merkel and the e.u., because the e.u. is mandating to a lot of these thens, you've got to take them in, and they're like, hell, no. neil: germans are opposed to it 5-1. >> it's a big challenge for angela merkel. we talked about greece perhaps being the thing, the sort of wedge that cracks apart that e.u. experiment, it could be this. this is not only economic, it's social. we're talking about redefining these countries. if you look at what the e.u. asks a country to accept when they become a country, they say, listen, this is our charter. when you join up, you accept this, and a lot of it is no xenophobia, open arms to immigrants, and i guess on paper it looks pretty good, you know? when you have to do it, changing the face of your nation, changing who you are as a nation, germany's a long way from having to do that, but we've -- neil: we should point out when they started this big old euro club, the first thing that went were the walls. >> right. neil: any gates or anything that

divided a country so that the european union would be just that, separate countries -- >> right. neil: -- but you could travel freely between and across all of them. and now germany putting up fences, you know? you're seeing hungary putting up fences, you're seeing the french say we have enough of a muslim problem, and then you have these millions of refugees, and that's one country. we could see much more of that. >> libya, somalia, eritrea -- neil: they don't have a plan. >> there is no plan. the plan was always that we could absorb them, we should absorb them, human rights, human dignity, all that kind of stuff that sounds great and maybe even nice on paper. even in america we're probably going to have to grapple with this because president obama said 10,000. but you have to, you know, one congressman, a democratic congressman on the senate foreign relations committee saying why not 50,000? and we're already dealing with our own immigration problem. i just find it absolutely fascinating. again, these nations are going

to have to ask themselves at one point when do we accept so many different people that aren't willing to assimilate? it's one thing, you know, to say we're going to help, but another when people come there and just because you have a generous welfare program and don't assimilate into your culture -- neil: we don't know the extent of what the syrian refugees would do, but it was a very general is rouse offer on the germans -- generous offer by the germans, and they took advantage of it. >> angela merkel should have known that was going to happen. neil: that's what shocks me, charles, she did not. >> look at sanctuary cities. these people are dying. there was one boatload of people where 30 people drowned over the weekend i think heading toward greece. it's absolutely amazing. it's a free-for-all -- neil: and everyone's turning them away. >> except germany. and now germany has to control or try to control, at least have some sort of control over their own border which is something every country should have. neil: yeah. and they've got those open

borders that might not stay open too much longer. you're right, it's putting this other issue in the backseat here. all right, charles, thank you very much. >> thanks, neil. neil: we're also getting some news on iran thousand. i don't know if you've been following this soap opera, but they've discovered higher uranium supplies in the country, much higher than earlier thought. and where there's uranium, there's this fear that there's a lot of other bad stuff for which that uranium might be intended. to lieutenant general thomas mcinerney on what he makes of that, because that would seem to be in violation of the no -- known numbers already released, general. what's going on? >> first of all, neil, it wasn't released by our government, it was released by the iranian news agency and, fortunately, reuters picked it up and relayed the information out to the west. this is just another reason why this iranian nuclear agreement is a disaster. they now have an opportunity with their own uranium reserves

that they can enrich and we'll not be able to detect it. and previously when they would import uranium, then we could see what their patterns were, their patterns of behavior were. now that's not going to be available to us. so it is very worrisome. it is a disastrous for not only the united states' national security, but for all of the west. because fundamentally, we are arming iran with nuclear weapons in ten years from now. neil: all right. the reaction you get from some of those iranians is that this is nothing out of the usual, this is peacekeeping purposes type uranium, it has nothing to do with this particular deal. so everyone calm down. what do you say? >> well, i say if that were true, then why do we have an inof -- increase of irgc people in both iraq and in syria?

why are they increasing their terrorism throughout the world, south america, elsewhere, venezuela particularly -- neil: i hear you. but they say this has nothing to do with that. you say what? >> well, i say in the has a lot to do with that -- this has a lot to do with that. if your ideology is global expansion of radical islam, then anything you do to aid and abet them is harmful to our national security. we are going to give them over a ten-year period, neil, almost a trillion dollars if you look the $150 billion in embargo funds plus $75 billion per year in oil exports, that's almost a trillion dollars that is going to arm radical islam and the shia yes, sir -- yes, sir sents -- crescents springing across the arabian peninsula.

this is a disaster. neil: all right, general, scary stuff and stuff we didn't count on. something that sort of accidentally came out. thank you very, very much. >> thank you, neil. neil: all right. you know, we are looking at the mother of all crowds in the northeast region and traffic additions in the northeast region not only directly to the new york metropolitan area for the annual u.n. general assembly, but the pope is coming. new jersey transit saying it's providing more trains. don't even think of driving. in fact, don't even think of working. it's going to be just a mess. but the question is does it also invite threats? we are told by the house homeland security chairman michael mccaul over the weekend that there was one credible threat that was stopped against pope francis when he's here, and it was completely disrupted. we don't know the details of that, but we know enough when a pope comes to town -- and

they're looking at millions who want to get a chance to see him, hear him or both -- former secret service agent dan bonn gee know says everyone's got to be on high alert. this one was stopped, dan, but i'm sure this is routine for you and your old colleagues. what do they do? how do they monitor what's real versus what's not? >> well, the secret service has a very thorough vetting process for threats. it's a questioning process. and, neil, it follows everything from travel history, in other words, if we're interviewing someone who makes a viable threat to the pope, have they traveled? have they traveled to the locations? have they followed him? to weapons ownership in the past to potential psychological disorders. the secret service is so thorough that these cases from start to finish can take up to a year to finally close out, these threat cases. neil: you've reminded me in the past that there are a lot of political candidates who love to be with the people, out with the people. this pope is very much that way. he likes to be out with the

crowds. he generally leaves the pope mobile when he can to be out in vatican square doing just that. do you worry that that type of kind of demeanor makes the job even tougher? >> yeah, yeah. i just wrote a lengthy piece on this. you know, neil, there's no easy way to say this, it's going to be a security disaster for the secret service, and i'll tell you why. they don't have an operational plan for a person of that kind of threat footprint. i would gauge the pope's threat level as critical, to do it in a way that's not overt. what i mean by that, neil, is there's no way to hide thousands of secret service agents and police officers with earpieces, suits and police unitomorrows, special weapons -- uniforms, special weapons teams, countersnipers. there's no way to do that. there is a way to do that for lower profile protectees. for the pope there's simply no way to do it in what the public

would call an undercover mode. it's not possible. and the pope's people need to understand that or there's going to be a serious security crisis here. neil: the chairman of the homeland committee is not clarifying what this particular threat was, but that it was dislodged, and it was stopped. you don't have to give away the secret ands of your trade -- secrets of your trade, but obviously they listen for chatter, follow suspicious individuals. what else? >> my guess here, and i'm speculating as you are because i don't have the details either, but this was probably a lone wolf style attack. my guess is if it was a cell, there would be a number of bread crumbs left for journalists to pick up on, and we would have heard more. this was likely a lone wolf, likely someone with a psychological disorder who may have opened his mouth in a bar or tweeted something on social media, whatever it may be. that doesn't make it any less credible than an organized cell. a round from a .38 or an ak-47 does the same amount of damage. it doesn't make a difference.

that's my guess, it was a lone wolf style attack that was probably very credible. neil: we don't know, but, dan, thank you very much. i want to switch gears a little bit before we go out. that kentucky clerk, kim davis, is still refusing to issue marriage licenses in kentucky. i believe this is her lawyer speaking. she had said and had agreed, we're told, that she would not interfere with her deputy clerks if they wanted to issue marriage licenses to gays but that she wouldn't write off on them as their superior which would negate that whole thing. this seems to be in violation of a judge's agreement we were told was in place that got her out of jail. but she is saying now nothing changes, and she will continue to protest these marriage licenses. thatthat isn't new. but if she is not writing off on what her deputies do, that is.

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neil: all right. so rick perry is out of the race. there was a guy who presumably had a lot of oil money going his way for the presidential race, but chris bedford's been looking at this, says it might be the first of others dropping out. that wouldn't surprise me, chris, in a bit because i knew there were rumors back and forth that he was sort of running on fumes here, but he did have a little bit more money than you would normally think of the sort of second tier candidate would have. so that gets me thinking about some of these other candidates. what do you think? >> well, i think that there's a lot of candidates, and all of them are going to be looking at 2012 when to everyone's disbelief you saw an unelected senator win states, a disgraced speaker of the house win states.

to see who's going to drop out next i think not only look at the money, but look at the reasons they're running. if anyone can tell me why governor jim gilmore or governor pataki, why they're running for president, i'll buy them a beer. no one can understand that. neil: there's always the cynical view, it helps with speeches, maybe future contributor agreements at news networks, that's a bit cynical, but is the other issue they really think they have a shot, and in a crowded field it's all equal value, right? besides donald trump right now, maybe carson, they're all separated by a percent or two. so there is a logic to it. but how do you see this crystallizing, and who are the money guys going to right now as this dust settles? clearly, not to rick perry, so who? >> money guys are going to ted cruz, a lot of them -- neil: is that right? >> -- to jeb. yeah, ted's been taking in a lot more money than expected. jeb bush, of course, has the biggest war chest of everyone,

but folks are starting to get a little nervous. the wall street guys were eyeing chris christie, but he's got the bridgegate scandal going on. i think the next candidate you might see start to falter is going to be bobby jindal who's really trying to define himself as i'm going to be the anti-trump candidate, i'm going to be the american assimilation candidate, and if he can do that and get that to be his message, people say i know why you're running for president. but if you can't differentiate yourself in such a large and talented pack, the money's going to disappear, and the donors are going to go away, and the voters are going to get bored. neil: the money guys have sort of frozen a little bit, and they seem to be waiting this out. if you're a candidate like a bush or a walker who already got a lot of money, you're not getting a lot more hundred. why is that? are they worried or just hedging their bets? what? >> i think they're hedging their bets because they're -- they're hedging their bets because they're worried. the original strategy of bush, he got mitt romney to drop out

just a couple weeks after meeting with his fundraisers because he said i don't want to go up against $100 million battle chest that jeb's going to raise. now that that hasn't worked, he's still getting attacked, he's not even leading in the polls, the money guys are saying, all right, we've got a lot of candidates, i'm going to sit it out and see who can actually win this. i mean, the guys -- scott walker, for example. he was a fantastic candidate, and people expected him to be way out ahead, and he's not. he's faltering now. so you're going to feel like you've got egg on your face if you dropped a million dollars on him. neil: yeah, makes good sense. chris, thanks very much. let's take a peek at wall street, the dow down close to 90 points, the fear that the economy is picking up and news that apple iphone sales over the weekend at least in preorder were very strong. so if the consumer is reluctant or nervous or holding back, she and she had a funny way of showing it -- he and she had a funny way of showing it. david stockman earlier in the

show saying the fed is way behind the curve and that maybe that's because the fed doesn't have a clue. our david asman on whether stockman is right, after this. awe believe active management can protect capital long term. active management can tap global insights. active management can take calculated risks. active management can seek to outperform. because active investment management isn't reactive. it's active. that's the power of active management.

>> the whole idea of zero interest rates is to get, you know, consumers and households all jiggy and get them borrowing and spending, but that doesn't work anymore because we're at peak debt. households have $13 trillion of debt. 90% of households are tapped out. they can't borrow regardless of the interest rate. neil: did david stockman really say "get jiggy"? [laughter] >> that's the only thing i noticed. neil: i admire that. what do you think he's saying, david, about, hey, look, the fed is just behind period? >> i think he's right. they are behind. the point, though, is david stockman has never been a big fan of tax cuts. he's more worried about debt than he is about anything else --

neil: and that goes back to his days with reagan. >> and, remember, ronald reagan took him to the wood shed because he said publicly we couldn't have tax cuts unless we cut first. we've got to get this economy moving again and, you know, what's to expect those guys inside the beltway to start cutting expenses in a very serious way? we've heard them talk about it for decades, they've never done it. one thing they can do, a realistic expectation, is to get them to cut taxes. that starts first. we've got to get the economy moving first before we start worry about -- neil: he says the debt is of such a size that you have to do everything. i always think they're counterproductive. you're cutting spending at the same time, you're at cross-purposes. >> you are. one of the things that would happen, though, if we got janet yellen and the rest of the fed -- neil: raising taxes. >> raising taxes. but getting back to the rate issue, if the rates went up on interest, if interest rates increase, that would mean the expenses to the government would

be so large, the monthly interest rate payment on our debt would be so huge they'd have to do something about it. so in that sense, i'm with david stockman. we need to raise rates if for nothing else to allow those folks inside the beltway to realize what they're doing in their spending is ridiculous, and it's very irresponsible, and it's hurting the country, it's hurting our economy. they don't have to worry about it now because they're paying such low interest rates that they could keep borrowing forever. neil: that might end very soon. >> oh, yeah. neil: donald trump was frank on almost every issue except this one. he hasn't talked much about the debt. >> it's a difficult issue to talk about. trump only talks about simple issues, you know? these guys, these idiots inside the beltway are spending too much money. absolutely true. taxes are too high, they should be cut. absolutely true. hedge fund guys don't pay enough in taxes. okay. this is a difficult subject. that's why a smart guy like david stockman can talk about it, should talk about it.

i'm sho glad you gave him -- so glad you gave him 15 minutes at the beginning of the show. neil: he had kind of nice words for chris christie, kind of nice words for rand paul for seeing the longer term dangers of the fed, but outside of that not a fan of -- >> well, let's face it, david stockman is a bit extreme in some areas. i think he would like to -- neil: do you think he's gotten more extreme with the beard? >> i think the beard has something to do with it. first of all, all guys with beards look alike. neil: right. >> that's always disturbed me. secondly, i think it does change your attitude. neil: yeah. >> and i think i could get jiggy with that. neil: what i worry about, though, with this guy, and i will give hem this there -- him this too, he said if reagan were to come back, he would be too. >> remember, reagan took him to the wood shed, so i'm not sure he's the best person to speak on reagan's a behalf, because he didn't on taxes. you know, reagan we forget was a great compromiser. a lot of conservatives were

upset when he was in power saying he's too liberal, he's compromising with the liberal democrats like tip to kneel. i used to work for the editorial page in the journal, we wrote some of those. so we forget that. mind sight is 20/20. i'm not sure what reagan would do now, but one thing i am sure about is he would cut tax rates across the board, cut regulations, cut the cost of doing business and, more important, of starting business. there's so few entrepreneurs that want to start a business in an environment that's as anti-business as this one. reagan would turn that around, no doubt. neil: david, thank you very, very much. >> you're welcome. neil: you're always so up. >> i believe in the country. i believe in the economy. i believe in you. neil: even on rainy days -- >> it's a beautiful day outside. neil: he's always upbeat, which i generally find annoying. [laughter] all right. david and i were talking during the break about some of the candidates trying to one-up each other and some of the extreme talk. scott walker today, at least, might have taken the cake on this union thing. i'll explain, and you decide whether you think it's too much.

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can a business have a spirit? can a business have a soul? can a business be...alive? >> all right my buddy phil flynn said this would happen. he didn't hold out this in the case, but gas prices would eventually follow what is going to happen with oil o prices, look at that $2.33 a gallon, and moving down fast. ping 20 states or close to 20 states have gas on that and you

know, prompting all of this -- how long does this last, and where do you see this going? >> you know, say free fall in the price of gasoline. prices have fallen 28 days in a row. unbelievable. where we're seeing the biggest drop believe it or not is indiana, missouri, and if you remember neil that's where we saw that big price spike a few months ago because that winery refinery. that spught down pressure on prices when demand is normally slow so a perfect recipe for lower prices. there's three states right now in the country where their national average today is below $2 a gallon. we haven't seen that since last february. so that's going to be a siphon good things to come and many other states. ting they're going to join them with gnarl average below $2 a gallon. but i don't know if the whole nation will get there quite yet. >> there's back and a forth

whether that increase spending power you get from lower gas prices -- you know, helps the economy, and it canoff set the damage that it does with all aft layoffs -- you referred to over the summer. in the oil and oil services industry about 60,000. and it is a disproportionate influence on our markets because, obviously, oil plays very big part. which wins out? >> ping over the long run low prices are good for the consumer. assuming that they're falling for the right reason. you know, but let's face it part of the reason why these prices have fallen is because the global economy is shaking. you know, and a that's why i think consumers are hanging on to their wallets they're not believing in all of this good news in the economy and not seeing rebound in spending just yet. >> thank you my friend good seeing you. all right, wonder if any of is this is a slowdown factor out of autoworker strike talk on potential union autoworkers now ready. but targeting off chrysler making that the central case to

represent their bigger potential negotiation issues with all a of the big trade. big floor it is for today. jeff flock on that. how do these stocks look? >> cially usually they target to get the best contract there to have a pattern for everybody else. but this year they're targeting the weakest automaker fiat chrysler they should be able to figure this out but both sides preparing for it not to work out. over my shoulder you've seen what ford has done. they have stockpiled ford explorers incase there's a strike, they are -- they're ready for it. on the other hand, the union has stock piloted about 600 million in a strike fund to last at least a month and maybe more. here's the issues two tier wave system after the bankruptcies lower price to entry level workers not equal pay for equal work that's what they would like to get rid of it. reduce health care costs by

maybe pooling everything. the union want mrs. jobs and more product to be made in the u.s., and last but least they want a pay raise listen to jimmy settles vp for ford in the uawvp in the ford negotiation. we haven't had a raise in ten years i don't think many in america can say they have not gotten a raise in ten years. >> it is -- it is true neil, some of the legacy workers have not gotten a raise in a decade, you know, you look at the profits when you put numbers up there, they are pretty impressive ford and gm both making over 3 million last year. fiat chrysler about half a dollars so hard to say they don't have money for a raise and wage increase but we'll see how it goes. midnight tonight is decline. but ford says they'll keep working past the deadline. others will as well. >> flock thank you we have what

unions can and cannot for. david scott walker want toes get rid of the national labor board itself and other goodies. celebrating their 6th an anniversary here on fox. doubling down on the antiunion policies. but what do you think of this? >> i think it is good politics and policy for the country, neil. scott walker took on the unions in the state of wisconsin that he was able to implement the right to work law but good politically because he's number 7 now in the polls. clearly -- >> during that recall, i remember one of the thing he told me is neil i'm not antiunion. union guys have deemed antes union. how does he answer that? >> listen, he's to say i'm for jobs, and i'm for a growing

economy that's what he should say, and he took on the yoinls in the state of wisconsin able to get the right to work law passed at wisconsin with one of 24 states. national labor -- nlbr. they're harmful when it comes to jobs and competition. >> he's said in the fast to leave that alone so couldn't reread desperation in this. in the polls. >> he needs to separate himself from other candidates. i think it is good policy for our country we're talking about jobs, and we're talking about growing the economy. what does this board want? jobs to go overseas to china? we want competition here in america. this should be free market. there's nothing free market. >> you want to union you don't want a union. unions answer this an say this is good for these guys to say but the nonunion members would benefit from the yon contracts we agreed to.

that's not fair. >> it's about competition people should not be forced to have to pay these or forced to join the union unless they want to. should be about choice. thank you very, very much. selloff continues in the face of what seems to be growing fear as a i say fear federal reserve will hike interest rates. they have a big meeting this week, and growing consensus is might not happen this week but it's going to happen. would that be so damaging and only a quarterly point. winners and lose terse in the event, that has finally for the first time in nearly a decade pulls the trigger.

>> it is fox business brief time i'm connell back with you on "cavuto: coast to coast" apple is in the news again sales of the new iphone now to beat the 10 million units sales they launch during the first weekend of sales last year and did not disclose specific number of preorders received now jo ling kent reporting on this earlier in the show with apple spokesperson telling her we're on pace to beat the first weekend record when the new iphone goes on sale on to say as many customers noticed, online demand for iphone 6s plus has been extensionally strong. exceeded our own forecast, with the preed or period. now these new iphones have better cameras. 3d touch people have been

talking about. responds differently depends how you touch the phone. stocks up one and a quarter percent. neil is back in just a moment. coast to coast.

>> all right. you know, every six weeks or so federal reserve needs upper market committee meets, interest vats, and for the better part of the eight years now, they really have not done anything. kept them right where they are had is about disaster that could

change at the week's meeting how about a quarter point. maybe this week unlikely but certainly by the end of the year we're told. then what? senior vice president, greg mcbride on winners and losers in this event, the immediate winners i guess greg qowb savers anybody with a cd or -- desperately want some interest income, right? savers i think it's a very measured it any improvement that you're going to see right off a the bat simply because a lot of financial institutions drag their feet and holds the line on what they're paying out. keys here is you have to shop around. that improvement is not automatically going to land in your lap but you have to seek out banks and credit unions that are paying higher returns, but if you do that, yes, you're the beneficiary of this. >> you said any future.

do you expect they're not necessarily one and done but more hiex coming that's generally the rule of thumb? >> yeah, but i don't think it is neglectionly going to be heels of the first so quite a period of time between first and seconds an beyond two rate hikes it is going to look a lot different than what we seen last time rates pup between 2004 and 2006 when like every meeting 17 meetings in a row fed raised it rates, we will not see this this time around. a more much gradual deliberate set. >> let's say they do it. and pull the trigger quarter points. who loses? from a borrowers cost go up you're technically on losing end of this. so anybody as far as consumers is concerned anybody with adjustable rate message with line and credit card debt, you need to pay attention. because that single quarter

point move is not going to have any impact on your howfltd household budget but cumulative effect over o the course of the next couple of years that's what you need to pay attention to. i like the first rate move neil like the first dusting of snow that you get in late fall, that's not what shuts down schools and ties up traffic. but what it does signify is, you know, changing of the seasons i think that's the main takeaway at this juncture. >> other change of the season or o hiked rates six or even countries, banks that have done so almost toe a country had to reverse it because they did it at the wrong time, measure, sent the wrong signal about our federal reserve if it were to make a mover. >> simply because fed has to restock cupboard so they have something to serve up to xentd the economy rules over. right now with fed funds near zero they have nothing and back to qe if the fed ever needed to stimulate the economy.

so you know, all of the more reason why they need to get a few rate hikes under their belt if they possibly can just so they have something in reserve the next time the economy is close. >> greg mcbride thank you very much, i appreciate it. all right, well this would be akin i think to my -- offering you dietary advice. donald trump ripping as a disgrace. we connect, our panel derives. (vo) me? i don't just wait for a moment.

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>> i'm really rich. [laughter] by the way, i'm not even saying that in a -- that's the kind of mind set the kind of thinking you need for this country. [laughter]

>> all right they dismissed in the race for comments like that but guess who is still on top in the presidential race. mentioned donald trump, all right. so what is to say about this race right now and whether we are really registering with a guy with a rich guy who is now attacking rich guys. look at this. they put in their friends as a head of the company and they get whatever they want because friends love sitting on the board. so that's the system that we have, and it's a shame, and it's disgraceful, and sometimes the boards rule. but i would say it's probably less than 10%, and you see these guys breaking these enormous amounts of money a total and complete joke. >> so cool his lips didn't move once. amazing all that was -- audio interview. liz mcdonnell charlie gasparino, >> you're a joke. >> you're a joke. >> here we go impressions it is not working. supposed to be trurp?

>> i don't know who it is. you're a joke. >> arnold schwarzenegger is the new select apprentice host. smg really? >> i'm not going to watch it. >> you're watching it all right. you know who he was talking about in those comments i think macy's which is great. that is the company that always -- >> i know. some of the ties after comments. >> and then dead meat. yeah, so macy's is horrible. prvelg how come we never heard this out of donald all of these years, political views three minutes ago liberal now conservative. and then for open boarders now getting rid of all of the mexicans why did we not hear from donald when he was hanging out, greenburg was his broker and paid enormous sums. known to pay to their ceo chairman more than anybody. the first firm that went out of business --

>> running for president not because he's running for president but all of a sudden figured out that ceo pays out of line -- popular pitch? >> it is an they get a lot of colden parachutes. by the way aren't children at a his own company am a i wrong? i thought they worked there. >> awe -- i don't know. >> nepotism? >> yeah. yeah, so here's the thing he has a text plan in two weeks going to sound grate to all sorts of people? yeah. going otohedge funds he's going to cut corporate taxes they bring the money back from offshore. >> thinking past the crowd tripping over themselves for the lowest exit not saying -- >> mcconnell point why going and siting macy's in particular? [inaudible] >> you look at how he develops economic -- policy and it's interesting to

show you what a fighter is. everybody who screws him over gets a tax increase or screws him over he talks about macy's -- ceo. the hedge fund manager -- kind of look this. >> yeah, yes, no -- >> no hedge fund managers all support jeb. guess what he admitted it. all a supporting jeb. i go just like this white house, just like any other politician he knows full well he wouldn't be the first politician to follow through on some campaign promise and can't get a pass congress. >> the guy leading this republican field is -- the difficult republican talking points of the past. >> yeah, it does surprise me actually. >> not me. >> explain why it does -- >> because i think the establishment of this party has let down a huge part of the party for long time that's the part of the party that is more working class. no -- not wall street. people who kind of opted out of

some was elections didn't and mitt romney didn't appeal in 2012,ing and these are folks who actually do care about border, the borders they care about immigration. they care about trade. they see that. >> they can latch on to those voters. like the reagan democrats, but one thing i will tell you karl will know that he can keep 30%. by basically appealing to those folks. will the rest of the republican party, the 70% be so turned off -- >> negatives so miep because those say -- >> they're not anti. >> within three or four points of hillary clinton. prchg amazing me because they say i would never vote for him but negatives move. she gives hall a good call. wiping e-mail server, private e-mail server. listen just a notion that she

had her own e-mail. all of her government business on a -- >> this thing. >> could get it. hand signals not like mr. miagi. just getting up -- but now the white house expects the president will raise support over cybersecurity when china's leader comes. what's going to come? >> what's going to come out of it? you can't do anything about it, really. they had the five guys out of the military indicted over there chinese military officials indicted nothing -- nothing can happen oif it. unless these guys come -- bumps stumbling down. china, russia, government itself doesn't do what they rely on outside, outside groups to do the work for them. ferlg this will be a talking point for donald because he's got three or four areas that he hits his core base on, china, and you know he's going to go after this. make a lot of hay out of this saying i would be better at

negotiating with chinese that's a better invitation. [inaudible] [laughter] >> trump has with james that old time. >> arnold schwarzenegger will be the new celebrity apprentice good choice? >> i'll watch one or twice. >> l brilliant choice. absolutely. reminds -- >> you're terminated. you're terminator you're terminated. >> the cop i remember never as good without ted. >> analogy. >> now i cann't see the apprentice wast donald. >> like "the view" now. like cavuto without cavuto. [laughter] >> that is not hiking rates by the end of the year when it is telegraphed it would. >> i told you i have no clue earlier in the show. >> i thought maybe you would

have done more studying but i guess not. >> market pops. >> i think it means that fed is worried about a recession in 2016. >> yeah, that's true. >> that's all of the time that we have with. >> i'm the terminator. [laughter] >> my god.

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neil: all right. you know we took in as of last month, through last month, 2.8 trillion bucks in taxes. got a few months to go. that works out to about $19,000 per person. that alone, remember we have a few months to go. we can't fund our government on just that money. apparently not. that is the kind of thing that scares david stockman because our debt is so out of control, he wants us to consider raising taxes, and cutting spending. you think that is the magic elixer? a lot have been emailing you don't think so. nevertheless he says, that is

part and parcel why we have these problems. we're taking in nearly 3 trillion to date. even ronald reagan's budget director is not enough. trish regan. that is our problem. its never ever enough. trish: no. you have politicians like bernie sanders and hillary clinton want to spend even more, neil cavuto. we're talking about it right now. the social it is beating the clintons. that is the headline after new series of polls show bernie sanders widening his lead in new hampshire and iowa against hillary clinton. welcome, everyone, to "the intelligence report." i'm trish regan. it is not just new hampshire and iowa she is struggling. if she manageses to eke out a victory against bernie sanders. guess what? new polls show the lead against republican frontrunner donald trump is declining. her lead is within the margin of error. what is taking joe biden so long to declare his candidacy?