see you next week. dvr, you don't want to miss any more of "making money." tom: tonight a diplomatic opening. russia decides not too retaliate -- not to retaliate after kicks out dozens of foreign spies. >> the russians have walked all over the obama administration for 8 years. i think it's intended to try to box the trump administration in. i think it will fail. tom: also a shock new report exposing the billions of dollars of cash and gold given to iran under obama's nuclear deal. we'll have the details.

chicago closing out its deadliest year in nearly two decades. i'm tom sullivan in for lou dobbs. president obama's sanctions against russia turning out to be all bark and no bite. just a day after mr. obama announced he was expelling 35 diplomats, vladimir putin said he's not going to retaliate. kevin corke is in honolulu with our report. >> reporter: it was a scene that unfolded from coast to coast. from washington to san francisco. three dozen russian operatives working to leave the united states ahead of a deadline imposed by president obama. >> it's all together 11 people, including three kids.

and they have to pack and leave within hours. reporter: even as the administration closed facilities. vladimir putin fired off his own when they go low we go high statement. he said even though we have the right to the retaliate. we won't resort to i shall spine kitchen diplomacy. we'll work to restore tour russian-u.s. relations based on the policies of the trump administration. the 13-page report describing tools used by the russians to quote compromise and exploit networks associated with the u.s. election. while the document provided little in the way of proof, it dade lay the grounds work for

mr. obama's response. critics worry the diplomatic fallout could have ramifications all over the world. >> this is what i would expect from a dictatorship that just became a democracy and can't make the democratic process work. >> it's clear it cannot be business as usual. this was a serious attack against our democratic system. they are trying to evaluate it to see what impact it will have on russia. we can do more. >> white house officials are warning against straying too far from convention. >> if the next administration wants to lift sanctions against senior russian intelligence units to keep them from

interfering with our elections, you can go ahead and do that, but i don't think it makes much sense. reporter: the p.r. battle continues internationally with vladimir putin playing the game very, very well. he said it's regrettable the obama administration would end in such a manner. nonetheless, he extended new year greeting to the obama and trump families. tom: donald trump responding to putin's decision not to retaliate against the u.s. the president-elect writing, great move on delay by vladimir putin. i always knew he was very smart. trump hitting the mainstream media tweeting russians are playing cnn and nbc news for such fools. funny to watch, they don't have a clue. fox news totally gets it. transition officials say donald trump and vladimir putin have no

plans to speak privately until the president-elect receives an intelligence briefing on' alleged russian interest force in the election. >> it's going to be up to him and he will sit down and talk to his leadership at the defense department and ste. and in the white house to make those decisions. we agree foreign governments shouldn't be hacking american institutions period. however, it would be nice if we could get to a place where the intelligence community in unison can tell us what it is that has been going upon. >> joining me is a former u.s. ambassador to the u.n. and american enterprise institute john bolton. mr. ambassador, you said we played a clip of you at the beginning of the hour saying

that this is an attempt to box in donald trump and you don't think it will work. why not? >> because essentially everything that obama has done so far is easily reversible. the real issue is what will be done with respect to the cyber attacks, the effort to meddle in the election. i think as reince priebus just said, you have to give the president-elect a chance to sit down and hear from the intelligence community. i'm sure he will want to wait until some of his advisors are in office and then he can make up his mind. there has been and lot of reporting. i talked to senators who have seen some of the evidence. they are pretty convinced by it. but the president-elect is even titled to form his own judgment. tom: the intelligence people always tell us it's not a perfect science, it's an art at the very least. but at the same time we have been told -- donald rumsfeld

told me they have been hack at way at us, sieb are warfare has been under way for years. >> absolutely. not just russians, china, korea, iran. the real question barack obama will have to answer for history is what took him so long. why kid it take 8 years of having china lift tens of millions of personnel records from the federal government and send them to beijing, what north korea did with sony pictures seemed comic given the target of the attack. what if they were doing the same thing to financial institutions in new york or agencies of the federal government, as we note russians have been doing for a long time. obama has not done what was necessary in the cyber world offensively and defensively. we don't have structures of die terrance. anybody who tries this kind of

thing would face extraordinarily terrible consequences. russia and others think they can get away with it, and sadly, they are right. why now? what's going on? none of us have ever seen president obama act like this ever. >> it's feckless and inadequate. my feeling is he's trying to box the trump administration in. the reason for that is, i suspect he intended to do a lot of of things in the transition period after the last election he was going to have to worry about before the inauguration of his successor. in the american campaign period you can't do a lot of things. our campaign period is almost a year long. he thought hillary clinton was going to win like everyone else for a long time. when hillary was sworn in she wouldn't reverse them, she would endorse them and gyond them.

but heould get a lot done in the last few months with zero political consequences for him and minimal political consequences for her. then she up and lost the election. now their plans have been rendered inoperable and he's desperate. >> this report coming out from the f.b.i. and homeland security that we heard from kevin corke about. he says it lacks specifics. is that because they don't have them or because they can't tell us? >> i think it's largely because they worry about making public information that would compromise sensitive sources and method. that's the intelligence community's typical response. but give where we are here, i think president trump once he's in office should consider seriously releasing more information. what we have got now is such confusion and politicalization of the intelligence services by

obama that it's undercutting trust and confidence in our electoral system and intelligence as well. we'll have to try to do what we can, whatever the conclusion is president trump makes, people will want to know more about where this information comes from. i think it's something he will have to look at very carefully. tom: ambassador john bolton, always good to see you. we are coming back with much more. critics are blasting president obama and his flurry of 11th hour exetive orders. >> i don't think he has much of a legacy at all. there is a certain pettiness i haven't seen before. tom * fred barnes joins us next. our president-elect promises to transform our depleted military

into one of the strongest forces in the world.

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♪ in the same place as my basketball? ♪ ♪ narcos, fearless, cooked ♪ the crown, marco polo, lost and found ♪ ♪ grace and frankie, hemlock grove, season one of...! ♪ show me house of cards. finally, you can now find all of netflix in the same place as all your other entertainment. on xfinity x1. tom: president obama stirring up controversy in his final days in office.

several ope op-eds are blasting. a piece "obama's ugly bid to snub voters and tie trump's hands." the "wall street journal" writing "obama's order amounts to a far too late signaling exercise to underscore u.s. displeasure." even the post, "the obama administration is ending 8 years of failed middle east diplomacy exactly where it began in 2009." are they just mad at president obama? the media s been propping him up for 8 years. >> not the new york post, but "the washington post" has. the new york post is the

toughest editorial i have ever read in the post. as you quoted him. 8 years and he's back to where he started. but it's worse than that. i think among people who $have been paying attention to the middle east, after this allowing this resolution, this anti-israel resolution to go through in the united nations, allowing it to go through when the united states could have vetoed it. it made the path to peace harder. not better. harder. and made any agreement been israel and the palestinians any further away. so i think the criticism is well-deserved. tom: "the washington post," that's a realize brow raiser.

everyone else at the "post" has been supportive of barack obama. you get into so many areas editorial writers could write about as we wrap up 2016. i look at the economy, i think that's why donald trump is the president-elect. they try to sell us on it's improving and jobs have been created. but people know, people know the economy has been struggling. >> yes, they do. unfortunately a lot of the mainstream media has bought this id the white house is pushing. finally after 8 years we are getting this great economy. and of course it's the worst recovery we have ever seen in the last 50, 60 years. donald trump comes in and the stock market explodes. if he can get his tax cut and economic plan through, and i think he can, we'll see growth 3% and 4%, not 2%.

tom: let's include immigration. >> this was a key issue for donald trump. the economy helped, but immigration was what brought out the vote in pennsylvania, michigan, ohio and states like that. trump used it well. i would like to point out one the other thing if i can. president obama is breaking precedent the way i president usually deals with a president-elect. if you go back to 1993 when the first president bush decided that he needed to send troops into somalia, he consulted with bill clinton, the president-elect get his approval. george w. bush consulted with obama over the status of the auto companies which were failing, and obama asked for a

bridge loan to general motors to keep them around so a pro-auto plant could be put into effect. what has obama done? he hasn't consulted with trump at all. he didn't even tell him what was coming, the sanctions against russia and the changed policy on israel. it's been a reason for trump to be very upset, yes. tom: but he has, to use if the phrase michelle obama gave us, he has gone high while barack obama has gone low. it's amazing how much has flipped around in the last couple weeks. this brings up "the washington post" again. their editorial writer wrote about the fact that we need one president at a time. >> but you are making a good point. you pass the baton, you both hold the baton so it doesn't fall before you gift to the next guy. >> that was a ridiculous column

about one president at a time. donald trump is not trying to act like he's president. but he should have been consulted when major decisions are being made and two big ones are being made in the last few days as we have been talking about. obama is the reason this is not a smooth transition. tom are's going to stick around washington and probably take pot shots for the next four years at least. that's one thing. but in the transition pair it does seem remarkable. fred barnes, always good to talk to you. happy new year, my friend. be sure to vote in tonight's poll. do you believe president obama is trying to box in president-elect trump with this russian sanctions? cast your vote on twitter@lou dobbs.

also instagram there. troubling decision by the obama administration. fox news learned for the next week there will be no u.s. navy aircraft carriers deployed at sea. not a one. the u.s.s. eisenhower returning to virginia following a 7-month deployment in the persian gulf, the george h.w. bush won't be deployed for a week it's the first time since world war ii that at least one u.s. aircraft carrier has not been deployed at sea. the dow down 57. the s & p down 10. the nasdaq falling 48 points. the volume more than we have seen this week. the trump rally leading stocks higher. the dow gained almost 18%.

the s & p up 5%. nasdaq up almost 4%. for the year, the dow posting the largest gain since 2013. 13% gain for the dow. s & p up for the year. a reminder to listen to lou's financial report three times a day on the salem radio network. up next, president-elect trump has strowfd fix our inner cities. >> in chicago, thousands and thousands of shootings since january 1. the inner cities are unbelievably dangerous, and i tell everybody, what the hell do you have to lose. i'm going to fix it.we'll fix i. we'll fix it. tom: chicago needs his help now more than ever. a shocking report on the murder no matter how

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tom: chicago is ending the year with a level of bloodshed not seen in nearly two decades. nearly 800 murders, indianapolis more homicides and new york and los angeles combined. nuke tobin in chicago with our report. reporter: chicago police anticipate violence will increase this weekend when booze is poured er the endless cycle of gainingland vendettas. over christmas a dozen people were murdered. >> a number of these shootings were targeted attacks from rival gang members. reporter: thursday chicago police reported murders were up

56%. shooters and victims are predominantly black. most targets are gang members. >> they shoot each other because they are on other teams. 20 to 30% of our shootings we can tie to narcotics. reporter: the street gangs have splintered. and one faction will battle another. the police superintendentent said policing has become politicized and cops are back off. >> the problem is, proactive policing, not just here in chicago, but across the country, has come under fire. the anti-police political environment fat we are in has it that we are emboldening criminals and hamstringing police. reporter: demonstrators intends to take to the streets against gun violence this year.

756 crosses each with the name of a 2016 murder victim will be carried down through the shopping district. >> i hope we'll be shamed by the and we'll be shaken to do something. reporter: the demonstration is supposed to be anti-violence and not anti-cop. tom: thanks, mike tobin in chicago. 201 wa16 was a dangerous year te a police officer. the number of police officers killed in the line of duty went up sharply. from the first of january through wednesday, 135 police officers lost their lives. some died in traffic accidents. but nearly half, 64 were shot to

death, that is a 56% increase in shooting deaths of police over the previous year. police here in new york are adopting new security measures to keep people safe this new year's eve. the nypd placing 65 garbage trucks filled with sand around times square to prevent the truck attacks we have seen in germany and france. nearly 7,000 officers will be on patrol tomorrow night. some in plainclothes to blend in with the crowd. nearly 2 million people will be in times square to ring in the new year. we are coming right back. stay with us. the outgoing obama administration is doing everything it can to undermine president-elect trump. >> i was disappointed to read the allegation or the supposition that perhaps one reason the sanctions are taking place is to quote box in

president-elect trump. tom: we'll take that with you next. this tourist is going to extreme lengths to take the ultimate picture-perfect photo. picture-perfect photo. we'll show you his death d achoo! (snap) achoo! (snap) achoo! achoo! (snap) (snap) achoo! achoo! feel a cold coming on? zicam cold remedy nasal swabs shorten colds with a snap, and reduce symptom severity by 45%. shorten your cold with a snap, with zicam.

tom: president-elect trump

promised throughout his campaign that he would strengthen our military and repair the veterans department. he said we'll build up our military, we'll make it so big and so strong and so great greal be so powerful that it don't think we'll have to use it. nobody is going to mess with us. that i can tell you. joining me, tom giordano and tammy bruce. is that donald trump's version of peace through strengths. >> yes. this is historically what human beings have to do. you have a black belt not so you have to use it. you have a black belt so no one messes with you. their budget has been taken away. training has been awful.

they had an awful commander-in-chief. this is not selfish. this our commitment to remaining the shining city on the hill. the only way to do that is to make sure we focus on our economy and the rest of the world benefits and always has. donald trump is making that clear. it's all the americans he met in this campaign. he understands what made this nation strong. tom: you heard the arguments many times. your callers told you about the fact you know the defense budget is so big we need to cut the defense budget. he wants to grow it. is this going to be where you will find the left pushing back? >> well, i think the counter is, he's going to put his business acumen and i think you have to sweat some of these small things. i think he will rely on people who say there is fat in the

military budget that ought to be taken out and replaced with money that goes into building up the defense department. i think more serious people will say we should look at every expenditure even in defense to see if this is the $700 toilet seat and take that money and put it into things. the f-35, the new jet trump is looking for a replacement that is not as costly but maybe equal tore better. i think he will bring that expertise to it. i'm on board with that. tom: that's a great example. we have even the $400 billion air force one contract. he may be building the military with less expenditures. >> that's it. the left figures you just throw money and it and that makes it great. we have a class of war ships we can't get out of port because

after break. these are several billion dollar battleships. this is spenting too much money and getting nothing for it. it's like obamacare. pouring all kind of money -- he made the country a money pit. you pour money into the and all the walls still leak because they don't know what they are doing. they say we spent the most money of any administration on the border as though that will solve our border problem. you can spend less money and get more, that's why donald trump was elected. that's what he's going to do. tom: the segment before this we had the report that for the first time since world war ii we do not have an aircraft carrier at sea. not one. >> i didn't know that. that is shock. i do know where trump is projecting power, and it's with the chinese.

the navy is a critical force in asia. that ought to be shocking to people tonight. people know that we ought to have aircraft carriers out there. tom: would you think so. do you -- tammy, do you like this idea about the tweet donald trump did this evening where he said vladimir putin is a smart guy? >> donald trump is a genius. he's also the best troll there ever was. he knows the moment he puts out a tweet everybody on the left will have a meltdown. none of us want a new cold war. he already understands that a retreat is appropriate in order to make sure we can have a better rip. better -- a better relationship. our efforts since reagan is to have a better relationship with the russians. obama was trying to break that. they thought trump was going to

fall for it and get wrapped up. this will give trump an opportunity to prove's the diplomat nobody thinks he is. tom: even vladimir putin says i know you are caking 56 our guys out. he's looking way past barack obama. >> that was the ultimate bank shot and then calling president obama whatever he said about this guy has to leave office. this is almost too rich to see this play out. i tell you as a talk radio host, it's something you can't write. there is tremendous interest during this transition period which is usually a dead period. it's incredible. tom: thank you so much for coming on. be sure to to vote in tonight's poll. do you believe president obama is trying to box in president-elect trump with his russian sanctions in vote on twitter @loudobbs.

roll the video. you have got to check out his tourist incredible mission to snap this photo. he captured views at yosemite national park. his heart stopping photo shoot was a success. up next, president-elect trump said obama's iran deal, the worst deal ever negotiated. >> it's the dumbest deal i have seen in the history of deal making. with the $1.7 billion in cash which is enough cash to fill up this room. tom: we are learning more details about how awful this details about how awful this deal is. afoot and light-hearted i take to the open road.

healthy, free, the world before me, the long brown path before me leading wherever i choose. the east and the west are mine. the north and the south are mine. all seems beautiful to me.

tom: a shock new report revealing how iran has enriched itself from barack obama nuclear deal. the squall street journal reporting iran has received $10 billion in cash and gold and

unfrozen oil money from countries around the world. that's on top of the $1.7 billion in cash the obama administration airlifted in the middle night night to iran as four american hostages were released. lawmakers are getting concerned iran could use the liquid funds to fund al-assad's re gleem syria, hezbollah, the houthi rebels in yemen. it's a mess. stove forbes. happen -- steve forbes, happy new year. this is a mess. this transition is not going smoothly. it's not going smoothly at all. >> the transition is going smoothly. and what burns obama is the fact trump is the de facto president. you saw that with the russia's

defense. puff continue says base not worth worrying about anymore, i'll deal with trump. on the iran deal, the nice thing about that, they are still owed $100 billion. they can stop that money going from iran. the fact it's going in cash and gold, tells you that money is being used for bad things. what are we thinking? >>'s going back to a decision. that had to deal with money regarding the shaw of iran. and that regime is gone and over. i don't understand why we give them a penny. >> ransom for those four american hostages. >> they won't say that. >> it just happens to go to iran and four americans released. just after cove incidence. tom: one of the hostages saying

we had to wait. >> there are no coincidences. tom: at some point you see people on both sides of the aisle saying absolutely. you can't have a foreign government hacking into our systems. but they have been doing it for a long time. nervet intelligence community -- everyone in the intelligence community says it's been going on for defend kids. nothing is being done with it. what should be done about it. >> it starts with china breaking into the personal records at the office of personnel management. the administration has been passive against every kinds of transgression. donald trump will have to do something about the south china sea. putin did what he did in europe because he could. he did we did in the middle east because he could.

if there are no consequences to behavior that is bad, you will get more bad behavior. tom: when puff continue started talking about modernizing their nuclear weapons, trump puts up a tweet that says we'll beement anyone who tries to catch up to us. again, it was mentioned earlier. that's a reagan document of basically of peace through strengths. you want five missiles, i'll see your five. >> trump is an alpha male. if you dis him, he will retaliate. he won't draw lines in the sand. tom: at the same time he made a lot of promises in his campaign. an wants to take care of a lot of domestic issues, the veterans, immigration, the economy, jobs, coal miners, you name it, the list goes on and on. in the meantime all of this

international havoc is going on. do you have think he will be able to focus on the domestic? >> fog the example of ronald reagan. we were in a worse mess with the soviet union on a rampage just having invaded afghanistan. reagan realized if you don't have a strong domestic economy everything else goes by the board. lead with a strong across the board tax cut. ignore the i-shaped people that tell you you can't do it. ignore it. get this economy moving. then you will have the wealth and the perception america is on the move again. one of the things is the russians and chinese believe we are a declining nation just as they have did 35 years ago when reagan took office. we have to disabuse them of it. tom: not a bullet was fired in the soviet union collapse because of our economic stream.

at least for the last time in 2016, let's roll this video. check out this group of as controversy naughts adding their own unique twist to the mannequin challenge. they created the illusion that time stands perfectly still on board the international space station. the crew taking the mannequin challenge to brand-new heights, 200 miles above earth. trump seniored a adviser, kellyanne conway questioning the motives behind obama's sanctions against russia. you wonder about the rush to do all these things in the last two weeks trying to tbhoks the president-elect. we hope that's not true.

tom: brad blakeman and lee carter will be next. i tried hard to quit smoking. but when we brought our daughter home, that was it. now i have nicoderm cq. the nicoderm cq patch with unique extended release technology helps prevent your urge to smoke all day. it's the best thing that ever happened to me. every great why needs a great how.

tom: in our online poll we asked you the question, has any other president done more to embolden our enemies than president obama? 94% of you have said no. 6%, who are you talking about? 6% said there was somebody else.

joining me now, a former member of president george bush's senior staff brad blakeman. as we roll into the year, there is winners and losers for 2016. lee, who would you put on your winner's list for the year? >> what a year. anything could happen. donald trump proved that. not surprising i would put donald trump on the top of the list. not just because he's the president-elect. but because he inspired the american people in a way he hadn't been inspired in years and years and years. he started a movement. he really created hope again this country for people who haven't had tonight decades. tom: he broke the rules. he took the rule book and tossed it out. you have donald trump on your list. >> he's number one. and number 2 is ryan and number 3 is mcconnell. now republicans control the house, the senate and white house.

any time in american thrift a change agent be make change, it's next year. >> i he feeling louis red i have a feeling lou is relaxing someplace. >> in order to govern you need the house and senate before a bill gets to the president. i think ryan will be surprisingly lock step with trump on a lot of important issues that were the issues that turned this election. healthcare, tax, immigration. there is consensus. tom: i heard mitchell mcconnell saying well we'll see about these tax cuts. and because he was concerned about the deficit. but it's the old washington static mentality of you can't

cut taxes and raise revenues. >> that's a conversation that should happen behind closed doors. they should be providing a united front showing what they are going to do for the american people starting january 20, when they have control. i do think that we should be focused on the hard working americans who felt like they didn't have a voice. they are winners this year. outside of urban centers people felt left out. they are big winners as well. >> let's talk about the losers. you have losers on your list? >> clinton, obama and the dnc. clinton for obvious reasons. and the dnc lost across the board. and they are still trying to pick leadership for their party. i think there is a lot of retbriewpg that needs to be done by the democrats as a whole. >> i said the hillary clinton

campaign. her advisers completely missed the mark. the democrats still don't seem to get what happened to them. also the elites in this country. big losers. they will have to change the way they operate. in the mainstream media this year, they got it wrong. even the covered election night showed they cot get over themselves to cover what was happening. they weren't reporting what was happening with the american people, they were reporting on what was happening with elites. tom: they got things wrong. but it's more than that. there seems to be a grudge match going on. >> there is. they have never seen anything like donald trump. if you have thought he was outside the box in a general election, as president he understands he can go directly around them. he can get on television whenever he wants to and and wherever he wants to.

>> i think a lot of the media is hoping he will change. >> he has proven it works to get the attention and moves things forward. >> thank you both have much. to everybody watching the show. thank you for coming along lou will be back next week. happy new year. >> announcer: from fox business headquarters in new york city, the new "wall street week." gary: welcome to our special year-end edition of "wall street week." i'm gary kaminsky. sandra: i'm sandra smith. happy new year. the dow, nasdaq and s & p all with nice gains for the year. the dow industrials was the later former after donald trump's big victory. all three hitting new highs. the dow teased us but never quite got to the 20,000 mark. gary: what will