truth than for the actual conversation. >> that's right. and it's important-- >> he resigned. >> it's important, that we're talking about this morning, the leak notion, where are the leaks coming from. maria: lee carter, brian, jack, great to see you, thanks for joining us, we'll see you tomorrow at the same time. "varney & company" begins now. stuart: thank you so much. the national security advisor resigns, democrats pounce, political turmoil and the trump rally, still very much alive and well, thanks very much. good morning, everyone, that's where we're going to start with your money. 20,412 where the dow closed an astonishing run-up 2000 points since election day. by the way, $2 trillion has beeneded to the nation as wealth and look at this, please, no retreat this morning. often, after an explosive rally will, there's a pullback, not much of a pullback today. we'll be down just a fraction. that's money, all good.

politics, not so good. general flynn has resigned as national security advisor, he did not fully inform the white house about his phone conversation with russia's ambassador. a senior official leaves abruptly, the administration takes a media hit. >> there's a media report about deportation raids and angry town hall meetings, the republican come under fire. the media is consumed with this and consumed with the political problems and ignore anything positive about your money. same old-same old, but we are all over the astonishing trump rally. >> yes, we are. "varney & company" is about to beg begin. ♪ >> all right. we've got a news update for you on the california dam crisis.

nearly 200,000 people not allowed to return to their homes. how long, ashley, before they can come back? >> indefinitely. they don't know. there is no timetable, not until authorities believe the dam spillways are safe and you're not going to get a cascade of water 30 foot high coming down from that dam. there's a bit of a race going on. the dam is at 99% capacity, but there are storms that are going to hit on thursday. they're trying to get the water level down enough for the dam to handle that. they're asking people living downstream, when can we go back? sorry, you have to stay away, because we're not sure. stuart: that's extraordinary disruption, 200,000. and i want to get to the white house agenda, an action packed day.

the president participates in a parent-teacher conference in the roosevelt room. and lunch with new jersey governor chris christie, we don't know what that's about. a meeting with john kelly and attorney general sessions, a big day. the big news from the white house is, national security advisor michael flynn has resigned just 24 days into the administration. just a few weeks after he took the job. charles hurd, fox news contributor joins us now. i'm saying this is a political hit to the trump administration, but my question to you, charles, is does this interfere with donald trump's-- president trump's policy of tax cutting, infrastructure packaging, repeal of obamacare? does this turmoil interfere with his legislative schedule? >> it's a great point. they are two entirely separate things here. obviously, this is a terrific hit for the administration. the original action by mike

flynn probably was not as egregious as people are making it out to be. the fact that he was covering it up, not honest about it is a terrible, terrible problem. and the right thing happened, by the way. which i'll be interested to see whether the trump administration gets any credit for that. i won't be holding my breath. but, you're exactly right. all the people inside washington running with their hair on fire, but outside of here, what people really care about is the economy and all of that is looking better and better by the day. >> we hear that general petraeus is it going to meet, i believe, with president trump later on today. does that signal that perhaps he will move in as the permanent national security advisor? >> there's no doubt in my mind that he is on a very short list of people that mr. trump is looking at. mr. trump has halls liked general petraeus and general

petraeus minus the rather public problem he had a few years back has a long history of tremendous service to the country. he's widely respected on both sides of the aisle. and so, he's definitely on that short list. >> is there any evidence to suggest that the furor about politics inside baseball politics, essentially, is going over the heads of most people and not really taking a position on it, is it? >> isn't that exactly what we've seen for the past two years with the trump campaign? there's all of this controversy the media crazy and there's chaos and donald trump seems to thrive nicely and doesn't seem to bother him that much. he stays on target doing things that actually matter, keeping promises, even the fact that he is keep his promises has a lot of people around here are going crazy, but he keeps doing it and for somehow or another, it just, it winds up working out and all of the things that

people get so upset about around here just, it sort of eventually falls away. stuart: you ought to move to new york, charles, we've got wall street up here. thank you, charles hurt. see you soon. >> thanks. stuart: the markets are flat head of the opening bell, but remember, please, the dow is up more than 2000 points since the election. market confidence, you've got to say, remains very strong when you don't have a big pullback after the big rally. here is another number for you. for the first time, the 500 stocks in the s&p 500 are worth, in total, over 20 trillion dollars. you've never seen that before. the biggest winners, yeah, the bank stocks. all right. i want to bring in art laffer because art laffer called it, he said that president trump could spark a huge rally. okay. take your bow and now tell us how high the market, the dow is going. it's at 20,400. where dos it go to?

>> it goes up much higher, stuart, i think over the course of the next eight years under trump you will see the market go up, many, many percent, if it went up under reagan and clinton, in real terms, it could easily do something like that. the thing about flynn, by the way, if i may, stuart, you know, in the reagan administration there was a national advisory security advisor, richard allen and he has the problem that flynn has and he was removed and nothing happened. stuart: it all blew off eventually, nothing happened, okay. >> and you know, flynn should have known that the wires are tapped and the information would come back and anything he was mentioning pence would of course be given back to the administration. who leaked it from there, who knows? but he shouldn't have done what he did and should not have told pence that the wrong-- got to always be true. >> i want your opinion on the

border tax, and retailers are meetings with brady, he writes tax code. and we've got four retailers, target, best buy, gap, the other one which i can't read, autozone, thank you. they're going to meet with kevin brady tomorrow. the issue is the border tax. >> yes e border adjustment tax. are you for it or against it? it's a whopping great big tax. >> i'm against it, i think it's a silly, silly thing to do. they don't understand international, think it's a freeby to get a tax and do something else. it's going to be a huge bureaucracy, it could have extraordinary bad effects on the u.s. economy and the world economy. steve forbes was talking on maria's show it's a very, very bad idea and i agree with steve

forbes, they should leave the border tax alone and deal with the thing and the other thing they should leave alone, stuart, get rid of pay-go. it's the silliest idea ever. if we had had pay-go in the 1920's, we wouldn't have had the roaring 20's. if we had pay-go with the jack kennedy, we never would have had the go-go '60s. and stop the pay-go, just cut taxes. stuart: dream on, when the day comes when the government doesn't take the money out of your paycheck before you get your paycheck, i'll become an englishman again. that's never going to happen. >> if you look at theresa may, she's doing pretty well. i'm thinking of becoming an englishman. stuart: she's not going to repeal pay-go, taking the money out of your check before--

>> i meant revenue neutrality there, they have to have one tax rate and a tax cut. we need tax reduction and let it fall and then economic growth. with that economic growth you're going to have tons of taxes flowing. stuart: we believe that, we love the idea that the market keeps going up and up and up. >> it will. stuart: art laffer is all right. thank you. one of the stocks that moved. apple reached an all-time high. that was yesterday coming down a little bit this morning when the market opens, maybe. but that company, apple, is now valued at more than 700 billion dollars. >> it's unbelievable. >> then we have disney parting ways with youtube's biggest star after he posted an anti-semitic video.

i want to know why it took disney so long to part company. it's a good one, too. and rounding up and deporting criminal illegal aliens, 7most have committed crimes. >> the vast majority in the country are not criminals or gang members and-- >> lupe garcia, been in the country for 22 years, this is what donald trump did. great panther silver produced approximately 4 million ounces of silver last year at their 2 mexican mines. their recent mine acquisition in peru, once fully operational, stands to increase their production up to 75 percent. great panther silver

>> individual stocks that are moving, we like to bring them to your attention. how about generac, they make the home generators, the power goes out, buy one of these things. they got a better earnings report. how about this, the left truly

apoplectic over a string of immigration raids and the rest. 75% of the illegal immigrants arrested have prior criminal records. their offenses included homicide, sexual assault, sexual assault of a minor. all rise, judge napolitano is here. the left is up in arms over this and i don't get it. >> i understand their complaints and it's inconsistent with the law. >> the people we're talking about came to the u.s. legally or illegally. charged with a crime, prosecuted convicted and served time in jail here, got out of jail and now are subject to deportation. to the left they have paid back their debt to society and should be left alone. to the law, it says, they are subject to deportation. in fact, the law says shall be deported. president obama sometimes

departed and sometimes doesn't. reagan preferred and obama did, a case by case approach. if the person out of jail is married to an american woman and they have american children and might have a hardship. the new president says if they've committed violence and served time and are now free, i'm going to deport them. now we see the up roar by people who feel they've paid the price to society and served time in jail and leave them alone. stuart: if they paid the price and served the time and now they're out, maybe still illegal, but they're out, should they be-- >> sometimes it tugs at my heart strings, but the president took an oath to uphold the law. madison put the word faithfully, reminding presidents to enforce the law,

so for a crime of violence, it should be deported. some are rehabilitated and served and their lives. another aspect which you won't like, before the deportation, they're entitled to a trial and an appeal, and if they can't afford a lawyer, the government will pay for a lawyer, so, the government pays for the prosecutor, and the defense lawyer at the trial. the government pays for the prosecutor and the defense lawyer at the appeal. the government pays for the judge. do you know what it costs abouter deportation for all of those? >> tell me. >> $250,000 per deportation, paid for by the american taxpayer. stuart: in which case, the left can delay and delay and delay and run up the tab for the taxpayers. >> it's an argument the left makes which sounds like an argument you or i might make, save government money, not all

of these people are worthy of investing a quarter million to deport them. some are essentially harmless. stuart: you'd be happy if we just went after murderers, rapists, child pro-- molesters. and i'd be happy if we went after those-- >> a maid, for example, who has a child in the united states who may have come here illegally, but you don't have to prosecute that, do you >> yes, yes, that's the reason for which they're entitled to a trial and appeal. this is a trial before an immigration judge. this is not a trial for a federal district court judge. these are judges who just hear the immigration case is. stuart: what you're telling me is the left has a weapon by which they can delay and delay and run up the tab for the taxpayers and force the administration to back off. >> part of that weapon is

emotional and part of that weapon is rational. is it worth spending $250,000 to deport this person when there are other people here that are more of a threat. stuart: that constitution, i tell you. >> gets in the way of the government, as it should. >> happening in great britain. where is your red tie for valentine's day? >> what is valentine's day, isn't it a polish saint? [laughter] >> a polish saint. stuart: he was italian. >> no, polish. >> his name was valentino? he was polish. stuart: what do i know. ashley: i didn't know that either. stuart: yeah, we're out of time. >> your executive producer is killing me. [laughter] >> president trump says drug makers are getting away with murder of the listen to this, there's outrage of a newly -- new drug for muscular dystrophy.

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procedures for the drug industry. they're getting away with murder. pharma has a lot of lobbyists, a lot of power. stuart: that was president trump targeting drug companies, high priced, doesn't like them. one is delaying the release of a drug for muscular dystrophy after the 89,000 a year price. and they have approved and put the price up. doesn't it give free market capitalism a bad name, art? >> i think the president is correct. what you want to do for the standpoint of society have the drug prices as low as you can get for massive usage. you want the guys to continue the research to develop the drugs for a good rate of return. there has to be a way the government can do did with research and development costs and compensate them for three

quarters if they'll do it three fold above the marginal cost. and that way they're for the consumers and there are new and better drugs. stuart: art laffer, thank you for being with us, we'll see you after the opening bell. kim jung un's brother-in-law is dead. tell me about this. ashley: he fell ill at the airport and he subsequently died. the people being blamed for this, female assassins were using poison needles. he is the estranged half brother of kim jong un. he was set to succeed as ruler. this is a sorry out of a james bond story, but that's what we're hearing the latest from malaysia. stuart: we'll have more on this. ashley: oh, yes, we will. stuart: forget the political turmoil. the trump rally moves on.

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>> all right. 30 seconds to the opening bell. this is an extraordinary story.

you've got all kinds of political turmoil in d.c. and elsewhere in the country. political turmoil, but on wall street you've got a series of record highs, culminating yesterday when the dow closed at 20,400, up over 2000 points since november the 8th. have you ever seen anything like that? watch this, we opened up at 9:30 eastern time. where are we going this morning? we're down 30 points in the-- down 38 points, 35 points in the very, very early going. a lot of red on the left-hand side of the screen. ashley: it's valentine's day d day. stuart: that's right. a kick check of apple, please, it's opening higher after the high, that company is worth 700 billion. that's 120 million more than google and worth more than exxon and j.p. morgan combined. i thought you'd want to know the extraordinary numbers,

apple leading the way. all the companies in the s&p 500, that's the indicator on your screens, are now worth more than 20 trillion dollars. that is the extent of this astonishing rally that we've seen since the election of mr. trump. who is on board wi us today? i'll tell you, ashley webster and izabeth macdonald. we're proud to recognize and bring to new york harold roth fresh from the shores of chicago and mike murphy and art laffer joining us from tennessee the retirees capital of the planet, i believe. and we asked art, how high do we go? he said we've got a lot higher still. carol roth is a money lady, how much higher for the dow industrials? >> the market always pays more for possibilities than it does for reality. it really depends how long it takes for them to get tax reform done. i imagine that we're going to get the semblance of a tax plan

that's going to sound fantastic so that will continue to boost the market higher. hough, when congress starts getting their hands into it and the numbers aren't perhaps as robust as maybe we'd hoped, then maybe we pull back a little bit. stuart: you're waffling, but-- waffle. stuart: you're from chicago. how much higher are we going, murphy? >> right now you want to ride the stronger earnings from u.s. corporations and it's not just the tax cuts, it's what comes after the tax cuts. you have companies that are now reinvesting in their business. you hear the term a lot, animal spirits. companies are actually looking at being able to deploy capital, get a return on their capital and that will help the bottom line. the market has more room to the upside. stuart: did you say 5 to 7%. >> 5 to 7%. this year or this-- >> i think this year is easy. until the markets tires itself up, we'll push up to the

21,000. stuart: we're at 20,000. you think we'll get it rapido. >> muy rapido. stuart: the market worth 700-- >> apple is up 50% since it made lows and warren buffett came in three straight quarters of down side. they have more than 488 s&p 500 companies. the addition is worth the value of the majority of s&p 500 companies. >> and that 200 billion dollars is the same amount of cash they have sitting overseas that hopefully we can repatriate. stuart: and extraordinary performers, 200 billion in cash and 200 billion up in value since may of last year. ashley: not bad. stuart: not bad they say, a very british expression. next case, top retailers are going to meet with congressman

kevin brady tomorrow. kevin brady is the top tax writer in congress. the issue here is the border tax, right, ash. ashley: you've got the retailers, the automakers, the refiners, say, cut the corporate tax rate, maybe down to 20%, but throw in a 20% border tax on everything, those materials brought in, it negates any cuts in corporate tax rate so they're going to be lobbying hard, the senate, with the house ways and means, the senators don't like this at all. >> the koch brothers. stuart: do they have the power to turn back the border tax, a huge revenue razr, have they got the power? connell: yes, . >> yes, you've got the koch brothers that hate it and others say it will wipe out annual profit and put us at a 2 billion annual loss. stuart: art laffer come back in again. we've heard you say you do not like the border tax, okay, if

you don't have a border tax and cut individual and corporate tax rates, you're going to have a whopping great big deficit quickly, aren't you? >> oh, be serious, stuart, come on. [laughter] we have the highest corporate tax rate in the oecd at 35% and the fourth lowest revenues as a share of gdp. we're right at the very bottom on revenues and the top at tax rates. if we cut that tax rate from 35% to 15% federal we'll raise revenues like mad without any other tax increases. believe me when i tell you that. it's a curve. it's my profile. [laughter] >> news alert the dow industrials are about to turn positive. looked that way a second ago. we're down 4 on 20,400 index, don't have much to worry about that. president trump and treasury secretary steve mnuchin has been confirmed. they say it'about tax reform and peeling back regulation. i'ot that.

carol, one of the things i liked about swearing in yesterday when president trump said, steve mnuchin has the midas touch. he turned everything to gold. when have we ever had a treasury secretary, the man makes movies and-- >> president trump will like somebody who turns things to gold. his secretary. steve mnuchin understands the challenges in the tax codes and weird loopholes and things that create nonprofits off shore. we don't want that. we want incentive to do business here and not create penalties and i think that steve mnuchin is the about earn to do that. stuart: you say that he's a plus for the market? >> a triple plus. stuart: the midas touch is a plus for the market? >> it's not just him, but the swartzman, the gary cohn's, and people to advise him on the economy are successful business people. ashley: wilbur ross.

stuart: we're practically dead even on the dow. and financial bank stocks in particular are leading the way. i'm going to give you more individual stocks which are moving. start with dr. pepper, not enough money coming in to the soda maker and it's down nearly 2%. that's dr. pepper. we have generac, the generator guys, they've made more money than anybody was expected and the stock is up about 1%. 43 on generac. t-mobile are making money, lots of it, upper nearly 3%. a possible auto deal in the works, maybe, reports that peugeot might be interested buying gm's european unit known as the opel unit. that's a strong gain, 1 1/2 dollars. i can't lead the percentage, too far away. 37 on general motors. we've had all of these opticians coming in, saying, varney, we'll give you glasses. next one.

the company that owns burger king might watch this, might want to buy popeye's. what's the story. nicole: what's the story, what happened yesterday, popeye's louisiana chicken, whatever you want to call it, surged, up over 7% on the day and this is on the idea that restaurant brands international, which has burger king and tim horton's was interested in popeye's. both stocks are up five days in an a row and you can see that pop aye's is pulling back 5 1/2% now there are reports this is not going to happen. new york post, according to a source, looking at popeye's in november, and the stock surged and too pricey and they're out on this idea, but reports that restaurant brands has millions of dollars, $2 billion for acquisitions and they want to get something that doesn't compete with tim horton's and doesn't compete with burger king. could be mexican, pizza or chicken. so something tells me this

story is not over. i'm sorry if i made you hungry. stuart: no, no. ashley: too late. stuart: a wide range of choice on that menu, i've got to say. the amazon story of the day, there is one. launching its own version of video conferencing, that means it's going to take on the likes of microsoft skype and cisco as well. the best real competition if amazon is on board. >> real competition, know the enough to movehe needle on amazon, but one more area where amazon is moving into, almost a one stop shop. you can do anything, i bought the amazon fire stick and using it in my house in place-- we have the apple tv, but the amazon television supporter is actually doing better now than apple so they're taking market share away from apple tv. stuart: what's a fire stick do? >> starts a fire. [laughter] >> it lets you show any film on amazon, a competition with apple and netflix. stuart: it's a stick and wave it. [laughter]

>> no, you put it in the tv. >> he thinks it's a harry potter thing. stuart: what do i know about this. liz: and we need to build a new app called the grandchildren app for stuart. stuart: and health insurers that cigna and anthem, or anthem might buy humana. okay, so we're back to amalgamations in health care. liz: humana at the end of the merger, and these guys could be on the prowl. analysts say they have a big cash pile, these insurers and humana could go on the prowl and buy a company or it could be a target and you could see mergers. stuart: i want to ask our three guests one last question. what is the most exciting company in the world? is it amazon, facebook or microsoft? that's the question to you, first, art laffer? >> i'd say it's amazon. i think that amazon is amazing. stuart: mike murphy. >> i don't own it either.

stuart: okay. mike. >> amazon upside facebook. stuart: carol roth. >> and microsoft or the business economy small business economy. teaching small businesses and entrepreneurs, key things to help them grow their business. stuart: that's you? >> so obviously you think that microsoft-- >> i would be remiss know the to say that. stuart: i own it, too, and i think you're right. have i got breaking news on a tweet. ashley: donald trump. stuart: what have you got. ashley: this is interesting, off topic a little. the real story here is why are there so many illegal leaks coming out of washington? that's a question that's being asked more and more right now. will these leaks be happening as i deal on north kea, cetera, question mark? there's some suspicion of sabotage within the bureaucracy. >> remember the australian telephone call. people want to know how did that get out and who leaked?

and other cases, flynn perhaps being the latest of the leaks. stuart: president trump's tweet may be referring the flynn tweet. liz: flynn, it's disturbing what he did, and roundly criticized, and misleading the vice-president. there are multiple angles here. stuart: art laffer, carol, mike, thank you for joining us, what a day it's been, we're at 20,400 on the dow industrial average and only down a fraction at this moment. moments ago, president trump tweeted about leaks coming out of washington. >> thank you very much. stuart: brought you that story. i think that tweet referred to general flynn who has now resigned. he resigned about 11:00 last night fresh news this morning. that's it. big shake-up as you just heard, general quinn-- flynn is out. here is the question, will that distraction hold up tax reform? or the repeal of obamacare? good question. we'll answer it. and youtube star dropped from

disney after anti-semitic video. do you know that there are millions of views? we'll be back.

>> for one brief shining moment we turn positive on the dow and now we turn back to the negative and we're only down 17 points. still close at 20,400. national security advisor michael flynn resigns, a few weeks after taking the job. congressman nunez, a share of the committee previously called

general flynn the greatest intelligence officer of his generation. listen to this. >> you're well aware of the controversy around national security advisor michael flynn. do you think he should step down? >> no, i don't. i have great confidence in mike flynn. he's probably the best intelligence officer of his generation. stuart: well, general flynn did step down and congressman devin nunez is with us now, republican from california. has our national security just taken a hit, congressman? >> well, look, there's a lot of good men or women who can take general flynn's place. i've known him over a decade and sad to see him go. i really believe as you played in that interview that he really is one of the greatest intelligence officers in a generation. stuart: there's turmoil within the administration, it's politics, of course, but there's turmoil. do you think that extends now and hurts president trump's efforts to cut taxes and cut red tape? >> well, we'll see how this

moves forward, right? i just believe that the opposition party is going to continue to attack whatever personalities that they can attack in the white house. so i am concerned about that, but hopefully after this, that we can get on to taxes and health care because these are the two main components of the president's domestic agenda and we're going to have everything that the white house has to help us pass this legislation, not only out of the house, but then to get it through the senate. stuart: on the subject of tax cuts, president trump has said, look, a couple of weeks from know, you'll get the tax cut bill and you can have a look at it. last night steve mnuchin was confirmed-- was sworn in as treasury secretary. does steve mnuchin help the tax cut move that's supposed to come in a couple of weeks? >> yeah. so, the ways and means committee actually has the powers of the constitution and that tax bill will start here in the house of representatives

and clearly having steve mnuchin in as treasury secretary and the president talking about us fundmentally changing this, it will be out for public consumption. because we're changing the code, that's important for the viewers, we're getting rid of the income tax, doing something that hasn't been done in a hundred years, moving to a consumption system, cash flow system. that means you take your income minus your expenses, whatever is left over, you pay a tax on that. it's a simple system yet a departure from the confusing tax code that we have now. stuart: that's a dramatic departure because it's a complete shift. until now, most tax revenue comes from the income tax, taxing income, what we earn. this proposal you say will make a shift, pivot away from taxing what we earn, and go towards taxing what we buy? that's a huge shift, congressman.

>> it absolutely is. but it is the most efficient and most transparent way to tax. so, by doing this, we leapfrog all other nations and we would have the most transparent business friendly state, nation state in the world and i feel it's what we have to do. if we want to get out of this lethargic growth of 1%, 2% and get back to where we have 3 or 4 or 5% growth we're going to have to do something like this. if we want to bring jobs back to america we will have to have a system like this. stuart: you're going to get enormous opposition to that kind of pivot. >> well, you know, anytime you do tax reforms theres 's enormous opposition. there's a reason why we haven't had tax reform since 1986, it's difficult. we actually in the house of representatives, we've been studying how do we actually reform the tax code.

i was here during the bush tax cuts. they were very minimal and i think their impact was not felt for a very long time. and i just don't think they actually worked very well. so, that brought us to looking at, well, look, we've got to change our tax system fundamentally because so many countries around the globe went to a consumption style system. the most important winner here will be wage earners and small business, because they'll be able to put on the same playing field as other businesses in this country. stuart: congressman, i know you're busy so you've got to run. we appreciate you being here. congressman devin nunes. check the market, we're down, but not much. 19 points down and i would say about 2/3 of the dow 30 are in the red as of now. youtube star pewdiepie, wildly popular, 53 million subscribers, his videos viewed more than 14 million times,

he's been dropped by disney. find out why after this.

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sweden and lives now in the u.k. and makes a fortune. he has his own subscriber channel that has 53 million subscribers. he made $15 million last year, but now disney, who has been supporting him through merchandising and elsewhere, has pulled their relationship because of at least nine videos in the last month or so that have anti-semitic or nazi imagery in those videos. google, by the way, also places ads in this person's videos and pulled some ads. how much will he get next year? probably not half of much as this year. the question is, how long did it go so long. he pushed the limits before and crossed the limits. stuart: who establishes the limits? who says get rid of this because we don't like it? he says that. ashley: that's a good question. someone at disney look and say that's inappropriate? >> they're a private company and they should be able to do that. nothing wrong with that. anher story for you, the new

york times reprimanded a reporterfore calling first lady melania trump a prostitute. you better tell me this one. liz: supermodels tweeted out of it after new york fashion week event and told a supermodel that, quote, melania is a hooker, according to a supermodel and melania tweeted out applause to all women who speak out and support other women, but new york times did apologize for it, but in the apology they said the comment was not intended to be public, but none of the less, it was completely inappropriate and should not have happened. stuart: but can we be censored and fired, maybe for anything we say ostensibly in private. liz: this was at a public event, he or she is a reporter and talked to a supermodel. was it a washington politics or reporter that did it. stuart: and an nyu professor, this is the unhinged left,

you'll see it, the left is reeling from the election of president trump. you'll get my take on it and see the video. and we have, well, look who is here, tammy bruce walking into the studio and tammiitammiy-- tammy will respond to the video and my take next.

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stuart: fed chair janet yellen appearing on capitol hill moments from now. her latest testimony from congress. we know what she is going to say. our peter barnes read her statement. the headline, peter, please? reporter: stuart, janet yellen will tee up further additional rate hikes this year in her testimony to the senate banking committee this morning. here is the key lines from her testimony. quote, incoming data suggestions that labor market conditions continue to strengthen and inflation is moving up to 2%, the fed's inflation target, consistent with the committees, the fed expectations. at our upcoming meetings the committee will evaluate whether

employment and inflation evolve in line with these expectations in which case a further adjustment of the federal funds rate would likely be appropriate. stu? stuart: peter, very well-put. she is teeing up future interest rate hikes. how many? we don't know. as you say she is teeing it up. peter barnes, thank you very much indeed. let's look at the market reaction to this. as peter was saying it becomes public. investors know what she is about to say, react to it. so far zero reaction. we were down 20 points. w e down 10. liz: market baked in three quarter point rate hikes, small rate hikes. stuart: that's not from what she said. liz: they understand that. stuart: we're down 7 points. financial stocks are still higher. we're down nine. i very there is limited, very, very limited reaction to what janet yellen is about to say. as peter barnes put it very well

she is teeing up future hate riecks. they are coming. we don't know when but they are coming. the dow is down eight point. the response so donald trump's election win has been highly emotional. it bordered on hysteria. we often use the expression, the unhinged left. that is very strong stuff. this morning we bring you example of truly unhinged outburst from the left. conservative speaker gavin mcginnis, tried to deliver a speech at nyu. there was a demonstration outside. the left tried to stop him. we're going to show you videotape of a woman who claims to be an nyu professor. she is indeed a nyu professor. she is demanding that police officers throw the people that she calls, fascists, throw them off the campus, she demands. we bleeped out the foul

language. but take a look at this, roll tape. >> how dare you! how dare you! [bleep] you neo-nazis [bleep]. you [bleep]. you [bleep] about humanity. they're trying to learn about human rights and against racism and xenophobia and lbgt rights and you let these neo-nazis near here. you should kick their [bleep] stuart: she is an adjunct professor. we're not entirely sure she is with nyu but that is what she said she was. that was the professor. the word unhinged surely applies academia is no longer home of free speech or tolerance or open debate. will any academic come forward to demand a return to free speech? the second hour of "varney" and

company is about to begin. ♪ back to what is happening in the federal reserve world. fed chair janet yellen is giving a semiannual policy report, she does it twice a year. we're monitoring it so you don't have to listen. we know what she is going to say. as our own peter barnes says she will tee up future interest rate hikes. no response from the dow jones industrial average. still down a fraction. that is not a big decline on index up to 20,400. the stock is in record territory. 133.44 as we speak.

3billion dollar merger -- 37 bill dollar merger between aetna and human is officially off. credit suisse, strong report has shares moving higher. not much, 14 cents. i want to get back to the adjunct professor we caught on videotape. she wanted cops to beat up people who were assembling people gathering to -- gavin mcginnis, basically a conservative. let's see the video one more time please. i'm a professor. how dare you, how dare you [bleep] protect neo-nazis [bleep]. you [bleep]. you [bleep] these are kids who are trying to learn about humanity. they're trying to learn about human rights, and against racism and xenophobia and lbgtq rights and you let these [bleep] neo-nazis near here. you should kick their [bleep].

stuart: i'm making a judgment about the unhinged left in our nation's universities and colleges. lizzie, tell me more about the lady we you saw there? she is adjunct. liz: she is at other universities. rebecca gowtte. she is performance artist. basically worked at moma and colleges. nyu saying she is not affiliated with the school. she is adjunct professor apparently for other schools. stuart: tammy bruce, you saw video, twice. >> she said i'm a professor in effort to influence nypd she was associated in some fashion. butlook, this is what our young people have been facing to some degree. reminds us melissa click at mizzou, that environment was a professor calling for muscle to shut down a reporter, a school reporter. so this is what we've been dealing with. but also a generation that it is like the next generation of when the left has been controlling universities. these are the mind that have

been created from the left in universities. actually what else would they do, stuart, other than go right back into the swamp? how do you get a regular job when that is your mentality. stuart: not like the 1960s. it is not students doing it. >> right. stuart: that is faculty. >> these were the students. stuart: that is extraordinary. >> it is like inmates taking over the asylum effectively. that happened in the last generation. stuart: how would you feeling if you're spending heavy knows, tens of thousands of dollars on your child or your youngster going to nyu with this going on at nyu? liz: issue nyu is saying berkeley said we want free speech. we invited these conservative speakers. it is these anarchists and rioters come outside of venues to disrupt. stuart: i was simply shocked to see the unhinged left on videotape. some of us are a little concerned about the expression the unhinged left. are you implying craziness.

ashley: if you look at video unhinged fits. liz: can we say, the tea party never behaved like this when they protested. they never broke buildings, or broke windows rather. >> berkeley said they didn't like what happened to mile low. then in the school newspaper three columns defending the nature of how violence sometimes what was happening in that case was a good thing and it moved the conversation along. so i think they're talking out of both sides of their mouth. universities have a lot power -- liz: that is school newspaper. students writings, not the professor. >> that is culture. ju like university of chicago saying do not come here if you want to be coddled. there have to be statements by university faculty says enough is enough. stuart: i just thought i would bring it to our viewers attention. i thought it was so extreme worthy of our broadcast. thank you very much, everyone. general michael flynn resigns. keith kellogg named acting national security advisors. who are the leading contenders

to take over? ashley: as we have it, the three, let's have a look at these. vice admiral robert howard, former navy seal. 40 year navy career. worked in lockheed martin when he went into the private sector. lt. general keith kellogg, you mentioned. he is filling in. he advised trump through the advising for the cabinet. was considered for the post ahead of general flynn. general david petraeus. outlyer. retired four-star general but bottom bounced over his affair with his biographer and mistress but favorite of donald trump because he likes his demeanor and his ability. stuart: i would have to say this has created a political firestorm, may be a little strong. there is a political storm in washington over the resignation of general flynn. katie pavlich, do you read this as blow to the administration to ability to push through repeal

of obamacare, tax cuts and less red tape? >> well i think that the administration can walk and chew gum at the same time and deal with the domestic issues on tax policy and repeal of obamacare while also having this problem. that being said, this is really messy and quite frankly a disaster for the administration. they're not answering questions about it. this is the beginning when it comes to questions about what general mike flynn was doing, the kind of conversations that he was having with the russian ambassador. the fact that he would lie allegedly to the vice president, what was the reason for that? there is a lot of unanswered questions still moving forward about general michael flynn's connection with the russians and some of the behavior he may have engaged in during the transition period and quite frankly before then. stuart: i'm not sure that the country as a whole pays very, very close attention to inside politics in d.c. as you can see, we've got, katie, we have the dow jones

industrial average very close to record highs ignoring what is going on in politics. do you think it really sinks in to the country as a whole? >> well, i think obviously the economy is the number one thing on people's mind all the time. we see it in election after election, in terms of what people want to vote on. in terms of poisoning the waters here in d.c. eventually things catch up to the general public and to have this situation with michael flynn a month into the administration, not even, is a real issue could throw off the focus of the administration moving forward. but i do think that congress will have a big role to play here in next couple months in developing tax policy, developing repeal of obamacare. but the trump administration is having a hard time getting their message straight and figuring out how they move forward with the fallout of the situation. the cia is still paying attention to the conversations that general flynn had, and to a number of other trump

administration officials who allegedly, you know, had some other kind of connections to russia. this isn't going away. stuart: it's a mess you about the dow industrials at record high. >> which is good. stuart: it is. katie pavlich, thank you very much indeed. >> thank you. stuart: we do call this a live action presidency and later on you will see governor of new jersey, chris christie will have lunch president trump. we do not know what will be discussed or purpose of that lunch. a reasonable environmentalist, that should be in quotations. he believes in climate change but says president trump's policies will not be the world-ending event greenies are predicting. he explains. ♪ great panther silver produced approximately 4 million ounces

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stuart: special guest on the

program today. he is an environmentalist. he believes that if president trump drops the paris climate agreement it is not the end of the world. that intrigues me, does it not, an environmentalist saying that? here is the book he has written. the smartest targets for the world, 2016-2030. bjorn makes a very welcome return to "varney & company." >> stuart, thank you. stuart: you are a climate guy. climate is changing and human beings are responsible, correct? >> yes. stuart: you don't like the paris climate treaty, it doesn't do any good? >> the climate treaty is incredibly expensive way to do no good. remember the track record ain't all that good, but if everyone does all they promise and all the way through the century, we'll reduce temperatures by end of the century by 0.3 degrees fahrenheit. you won't measure in 100 years. yet the costs will be somewhere

between a trillionand two trillion a year. paying $100 trillion for no good is not a good deal. stuart: mr. trump, president trump says we'll not get involved in the paris climate treaty, nothing happens, essentially? there is no impact on climate because if we drop out? >> it is not the end of the world because the paris climate deal really isn't the way to fix climate. look, if you want to do something about climate you need to eventually stop emitting co2. the reason why we emit co2. we don't do it to annoy al gore. we do it to empower civilization. we want permanent, cheap energy. right now we get that from fossil fuels. if we get it from some other source we need that to be much, much cheaper. the real solution invest in research and development into green energy sources. get them to be much cheaper. that is what we did with fracking. stuart: okay. so you're saying we've got to

spend a ton of money on cheap green energy? >> research. so the point that's a lot cheaper, remember we spent $10 billion, the u.s. federal government spent about $10 billion on getting fracking going from the 1980s and onwards. that basically gave you a benefit of a about $300 billion because you get cheaper energy and reduction in co2 because you switch from coal to gas. if y everyone will switch. both americans and chinese. stuart: you're a very well-known environmental i. you used live in denmark. you live in the czech republic, prague. what you say counts in europe. are you over here in america to tell president trump, forget about that paris climate treaty? are you going to give that advice? >> i would certainly like to tell him that but i would like to tell him, pick up on for instance what bill gates and others are doing, namely invest a lot less money but in research

and development in green energy resource. that is way we insure a lot of people get more access to energy, get cheaper energy and clean energy. stuart: you realize there would be a firestorm if america dropped out of the paris climate accord. there would be a firestorm about this. >> probably. because this has become identity politics. about feeling good. you want to do something that feels good. the world doesn't care about how you feel. it is about doing good. stuart: i want to repeat what you said, do everything we promised to do, the whole world does what they promise to do under the paris climate accord we will reduce the world's global temperature by what, .3 degrees fahrenheit. >> by the end of the century. stuart: by the end of the century. that's it? >> yes. stuart: is that what paris people say. >> they're saying look, if you look what the u.n. is actually saying their own numbers for what paris will do, they tell you that in order to get to the 2-degree target which everybody

talks about you need to cut 6,000 gigatons of co2, whatever that is. we will cut about 56 gigatons with the paris agreement. we're cutting less than 1% what we're supposed to do. it is like going on a diet and eat first salad, done. stuart: you're an intriguing environmentalist. thank you for appearing on the show. bjorn lomb boring, thank you very much. do i have breaking news. moments ago, congressman kevin brady talking about repealing and replacing obamacare. watch this. >> like many others i live back home and in washington. when i'm home, how many families, small businesses, how many patients have been hurt by the affordable care act. they are being forced into plans they can't afford. they don't want and frankly damages them. so the ways and means committee we're working on solutions that will do this, first, provide

relief to hard-working families that have been damaged by the obamacare taxes, the penalties and the mandates. we're going to provide americans, especially middle-class families who have been left behind by obamacare with the freedom to buy a health care plan that is right for them. not what is right for washington. that is portable, travel with them throughout their lifetime. it is tailored to their needs, grows with their family and can be changed throughout their lifetime. we're also looking to strengthen options like health savings accounts, or those consumer driven health savings accounts that can help families deal better with the day-to-day, out-of-pocket costs that come with health care as well. so, we are focused on repealing obamacare, replacing it, with the types of reforms that work for patients that return control to the states so they can tailor health care to their needs and restores the free market so

americans just have more choices. stuart: now this is a very important appearance because every week the republicans in the household a weekly news conference. this week they put kevin brady out front. kevin brady congressman brady you saw him there, he is the top guy on the house ways and means committee. it writes the tax code for the united states. out he comes he says without any adieu, we're going to get rid of obamacare and here is what we're going to replace it with, that is a very important development because kevin brady is powerful guy. liz: he is the leading guy on tax reform plan. the obamacare taxes are generous. there is capital-gains taxes in obamacare. want to do away with that. that tells me they're doing obamacare and tax reform at same time. ashley: that last point is interesting. does that mean we'll get obamacare reform first before we get to the individual corporate tax rates? stuart: i don't know what it

means but i'll read this into it. if they're putting congressman brady out front and he is talk about obamacare and tax cut, it means the republicans are concentrating very much on the legislative schedule, and not on the turmoil surrounding the administration with general flynn and all of that. liz: president is saying get on with it. stuart: get on with it. that's right. the market is not reacting at all. i think market is looking more closely with janet yellen who is testifying before congress. by the way she has said, she is teeing up, or she is going to tee up gradual rate hikes in the future in the united states. virtually, she is still doing her opening testimony at this it particular moment, and we know exactly what she has got to say. no reaction on market. we're up one point. in other words, dead flat, despite the political turmoil. what we heard from kevin brady and what we're hearing from janet yellen at the federal reserve. now this. prime minister of israel

benjamin netanyahu is in d.c. he is meeting with secretary of state rex tillerson, before his meeting with president trump at the white house. anymore? liz: benjamin netanyahu will meet with the secretary state and as you point out the president, he is telling his ministers back home do not push israel into a confrontation with the president about two-state solution. we'll move forward on the fronts we see eye-to-eye on including dangers eminating from the region and how we'll upgrade relationship between the u.s. and israel in many areas that were so damaged according to benjamin netanyahu under the obama administration. stuart: paul ryan is addressing obamacare. can we go to that for a second? let's hear what paul ryan is saying about obamacare. listen in? >> just have no choices left at all. this law is in a collapse, we have an obligation to rescue people from the collapse. it is about building a stronger health care system for the country, one that gives every

american access to quality, affordable care. instead of fewer choice, we want the health care system to be truly competitive. insurers should compete for your business and treat you fairly. instead of more mandates you should have the freedom and flexibility to choose the plan that best meets your needs. instead of more bureaucracy, the patient and the doctor should be at the center of our health care decisions. instead of all the uncertainty, instead of worrying about whether you find a new plan, new doctor, you should have real peace of mind. that is what the health care system should look like. all of this should help lower costs and end annual sticker shock of higher premiums. i recognize and respect strong feelings should have about this issue. we should be passionate about the issue. it should be about people's lives. this affects every person and every family in america. that is why we're taking a step by step approach, so people can see changes that we are making. so they can see how they will help.

working with secretary price, we will have a stable transition where no one has the rug pulled out from under them while we work toward a better, more stable system. so this step by step approach will rescue people from obamacare's collapse and give every american affordable health care. this is how we deliver our promise to the american people. this is why we're doing what we're doing. we have to stop the collapse and we have better ideas that have been time tested that will make sure we give the american people the kind relief they deserve. questions? nice shoes. your mauney. you want to happy valentine's day? the. >> happy valentine's day. >> all right. stuart: ignore the valentine's question for a moment what you're looking at is important stuff. first of all it was kevin brady. very important guy in congress. chairs the house ways and means committee. writes tax policy. came speaker of the house paul ryan, both talking about obamacare.

getting rid of obamacare, he said, paul ryan moments ago said we have to stop the collapse, stop the collapse of obamacare. ashley, sounds to me like the republicans are pressing forward to deal with obamacare. ashley: like i said before. brady coming out there talking about obamacare. paul ryan is out there. forget the flynn controversy. an effort by the administration saying look we're getting down to business and fulfilling one of our major complain promises to repeal and replace obamacare. stuart: speaker ryan just said it was right for general flynn to resign. you can't have security guy lying, i don't think he used the word lie, but misleading his colleagues. he dealt with it very, very quickly. there is clearly an effort here by the republicans to move on away from the resignation of general flynn and move back to the legislative schedule which according to kevin brady and paul ryan is essentially obamacare reform first, not repeal.

liz: we've been pushing back, do tax reform, get that out of the way, don't get entertaining gelled with obamacare. clear the republican message the fallout from obamacare is so dire, there are less net job creators in this country. that is the mess out of washington. we have to take care of obamacare to get the economy moving again. tax reform benefit, maybe 2018. they're thinking obamacare, repeal and replace would be more immediate. stuart: live action politics all over again. you have got this going on right now in washington, d.c. you also have fed chair janet yellen testifying before congress. by the way she is still in her opening statement. we know what she said. we know what she is going to say, which is, as our own peter barnes said, she is teeing up gradual rate increases for the united states. meanwhile we've got a stock market that is still right at record levels. never been higher. we're down 14 points.

that's not a significant decline by any means. 20,400 is where the dow jones industrial average is. tammy bruce has been sitting patiently listening to all of this. comment please. >> it is irish in me, bubbling up in general. look, i'm very impressed finally with republicans. they lost the news narratives with protest at town halls. that is all people are seeing. they're absolutely artificial. this is what they decided to do. take the narrative back. this is the only way to do it. go over the heads of the media and remind the american people that they are working, that this is what they're doing. it is about flynn as well but it is a reminder also, yes, this will happen but we are continuing on with our work because -- stuart: speaker ryan did say we've got to stop the collapse of obamacare. >> yes. that is lost in this narrative. stuart: you have to do it now. you're right, taking the focus away from what is going on at the white house with general flynn, all the rest of it.

>> even the town halls. stuart: you were right to mention that. town halls across the country, republicans are ambushed by people who are objecting to the people of obamacare. >> we have not seen the love for obamacare obviously for years. these are democrat activists. that is who is sent in. you have to give the democrats credit for that. this is shadow dynamic pushed by the democrats. always about division. the fact of the matter this is going to happen. we heard from paul ryan how. stuart: politics and money. political turmoil. money doesn't care. money is going up. dow industrials -- liz: i'm feeling tammy bruce own something she is not articulating want to, what happened to michael flynn. that is the transition team was being tapped by the obama administration officials. so there is that angle to it. that controversy set aside. it is about economic growth. stuart: i don't care. liz: visibly you didn't care.

stuart: shaking my head here. all right, lizzie, next guest the new hampshire democrat party chair, a candidate to head the democratic national committee. he has a message for his party. watch this. >> telling the voters that oh, our opponent is a offensive, when you're worrying about your damn paycheck, you're worrying about your job, you're worrying about where you're going to live, if your kids will ever go to school, they don't really give a crap is an insult dog. we did not offer a message to people in indiana, ohio, pennsylvania, kentucky. what we did we said, how offensive. grow up. stuart: the grow up expression, received a great deal of publicity. there he is the man himself, ray buckley. welcome to the program. great to have you with us, sir. >> thanks for having me. stuart: now the gist of what you were saying seemed to me, straighten me out if i got it

wrong, democrats have to move away from identity politics and get back to your base, your core of people who used to vote democrat. how are you going to do that? what are you going to put in place of identity politics? are you going to discover the virtues of economic growth? >> well, you know i think we do not have to decide between the two. in fact, what we need to do is acknowledge there was a, a lot of anxiety, while the economy was significantly better after eight years of barack obama, it was not where it was for the average working class family to feel that their future was moving forward and they could actually fulfill the american dream. we should have addressed that more. i think it is anxiety that exists, not just through the midwest but throughout the entire country is very real. stuart: yep. okay. now, in the vote for leader of the house minority leadership

tim ryan, who articulated i think something very similar to what you are articulating, he was defeated in a landslide by nancy pelosi. my point being, that your party is not yet where you are. >> well, we'll see on february 25th. i do think that an economic message, bill clinton said it very clearly, it is the economy, stupid, back in 1992. when we forget to talk about the economy making people's lives better, coming from the lower working class myself i understand the importance of making sure that people feel comfortable, that we'll have a better tomorrow. you know, that said, i do not think that we need to reject working on lgbt rights or supporting minorities or people of color. stuart: sure. >> i think all of that can be done at the same time. stuart: growth softs a lot of problems you -- but let me move

on for a second. i want your take i'm describing as unhinged being, self-described professor at demonstration nyu recently. sir, would you just watch this for a second. roll tape. >> i'm a professor! how dare you! how dare you [bleep]! protect neo-nazis! you [bleep]. you [bleep] you, these are kids who are trying to learn about humanity. they're trying to learn about human rights, and against racism and xenophobia and lgbtq rights and you're letting these neo-nazis near here. you should kick [bleep]. stuart: ray buckley, they have then over your party. your reaction? >> i never met anyone like that acted in my entire life and democrat since eight years old. perhaps maybe she is real person. i don't know, who that person is. but i have never seen anything

like that in my life. stuart: near have we. that is why we put her on. the left unhinged. ray buckley, we appreciate you coming on the show. we do. we would love the hear the voice of middle. road democrats, because we would like a reasonable opposition to conservative politics and i think maybe you're it. ray buckley. thanks for joining us, sir. we appreciate it. >> thank you. stuart: there is hysterical media reaction to immigration raids we're seeing which are basically deporting criminal illegals. watch this. >> what took place yesterday with raids in personal homes is part of the cog of the trump deportation machine. >> how inhumane this is breaking down people's doors an separating parents from their children. >> this is donald trump really executing his campaign plan. he is trying to be a tough guy. so he will go after, you know the maids, the moms, the people that are working in the shops,

instead of going after the hard-core criminals. >> vast majority of undocumented immigrants in country are not criminals, terrorists, gang members. >> go ahead. >> guadalupe garcia is in this country for 22 years. this is what donald trump did. strt: i have to remind everybody, 75% of thpeopleho were rounded up in the raids recently have been convicted of violent crimes. come on in brian kilmeade. joining him live on his own radio show. brian, i think that the media is guilty here of just trying to change the subject and whitewash what is going on here. i think it is disgraceful.e're overwhelmed by what is happening with lt. general michael flynn resigning, i get that. i'm been astounded, laughing out loud, people outraged by donald trump and coverage we're getting of the ayes raids of these people taken out. now barack obama took out two million.

two million over eight years. i didn't see any video of that. unless they have iphone video on youtube. he went to los angeles, san tone yo, new york, took out 680. 75 were confirmed egregious violators of our law. i don't understand the outrage. trump administration has to decide, embrace it, this surepolicy or saying i will do what barack obama did. stuart: the people rounded up, set for deportation, you're right, they have been convicted homicide, aggravated sexual abuse, sexual abuse of a minor, lewd and lascivious acts with a child, the list goes on, but they have been convicted of those crimes and they have served their time in jail and the left is now saying, they have served their time, why are you deporting them? >> because we don't want to support them anymore. and if you are a criminal, you are displayed you do not take the citizenship seriously here. the trump administration to get them out.

they have to get out. what i like, mostly, stuart, message sent to others welling up at the border, perhaps wondering should they go. instead after mag knelt, they're getting a repellant. if i'm going to come to america, i will do what stuart varney did, i go through the green card process. fill out an application. try to get in using family members here, rather than saying my best bet for my family is to sneak in because there is no enforcement. it is all about trends. stuart: brian, when i came here 40 odd years ago, everybody knew if yverstayed a visa or, everybody knew you were going to be deported and you would be in real trouble. everybody knew that. and yet in the last 20 years, that all changed. it is okay to overstay your visa. it is okay to stay. lawyer jet. i don't understand why that happened. >> the thing is, i was watching the president with the canadian leader yesterday. seems like a fine guy, very liberal guy. we open our arms to immigrants. so does america. do you have a application

process and admission fee? we're sying come in the right way. we're a nation of immigrants. we get it. we're not a nation of illegal immigrants. that is not the way it works. they're not thoroughly inventing the argument. simpletons say we're for diversity and win grammys and little trophies very good at music in school, those ones are taking a simple view of all this. to me insulting to those who care about the security. country. stuart: brian kilmeade. thanks for giving us the opportunity to appear with us on a the radio and you with us on tv. we'll see you very soon. brian, thank you. >> see you in the hall, stuart. stuart: as always. you got it. right now janet yellen is appearing before congress. it is her semiannual testimony. that is one of the members of congress offering questions to her. she has finished her opening remarks. what she had to say basically was, there will be rate hikes. don't know when. don't know how many. ashley: basically her testimony, i've been following it online,

she has a pretty upbeat economic assessment but not saying there will be a rate hike in march. so all in all, pretty good. i think the market will not go crazy what see is saying. stuart: we'll take that, arcly, yes, sir. do i have a little bit of trivia for you? yes i do. today's valentine's day. question, what country has decided to ban the holiday? your choices are saudi arabia, ukraine, pakistan, or india. there will be an answer for you next. ♪ as soon as i left the hospital after a dvt blood clot, i sure had a lot to think about. what about the people i care about? ...including this little girl. and what if this happened again? i was given warfarin in the hospital, but wondered, was this the best treatment for me? so i asked my doctor. and he recommended eliquis. eliquis treats dvt and pe blood clots

and reduces the risk of them happening again. yes, eliquis treats dvt and pe bloodlots. eliquis also had significantly less major bleeding than the standard treatment. both made me turn around my thinking. don't stop eliquis unless your doctor tells you to. eliquis can cause serious and in rare cases fatal bleeding. don't take eliquis if you have an artificial heart valve or abnormal bleeding. if you had a spinal injection while on eliquis call your doctor right away if you have tingling, numbness, or muscle weakness. while taking eliquis, you may bruise more easily ...and it may take longer than usual for bleeding to stop. seek immediate medical care for sudden signs of bleeding, like unusual bruising. eliquis may increase your bleeding risk if you take certain medicines. tell your doctor about all planned medical or dental procedures. eliquis treats dvt and pe blood clots. plus had less major bleeding. both made eliquis the right treatment for me. ask your doctor if switching to eliquis is right for you.

♪ ashley: eight retailers meeting with congressman kevin brady tomorrow. they opposed proposed border tax. we asked former reagan economist art laffer bit. he calls the tax, silly. roll tape. >> i'm totally against it, stuart. i think it's a silly silly thing to do. they don't understand international economics a freebie to get trillions of dollars in new taxes to do something else. it will put in a huge bureaucracy. it will could have extraordinary bad effects on u.s. economy and world economy. steve forbes was talking earlier on maria's show, it's a very, very bad idea. i agree with steve forbes.

leave the border tax alone and just deal with.

stuart: that youtube star, putpi dropped by disney for anti-semitism? development there, emac?

liz: canceled youtube show by google. 15 million subscribers. they pulled all the advertising from that show. this is a big move. he is shut down for his anti-semitic i am imaginary. stuart: biggest star of the lot. ashley: 15 million he made last year. stuart: google cut him off. that is not good news for the young man there. i do declare we have some music for you. ♪ liz: who is it? stuart: i know who that is. that's barry white. barry white, right? ashley: it is on the prompter. stuart: we're playing his music because of valentine's day. you know what barry white means, don't you? liz: valentine's day can. stuart: we asked you before the break which country has a nationwide ban on valentine's day. who is here with the answer. cheryl casone. liz: look what she is wearing. >> the music stops minute i come on the air.

stuart: which nation valentine's day? >> pakistan, islamabad high court. they ban any promotional items they ban any -- you can't buy flowers. they're confiscating roses. taking away all the balloons that the street vendors went out and bought. you know why they're doing it? because it is, quote, not part of the muslim tradition. it is part of the western tradition. stuart: so ban it? >> they banned valentine's day in islamabad. it happened in peshawar last year because the president of pakistan said, again, this is not a muslim tradition. stuart: this throughout pakistan? ban the whole thing? >> legally in islamabad. not really a huge holiday nationwide to be honest with you, but in pakistan is a small country, islamabad, that is a huge part of it. it is -- there is a big uproar on social media about this. stuart: barry white and i traditionally enjoyed valentine's day. what more can i say?

ashley: cue the music again. >> feeling the love but nobody else here. stuart: we appreciate you being with us. very sorry it was so short. >> no you're not. stuart: let's get serious. daniel tarullo out at the federal reserve. come on in please, chair of the house financial services committee, republican from texas, congressman jeb hensarling. congressman, when this gentleman leaves in april we are told that that frees up the federal reserve, that they no longer have the chief banking regulator in place, and that the banks will be freed from the yoke of daniel tarullo. you're on the financial services committee. you chair it. what do you make of that? >> well, number one, the president, the former president, president obama never appointed formally anybody to this position. so you had dan tarullo, perhaps unlawfully filling the position, but what we've had here is essentially the federal reserve figuratively if not literally having a board seat in america's

banks. so unelected bureaucrats can essentially micromanage our banks. they can allocate capital along political reasons. this is not a good thing. we need more capital in our banks to prevent losses but ultimately, we have had eight years of dan tarullo. we had eight years of essentially zero interest rate policies and there is zero evidence it has worked. i'm looking forward to having president trump hopefully fill three new seats on the board of governors. get us back to rational, rules-based monetary policy. insure ultimately we lay the foundation for the tradeoff between capital and washington micromanagement. need more capital. we needless washington micromanagement and regulatory burden, stuart. stuart: i think we can get behind that one.

janet yellen testifying on the hill. she will testify again tomorrow. you will have the opportunity to ask questions. so far today, as we say, teed up some rate increases. she says she will complete her term as chair of the federal reserve. you get to ask questions tomorrow. what question in particular will you ask her. >> stuart, what i'm interested in, when are we going to have a more strategy-based monetary policy, one less improve visional. all the economic history in our country, when we have a more rules-based, predictable monetary policy, that is associated with more positive economic growth because people can plan their economic futures. we can't do that at the moment. the second thing i want to ask, stuart, this bloated balance sheet. unfortunately we have a federal reserve that is no longer engaged in monetary policy they're engaged in credit allocation by buying up all the mortgage-backed securities. they're selectively intervene

intervening in credit markets. politics is intervening in supposedly independent federal reserve maneuvering. they need to get out of the business. what the is next question, what is the plan to reduce the balance sheet and what is the plan to get out of the credit allocation business which is not part of monetary policy? stuart: congressman jeb hensarling, we'll look tomorrow when you ask these questions. thank you very much indeed. janet yellen is testifying on capitol hill about interest rates, hikes that may be coming and there has been no reaction on the stock market at this point. we're still down three points. i will call it a dead flat market despite the political turmoil in washington. fed chair yellen's testimony right now on capitol hill. and a lot of talk from the republicans about their legislative schedule, obamacare reform and repeal first. then tax cuts. the market just taking it in stride, dead flat at very close

to record high levels. remember, please, new jersey's governor chris christie will be going to the white house very shortly. he is having lunch with the president at 12:30. don't know what it is about. maybe it will make news. we'll cover it for you. i know you're my financial advisor, but are you gonna bring up that stock again? well you need to think about selling some of it. my dad gave me those shares, you know? he ran that company. i t it. but u know i think you own too much. gotta manage your risk. and you've gotta switch to decaf. an honest opinion, even if you disagree. with 14,000 financial advisors it's how edward jones makes sense of investing.

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stuart: now this. we played a video of a dog race on this program. the winner was a greyhound named after our favorite weather person janice dean from fox news. some of you, not at all happy with us for showing that video. look at this, came in to us from bee. how ignorant for your show to promote the horrific inhumane dog racing industry in florida. didn't you get the memo? very disappointed. who gives a darn who one of the dogs is named after. that dog an all others are living a life of starvation and abuse. are you proud of promoting that? hold on a second. what do you think of that, lizzie? liz: i agree. we weren't promoting it but laughing about the name. this viewer makes a good point. terrible abuse. they're not cade for. theres have been documented abuse of these animals. they break their next and break their spines. they are often killed if they're not turned into racing machine. ashley: i have done a number of story on greyhound rescue

network in this country and arizona and elsewhere. there is a group to save these dogs. once their racing career is over there are people who will take them on. stuart: it is sad. stuart: not all greyhounds are treated -- ashley: there are more re puttable operations. liz: there is too much abuse. stuart: does that negate idea of dog racing. liz: you saud care to the animals. stuart: who is to say that particular dog was abused. we can't say that. liz: correct. stuart: lighter note, english bulldog from florida. her name is varney. her owner tells us she was named after me because "varney & company" is his favorite program. thanks very much, varney. you look very good to me. ashley: i see the resemblance. stuart: you would. liz: english bulldog ticking out his tongue. ashley: very winston churchill. stuart: i can't win on this program. all good stuff, ladies and gentlemen, yes, we will be back.

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♪

. stuart: we say it all the time. very frequently. politics and money. that's what we do. it's our slogan, virtually. look what's going on today. politics in turmoil and money really doesn't care. let's deal with politics first. the media is having a field day. flynn was a divisive figure, and he lied, says the times. the media is up in arms about deportation raids. they don't look the removal of illegals. cabinet appointees. in short, the trump administration is portrayed as incompetent, fascist, and generally falling to pieces. yes, politics in disarray. with headlines like that, you might expect some financial fallout.

in fact, the opposite is the case. your money is doing very well, thank you. we are looking at one of the most explosive stock market rallies in many years and that's because of the news you don't get in the media. a big tax cut. very likely coming soon. a big infrastructure spending bill. that's coming too. economic growth is underway. confidence among businesses and consumers is rising fast. all of that receives scant attention. but investors can see through this media smoke screen. they say prosperity ahead. the third hour of "varney & company" is about to begin. ♪ ♪ ♪ . stuart: is this a joke?

love money can't buy? i'll attempt to give it a shot. how terrible, stuart, how can you say that on valentine's day? cease the music. i want barry white if you've got any music. let's get to your money. check that big board, please. the dow jones industrial average barely bundle. it's down one point. that's it. 20,411. now check the major retail stocks. best buy, target, gap, autozone. the ceos of those in a meeting with congressman brady. the man in charge writing the tax code for america, they are going to fight -- the ceos of those companies are going to fight the border tax, which is a proposal. come on in, please. peter, former goldman sachs partner and the author of a great book, which you autographed for me, the american mojo lost and found. >> thank you very much. . stuart: the border tax. we had art laugher on the show this morning saying that is a terrible idea. don't do it. what says peter? >> i agree totally. this is an idea that's going

to literally take the egg and throw it right in our face. it's going to hurt the american people. it's going to hurt the middle class. it's going to hurt retailers who are already hurting enough. do not have a border class. threaten it. do not use it. stuart: let me give you the other side of the coin. number one, it's a terrific revenue raiser and would allow us to cut individual tax rates and corporate tax rates without going to heavy deficit. number two, it shifts taxation away from taxing what we earn to taxing what we buy, and i kind of like that. >> well, here's my response to that. if you think it's a revenue earner, what you may be leaving out is economy response. once i put a border tax on, we will have other countries that will compete with us by putting their own border tax on. they won't supply through our supply chain. they may it go to japan instead. china'svery good at that. i think it's going to be cost. stuart: peter doesn't like it

and won't have any of it. >> don't like it. stuart: thank you very much. now this. the big news in the white house was national security adviser general flynn has resigned. this came only 24 days into the administration. mark joins us now. american enterprise institute scholar. mark, welcome back. good to see you, sir. >> good to be with you, stu. stuart: this turmoil within the administration, my question is is it going to hurt the legislative agenda of repealing obamacare, cutting taxes, and getting rid of red tape? >> i don't think the flynn controversy is going to affect any of that at all. i think general flynn is going to be replaced by somebody really good and the national security will move on and, you know, we've got -- he's got a lot of really big national securities issues he has to deal with including north korea threatening japan, which could impact our economy if that escalates. so he has to get his national security team in order. however, i think the bigger

threat to all of those priorities that you described at the opening of this hour is quite frankly the courts. the democrats are going to sue barack obama over everything he does, and we see this with -- if people think this lawsuit about the travel ban is bad, it's only the beginning. the democrats are practicing a policy of obstruction up on capitol hill. we have the fewest cabinet secretaries approved by this time of any president in modern history. and they're going to practice a policy of obstruction by litigation. they're going to sue to stop his -- to stop his obamacare replacement. they're going to sue to stop his repeal of regulations. they're going to sue to stop his border enforcement. they're going to sue to stop anything that barack obama does. and they're going to be successful, stuart, because the democrats under barack obama packed lower courts with liberal activist judges. stuart: that's serious stuff, mark. >> most of the courts from liberal to conservative majority so the stuff is going to come up to the supreme court. the supreme court fight is one of the most important things we can face if you care about

tax reform, if you care about all of these economic priorities, we've got to have a supreme court that's going to uphold. stuart: i just want to digress for one second, mark. i'm sure you saw the press conference yesterday with mr. trudeau and president trump. i'm sure you saw it. >> uh-huh. sure i did. stuart: i got the impression that president trump was unusually quiet. calm. very scripted. he looked like he read everything from notes -- not a prompter but certainly from notes. >> yeah. stuart: and i don't think he answered any of the questions head-on. did somebody get to happen and quiet him down? >> i think that he's actually afte after couple of weeks, he has calmed himself down. and part of it rests with the responsibility. prime minister trudeau, for example, did not poke the president about his immigration policy, even though they disagree with it. in fact, ironically, you know, if you think about the australian prime minister and that forecast there's a lot of responsibility for that thing

going south because he tried to force donald trump to take in all of these refugees. his country wouldn't accept. prime minister trudeau's response to the travel ban was we'll take them. donald trump will probably love that. yeah, okay. you can have all of these refugees instead of sending them to the united states. same thing with prime minister abe. they got along famously. one of the things that prime minister abe did was he looked at donald trump's agenda and said infrastructure. japan wants to invest in american infrastructure. and energy. that's a big priority for you. we would like to buy more u.s. energy. so i think our allies around the world are figuring out ways to work with donald trump and see what his priorities are and find a way to work with him on those. stuart: that's fascinating. thank you very much for joining us, sir. >> yes, sir. always a pleasure? stuart: yes, sir. happening right now the senate voting to confirm linda mcmann as the small business administration chair. a simple majority is needed. she is expected to be confirmed.

that's linda. i've got a quick update on the dam. that situation in california. you have the latest? liz: yeah, they're moving to drain that reservoir in advance of incoming storms, which can fill up that man made reservoir again. they're afraid of a 30-foot high wall of water flooding downstream and hitting homes. they're also worried about -- they're dropping boulders to secure the dam, but they're worried about falling debris, rocks, and boulders killing people as the water rushes downstream and hurting bridges and highways as well. stuart: you've got 200,000 people forced out of their home. ashley: yeah,. stuart: told to get out, and they can't go back. ashley: nope. liz: and another striking finding. california more than half of it is 1,500 dams are really dangerous and in bad condition. there's something like 15,500 dams across the country in really dangerous condition. and a fifth of them don't even have emergency plans. stuart: when michigan had a problem with the water in flint, local democrats were asking for the head of the

republican governor of michigan. i see nobody asking for the head of -- liz: they knew about this 12 years ago. they knew this thing was in danger 12 years ago. stuart: well, that's california. >> i wish it was just california. if you look at every report that the national engineering societies have done on our bridges, on our roads, on our dams, et cetera, we are way past due. this is a early warning system hardly unique to california. we're way behind it. it's time for that infrastructure spending right now. stuart: i've got a take for you right now. president trump has met with teachers and parents. let's listen in. >> well, i'm glad to welcome everybody to the white house and betsy devos who has gone through our new education secretary. she went through an interesting moment, and you did a fantastic job. and i know you would have done it again if you had to do it again; right? >> probably. >> she had no doubt waiting for the vote. so i want to congratulate you you showed toughness and genius.

as i said many times in my campaign, we want every child in america to have the opportunity to climb the ladder to success. i want every child also to have a safe community, and we're going to do that very much. we're going to be helping you a lot. a great school and some day to get a very well paying job. or better. or better. own their own company. and a lot of people are looking at that. but it all begins with education, and that's why we're here this morning. and i'm here also to celebrate a little bit with betsy because we started this journey a long time ago having to do with choice and so many other good things with education, and i'm so happy that that all worked out. right now too many of our children don't have the opportunity to get that education that we all talked about. millions of poor disadvantaged students are trapped in failing schools and this crisis -- and there really is a crisis of education and communities working together.

but not working out, and we're going to change it around. especially for the african-american communities. it's been very, very tough and unfair. and i know that's a priority, and it's certainly a priority of mine. that's why i want every single disadvantaged child in america atter what their background or where they live to have a choice about where they go to school. and it has worked out so well in some communities where it has been properly run. charter schools in particular have demonstrated amazing results. and you look at the results. we have cases in new york city that have been amazing in providing education to disadvantaged children and the success of so many different schools that i can name throughout the country that i got to see during the campaign. i went to one in las vegas. it was the most unbelievable

thing you've ever seen, and they've done a fantastic job. so there are many schools we want to do that on a large-scale basis. we can never lose sight of the connection between education and jobs. i'm bringing a lot of jobs back. we're bringing a lot of big plants back into the country. everyone said it was impossible. and before i even took office we started the process. and tremendous plants are coming back into this country. car plants and other plants. and i have meetings next week with four or five different companies, big ones that are going to bring massive numbers back. so we're doing it from the jobs standpoint but education only makes it better. our goal is a clear and very safe community. great schools, and we want those jobs that are high-paying jobs. we've lost a lot of our best jobs to other countries. and we're going to bring them back. so i'm going to do my job and betsy at the education level will do her job. and just to do it very, very

formally, i want to congratulate you on having gone through a very tough trial and a very unfair trial, and you won. and there's something very nice about that. and i tell you the real winner will be the children. i guess a couple of adults also. but will be the children of this country, and i just want to congratulate you. perhaps we'll go around the room and everybody knows our fantastic vice president mike pence. but if we go around the room, that would be nice. betsy, you might want to say a few rds. >> well, mr. president, mr. vice president, i am just very honed to have the opportunity to serve america's students, and i'm really excited to be here today with parents and educators representing traditional public schools, charter public schools, homeschools, private schools, a range of choices,

and we're eager to listen and learn from you your ideas for how we can ensure that all of our kids have an equal opportunity for a high-quality great education and therefore an opportunity for the future. so, again, i'm just honored to have the opportunity to serve and looking forward to fulfilling the mission that you set forward. >> it's our honor. believe me, betsy. >> kenneth. >> kenneth submit. educator helping at risk kids getting through school. the vice president actually has the largest application for graduate kids in the country. and we'll talk about that as a solution. >> great. laura. >> laura i'm from virginia, and i homeschool my 10 and my 13-year-old. >> good. mary. >> my name is mary. i'm charter school parent here in dc at the best school in america. >> you think, huh? [laughter]

i like it. really? is that right? jennifer. >> i am jennifer colman. i am from virginia, i am a mother of six, and i homeschool my oldest four. they're grades kindergarten through seven. and brittle, i was a private school teacher. >> very good. >> i'm the parent of seven. and my kids have gone to both private and public school, and i see differences -- >> big difference. >> big difference. >> good morning i'm julie. i teach special education at a public school in new jersey. >> very good. >> i am jay, and i'm a principal of a special ed center in virginia serving children ages five through 22 with autism and physical and medically-fragile conditions. >> have you seen a big increase in the autism with children? >> yes. in fact, our school has shifted its population more so with autism.

definitely. >> what's going on with autism when you look at the tremendous increases, it's really such an incredible -- it's really a horrible thing to watch the tremendous amount of increase. do you have any idea? and you're seeing it in the school. >> yes. i think -- i mean, i think the statistics i believe are one in 66, one in 68 children are diagnosed with autism. >> now it's coming even lower, which is just amazing. well, maybe we can do something. >> i teach spanish in private elementary school. i teach 4th through 8th grade. >> very good. thank you. >> good morning. i'm the parent of two children 5th grade and 2nd grade, and i live right outside of raleigh, north carolina, and i'm also a former educator in public and private school. >> fantastic. thank you. well, thank you, all, very much. let's get going.

thank you very much, everybody. thank you. . stuart: you may notice there that there are several questions shouted by people in the audience in the room. he did not answer -- and most of them were about general flynn who resigned as national security adviser. but the president stayed very much on point addressing only education with the new education secretary betsy devos sitting next to him. that's that. just happened at the white house. now, i've got breaking news. it happens thick and fast, does it not? i've got breaking news on listen to it. a russian ship off the coast of delaware. what's that? ashley: yeah, about 70 miles out. the russian spy ship. that's the key word. heading north at 10 naughts. it's in international waters. it's not breaking any rules here. however, this is a ship that's capable of intercepting communications or signals, can measure the capabilities of u.s. navy sonar, and so on. the administration so far said

quote it's not a huge concern, but we are keeping our eyes on it. stuart: made everyone aware the russians are out there looking at us. we know you're there. very publicly. ashley: periodically, by the way,. stuart: that's a security question, i guess. i want to get back to the political turmoil of the day, which surrounds white house security adver flynn who resigned. house speaker paul rya addressed that in the last hour. roll tape. >> i think the president made the right decision to ask for his resignation. you cannot have a national security adviser misleading the vice president and others. so i think the president was right to ask for his resignation. and i believe it's -- it was the right thing to do. as soon as this person lost the president's trust, that president asked for his resignation, and that was the right thing to do. stuart: republican of new york and chair of the house sub committee on emerging threats. congressman, always a pleasure. welcome back, sir. >> thank you. stuart: has american security just taken a hit because of the resignation of general

flynn? >> i think, unfortunately, it's probably something that had to happen, and i say that as someone who had great respect for general flynn when he was head of the agency. no one knew more about isis. years before president obama wanted to hear it. anand that created a real problem for him at the agency. but, again, there was this lack between him and the vice president. and that is essential. i think once that happened, general flynn probably did the right thing in stepping down. and president trump did the right thing in asking him to. but, again, i take no joy in this at all because mike flynn is a true patriot and really a man who contributes so much to this country. stuart: congressman, on the left-hand side of our screen perhaps you cannot see, linda mcmann just confirmed for the small business administration. that vote just taking place. she is in.

according to authorities, 75% of those arrested illegals have prior criminal convictions for offenses like murder and sexual assault. i think the media is not covering this properly. this is not a story about maids being separated from their families and deported. this is a story about our unwillingness to have convicted criminals staying in our society. where am i going wrong? >> i agree with you completely, stu. first of all, i have great respect for general kelly, who is the secretary of homeland security. these raids are absolutely required. they're legal. as secretary kelly said more than 75% of those who were taken into custody are people who should not be in the country to begin with. and after they're here, they're committing crimes. no, this is so much exaggeration. so much hysteria being generated. and the same people generating the hysteria are the special advocate immigrant groups.

they somehow forget the fact that president obama supported two and a half million people. an all-time record during the time he was president. president trump is doing here is what he said he would do during the campaign. it's absolutely required. and who out there is going to say that an illegal immigrant who is a criminal should be allowed to stay in this country? this is absolutely crazy. stuart: it's remarkable to me at least that you've got all of this going on in washington d.c. this is political turmoil. the media i don't think doing the right job when it comes to reporting things like immigration raids and yet -- you're a congressman from new york -- you can see what's happening on the market. dow industrials way over 20,000, setting record after record after record. this political stuff is being ignored by investors, and i think most people in the country. again, you agree with that one? >> for the most part, certainly. by the business community and also by people who see the president, again, making

progress, he's making mistakes, shouldn't get involved in tweeting about nordstroms and stuff like that. but the bottom line is he's trying to carry out promises that he said he would do during the campaign. as far as illegal immigrants and criminal records, as far as keeping terrorists out of the country, as far as cutting back on needless regulation and trying to move the country forward and keeping jobs here in the united states. basically president trump is working harder than any president ever worked in his first three or four weeks in office. stuart: peter king, thank you for joining us. >> thank you. stuart: now i want to turn your attention to apple. the stock, the company. that company is now worth over $700 billion. the stock is at an all-time high. peter former goldman sachs partner. that's an extraordinary story. what was it you were saying? in may of last year. liz: 52-week low, and they popped 50% since then. so they added $200 billion in market value since then. that's more than 488 companies

in the s& s&p 500 . stuart: she's stealing your thunder. >> it's an unbelievable run. and in particular when you look back to 2007, 2008, this is a company worth $100 billion. so it has really done well. what's most interesting to me is ten years ago apple dropped the name apple computer. since that time since they introduced the iphone ten years ago. and since that time, two-thirds of their sales are iphone. in fact, my belief is they're not going to call it iphone 8. they're going to call it iphone ten to mark the 10th anniversary. stuart: yeah, why not. >> they're just getting warmed up. i've been wrong about apple, frankly. i underestimated them. i thought when steve jobs left with we would see it go down. stuart: and they've got 10 billion in cash just sitting there. drug makers are getting away with murder. today some outrage on that front. marathon pharmaceuticals is

delaying the release of a muscular dystrophy drug. lawmakers question the massive $89,000 per year price tag. now, peter this raises the estion what about free market capitalism? i mean, marathon has the drug. they've been given seven years to market it exclusively just by them, and they jacked the price up to $89,000 a year. i know people who are getting that drug from europe for $2,000 a year. what's going on? >> well, here's what's going on. one of the problems people have is they're getting super exercised without knowing many of the facts. there are things called orphan drugs. orphan drugs are drugs developed by companies when they know there are only 10 or 15,000 people who need it. there isn't enough money to be made there. but there is a cure within reach sop what they did was created this seven-year window and said here's a chance to make some of that money back. the average price of the 100 orphan drugs right now per year is over $100,000 a year.

now, what happens here is a lot of it gets underwritten by insurance. why is that so outrageous? because you cannot make money creating a drug that is only good for 10,000 people. so the government and these drug companies are working together. i understand this one seems a little egregious to me because you can get it overseas a lot cheaper. but many times these are people saying if we can't make a living at this, we're not going to get into the business. and the chairman of the christopher reed foundation and a lot of the drugs we had to deal with respect for small audiences like that. stuart: thank you for giving us the small coin. it's easy to be outraged until you find the true reasoning. >> and there are literally 100 other drugs the same price and it's only because there's so little people. small, few, but they're desperate, and we should do everything to help those people. stuart: that's why you're on the show. you're good. now the dow jones is on the upside.

not much but nine points higher. undeterred, investors undeterred by political turmoil in washington. they're not looking at that. they're looking at tax cuts and growth. the dow is at a record level. never been there before. back in a moment

. stuart: there really was a dramatic and fascinating story breaking on north korea. came out earlier this morning. ashley's got it. ashley: yeah, right out of a spy novel. u.s. government sources now also saying they believe it was north korean operatives that killed the half-brother of north korean leader kim jong-un. it's believed potentially that two female operatives from north korea managed to poison him with poison needles. and that this individual died in the ambulance from the airport in malaysia to the hospital. he's been the black sheep of the family. he's had other attempts on his life before. he's been critical of his brother. they tracked him down and according to government officials, though, they do believe he was assassinated by

north korean female assassins. stuart: fascinated. >> i can't wait to see the movie. i'm dying to see the movie. stuart: now this. yes, there is another vacancy openinup at the fedel reverse. at gentleman there daniel says he's going totep down. he'll be gone by about april the 5th, we believe. also steve mnuchin was confirmed ght. he is now the treasury secretary. peter, i see those -- a lot of people see those two developments as very, very positive for the economy and for the market. and you say? >> i agree with you totally. i would say steve mnuchin is a very strong guy, and he is the right person on tax reform. we've been sort of stalled on tax reform. he's going to drive it from the administration's perspective. i think that's a huge plus. as the relates to dodd-frank, i think a lot of the regulation has been swirling around even though unofficially in that role, liberating the fed to begin to look sensibly at some of these

dodd-frank regulations is going to be great too. stuart: the president when he fills that vacancy, mr. trump does not need to go through congress to change the rules on dodd-frank, does he? he can go through the fed. >> he doesn't. and here's the particularly odd thing about this is there was under dodd-frank a rule for vice-chairman of supervision. that job was created but obama never filled that job. he let evolve into that job. so now there are a couple of vacancies and i think trump can do a lot with this fed. stuart: fair enough. now we have the dow industrials up 11 points. despite political turmoil at the white house, despite janet yellen testifying in congress as of right now about raising interest rates, despite all of that, the dow is now up 12 points and rising. never been there before. come on in, please, david joining us now, former senior staffer and author of the book the great equalizer. david, i want your take on daniel trillo and on steve

mnuchin. around this table, we see that as a very, very positive development for our economy and for the markets. what says david? >> i know dan. he's a very nice man. but when you look at the results of his efforts at the fed on the regulatory side, what do we have? we have large banks that have become zombie banks. they're so massively regulated at this point. and then we have the smaller banks, the regional banks, the community banks that have been crushed by the fed. i mean, it's great to say, look, i made the banks safer. but if you made them into zombie banks, i mean, look at the consolidation. just since the financial crisis. the top 12 banks in this country used to be 45 to 50%. they controlled 45 to 50% of all banking assets. now it's 75 to 80%. so they've consolidated these banks, made them risk averse. so why wouldn't a new regime, a new look at the glass siegel and the fed's regulatory

activities being incredibly bullish for the economy? . stuart: well, the financial stocks are responding to what you're saying and what peter has been saying. basically financial stocks have gone straight up since the election and very recently gone up even more. we were told yesterday, david, that the big banks like citi, for example, have 20,000 people at that one bank just to have regulations handed down to dodd-frank. and maybe some of those people can be let go to more productive jobs. what say you? >> yeah. well, and, you know, when you talk to those people, they say the fed has been very arbitrary. they set rules, you know? and then particularly on the stress test for these banks. it's a moving target, and of course it's nonproductive activity. that doesn't mean we want to go back to the system where the taxpayer is the learned of

the last resort. we don't want to go back to that, and that's why we need some really smart people. we need kind of almost divine guidance on this thing to find -- it's like a cinderella process where not too much but not too little. and we need a regulatory system that's designed for growth. stuart: yes. dear lord just free us on the gigantic dead hand of government bureaucracy. thank you for joining us. we appreciate it. thank you, sir. >> oh, thank you. stuart: let's get to those lawsuits from the states. states of and minnesota under president trump's order of travel restrictions. they will proceed in lower courts. i've got headlines on this issue. from cbs as in cbs news, judge denies doj request tpostpone travel ban hearing.

and from usa today virginia judge blocks trump travel ban. judge napolitano is here to sort this out. i thought we dealt with this. >> well, there are 48 lawsuits against the president. each before a different federal judge. the one that we have dealt with on is the one in seattle because only the judge in seattle has issued a nationwide restraint on the president. the other judges, like referenced to alexandria, virginia that you made a few moments ago have only issued restraining orders in the areas where they sit. so, look, the president hasn't decided what he wants to do. and he's trying to buy more time. stuart: but in the meantime it is the courts which are holding everything up; is that correct? >> no. quite the contrary. the federal judge in seattle wants to move this through and try it next week. and the president says we're not ready to try it next week. what does the president really want? a guy named gorsuch on the

supreme court. stuart: what's that going to do? >> before this case gets ther t. stuart: oh, okay. but that's going to take a long time. >> well, i don't know how long it's going to take, and i don't know how long they can delay it. i also think the president hasn't decided what to do. he's under some pressure from people who have argued, as you heard me argue, that he should rip up the original order and write a new one that's legally bulletproof. stuart: right. >> he's under pressure from some people at the justice department who are very fine trial lawyers. let us try this. we'll win. he's under pressure from people in the intelligence community you can't tell a federal judge what we told you because that exposes how we find out who's going to come into the country. so the president has conflictive information coming to him, and he has to make the call. stuart: you know what i think, judge? i do believe it is the courts which are going to hold up all of president trump's agenda. >> that would be an inappropriate exercise of judicial authority. stuart: yes. but it's going to happen. >> well, judges must be politically indifferent. they cannot rule in order to

produce a political outcome that they like. when they do, then they're not ruling as judges. they're ruling as politicians in black robes. stuart: won't stop them doing it, though, will it? they're going to hold up obamacare repeal. >> i think your point to see some of that. but ultimately i think you're going to see iellectual honesty prevail. stuart: intellectual honesty? >> and difference. stuart: we praise that on this show. that's why you're on. >> you're kind to say that because the queen prized that. stuart: we haven't spoken recently. >> she hasn't given you a title yet? stuart, please. ashley: don't hold your breat b. stuart: it's an aristocratic estate near my hometown. >> wait a minute. you're an american now. an american who wishes the

title of noblity. stuart: if i was offered a noble title in great britain, i would go. only if it comes with a salary. >> somehow i'm not surprised. stuart: quiet on the set. >> yes, your lordship. [laughter] . stuart: automakers are asking president trump to reconsider emission rules put in place under president obama. can get me out of this. explain. >> we'll talk about automobiles. last summer a report came out saying that the automakers were not going to meet the targeted 55 miles per gallon. that's when the trouble started. frankly during the obama administration they well ahead of time switched the rules and said you're going to stick to it. we're going to hold you to it. forcing trump to have to go through a major rules proceeding if president trump wants to change it. this is a little bit of step

by step dancing. a little bit of a dance. but the fact is they're very aggressive timetable. very aggressive targets, i don't think we're going to make it. stuart: but if president trump changed the rules, that's very good news for the automakers, and their stocks have been up recently. >> well, it's decent news. one word to bear in mind. tesla. if you don't do it, someone else is going to do it. this technology exists. and if you don't, someone else will. look at apple, ibm. there are many, many examples. ibm used to be the most valuable company in the world. now it's apple. and people would be delighted if the automakers went on these targets. stuart: we've got betsy devos speaking. >> hosting the president and vice president today talking about the various approaches that parents have taken to ensuring that their children have a great children and therefore a great future. we did a lot of listening. a lot of comparing notes, and

we i think jointly agreed that there's so much that can be done and must be done to ensure that all kids in our country have the opportunity for a great high-quality education and future. so i think all of these dedicated parents and educators on behalf of the president and the vice president. thanks very much. stuart: betsy devos having met with president trump this morning and a group of parents and other teachers. just emerging there. betsy devos is the new education secretary standing euro favor of school choice, therefore going up head-to-head with the teachers union, which does not want anything to do with school choice. here's what's next. disturbing video of a professor, she says she's a professor, we're looking at the left truly unhinged. still reeling over the election of president trump. wait until you see the rest of that video. what's happening here?

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>> i'm nicole petallides with your fox business brief. after a record-setting day on wall street where we saw the dow, nasdaq, s&p, and the russell all closing at all-time highs, we see the dow up seven points right now. 20,417. several of those names have notable highs on the dow including jp morgan and goldman sachs looking at

obviously goldman sachs the real winner taking out the levels of nine years ago during the financial crisis. so that's certainly notable. jp morgan, goldman sachs also apple and home depot notable highs. and verizon and procter & gamble. amazon. video chat, sharing screen. this is something they're going to delve into with their web services to take on skype and webex and gotomeeting and microsoft. and intel expanding in china to sell their toys alibaba in china. why pause a spontaneous moment? cialis for daily use treats ed and the urinary symptoms of bph. tell your doctor about your medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis

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. stuart: check this out. a woman claiming to be a professor on the nyu campus screaming profanities. she wanted police officers to beat up vice media cofounder gavin mcginnis before a scheduled speech at nyu. watch -- it's disturbing. but watch it. [screaming]

. stuart: we thought we should bring this to your attention because a lot has been written and said about the unhinged left. i believe we just brought you the unhinged left. larry elder is with us. larry, you're laughing, but you know this is serious stuff. this woman claims to be a professor. she's on there urging violence, demanding an end to any concept of free speech. i think we've got to take account to this. we've got to look at this and say this is what we have to deal with in this year. >> absolutely. it's part of what i call the trump derangement syndrome. but it isn't even clear whether or not she really is an n yu professor. but evenshisn't,ou see this kind of stuff happening all across the country. uc berkeley, milo couldn't speak because of professors out there. you have protesters referring to donald trump voters as terrorists. it's insane. especially when you consider,

stuart, this is the most centerrist progressive left-wing republican president in my lifetime. this is a man who's daughter says she wants six weeks paid maternity leave. what republican says that? just yesterday he said we should do more to help working mothers, be able to do both. what republican says stuff like that? this is a man who wants to do a trillion-dollar stimulus plan that chuck schumer is happy with and even on obamacare, he says he wants to keep the good provision of obamacare, including making sure that insurance companies could not exclude you because of preexisting illnesses. so i'm not quite sure exactly what the left is all upset about. stuart: well, let's continue this discussion of the unhinged left. the left is clearly apoplectic over the deportation rage that we've seen recently. however, as you know, larry, 75% of the illegals arrested have prior criminal offenses. murder, sexual assault, et cetera, et cetera. i think the media is just really just confusing the audience. confusing america. and i think it's quite deliberate, larry.

you've got to be seeing this in southern california. >> of course. it's inconsistent selective outrage. in 2006 senator obama made a pretty harsh trump-like statement about illegal immigration in 1995. president bill clinton gave a state of the union speech. talked about us more to deal with illegal immigration. in fact, reed and clinton even used the term illegal ail yes, closed quote. now for 2017 donald trump says the same thing, and he's a fascist and a nazi. it's insane. stuart: on a somewhat similar northern california, governor jerry brown apparently was warned about the deterioration of that dam. what's the fall out on governor brown? >> well, this is california, so there won't be any fall out because there will be plenty of people to blame. but you're absolutely right. he was warned about this. we're spending a lot of money on high speed bullet trains that we don't need and not doing what we should be doing, which is to protect people.

and this is something that was warned many times. we were using money for this, that, and the other, and not using money for infrastructure, which is what we ought to be doing. it's obviously on jerry brown and on the lawmakers. but, again, they won't be held accountable because this is california. stuart: larry, we love to have you on the show. you build up a head of steam before your radio show. you're on the air shortly. thanks for joining us. >> and should i be calling you sir, stuart, varney? . stuart: no, i'm an american. don't you forget it. i am an american, young man. proud of it too. thanks, larry. we'll see you soon. stop it. money and politics. that's what you do. you get more of it after this

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. stuart: we've got an update on the fight. that's the still shot right there. charles oakley banned for life. ashley: yeah, that lifetime ban has lasted four days. reinstated now. knicks owner putting the ban in place. apparently the league's owner,

the commissioner rather and michael jordan got everyone together and said all right. guys, let's kind of calm down. figure this thing out. they all hugged and made up apparently and charles oakley is back in favor, back in the madison square guarden. he was in arrested and charged with assault getting upset with security when they tried to move him out last week at a game. stuart: he's back in. ashley: he's back in. stuart: there you go. that could have been reduced to five seconds. >> they should put him on the curate. ashley: there you go. stuart: i've got a story here about an extraordinary jump in the price of a drug which helps people. it's a muscular dystrophy drug. it's going to be costing 89,000 dollars a year. marathon pharmaceuticals brought this drug in the fda s given them permission to market it exclusively for sen years. they're going to charge 89 mark siegel is with me. i say that's understandable because it is an orphan drug.

it treats a very small number of people who have this particular condition. if you've just put it out at five bucks a pop, you don't make any money because you don't develop it. you've got to charge this amount of money to make it and put on the market. you say? >> we report. you decide. here's the deal. you can get that drug for $17,000 in great britain online. stuart: right? >> number two, there's an alternative drug which everyone's heard of which does the exact same thing, has a few more side effects. that costs about 1- $2,000 a year. this is going to be 89,000 $000 a year? a captive audience of 12,000 young boys who only live 20 to 30. this helps them -- 20 to 30 years old. this helps them be out of a wheelchair. the whole purpose of the patent law here was for research and development. come out with a new drug. something no one has ever seen. this is a generic drug. stuart: so you're with me. it's okay to charge $89,000 a

year because that's the only way these get on the market. you're with that? >> yes. and no. i'm with that but i like president trump's executive order because i would like somebody out there to quickly come up with an alternative and compete with this sucker. because it should not really cost $89,000. it's not fire. they're doing some pirating here. i would like ten companies. we're talking free enterprise; right? get back to choice. there should be a choice where somebody doesn't have to pay $89,000. stuart: we agree to -- >> hijacking a captive group that has no choice. young boys who are very ill. i would advise them to use prednisone. it's a very severe illness. i'm not legally against this, but i have a problem ethically with it. stuart: an ethical problem on this program. good lord. thanks for joining us, doctor. >> better than anybody. stuart: we're not done yet. there's a lot more of this to come. stay there, please. >> now they're going to argue

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♪ >> regrettably. we're out of time. fortunately neil cavuto is here to take it away. neil: that is weird, stuart. once again, when it looks like the attention shifted away from tax cuts, the markets kind of meander. the better looks for them, the worse it looks, uncanny. >> yet you have this political turmoil in washington with the resignation of general flynn but markets really holding up at astronomically high level. i find that fascinating frankly. neil: you're looking at the half-full glass. i admire that. next two hours, a half-empty glass. we have a lot going on, thank you, stuart, very, very much. it is uncanny, folks, i keep mentioning