. . neil: pay-per-view of the kids earlier. frightened out of their mind. why were they holding up crucifixes? stuart: do you have a show to do? neil: no, i like to talk to you all day. man, oh, man. i got them on a loop in my office now. thank you, my friend.

i will try to pick up the baton here. don't know if any took a peek at "the new york times." they view the whole tax cut, a total waste of time. benny to the wealthy. this is not just "new york times." playing out in one mainstream publication after another. always gets left furious. trump under fire over huge tax cut for the rich. billionaire friendly tax plan. trump opposes giant unfunded tax cut for himself. then there is the issue of mainstream broadcast media. what they had to say about this. take a listen. >> proposed cut corporate tax rate focus after the love attention tonight, among the prime beneficiaries businesses like presidentrump's. >> on paper everyone in for a break. personal income taxes. corporate tax, savings for the rich and dead, but nothing how to impment ioray for it. neil: did you hear that, for the

rich and dead, the la latter reference to the estate go away. dead by the way already paid taxes so their heirs are taxed again. how is that for for a zinger? does tax plan help trump and rich? is that part of the debate. did we go through this for john kennedy propose attacks cut materialized after his death that significantly goosed the economy? here to debate all this ex-trump visor steve cortes. we have democratic strategist, tom baer. tom, i'm sure you of the view loyal democrat that is a bit much, i'm sure. >> i don't know if it's a bit much, bit little, emphasizing the media in this case is particularly inept because the media doesn't need any help at all opposing this. the republicans are opposed to it. this is not going to get through. neil: all republicans are opposed to it?

>> i didn't say all republicans but a lot of republicans are opposed to it in both the house and senate. in the house it is particularly acute. they have to face the voters in 28 teen. neil: if republicans opposed it, ones concerned worsen the deficit not so much who it is targeted, right? >> that is correct. i think blow as hole in the deficit, trillions of dollars. what are we back to -- i think it is odd hearing a democrat blowing a hole in the deficit adding to the dent that grew $10 trillion. >> you are talking to me. i only don't have a label but i have a brain and frankly there are other element that are odious, which -- neil: wait a minute you cited just now the debt and now you don't like, many will mention the same thing. but i find it odd the same concern wasn't there, maybe you particularly had it, but, democrat were largely acquiescing increase in the debt?

>> it's a question of degree here. sometimes the debt goes up and sometimes it really goesp. t this is blows a hole in the deficit that democrats, liberals, republicans should oppose. there are other elements of it. for one thing, it is not reconciliation because of into the future years. and so that it can't pass the senate. the question is neil, why are we spending our time on this one-pager, which is a lot of aims but no specifics, when in the ordinary, regular order, we can sit down and create a needed change in the tax laws? neil: well the blueprint, go from the blueprint, house ways and means committee. your point is well-taken. steve, let me go to you what you make of this. he is right to say there are some republicans are concerned, unless these are paid for, republicans are going to compound this debt that grew mightily under president obama but will grow even still more

and this is not the way to do it. others simply say, wait a minute, whatever short-term hit we experience we'll get more revenues down the road. where are you on this. >> neil, first i would say, compliment i give the mainstream media and left they are unembarassable. incredible to me they are becoming deficit hawks after an administration which doubled the federal debt, administration which was fully support it. neil: do you worry about the aspect, steve. >> no, i don't. neil: short term it will add to the debt. >> we can't be penny-wise and pound foolish. the only way to solve our debt problem, and it is a problem long term, only way to solve it through serious economic growth, something we have not had in a decade. the math doesn't work any other way. neil: what about entitlement growth. >> neil, you and i know entitlements are not on the table, not on the table for republicans or democrats. if you don't attack

entitlements, is discretionary spending isn't big enough. neil: if you don't attend to growth in spending republicans or democrats this could be exercise in futility, right? >> two things. discretionary spending this president put forth budget parameters which are aggressive cutting discretionary spending on agencies which would be cut in many ways. albatross on america, epa which are restraining economic growth. on top of that, if we get growth which we need, 3, 4% growth which this president promised and i believe will deliver to the american people, faster growth solves so many problems, societal problems, debt problems and budget problems. this is blueprint is all about growth for the american people, it is why they elected him. >> okay. neil, let me just say, there are issues that relate to growth, that are very important, but my point is a simpler point, and, it is not inconsistent and that

is, it can't pass. now, if this is an intellectual exercise -- neil: i wouldn't be so sure of that? >> as currently proposed, it can't pass. i'm not talking about the house. i'm talking about the senate. since it can't pass, or is highly unlikely to pass, what is the point of having these intellectual arguments as -- neil: you don't know that, right? you don't know that. i think they said about the same about ronald reagan's tax cuts in the 80s unlikely giving sweeping nature they would pass. >> well the answer is -- excuse me. something will pass, and should pass. neil: but you don't think it is this. >> that is the point. let's get to work on it. neil: your counter to that, steve? >> i think it can pass and it will. this will appeal to democrats, particularly 10 senate democrats who have to run for re-election where trump won. neil: i don't think you will get one democratic vote. this will keep in line with

fractured nature of washington these days. either all republican or not. i don't see a democratic vote. but i would be pleasantly surprised. you're confident it will. >> you could be right. i think we'll get democratic votes. the reason why i believe, i think you will have pressure from lab bore union leaders say you know what? this plan makes a ton of sense, particularly if we involve infrastructure in whole negotiating process. it make as ton of sense for american workers. neil: middle tax cut leave evil rich like guys likes steve, would you be okay with it? >> there has to be tax reform and it has to induce -- neil: that is not what i asked, if it was for the middle class, just middle class not upper income. >> no. i think we need, the one point about this is really not tax reform. this kind of one-offs here there and other place. we are all interested in tax reform.

our internal revenue code is disaster. its an enforesment is even worse. that is the middle class. neil: all right. >> when you have something goes whole hog doing away with the, the alternate minimum tax, estate tax, i don't know of hi hod carriers or teamsters or workers or labor unions. neil: alternative minimum tax was rope in billionaires around hundred millionaires and now it is taking upwards of 10 million americans. >> that is true. neil: maybe they had to address that we'll see. jury is still out on this, but,. >> i'll say. neil: the battle is on. gentlemen, thank you both very, very much. >> thanks. neil: to that point how this all fares out, i had to chance to talk to house minority whip steny hoyer, he says this is deficit busting going nowhere. listen are you confident or do you see the possibility that some democrats can vote for these tax cuts? >> not now, neil.

they estimate the cost the atrillion dollars. and -- $6 trillion. neil: over 10 years. >> over 10 years. that is $600 billion a year. essentially what they're saying it doesn't have to be paid for. neil: now to republican senator john barrasso, middle of all this, not republican policy committee chair. he is very, very important person to navigate all of this. senator, you might have heard what prior guests were saying. steny hoyer saying deficit bust egggoer nowhere. that is a little rich from democrats, piling up debt from administration of all stripes. what do you make this will be a tough sell to members within your own party? >> well we're all of tax reform. when i think of tax reform i think of lower rates and simpler process. that is what the american people want. we want to get the economy moving. growth does a lot.

i want to see details. we don't have that yet but the best news i had in wyoming standing in line behind line at store. buddy came in, how are things going? great. people are hiring. get people working, tax reform is the way to do it, to incentivize people to make investments, get people back to work. have people keep more hard-earned money, decide what to save, what to spend. what to invest. i want tax reform. neil: to democratic point there might not be republican votes, even though you guys control the senate in the house, albeit in senate by tenderest margins, it would be tough to argue members revenue neutral right from the get-go. could that be a problem? >> for some it may be. we need to see the legislation, get writing. get a score on this. we'll all make our own decision.

but you have a united group of us who want tax reform. neil: but is it enough? you have 52-48 margin in the senate there. you can't afford more than a couple to peel off here, right? do you think you have got the numbers? you're quite right, senator, remind we don't even know what we're dealing with here. broad parameters of a big tax cut, might, might as things stand now, not revenue neutral at least in the near term. do you think all your members would be in agreement to deal with that, swallow, that and move on? >> well. in the senate it would be an open amendment process. people will bring amendments to the floor. neil: sure. >> to try to improve it. to strengthen it in ways to help stimulate the economy, stimulate investment. getting people back to bork, higher paychecks, all of those things to help economy. way more tax revenue is in, more people working not by higher rates. i like what the president is promoting. lower tax rates all across the board.

a fewer number. three different tax brackets. continuing to preserve on of the deductions important for charity and real estate. eliminating the death tax. these are things very popular. i think things will encourage more investment in the economy. neil: all right, senator, thank you very much for taking the time. we'll seal how how it goes. still early in the process. the timeline by the way, on a lot of this, folks, a late summer sort of a start on this in serious momentum here and have a vote in the fall. couple of open-endedded developments would be whether retroactive to beginning of the year. whether a fight over some of these deductions that might phase out especially for those who write off state local taxes which in high taxed states like new york and california and new jersey, that might not be greeted so favorably because already, the complaints are piling up in those same publications which i was

alluding, many in the mainstream media from the get-go, too much taxing, too much a waste of time. we'll have more after this. 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 and get medical help right away. ask your doctor about cialis. ♪ predictable. the comfort in knowing where things are headed. because as we live longer... and markets continue to rise and fall... predictable is one thing you need in retirement

>> development. a lot of people are talking about the great things happening in argentina. president macri chairing g20 summit next year in bain buenos. i think i've been invited by you. i don't done a long time. we look forward to being there. but the incredible check path that argentina is now on is something for, the world to watch. i know an important part of president macri's campaign was promise to increase security in argentina. i promised him we're going to strengthen our partnership to combat narcotics trafficking,

money laundering, terrorist financing and corruption. the risks of our increasing dependence on the internet, president macri and i agreed to launch a new bilateral cyber working group which will help the protect security and economics of both of our countries. we will work on our that very hard. our company's internet users and global cyber community will all getting together. we'll be working diligently. it's a great day, two friends, friends known each other many, many years, i won't tell you how many years, i knew him when he was young. he knew me when i was pretty young. and we know each other well. and it is a great honor to have you and your representatives here with us, mauricio.

>>r. preside- [speaking in native tongue] [speaking in native tongue]

neil: all right. donald trump will speak shortly. he is speaking spanish. i pass along what he said. you have business network and we're big admirers of that network. non-stop live coverage on the economic and important international developments. i have no idea what he is saying here. but this is a very important relationship and these two leaders go back, close to 30 years they have done business with each other and number of transactions, back in their private corporation days. -- financing as well, a number of real estate deals, not directly with one another but part of the same. so again this comes at a time when of course this whole north american free-trade agreement is being call

the canadian, mexican leaders are not too happy with what they seem to be thinking as abdication of that deal on part of the president and rescinding that deal. the president said that is not the case. he is not rescinding the deal. he wants it renegotiated. we'll have updates from canada. canadian prime minister trudeau said he thinks he can work this through without this erupting into something more severe. this nafta agreement itself woultually include the entire region of latin america and that argtina would have been a beneficiary as well, but again, critics came to the point, those in the labor union movement in this country came to the point, they said it was disproportionately helping others and not the united states. back this meeting. reporter: time frame in mind nafta renegotiation? >> it will be sometime soon. >> thank you. >> thank you. >> thank you folks. thank you very much.

neil: that is english for thank you very much. president acknowledging, stating obvious from his counterpart from argentina he is too is a big fan of fox business network. i will get angry email. he didn't say that. prove it. meantime, we've got former bush 41 campaign advisor mark serrano, jonathan hoenig on this nafta deal being renegotiated. the canadians are optimistic, jonathan, means the agreement isn't shelved but reworked. they better hope so, right? what do you see happening here? >> americans should hope so as well, neil. you can't be a little bit pregnant. you're either for free trade which is freedom or not. historically in the last couple days the president is not. for fair trade like john edwards or leftists. he is for smart trade like obama was. we've seen it so far in lumber, in milk. i really fear, neil, canadians

should fear he is making same mistakes of herbert hoover who turned stock market crash into the great depression through protectionist trade policies. neil: mark, obviously the president is taking a different tack on this. he thinks what has been onerous to american businesses this is his opinion, canadians will try to correct, mexicans will try to correct, will they? obviously these things, tension escalates and gets worse. >> if you believe in free markets, nafta has to be fixed. you look at manufacturing jobs lost in our 63 billion-dollar trade deficit with mexico. that is not acceptable. why do you still have nafta with a tremendous trade imbalance? what the president is doing, employing "art othe deal." within of the 11 principles is know your leverage. what did he do? he put tariff on softwood lumber. after threatening to scrap nafta, what happens? presidents of these countries call him saying don't scrap nafta. let's renegotiate. he is winning on trade because forced these people to the table to fix nafta.

that is the best thing for our economy. neil: i do worry though, kind of to jonathan's point, mark about danger of renegotiating international agreements, whether it's immediately justified or not because then won't other countries start saying all right, they renegotiated this, they will renegotiated this, can't take americans at their word when they sign a agreement, another president comes in undoes the agreement. know what i mean? >> if you fix an agreement, there is greater trade balance it will be good for both parties because we continue to do trade with them. otherwise we shutting down our markets through these tariffs. that is not good for anybody. i don't agree with that. i think we'll have a better deal. neil: jonathan told me to ask you that. let me ask you, jonathan, the canadian prime minister said, there is flash, no question, broad range of options available to canada in terms of trade retaliation. it we were to work collaboratively with the united states. this on the heels of the president going africa canadians

on lumber -- i wonder where this goes, what do you think? >> there is basic miscon songs, neil, trade is always win-win. the president is coming in with a force. to mark's point, force is taxes. that is all the president can do. this is central planning this. this is something the right decries. >> the sky is falling. oh, my gosh, you got to be kidding. leverage of the bully pulpit and bringing them to the table. they're saying uncle already. we're going to cut a better deal. >> he is using it against americans. that is what is so different. look at empirical evidence, neil, through literally since adam smith. most free economies are most pros prosperous, that president trump picking winners and losers. >> nafta is strangle hold on free markets. i worked on nafta in 1993. it didn't work because of trade i amal bans. nafta is in the way of free markets. that is the point.

neil: you worked on this when bill clinton was president? >> i was just a kid. neil: you got over that. guys, thank you very, very much. argentina was not part of the original nafta agreement. i want to make clear they were part of the extended latin america agreement. considered early bearberry, he was explaining phrasing fbn embarrassing me, don't go too far here. we find a lot of beneficial aspects of agreement. the mexican leader we're told in the mexican press is trying to work with the argentine leader to send a message to president trump, get him off the tirade against this agreement. if he completely rescinds it, you're going to regret it, i'm going to regret it, the whole world will regret it, this guy will make our lives very, very difficult. that is that point of view. again it is getting to be a thorny issue. meanwhile, you know we pulled this out here, mentioned the oddity of the media kind of saying, what 400,000-dollar speaking fee?

now the media is on that story that charlie gasparino broke, that barack obama is going to get that amount of money to make a speech to kantor fit gerald in september -- cantor fit gerald in september. it is what the obama people saying about the that is significant and make raise your eyebrow and raise a drink after this.

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>> you're not going to go to wall street make a lot of money no. >> not going to wall street. the amount of time i will be investing in issues is going to be high but it will be necessarily in a different capacity. neil: all right. that was a few days before he formally left office. now word broken by our own charlie gasparino he will be collecting 400,000-dollar check from no less than cantor fitzgerald, wall street powerhouse. not a big, big powerhouse but certainly far-flung from the

stuff he used to say. gaspo, what do you think? >> mid-sized firm but respectable mid sighs firm. neil: respectable to offer 400,000-dollars speaking fee. >> run by howard lutnick. long time wall street ceo. neil: lost his brother on 9/11. >> lost his brother on 9/11. cantor fitzgerald has been around. i think you and i caught a little heat from some moron, mediate? who has a problem with us calling out liberal media bias. neil: and examples were entertaining only today, only today does "the new york times" report on this. spokesperson did, from president obama's office saying that i would just like to point out in 2008 barack obama raised more money from wall street than any candidate in history, still went on to successfully pass implement toughest reforms on wall street since fdr. that is not the point though, right? >> we should also point out that

gary cohn, who is the head of trump's nec, was part of that -- neil: national economic council. >> part of that coterie of wall street guys that helped him raise money. neil: if there is no there there, all the more glaring eight years as president, called them fat cats, i didn't like, calorically-challenged cats, very insensitive to fat people everywhere you would think that you would be a little reticent to be diving into that pool, right away. that's all. >> because you know, it wasn't that he just, like, passed some laws and, screwed them on businesses. neil: no, this was the most vilified industry. >> he demonized them as evil bad guys who caused the financial crisis. as a whole. he didn't say there were some good guys. they were basically blanketed, most of them with a scarlet letter of, well, two scarlet letters, fc, for fat cat. he just really --

neil: quick response, in these clips and sites you've been referring to every president scores pay days. >> not every president branded them as evil. neil: that was my point. that was my point. be like me addressing a whole foods convention. >> or me going to the pumpkin spice latte convention. neil: with he would switch. >> i would do whole foods. neil: we spoke about it to make the point that that is what made it glaring. not so much we begrudge anyone from picking up big paycheck, but this is the very group that he railed against. >> listen, i want to say this. he deserves to make money. president obama is not president trump. he didn't, comes from modest means. he was working in government his whole life. he deserves to make money. neil: what i found irked people, nothing about donald trump's business ties. >> every day. neil: every day we do that. >> every day, ivanka, jared. gary cohn. how much do we beat up on trump? every day.

neil: my point people see things through their own prism. do you think this is a signal this president, you know, the wall street ones stand out but he is going to hit pay dirt on the speaking circuit, but he is our most recent former president. >> i listened to him. he is a very good speaker. neil: another argument raised this is about health care, issue near and dear to him look like being dismantled. >> be real clear, kantor fitzgerald is having a health care conference to make money off health care deals. their using what every says to make money to trade off it. he is not there for like kumbayah. cantor fitzgerald. neil: people see things and you and i report on this stuff we have both sides who ream us. >> you thing is, neil, one of problems with the media today it too often speaks to segments of the population as opposed -- "new york times." this is caught up to the mainstream media where i worked.

you have too. neil: sure. >> they were so liberally biased they created a chasm there is few places for down the middle news except for right here. i will say this -- neil: even the example you mentioned, because of you constantly keeping this out there, idea, others cited this article, gave fox business credit. that it wasn't what it was about, mainstream media, near term, "washington post," "usa today" that story was invisible. we made a big deal, suddenly became very visible. >> i was among the first, among the first to break the story, president trillion, candidate trump was essentially stiffing money veterans when he skipped fox news debate. neil: they lept on that. >> they had no problem. when i did the thing. they went nuts. did i had on "your world" and did it all over the place. neil: can't pick and choose. >> we did that at fox news and fox business. by the way, trump couldn't have been more steaming. i was at the press conference

when he finally gave in had to give the money after all that coverage. oh, god, he was mad. neil: great reporting, charlie. remind those said, gun ourselves for barack obama, donald trump doesn't do this show. not a personal fan of mine. that is fine. >> he loves me. neil: no, he hates you even more. that is possible. i have no agenda outside of saying this kind of stands out and we report it. and it is up to you to decide reportable. i think it is. as that argentina president just said he loves fox business. [laughter]. who is that pinochet or is that from chile? neil: they're going to look at eliminating some deductions as a way to get this whole, tax cut stuff through, so far protected, charitable deductions, mortgage interest. not so if you're an expensive state what you pay in state, local taxes. those might not be deductible anymore. if you're in new york or california or new jersey where the taxes are eye-popping, that

could be a big deal. gerri willis on what all of this back and forth means. gerri? reporter: that's right, neil. the administration tax reform plan as you say was announced yesterday. it keeps mortgage interest and charitable deductions, good news for individual taxpayers. but the biggest deduction for high-taxed states like new york and california would go away under the plan, the state and local tax deduction, allows taxpayers to deduct income, sales, real estate taxes levied by cities and towns. 28% of the americans tax-filers use it t deductions but in high-taxed states the proportion is f, far higher. 34% of new yorkers use deductions. 41% in new jersey. 33% 9% in california. amount of the writeoffs is stunning. deduction is share of adjusted gross income is 9.1% in new york, 8.7% in new jersey and 7.9% in california.

now, nationwide, wealthier taxpayers benefit from the deduction according to the tax foundation. 88% of the benefits go to people earning $100,000 or more a year. but let me tell you, theism is d fast. yesterday the national association of realtors said, jettisoning the deduction would, quote, effectively nullify the current tax benefits of owning a home. state and local governments, organizations expressing concern already, criticizing the plan saying it amounts to double taxation. states with highest local taxes didn't vote for trump. new york, new jersey, connecticut, california, came down solidly for hillary clinton. as i toss it back, neil, organizations complaining, national league of cities, u.s. conference of mayors, national governors association. on and on. i think this is a start of the list. neil: you know what i think, gerri, doesn't matter in the scheme of things, just when you

continue to provide generous student loans, i think that emboldens colleges to coop raising tuition. maybe, maybe if you remove the deduction you get for state, local taxes, maybe state, local governments that are zooming you, quit doing that and find a better and more efficient way to go about you know, running their businesses? just a crazy idea. >> hope springs eternal. neil: what am i thinking on that? i'm out of my gourd. gerri willis, thank you very, very much. investors with the latest selloff notwithstanding, lighter volume than normal as markets have sort of a wait-and-see attitude on this, we should point out with everything, and all the crepe hanging on this, i might remind you there was similar crepe hanging about ronald reagan's tax cuts and about george bush, jr.'s tax cuts. whatever you think about those respective tax cuts, the fact of the matter was the mainstream media and those, in the fincial community themsees,

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neil: the latest bit of market rally has a lot to do with earnings. we're in the middle of earnings season, most numbers, seven out of 10 better than expected. already high expectations going into this quarter. twitter was reminder of record number of users they didn't expect. you see a lot of this after the bell numbers we'll get from the likes of amazon and alphabet and microsoft. speaking of microsoft, by the way, steve ballmer, former ceo of microsoft will join me on yours world. he -- "your world." he has an interesting enterprise to account where the money you pay for taxes, where it goes and how the government spends its money. he has a novel way to follow it.

i want to get to the about the bottom of it. he might upset republicans and democrats. accountability matters with organizations and it should matter with the federal government. earnings whether they come during the day or after the trading day because numbers by and large are good. is this is sign of better things to come? we have a analysts joining us. larry, what do you think on this? >> i think we're in the midst of the first synchronized global recovery we've seen since 2009. earnings, macro earnings. look at industrials, semis, banks, credit cards they have all been good and that will create a reasonably good tailwind for stocks. i don't think we'll be up 15% this year but i do believe we're in the midst of a decade of financial he repression that is going to keep stocks always too expensive but still tiffly cheap. neil: bob, what do you think? no i think we'll have a great earnings season. could be one of the best since 2011. that is interesting on top after

first quarter where growth was basically .8 of a percent. that is inconsistent. we have to over come that for the stock rally to continue into may but over the summer. neil: get your thoughts on this, on the tax cuts and whether that is part of this or whether we're getting ahead of ourselves. it is going to be a battle if it happens at all. what do you think? to you first, bob. >> i think it is pretty likely we'll get some kind of tax cuts. i think it will be a battle. it will take time. there is no democratic support. there is democratic opposition. ronald reagan in 1986 and in 1981 he had to get democratic support and he got it. without the support i think it will take time, eventually, but time and maybe not quite what the market wants. neil: larry, what do you think? how integral to your forecast? >> not at all. i think 3/4 of the stock market rally especially since the fall,

due to growth of, not the election, not tax cuts. face it, border adjustment tax is dead. any kind of a corporate tax rate, 15%, are you kidding me? it is not feasible. i think maybe 27% is feasible. i think any kind of tax cut passed won't help anybody until next year. at the end of the day it will hurt, it will screw the working stiff like me. so i don't think -- neil: you're not a working stiff. don't min mize what you are. >> yes, i am. and you know, it really, i think it has been in the soup for two weeks. neil: real quick take on that, bob, not whether he is a working stiff whether it amounts to nothing? >> we're all working stiffs. i do think the tax cuts were part of the reason the market went up in november and december. certainly, again he is right, we're seeing some good earnings growth but i think tax cuts are something they're looking for. neil: gentlemen, i want to thank you both. great insight. we'll see what happens here. there is always a possibility of

a black swan development, something out of nowhere like north korea, getting crazy, if it isn't already, after this. ♪ [ beep ]

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neil: all right.

north korea made it very, very clear, it is not going to stop. in fact insisting it will never stop testing nuclear weapons. former army vice chief of staff general jack keane what he makes of that. we were discussing at dinner last night this idea of a black swan event out of nowhere, something that shifts your attention away from what everyone is talking about to the very real threat in this case of something crazy going down. where are we headed with this thing? >> well, it certainly is a dangerous situation and senators came close to that yesterday. i think we have three options we're working on. one is diplomatic. we lateraled the diplomatic football to the chinese and working with south korea and japan to reassure them, steady them, particularly south korea. political instability there. the president was impeached. there is a new election coming. our government is very concerned

that the newly-elected president