the dow. 64th of the year. thank to both of you. ju pulls out another onn 2017. that is doing it for the claman county down. see you tomorrow. >> take it, another record. off the highs from earlier. dow hitting highs for the 64th time under president trump. closing well off what we had earlier in the session. we're up, you know, 300 points. s&p struggling for gains. nasdaq continues to tumble. i'm connell mcshane once again for david asman. melissa: i'm france france this is after the bell. what else we're covering, very busy hour ahead. also a big hour. the dow climbing on hopes for tax reform. congress beginning process of combining the house and senate bill tonight. how two bills stack up against each other and what is likely to live on in the final draft. reversing government overreach.

president trump on his way back from utah, announcing a major roll back in regulations of two national monuments. we'll take you live to salt lake city for more on the historic move. president also calling into credibility of the fbi into question, after new reports surfaces on key age sent caught sending anti-trumpç texts. latest on this story from the white house. among our guests this hour, mike huckabee, dan henninger, liz peek, grover norquist and general jack keane. >> go to the markets first. that abc didn't work out for brian ross as planned. >> oops. connell: and the trump campaign. with all of that we close higher

on the dow. nicole petallides on floor of new york stock exchange. we were up a lot earlier earlier in the day. who are big winners or which companies are big winners? >> we were up over 300 points at one point. you have to take what you can get here. over the last two weeks, up arrows for the dow. 837 points during that time. tacking on another 58 points. so basically 1000 points in two weeks. look at some of those leaders, you did see some names, financials doing particularly well. obviously tax reform bill is underway, through the next leg.ç you can see jpmorgan, bank of america, up 2%, 3%, some of these names hitting all type highs, folks for the financials. loving the tax bill. very beneficial. for some of these companies to have a lower tax rate. names related to tax group, the tech group is up, 40, 50%. names such as adobe down and.

keep fitting hit as our senior editor, charlie brady said a lot of names run up and lower tax rate. they stand to benefit less than other names. looking at biggest, potential merger, biggest deal of 2017, coming right here in this last month. cvs health, aetna. that is the $69 billion. cv is down 4 1/2%. last but not least, disney number one performer on thedown average today. see it up 5%age points. pixar movie "coco," the news they started their talks again, interesting once again in parts of twenty-first-century-fox. we'll give you that as thatç develops. back to you. connell: our parent company, nicole. your point, clock ticking as house and senate work to get on same page with their tax plans. in order to give americans this big tax cut, that we've heard so much about. adam shapiro now, as we move into conference committee, where

do things stand, adam? >> 6:30 tonight we'll have a vote in the house to go to conference committee. then sometime later this week the senate will vote to conference committee. we'll find out who the house is sending, the senate is sending to hash out the details of the final tax reform bill. so they can do it all over and vote ben. expect that roughly around week of december 18th. that is where we stand on the conference committee. here we have to hash out. a lot of details we know b this will change. house bill, four tax brackets. senate bill with seven brackets. top rate in house bill is 39.6% and senate bill is 38.5%. to reconcile all of that. repeal of alternative minimum tax. take a deep breath. tough fund the government on friday. nancy pelosi, chuck schumer, paul ryan,ç mitch mcconnell, president trump, will negotiate on thursday, meeting at

white house. democrats issuing a statement saying as negotiations with our republican counterparts continue we are hopeful the president will be open to an agreement to address urgent needs of american people and keep government open. okay. so what do the democrats want? here is what mark shore who advises the president has to say. >> democrats have said they want to have daca resolved before a spending bill. so if they inject amnesty, immigration solution into this debate, it could slow it down. the president is also interested in finding a resolution to daca he has said that he believes that should not be tied to spending bill. holding funding of the government hostage. reporter: they have to do all of that by friday. back to you. connell: nothing to it. adam shapiro just outside of the house chamber. melissa. melissa: here to react dan heninger, "wall street journal" editorial page deputy director. fox news contributor. liz peek from the physical times is here at well. if the finished product looks a lot like the senate bill, is

that good? are we happy? what do you think? >> well looks like we're happy right now. another record day at the stockç market. just like another day, another record. you are getting a little bit blah about this extraordinary thing happening in the stock market. there are other good things happening as well, melissa. retail stocks are even performing well. so there is a tremendous wind at the back of this tax bill right now. talking when about whether they hold up funding government by end of the week i think democrats have to be get a little bit nervous that things are going so well at moment they could be ones left out in the cold. melissa: that is a really interesting point. it seems like it is very smooth sailing. at this point as you stand there to sort of stop it, if it doesn't turn out to be disaster, you're on the wrong side of history, how does that impact you? liz, let me ask you, walking

around this weekend, listening to regular people there are two different things out there that they're hearing. one this is a tax break for the rich which i'm like, i don't know what you're seeing that. that is mathematically not direct. that is something they're selling. they're going with the 25,000 years from now when part of itç expires, whatever. the other part is tax cut on corporations on backs of middle class. what do you think of talking points? >> democrats have done a great job of anti-message here. melissa: they have. >> before they even had a tax bill they were attacking it as a handout for the rich and to corporations. president trump started off a fund-raiser meeting the other day saying someone had come up to him, i think a cop, who was helping guard the meeting whatever, thank you, mr. president, my ira is up 30% this year. i think americans are not that stupid. i think they realize that there is a lot of good in this tax reform bill.

and as trump said, let's stop calling it reform. call it the tax cut bill because that is what it is. a lot of americans will see more money in their pocket. i agree with dan, i think democrats look pretty stupid, frankly not a single one side on the senate vote. it will be interesting to see in the final vote whether you get heidi heitkamp or joe manchin coming along board because this is powerful medicine. to just deny that makes them lookç kind of stupid. connell: another thing out there, we mentioned this when we were going to nicole a few minutes ago, gives the president to step up a battle with the media is idea of calling out this brian ross at abc news for that, what turned out to be a false report about michael flynn, that sent markets into a tailspin on friday. first, watch this. >> based on the vote we had last week, the stock market has been reacting unbelievably well. the only thing that hurts it is the fake news. there is plenty of that.

connell: obvious reference there, came after a tweet from the president, we'll read that tweet to you. "people who lost money said when the stock market went down 350 points based on the false and dishonest reporting of brian ross of abc, has been suspended should consider hiring a lawyer and suing abc for the damages. this bad reporting has caused many of millions of dollars lost. i think that was you chuckling, liz. most people we've spoken to today think idea of a lawsuit may not go very far but you see the president's point here. >> yeah. i do see his point t was sloppy reporting. it did cost a lot of peopleç money. probably people sold into that, thinking my gosh, the end is near. we keep hearing the end is near from some fronts from the democrats and liberal media. this is something that president trump knows he gets a lot of support from his base for attacking liberal media. we see it every day that their reporting something unbelievably biased. i am constantly shocked by

reputable organizations like "the new york times," and the bias in their reporting. so, he is going to keep this up because, guess what? it is pretty popular with the people that support him. connell: a mistake, dan, like this is made, as if president needs more ammunition, gives him ammunition to go down this road because this was pretty big error by abc news, right. >> well it was. it should be object lesson for rest of the press, connell. there was always the danger in my mind something like this could happen, the mistake brian ross made because the media since january has so chased this narrative of trump collusion with the russians, citing endless numbers of anonymous sources. they have gotten very competitive.ç i do think there is extent to which standards have been lowered. finally brian ross got tripped up on that. i would think from this point on, as we get seriously into the mueller investigation, you're talking about indictments that the press has to be a little

more, a lot more cale about the veracity what it reports on the story or there will be more brian rosss. connell: more than just an abc story. everybody paying close attention. dan, liz, good to see both of you. thanks. melissa: president trump wrapping up remarks in new york city on way back to washington. fox news correspondent dan springer in the beehive state. what were the big takeaway from remarks as he visited utah overall? reporter: big takeaway he not only gave rashes in the rotunda in the capital in salt lake city, he signed two declarations drastically shrinking two national monuments both in the state of utah. one was 1.3 million-acre monument called bears ears. that was designated by president obama in last days of his administration. the other that was cut 8jrñ the other, grand stairway was cut in half.

this is done to reduce long pattern of federal over reach. past presidents he said they abused 1906 antiquities act. no act used it more than president obama unilaterally designated 500 million-acres as monuments. president trump wants more local control. >> some people think the natural resources of utah should be controlled by a small handful of very distant bureaucrats located in washington. and guess what? they're wrong. reporter: while many in rural america and especially those out west cheered the action, environmentalists, native americans are strongly opposed. some protested outside of the capital building today. they called the biggest roll-back of land protections in u.s. history. lawsuits will no doubt filed. other presidents have done it dating back to woodrow wilson in

1915. he was the first to roll back protections andç monuments. he will do more of that no doubt in three more years in office. melissa. melissa: dan, thank you, breaking news. new video coming in. we'll look at it together. this is the second implosion attempt. melissa: looks like it is working this time. connell: silver dome, nothing gets by melissa. there it goes. you saw the other ones. >> amazing, blew it up, nothing fell. you're like, oh. they said something was like, a wire was cut or something. you went, boy, eight charges are disconnected. connell: eight tries at it. melissa: but didn't they, i mean nobody was sort of troubleshooting it before they tried to -- you want people in charge of demolitions who can't demolish? connell: i don't know. melissa: this is live. you're watching it live. this time for sure worked. what do you think, looked closely. connell: they got it. melissa: there is more going down. connell: the other one was going one at a time, thinking

something is going to happen. nothing went down. melissa: is this other side? connell: looks like they got, what do we know about blowing up stadiums. they did a better job than over the weekend. melissa: a lot of people would like to blowç up a stadium. if they can't do it properly, let rest of us. connell: met fan, jet fan, we have pretty good stadiums in new york. moving on. melissa: likelihood of war with north korea increasing every day. alarming new warnings from national security advisor hr h.r. mcmaster. one lawmaker is calling for evacuation of american military families from south korea. retired four-star general yak keane on the growing threat. connell: believe it or not, the va under fire again, this time for hiring doctors that put our nation's heroes at risk. we have details what is startling new report. melissa: the president calling out bias at fbi after removal of an agent who was caught sending anti-trump texts, an agent that played a key role in the clinton email investigation and

mueller's russia probe. former arkansas governor mike huckabee will weigh in. >> i will say this, hillary clinton lied many times to the fbi. nothing happened to her. flynn lied and they destroyed his life. i think it's a shame. ♪

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melissa: president trump endorsing roy moore. the commander-in-chief weighing in on the crucial alabama senate race with about a week left in the contest. it appears to be dead heat between democrat doug jones and republican roy moore. with more from the white house blake burman. blake. reporter: president is clearç n this one today, no ambiguity at all. the president fully endorsing roy moore's senate bid to

replace jeff sessions in the state of alabama. the president explained it in a tweet earlier today, he wrote and i quote here, democrats refusal to give one vote for massive tax cuts is why we need republican roy moore to win in alabama. we need his vote stopping crime, illegal immigration. the president named a handful of other officials. jones is a pelosi-schumer puppet. roy moore noted that that president trump knows the future of his agenda in conference hinges on this election. we had a good conversation over the phone and working together towards a conservative victory towards december 12th. after he endorsed moore, the president backed character of michael flynn. as president was boarding marine one to make a short cross-country trip to utah the president said this to his former national security advisor who pled guilty last week to lying to fbi agents. >> he led a very strong life and i feel very badly, john.

i will say this. hillary clinton lied many times to theç fbi. nothing happened to her. flynn lied and they destroyed his life. i think it's a shame. reporter: while in utah the president also said that he feels they are in line to get tax reform done this year, a big christmas gift as he put it. i can tell you folks at white house feel they are indeed on the 2017 time frame. back to you. melissa: thank you, blake. connell: talking with mike huckabee, former arkansas governor, fox news contributor joins us. may add this, fbi agent, governor huckabee was, dismissed by robert mueller followed by anti-trump texts in the mix in addition to what blake is talking about. let's start with that what do you make of the way robert mueller handled that and are you concerned there might be more of this? >> i'm glad at least he recognized he had a problem with his investigative unit. he to the rid of the guy.

connell: yeah. >> unfortunately investigating the investigator which is exactly what is going on. with all the hillary donors a part of that team, there is real reason to be concerned this is anything other than a partisan witch-hunt. connell: i heard some people say it should mean the hillaryç clinton investigation gets looked at again but what about the russia investigation? does it compromise that in any way from a practical standpoint, do you think, this one person? >> you know in many ways what this has done remind us there is no evidence of a russian collusion. if there was, how come there wasn't something about that in the flynn indictment? there wasn't. and now, people have recognized, brian ross is embarrassed with his pants around his ankles over it, with the fact, look, donald trump and everyone on the trump transition team were not only within their rights to have communications with russia or with anybody else, but it was their responsibility to begin having these onversations with foreign leaders. they didn't get flynn for having the conversation. they got him for not telling

truth to the fbi. same thing martha stewart went to the slammer for. it wasn't that she did something. she wasn't forth coming to the fbi which is little scary, connell when you think about it. connell: from the president's point of view one thing president say got him in trouble over the weekend, talked about flynn, i had to fire him because he lied to the vice president and fbi. then you had people saying talkingç about, well, does that set himself up for being open to mueller going after him for obstruction of justice? what was your thought on that tweet? >> well, i have heard two different things. one is that his lawyer has taken responsibility for it. others have said, that could open up his lawyer to an investigation. and i'm not going to start trying to practice law without a license because i don't want to get into trouble. i will have to say i don't think we know but the point the president made today is very strong one. hillary clinton was shown to have lied repeatedly to the fbi, to congress, to the american people.

connell: right. >> and nothing happened. mike flynn lies to the fbi over something that really you wonder why did he even lie about it and his life is ruined. i think a lot of americans are smart enough to see that, there is something rotten in denmark, and also something rotten in washington, d.c. connell: let me get your take before we go on the roy moore endorsement today, as president trump came out and supported moore and alabama senate race. so your thoughts on that. if you were president would you have handled that in similar way? >> i don't know that doéald trump had a big choice. if you have al franken, he is staying in the senate. john conyers is staying in the house. blake farenthold staying in the house he is a republican. doesn't seem to be any consequences for people who are already there for things they did recently. you're talking about allegations that roy moore has flatly denied, vehemently denied of things that happened 40 years ago. the question is, do you really throw a way a senate election

for this before it is proven beyond a reasonable doubt, before there is due process, before he had a chance to face his accusers, if we go down that road in this country in justice system where mere accusations that the punishment is meted out, we tossed the constitution right out the window. connell: positive huckabee, always great to see you. we'll talk about that soon. >> thank you. melissa: huge breaking news. the supreme court just ruling that president trump's travel ban can go into effect this is that controversial ban restricting travel on six muslim-majority nations. allows them to keep enforcing it while the case is litigated. a major victory for the president. it was actually only justices ginsburgç and sotomayor who sid with the groups that were challenging the revised order. we'll bring you all developments in it story as it happens. that is a big deal. connell: that is a big one. full effect, the travel ban. melissa: yeah, from that to tax

reform. back to tax reform we should say with two drastically difficult plans can the house and senate get together on the same page? grover norquist on that. plus abc news under fire for making a severe mistake, error in that story, causing many to draw conclusions about president trump. more on brian ross and suspension there. is it enough for false reporting? dan gainor next. >> brian ross worked for me, it would not be four weeks unpaid suspension for a guy making seven figures for lying on the air. it would be complete termination. le digits. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65.

having someone coach you through it is really the value of a financial advisor.

melissa: facing the consequences, investigative correspondent brian ross suspended for four weeks from abc news for his botched report of michael flynn. abc news writing in a statement, we deeply regret and apologize for the serious error we made yesterday. the reporting conveyed by brian

roars during the special report was not fully spread vetted through our editorial standards process. as a result of our continued reporting over the next several hours, ultimately we determined that the information was wrong, and that he corrected the mistake on air, and online here now. dan gainor, media research center vp of business and culture. this is pretty stunning. i was on the air live when the report came out and they were only ones reporting this. it was at the time thatç michal flynn was making the plea. they were still going over all the details. they reported that he was flipping on the president. that is a big deal. he is flipping on, his source was candidate president trump, which implied with its language it was before the election. so it would have been a really strange time to be reaching out to the russians. there was a lot that was really

wrong. it isn't a little slip. what do you make of it? >> reporters make errors and part of with the nature brian ross does as investigative report he will make big errors this is huge error. not just what he did that was wrong. it is abc's editorial process that it let it get through. it is abc's reluctance to call it an error that needed correction abc initially called it clarification. they waited until late the next day day as something needed to be corrected f you're an investor, how can you trust anything that abc puts out? melissa: if you're anç investor or a fair-minded person and he jumped something that was happening that had political implications and jumped in was completely wrong, they all fall in the same way and show his bias. you know, in 2012, he falsely linked the tea party to the

aurora, colorado mass shooting. you know, i mean there are others like those where it seems to betray his bias. i wonder why abc would let him continue for decades with a whole track record of mistakes like this? >> giving four weeks fade vacation around christmas is not the worst thing you every do to them. go back to 2001, ari fleischer, chimed in, former bush communication guy talking about the problems of the anthrax report that brian ross did back in 2001 where he blamed saddam hussein for it. it turned out to be wrong. melissa: yeah. >> ari fleischer told him it was wrong at the time. >> irony of this of course, he ends up doing the opposite what appears that what he wants toç do, he gives a toward to the president, then raise and say fake news. because here are news reports

come out in favor after left-wing point of view that were wrong and seems to fulfill what the president has said. >> this is second major and expensive reporting disaster abc has had this year. if you remember back a little ways, they had to settle back in summer the beef products lawsuit. that is the one where they took this amazing company, and raked it over the coals, and said that its product, its beef was "pink slime." they ended up settling out of court. bpi seems very happy. and since the amount that was potentially on the line for abc was $5.7 billion,. melissa: wow,. >> you figure that bpi probably got a good chunk of settlement. melissa: yes. >> and the other thing that came out in that reporting one of the experts were interviewed by jim avila, that avila hung up on him and he called him back and avila

said blank you to him. abc has got to, look at its own investigative team. melissa: very interesting. dan gainor, thank you. it will be interesting if he comes back from that leave. four weeks vacation if it ends up being longer. connell: four weeks unpaid. the thing about the markets, going down 350 was something else on friday. melissa: yeah. connell: putting our nation's heroes at risk, meantime the va under fire this time for hiring questionable doctors. we'll have details on what really is a shocking new report. that's coming up. melissa: plus, reconciling their tax plans. the house republicans and senate leaders working to hash out a final tax bill. can they find common ground and get a bill to the president's desk by christmas? grover norquist, americans for tax reform president is next. ♪ i know when i hand them the keys to their first car it's gonna be scary. but i also know that we're gonna have usaa insurance for both my boys. it's something that they're not even gonna have to think of.

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just a little tv trick. >> yes. connell: was it effective? what do you think? that is the line of attack here, that somehow this will not help the middle class, that is just for the rich. we talked to number of so-called rich people that don't like the plan. what is the truth? >> this is what hillary clinton and bill clinton and obama and all of the friends on the left say about any tax reduction. it doesn't, it is already written. you wonder if they read these pieces of legislation. you expect that this made sense as an attack a month ago, two weeks ago, even a week ago, hoping to defeat it. here is the problem. the bill passed the house and senate. they are very close together. there are a lot of little differences. one said seven. you can see them coming together on agreement within matter of

few days, getting it done this month. so why say stuff like that when in a couple of months, people will be able to look at their own paychecks, see they're not paying high taxes. they are able to look at 401(k), notice it is worth more because we're no longer beating companies to death, both here domestically and internationally. and they will be seeing neighbors getting jobs. so, here's the problem. you, that talk makes sense to try to stop the bill. connell: right. >> but at this point they sound like "baghdad bob." they're ranting, not sopping anything. connell: differences between the bill. most like coming together with the house and senate and resolve this, four brackets, versus seven, with the amt in or out. is there one thing in there on the specifics, one thing that you would like to see either stay and go that could be negotiated in this conference committee? what is your focus? >> both pieces of legislation.

both bills give you a permanent 20% tax onç businesses. connell: right. >> but senate wait as year. i think it is always dangerous, because even though it is in law, it leads to uncertainty. is this really going to happen? who knows what happens in a year? it would make a lot of sense to make the 20% take place immediately. remember what happened when the democrats insisted that the reagan tax cuts which began in '81, but didn't fully phase in until 1983. when did the recovery start? january, 1983. why wait. have recovery and growth now. connell: that makes sense. do that quickly. this is built on being a corporate tax cut. before i let you go, grover, on individual side, once we get to say the midterms next year, are the republicans on safe ground, do you think, running on this plan, or, will there be constituents coming back to them, saying you know what? i thought i was getting a tax

cut, in fact i'm paying higher taxes now, is that a risk? >> there may be odd cases of that, but in every income group there is overall significant tax reduction. there is tax reduction and increase in asset wealth inç shares of stock. some high income people who lose a lot of deductions and credits will be benefiting from large increases in their stock portfolios. so, everybody is going to be better off, if you have live in a blue state where they have high income taxes, and property taxes this bill is your only chance to have democrats begin to take those tax rates down. connell: we'll see if that actually happens, whether people are incentivized to move out some of those states. good to see you, grover norquist. >> take care. connell: you too. melissa: happy birthday to the text message. sunday marks 25 years since the first sms text message, i haven't been texting for 25 years. somebody has. mobile phones were not capable

of sending messages. a engineer had to type the message on computer before sending to the on his cell phone. the message read, merry christmas. >> it was hard to send a text on the old phones with all the letters. melissa: we had blackberry pager, little one had message. now i'm dating myself. connell: i had a blackberry pager. first up with i had for work. let's talk later. pushing betting in the sports world. supreme court is dealing with that one.ç a hearing could completely change sports gambling. yes, people bet on sports. now maybe legally. plus your local pharmacy could make significant changes in the near future. how this big deal in the works could impact your health care. that is all coming up next. [lance] monica, it is absolute chaos out here!

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melissa: cvs aetna could become the largest health care company if their $69 billion merger is approved. deirdre bolton joins us from the newsroom with more what the combination meansç for the heah

industry. you have a lot of great insight on this, deirdre. lay it on us. >> this is the biggest deal of this year so far. that is notable out of the feat. it is really the most dramatic sign how these lines between traditional segments and health care are blurring. so the idea here is blurring with one-stop shopping with consumers take prescription medication as possible, so post-merger this, company would include pretty key parts. a health insurer, a retail pharmacy, and a company that can negotiate prescription drug prices. that is a big piece of the puzzle. cvs would control every step of process about exception of making drugs. cvs would not manufacture drugs but that is only part of this process it wouldn't touch. more than 10,000 baby boomers turn 65 each day. people are crying out for an easier way to navigate this health care system.

cvs obviously wants to be part of the solution. probably also wants to survive in a tech-driven world. tech has changed so many businesses but the retail side of health care, picking up prescriptions, we're prettyç mh doing this all the same as we were a decade ago. so a lot of analysts are saying look, the cvs aetna combination is preemptive strike against amazon, a company known to step into businesses and crush the competition. we think of amazon getting approved for wholesale pharmacy licenses in at least 12 states. so meaning you could order prescription medicine, have it delivered to you by amazon, along with paper towels, crayons, books, whatever you normally order from amazon. when amazon bought whole foods for $13.7 billion, other supermarket stocks fell hard. so traditional companies are just feeling the heat of disruptive technology and doing their best to find creative solutions in the meantime. this is one from cvs and aetna. back to you.

melissa: thank you for breaking it down, deirdre. connell: this is one to watch. sports betting on trial. supreme court is hearing arguments on the idea of legalizing the sports gambling. new jersey governor chris christie is maintaining this is states rights issue. they have done estimates. that sports bettingç generates $150 billion of year, with only 3% of that done legally. that guy is very happy about it. melissa: very happy. connell: almost all of nevada. there you go. melissa: sending a warning to north korea. the u.s. and south korea kicking off a massive show of force. why the rogue regime says the joint drills are pushing the peninsula to the brink of war. general jack keane, retired four-star general sounds off on the growing threat next. ♪ with liberty, we could afford a real babysitter instead of your brother. hey. oh. that's my robe. is it? you could save seven hundred eighty two dollars

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melissa: large-scale air force drills underway over the korean peninsula. the goal is to strengthen combined airstrike capabilities of south korea and the u.s. should north korea strike. national security advisor h.r. mcmaster telling chris wallace on "fox news sunday" that u.s. lives should not be bet against kim jong-un's rash decision-making. >> this is a regime that has never met a weapon that it hasn't proliferated. it is a regime who said clearly what its intentions are. it's intentions are to use that weapon for nuclear blackmail and to quote, reunify the peninsula under the red banner. melissa: joining me now, retired four-star general jack keane. a lot of the news right now, i want to play this for our audience, lindsey graham saying we shouldn't have military personnel families in south korea because of the danger. listen to that. >> i'm going to urge the

pentagon not to send anymore dependents to southç korea. south cree should be unaccompanied tour. it is crazy to send spouses and children to south korea, given provocation to north korea. melissa: seems totally logical. how in the world will they have the olympics in south korea? >> well, a couple things. first of all i agree with senator graham. we should not send anymore families over there, doesn't make any sense given what is in front of us. we're on a showdown with north korea to be sure. secondly we can't pull military families out there, melissa with a presidential decision to evacuate all americans. there are 230,000. melissa: wow,. >> we will not show priority to military families and not address the much larger problem with american citizens at large. military families, we don't give them much of a choice. we take them out of the there. melissa: yeah. >> but with rest of the american citizens it is their choice. once the president make as

decision with that kind of evacuation, it will include all of them. not likely before the olympics i'm sure. melissa: are we getting close to that point? do you feel it is time to evacuate from south korea? >> i don't think it is time yet. if it was,ç we would be hearing about it. clearly, one of the dominoes have to drop if we will conduct military action. director pompeo, cia chief, did say a number of weeks ago, when i think, we all heard it loud and clear, he said, listen, folks, we're months away from kim jong-un having nuclearized icbms. not years away. that clearly means we're on a showdown with these guys. sometime in 2018 it will take place. melissa: is it realistic to think there is anything short of some sort of an action as opposed to talking? >> well i actually think the administration is going all-out, totally full-throated in the

sense while the military option is on the table, they want to get everybody to understand they're serious about it, this is not just rhetoric. their main effort is international sanctions, squeeze the regime as much as possible. the problem with that, melissa, that takes time. you well know more about the economic impact on this country than most. that will take time for that to flush out. we're in beginning stages ofç that. we're only at it for a year for that to take its toll on north korea and its capabilities. melissa: that icbm a game changer in your mind the one he set off? >> this is another advance on a long program he is accelerated on. this one obviously with much greater range. he had problems with reentry. i doubt if they minutize a weapon on that -- miniaturize on that. melissa: they are getting closer. >> every few months they get

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