>> brand spanking new newsroom at fox news. thanks for joining us, everybody. my fantastic panel upstairs. have a great day. here's "varney & company" and stuart. stuart: thank you very much, indeed. the news. stocks will open higher this monday morning. analysis, be careful. the wild ups and downs may not be over. after two extraordinary weeks, we all want to know how we will open today. the answer is up. now, just ten minutes ago, i would have said we'll be up 300 points. now i'm going to say it will be more like 200. that will still put the dow above 24,000, roughly 2,000 points below january's high. again, we always have to caution we don't know whether dow will close up this afternoon. how will respond to all the cash that's being thrown at

the economy. we keep edging closer to 3% on the ten-year treasury. 386 as of now. consider this. more big companies are giving bonuses. u-haul is the latest giving $1,200. that's stimulus. paychecks going up. that's stimulus. government spending going up. and infrastructure package evolving big spending that looks more and more likely. so what happens to interest rates? if they go up sharply, expect a reaction on the stock market. today, the free-ranging immigration debate begins. we'll see the infrastructure plan. and just wait until you see how the media fawned over north korea's propaganda chief. and now watch this. the new look "varney & company" is about to begin. ♪ ♪

. stuart: i do declare we like it. look at that. the new look debuts today. i see heavy use of gold. ashley: yes. my only concern is they've blown the budget for the year, but i do love it. i do love it. stuart: i would like to have been airbrushed a little bit thinner. liz: right? . stuart: i like the old. liz: you are smiling. it's sharp and to the point. the new graphics as you pointed out rather like you on the show. ashley: well, thank you, elizabeth. wow. stuart: are we done with this? i really like the graphics, everybody. thank you very much, graphics department. i think we look great. i hope the viewers like it, and i think they will. all right. let's get on with it. to the markets. it has been a wild ride for the stock market. just last week. look at the swings we saw last week. that's extraordinary stuff. now look where we're going to open today. we're going to be up triple digits. okay. as i said at the top, if i would have said this to you ten minutes earlier, we were going to be up 330 points. now it's 190. that is volatility.

james freeman is here. wall street journal kind of guy. i would like to lower the anxiety level and say. okay. calming down a bit, but i can't say that. i think we're still up for this. what about you? >> well, that's sort of a normal market. i mean, this is obviously more to volatility than we've seen historically. but the recent period we went through where everything was really calm, almost no volatility in stocks, that's not normal. that's not when you look at history stocks tend to be the more volatile, risky investment. but over the long-term, tends to inform investors. and i think we're going back to that traditional i think healthy situation where it's an economy and stocks fluctuate, and it's driven by private decision-making, not washington. stuart: i'm saying that this ups and downs volatility, whatever you want to call it, is going to continue because i can't remember a time when we through so much money at the economy. whether it's the stimulus -- i'm sorry. not the -- the tax cuts, the bonuses, the wage increases, the infrastructure plan, the budget, the government

spending. all of that puts pressure on interest rates, which pressures the market. so i think for that reason, we keep doing this. >> well, you are going to see -- i mean, i think maybe people have overstated the interest rate argument in the sense that we're still at very low levels historically. but you are going to see more volatility in part because the government has really changed its view. we saw in the crisis here and after any down draft in the markets, there was this looking to washington or looking to the federal reserve banks "what are you doing now? how does the government respond to this?" and you saw them basically saying small potatoes i think was the word from new york fed president william dougly. this is healthy to get back to an economy where investors drive it. stuart: but wait. is it healthy to be throwing all of this money at the economy when we're already growing 3%? it seems like the idea of restraint on the part of policy makers. whether it's the president, the republicans, or the democrats, it has gone out the

window. everybody wants to spend now. >> yeah, the budget is the bad news. great tax cut deregulation for the markets. the downside is that the budget agreement we got last week and now the threat of infrastructure spending going up as well. so i think that is a question really for government. i would say more than private companies who are pretty healthy. it's the government sector where you say we're going to spend 300 billion a year net interest payment on the federal debt this year. it's going to go over 800 billion according to cbo by 2027, and that's assuming the interest rate only goes up to 3.5%. so this could be a much bigger burden, and i don't think the politicians have figured that out yet. stuart: well, you stay there. let's bring in a politician and ask what on earth the republican party think so it's doing. congresswoman claudia is here with us.

sorry to introduce you that way. but it appears your party, gop, has abandoned financial restraints. i mean, it has, hasn't it? >> look, i didn't like taking the vote on our budget but the military is very important. when general mattis says the biggest enemy that the united states army and military faces is the u.s. congress, we need to act. our military has been suffering under crs for 36 years. we finally got a deal with the senate and amazingly chuck schumer -- but remember something, i'm so sick of hearing people say "you control government" i would like to say wouldn't it be nice if we had a 60-vote rule? but on the senate side, we don't even have 51 votes. we have a lot of republicans that are registered that way, but they don't vote that way and we can't rely on them for very important issues. but remember what this budget does. it deals with discretionary spending. the big problem coming up in the state of the union -- or that was nondiscretionary. we're talking about the nondiscretionary side i mean.

and that is dealing with the problem we need to start working on the entitlement issue. entitlements are a huge problem. there's a lot of fraud abuse and waste. i come from new york where the greatest fraud abuse and waste exists, and we need to start attacking that. stuart: yes, we do. >> 1.7 trillion in cuts are anticipated coming up for that. stuart: claudia, how many times have i heard this before? i mean, i've been doing this for 40 years. i've always -- almost every year. >> wow. stuart: yeah, stop it. >> you look good. stuart: just stop it right now. okay? but seriously, every single year we've got to cut waste. this year we're going to do it. never happens. never happens. >> but, listen. you said to me you're never going to get -- well, i can't put the british accent on it. you're never going to get tax reform done, and we did. and look at what the results are. we're doing really well in my district. i'm hearing from people every day. middle income taxpayers to medium and large-size businesses all doing extremely well because of the tax reform

in new york. as long as our governor and our democratic-controlled government doesn't destroy our tax reform. we have to start this. this is a chess game. stuart: okay. you got me. >> and unfortunately it's a chess game. we can't have -- we can't just go in and, you know, clear off the -- just because we have a couple of bumps in the road. you can't just clear the players off the field. we've got to go through this systematically. but if we're going to increase growth, and we're going to bring jobs back to new york, we also have crumbling undercover officer, so we have to deal with that. stuart: okay. i want to ask you about that. i want to ask you about that specifically in your district. obviously, you have infrastructure plans in your district. >> uh-huh. stuart: who pays for the infrastructure plan in your district, who pays? do i pay as a taxpayer? or is private enterprise going to come in and pay? >> well, i think the interesting thing is what's happening now is just from the tax cuts alone, we haven't gotten to where we want to make -- be entirely with them. we are seeing already investment from the private sector. that's most important. but you also have infrastructure in roads,

bridges, and our water system. we have some of the worst infrastructure in our communities. and a lot of it is the fault of new york state because we have been taxing and spending. our taxpayers into oblivion with entitlements, which are enormous. we need to address that. we've done that on the federal side. think about what the tax cut did. we use used to give a lifeline to the richest in our communities. and now that we've rolled that back, given a little bit of a tax break to a lot of our middle and lower income taxpayers and our businesses, you're going to see actually growth because now the lifeline, the loopholes that the democrats always decry or gone, the wealthy are going to be paying more, the small businesses, the job creators, those people are actually getting a break, and they're investing in infrastructure. they're building buildings. they're creating jobs, they're lifting wages. that's happening. stuart: you got it in. you got it in. and i hope you like our new graphics. take a look. claudia, thank you very much indeed for being with us. much appreciated. >> thank you very much. appreciate it. stuart: where are we going to

open? look at that. the gain will be about 120 points. literally 10, 15 minutes ago we were going to go up 330. it's going to be one of those days. liz: yeah,. stuart: disney, how about this? raising the price of a ticket at disneyland and disney world. an adult ticket one day for one adult magic kingdom in orlando up $4 to $119 a day. in california, up $7 to $117 per day. then we have comcast. they may make another bid for 21st century fox. initial $22 billion deal rejected. and struck a deal with comcast instead. going to raise its offer to 60 billion. the parent company of this network. all right. president trump holding an infrastructure event at the white house. 11:00 this morning. you'll see it. your flu headline of the day. a japanese drug maker says it has a new medication that can completely kill the flu virus,

flush it out of your body in 24 hours. that would be a breakthroughs. doc siegel on that coming up next. and president trump has a plan for the international space station. he wants to cut government spending and get the private sector to take over. we will explain. but first this:a maryland state senator not happy with the plan to use tax incentives to get amazon to build second headquarters in its state. he has another plan to lure them. invest in higher education. he'll make his case after this well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

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. stuart: unilever, maker of soap, axe will pull their advertising from google and facebook if facebook fuel hate create division or fail to protect division. i would like to know how unilever, which is an anglo dutch company defines hate. i would like to know that. more companies offering bonuses because of the tax law. who's the latest?

liz: human resources company up to $4,000 bonuses. stuart: 4,000? liz: 4,000 if you work there, you know, before -- stuart: whatever. liz: 2015. u-haul $1,200 bonuses for full time workers. $500 bonuses for part time. investing 200 million back into their facilities. the ceo says it is because of the tax law. tax cuts. 342 companies now giving back tax cuts to workers in the form of bonuses and the like. and they're now 3.5 million workers getting tax cut bonuses. stuart: nice numbers. i like that. ashley: not bad. stuart: now, i'm sure you're familiar with states and cities giving all kinds of benefits to lure amazon to build their second headquarters there. our next guest does not agree with giving the company money in those kinds of subsidies. his answer is invest the money in education instead. that's how you get amazon to your state. joining us now is richard,

maryland state senator and candidate for governor of maryland. so welcome to the program. good to have you, sir. >> nice to be here with you, stuart,. stuart: i take your point and obviously it's a good idea to put the money into education. but that doesn't pay off for some years down the road. amazon wants educated workforce now. what do you say to that? >> well, that's the whole reason why they're looking at a place like montgomery county, maryland is we have amongst the best concentration of highly-educated workers in the world. where always -- maryland is always at the top with percentage of adults with higher education degrees. bachelors, doctorates. so we already have a unique environment to offer people here and to offer amazon here. we just have to make it even better. what i'm offering is a deal to say let's work with amazon and some of our other major employers and see what are the degree programs that we should be offering at the university of maryland and other higher ed facilities. stuart: would you give them

any kind of subsidies of any kind like tax breaks on future income? anything like that at all? >> well, look, amazon is one of the most profitable companies in the world already. why do they need actually subsidies from the people of the state of maryland? what they need are highly-educated workers to work in their facilities in order to drive their productivity and make them more profitable, and they need a base of people around the world who can afford to buy their products. so i think with henry ford who said i've got to pay my employees a decent wage so that they can actually afford to buy the cars i'm producing, amazon is the same. stuart: yeah, fair point, sir. you're a democrat. >> that's true. stuart: that's not an sackization, sir. you are a democrat. >> yes. yeah. stuart: not being pejorative here at all. but one of your themes on the left is income inequality. i mean, we don't like that. i understand that.

but jeff bezos, the founder of amazon is now the richest guy in the world. he's worth what? 110, $115 billion. how do you feel about attracting someone who is so grossly unequal in terms of income? >> well, i would love to have amazon here. i mean, it is no surprise that amazon is looking at a community like montgomery county, maryland or like the 20 other or 19 other communities around north america that they've selected. because they are all communities that have spent generation investing in public education, public infrastructure, public amenities. they have seen the connection in these 20 jurisdictions. stuart: but will you answer that about income inequality and bezos, richest man in the world? >> well, i don't think jeff bezos is going to leave seattle, quite frankly. so -- and he already as you well know. he already has a second home in the washington area and is personally the owner of the washington post. . stuart: and he hates trump, by the way. >> he has already made place

roots here in the washington area, and we're hoping they will go even deeper with amazon. but we're looking to be a partner with him and his company about building a strong ecosystem here, one that infests in workers and not just in more cash to the bottom line of amazon. i mean, i wish congress -- stuart: fair point. >> if you wanted to talk about -- and i was listening to your prior interview with representative that if you want fraud, waste, and abuse, i would love congress to step in and say states, cities, municipalities, we have to stop giving cash out to companies and say -- stuart: sir,. >> let's either invest in people or invest in tax cuts. let's not just give it to companies. stuart: i'm terribly sorry i'm out of time. but it was a pleasure having you go on the show, sir. come back soon. >> i would love to be back with you. stuart: you're the only democrat that has ever said that. >> thank you very much, sir,. stuart: to the olympics. kim jong-un's sister shows up for the opening ceremony. wait until you hear what the liberal media has to say about her. we'll deal with it. next.

. stuart: to the olympics. the mainstream media fawning over kim jong-un's sister. to the headline. kim jong-un is stealing the show with the winter olympics. that's cnn. the new york times kim jong-un's sister turns on the charm taking pence's spotlight. initial reaction.

ashley: well, you know what? if diplomatic dancing as cnn put it was an olympic event, she would be the favored to win the gold. and that's the kind of fawning that we've seen. but she comes from a regime, a brutal dictator, her brother where human rights and anything else goes out the window and here we are. some of the media fawning over here. let us not forget who she represents. she's the propaganda chief of that country. liz: yeah, propaganda and agitation chief. this sounds like it came out of north korea. this is such a shallow one-inch deep reporting. they do public executions in north korea. this is the worst regime for human rights abuses -- among the worst. and, you know, forced slave labor camps. stuart: what do you say? >> well, it's an embarrassing day for the u.s. media. you mention her job is the propaganda and agitation chief. her job is hitherto dupe western media and to make a case against freedom. it's appalling.

and the reason the half-brother can't be there at the olympics this year is because they murdered him last year. liz: and they killed their uncle with antiaircraft gunfire. ashley: issues. stuart: i can't remember. little sister. i'll put it like that. she's in charge of white washing this murderous regime. she gets a good treatment in the american media at the expense of vice president pence. i find that extraordinary. i really do. >> appalling. stuart: appalling is a good word. all right. we're going to open that market in four and a half minutes time. we will be up but not as much up as i thought we were going to be. half hour ago we were up 300 now we're up 160. a gain for the s&p. a gain for the nasdaq. but remember, this follows a dreadful week last week. maybe the volatility is not over yet. we'll be back. today, a focus on innovation in the southern tier

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>> i have to say i do like those graphics. you know, the move in a pleasant way that brighten the air you like that kind of thing. a lot of interest opening off two volatile week where is the dow lost 10% it most ofs into correctional territory last week

and how will we open this monday morning and how will we do it for the rest of the week everybody will now because it is anxiety find how we open up a couple of points high per let's see now we're up first reading up 155 up 160. plenty of green of the the dow stocks that opened every single one can the exemption now up 200 points on the dow industrial firmly above the, quote, is and just hit it up 200 points right from the opening bell. that's a gain of .8%. show me the s&p what's the gain there it is up about the same .8% there. 23 points higher for the s&p. how about nasdaq home of all of the of the technology stocks of course gain there up almost 1%

and dow is now up at 240 o points. who is with us on a very important monday morning? look at the screen and you'll know ashley -- liz, jonathan and keith all right keith first to you. i don't think the market has settled down. i still see this kind of action this week. what say you? >> i agree 100% sturted and here's why. the computerses have got to bleed the all of the excess i have bets on volatility that they made last week coming into this opinion the idea that the markets are going to remain calm is actually what's causing this computers try to balance out just like throwing rock into the lake ripples are going back and forth and until those smooth down and computers get settled we have with volatility as our travel companion. >> what do you say jonathon same story? >> the computers blame the computers and we can put the blame and chinese on the same level. the people behind the computers, is actual individuals and -- excuse me and stuart as i said last week when ellison started

dancing they get trampled about this market is that a lot of money has come out of it. massive outflow from atf and a lot of fear out there. fear is that we with haven't seen in recent weeks. taking a bigger picture of the trend is still down. 400 new, 52 week lows last friday only 30 two week high it is in the etf on low list are bonged etf so -- bounce here, but no real change in trend. >> okay we hear you jonathon you have to get this in budget director, warn withses that interest rates may spike that is an important word and he used that word because of a large e per budget deficit. jonathan, the market does not like high per interest rates especially if you are talking spike. go ahead. >> ting that's, that is we've talked about -- stuart as the markets fear and i think that's a real fear we're seeing interest rates back be down a little bit today. but you know, long-term interest rates are spiking.

i mean they've gone up dramatically and then we start to see that trend change they're moving ahead of the fed people are saying what's the fed going to do? rates are rising even though fed hasn't made a new change. >> they are moving ahead of the fed. the question is how high? and also, and why? and will they -- will the spike in yields going up cause a president and administration to dive back on their spending plans because that happened to clinton in the mid-90s i don't think that will happen. i think we're in a different world right now. we're guns and butter world war two. >> troubled by the word spike keep an eye on consumer price ares numbers do add on wednesday if they shoot higher than expected then that again raises that -- inplace and that could be another hit to the market. >> i have another sign of strength here. real strength in the economy -- national retail federation says retail sales this year -- will grow by about 4.4%. that's big. keith, that's a huge gain that shows real growth in the

economy. right? keith -- >> oh, absolutely because what it is showing that all of this stuff going into wages into pockets is transferring back into the economy. which is exactly what you want to see. my fear is -- i hate to be debbiedowner here but my fear is there's a lot of depth that comes with it and curious how they handle that instead of that frankly. >> now a trillion dollar deficit many 2019 i hard 1.2 trillion worth of deficit in 2019 you have got to be worried about that. i want to talk to you about a giant dutch corporation, that make lipton tea and literally dozens of other products that you use and see every single day. well, it is threatened to pull its advertising from google and facebook if they fuel hate, create division or fail to protect children. now, i would love to know how that angelo defines hate speech but that's not the issue at the moment it seems that there's a

black lash against big tech facebook and google in particular. jonathon, does that hurt the stock? >> it could. i mean listen, facebook is big and powerful, and as it is stuart is not inpenetrable and this is free market at work and don't need government to step in and regulate speech and control big tech and you know clamp down on powerful companies. this is prieflt individuals of corporation saying we're not going to advertise we're not going to put our money on certain platform of certain politicians are -- or effective. so you know, there was a time when my space was the thing and they didn't satisfy the consumer. is facebook, twitter don't, you're going to see stocks follow the same. >> it is a giant leader and rising is above 10,000, 25% of that goes to digital platform so two and a half billion dollars that will have an impact on these companyies if they withdrew it. >> advertising companies because they are saying online it is a

swamp. with what they're putting up on these websites, they're saying we're one of the largest advertisers in the world, keek not have an environment where our consumers don't trust what they see onis line and see one of our products advertised online. >> keith i think that google and facebook in this instance are in an impossible position. they're being asked to sensor two billion daily users who are posting what trillions of usages a year i guess it's that. a no win situation. >> i don't know that it is no win stuart respectfully i think it is great for you because it shows that corporate management does have a backbone does have a conscience and uniquely concerned with value of their brangd. i think it is pushing back on these social media giants that i've said for a long time have no social awareness and no -- understanding of consequences of that you are products so to me this is a great situation for that level to be a shout across the bowing for big tech companies i think ultimately make all three companies stronger. >> on your screens right now

laidges the nasdaq composite at 6,947 the news is it has just turned positive for the year 2018. that's for the dow industrials, there's a lot of if choppy trading going on today. moments ago we were up over 300 now we're pup 264 points. but look the level, 24,4 50. how about the price of oil talk about choppy. it is back above or $60 per barrel that's up a dollar and 9 cents as of right now opinion last week big losses, money bounce back today where's bitcoin no financial news program these days can go forward without quoting bitcoin. it is stabilized it just above $8,000 a pop and dropped below 6,000 briefly last week. infrastructure stocks moving up -- that's ahead of president trump unveiling his plan in less than two hour hoes from now. all of them sizable percentage gains xepght for kbr up just a fraction. i want to check big stocks do it all of the tile because you have to facebook is now actually down

just 34 cents. amazon alfa bet microsoft a physical all on upside by 1% or -- between a half and 1.5%. comcast reportedly making an offer of 21st century fox first bid rejected fox went with disney comcast new bid reportedly $60 billion. st century fox is the parent company of this network. disney, awe this intrigues me. diddisney is raise aring ticket prices in california and a florida two theme parks there, of course, one day ticket regular ticket for one adult is about -- 120 dollars. >> all in with parking which they're raising prices too team of four easily $530 a plus at disney a day. >> what do you say to that keith or jonathon go ahead. >> there's a couple of -- there's a couple of factors at work here one of which is the price of labor is going up and it's not like pluto won't get out of bed for $11 anymore but

demand 15 an hour. and you know other element here stuart is that, 100 dollars isn't what it used to be. that's the danger of inflation it has a slow creep as you said for a family of four to five to go out now it could be 500, 600 a lot of money. >> sounding a little bit like nancy pelosi 100 isn't what it used to be. >> government for that. [laughter] blame government for that. you're right. come on keith what are you going to say? >> i tell you what ticket prices went from just ludicrous to obscene now. i can't imagine the family. you know some huge percentage of america doesn't even have $500 to spend on emergency and now you spend it at a theme park. i don't know. >> a lot of foreigners go to theme parks by the way. they do. >> weak dollar. teaming u up with ups pane build charges stations for big rig trucks at their facilities. that's the important detail. they pledge these company pepsi ann

anheuser-busch agreed to purchase hundreds of tesla trucks the key to the the electric vehicles is the ability to charge quickly. that's what it's all about jonathon isn't it? >> i don't know. [laughter] i don't know and no one with else does know. i think that's fascinating when we're seeing how tesla worth more than ford motor business company and changings way that transport works. i think there's a risk here government gets involved with fuel and subsidies but you know we're seeing tesla and now private companyies even -- a consumer oriented company change the way that transport works in this country. i don't own o tesla actually i think that stocks are short at these levels but you have to hand innovation to them and that's what enterprise does and that's what we're seeing. we thank you jonathon and keith for being here on what is important monday morning we have opened it higher. to prove my point look at this. we're now up 301 point we owe

3,24,500 that's where we are. lincolns gas guzzling navigator suv in such high demanding that is spending millions more details on that coming for you white house releasing proposed budget lots of new spending does nothing to eliminate the deficit that appears that republicans are no longer the party of fiscal restraint. runner mcdaniels will join us next.

>> well we have volatile volatility but up 334 points, 542, 355 going up all of the time ford spending millions to

upgrade a plant because of high demand for one of its models okay nicole o the big suv isn't it? >> suv time nobody is worried about gasoline prices anymore so what they're doing is upping their kentucky plant spending 25 million. they will have 400 robots three clinton technology, what do they want to pump out o, the lincoln navigators and seen price jumping for this beautiful suv which i was loving -- 77,000 is run up to so jumped about 38%. other thing they pump out is expedition running about 577 both of the high demand and they say if they can pemp them out people will buy them seeing the demand and they need to take on gm u yukon and a a little also chevy suburban so they are the gm brands that compete with the two. >> thank you very much indeed. good stuff. now this president trump wants to prioritize the international space station to prepare the

station for commercial use by 2019. cut funding government funding that would be by 205 more on this, liz is? >> part of a future commercial platform that he wants to make companies pick up cost to run it and we have to get, i don't know how it is working working with canada, japan, and you know, also russia weighs in -- and doing things with the space station. it is cost the u.s. $100 billion since it launched. to operate it. so -- 2025 finally will private company accept in? >> well question is how o will a private company which is involved in this get its money out? way to return you put a billion in what do you get out? call it the coca-cola space station. [laughter] >> the real thing. i bet you that could happen. >> yes. you're right. right. let's get become to politicses shall we? i know where we are with that. white house releasing budget proposal today i'm saying -- that gop is no longer the party of fiscal restraint it is just

not ronny is with us chair of the rnc i don't to hear me say this. but you know, you republicans -- you don't stand first at reigning in spending. you are big spenders now. you know you are -- no we are not we want to reign in spending although time to do it was not when it was looming and we needed to fund our military. so we're going to continue to look at ways to reign in spend and cut our deficit. but that just wasn't the time and place that certainly something that is important to our party but we are in the party of growth. >> no. yes you're the party of growth no question about it. congratulations. i mean, that's why i would support the trump growth plan. period got it. but -- there's -- there are no votes you don't have enough votes in the house or in the senate to impose austerity you don't not now not ever. that's not the nature of american politics these days. >> well i think it was important to get our economy growing and that was the first priority of

the president for the b regulation and cap, and then we have to tackle spending we know we have to tackle spending. rand paul need a stand need to pox on it but government shutdown was not the way to do. explain how it is possible that you're going forward with -- growth plan we're going to grow. three maybe 4% and we're going to have a deficit of over a trillion dollars in one year, 2019 how do you explain this? >> well part of it is the growth and you said three to 4% gdp some are saying potentially five. remember the u new normal under obama was 2% gdp. we have, obviously, exceeded that you've seen our economy starting to kick start. we do have to address the deficit republicans are talking about it but we need to put forward a plan that is sustainable to address. but a government shutdown was not the way to do that. >> in what way do you think you'll restrain spending because

big budget busters are medicare and social security. and the president say he's not going anywhere near either of them and we won't go near defense either so see what our legislators come forward with. you're hearing had many the house talk about this thing a priority and put together a plan. we'll see what they come up with, but it is a priority. >> i was socializing this weekend and people came up to me disappointed with that. >> should be disappointed with a gop putting together an economic plan that is bringing prosperity to our country wages are going up a and more jobs, you're seeing 3.5 million people now benefiting from the tax reform through bonus and 401(k) so our economy is doing better and getting kick started. there are other o things that need to be addressed but it is much better than anemic economy. president trump inherited from president obama. >> definitely. absolutely no question about it. thanks so much for being with us today i'm sure this is a theme

rial return to the future. sure thing. where are we this monday morning 28 minutes in a sea of green, look at that. you don't see that very often actually we're up 313 points as we speak. i do not know how we'll close -- that's a fact. >> for the next hour. [laughter] mark short white house director of legislative affairs. accusing the democrats in congress of playing politics with the release of that memo their memo napolitano on that and coming up enjoy the lovely new -- whoooo.

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>> checking the dow and the s&p, both sharp isly higher by the way the the nasdaq has now returned and become positive for the year quoit a development there. we have the white house accusing democrats of playing politics with the release of their memo listen to what white house legislative affairs director mark shorts said about this over the weekend. roll tape. >> we believe that -- congressman shift intentionally put in there methods and sources that he knew and need to be redacted and if we reabouted it then they would be outcry that white house is trying to edit so take it back work with fbi and clean it up and weal release it. politics here isn't judge napolitano is with us. look i want all of them released

so do you. >> trying to wear a neutral hat i have to tell you i believe it has very, very dangerous i've never seen anything like this since 1947. which was in the security apparatuses that we now use came into being where politicians can cherry pick from raw intelligence data and to sue a political narrative it is very dangerous it will create an uproar for the raw data to appear and what data appears it will create an uproar in intelligence community which will not want to trust politicians with the raw data that they sometimes risk their lives in order to get. this is very, very dangerous territory for both sides the republicans started it we saw that memo with a source in there sha thongt have been revealed i can tell you about that in a minute and democrat memo that marks and we haven't seen it. but i can't debate with him because i don't know what's in there. who knows if they intentionally put that stuff in there or o the same tiefn you have to read are

between license to see this like a republican novel. >> the ball is rolling and question of to -- >> difficult to stop that ball from rolling. who is source that was revealed -- intentionally. >> here's the language that director of the fbi wanted out of the republican memo unsuccessfully begged congressman nunez and then the white house christopher steele comma, a long-time fbi source well what's wrong with that? because american intdges and british intelligence have an imreement not to recruit present and former intelligence officials fbi in violation of that agreement recruited chris steele. that's a major headache for the doj and for their counterparts in the british government that this was now reare vealed. >> one quick question the big theme one of the big themes on program today is all stimulus money hitting economy and massive, massive deficits will face. you had a similar situation to me where you're with people and

they're up in air as with republicans. >> lifelong republicans a the a dinner gathering on saturday night appalled at the amount of money that the republicans are now lings to borrow and spend far more than what they criticize for barack obama it for it. i threw this number at them a million a minute who spend that? nobody spends that. a million a minute who borrows it, nobody borrows it. that's what the federal government will be borrowing as a result of what donald trump signed the other day a million dollars a minute is inconceivable amount a of money and never paid in full so have republicans abandoned their core value? of fiscal responsibility, yes they have. because they have to there's no votes for austerity or raining in so that for another day. at least the 11th. [laughter] the liberal is falling all over kim jong-un sister and appearance at the olympics have they forgotten this woman is head of propaganda for a

murderous regime my take on that. coming up. next. . .

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get your domain today and get a free trial of gocentral. build a better website in under an hour. stuart: kim jong-un's little sister has now returned to north korea. gee, you would think she won a major victory. the north korean cheerleaders done their thing. they got lot of attention. north korea's charm fest if that is what it is called appears to. media tried to shift noko. little attention who little sis. she is in charge of propaganda and agitation for murderous regime. she whitewashes one of the world's most oppressive regime. she is a joseph goebbels. from cnn, a smile, handshake, a warm message, kim yo-jong struck

a chord with the public. seen as her brother's answer to ivanka trump. oh, dear. america's top representative to the game is vice president mike pence. he understands the nature of the north korean regime. he spent time with people who defebruary. he listened to their stories of torture and horror of modern day concentration camps. the media largely ignored him. there are consequences to the deliberate softening of the noko image. we will be portrayed at the aggressor. if we don't follow up with outreach we will be the war aggressors. kim jong-un directly threatened america with nuclear attack. he staged a giant military parade right before the games began. demands return of those defectors. they face horrific, certain death. for a time we hoped our media would take objective view what is going on here and abroad. it is not happening.

the left is prepared to continue its contempt for all things trump, even to fall in line with the north's propaganda. they ignore mike pence and his powerful stand for human rights, and promote the propaganda queen herself. hate to say it, but the media gave the nokos a win. the second hour of "varney & company" is about to begin. ♪ stuart: well it is a volatile day on the market. most of the volatility on the upside. we had been up 330. we had been up 140. now we're up 246, 248. the big tech names i should say, facebook, might be down after the e-marketer said less than half of younger users, 12 to 17 are starting to use the site. that is a big deal in the facebook world. it is down, what was that again?

using the site less i should say. i think i misspoke there. facebook is down on that news. infrastructure stocks higher ahead of president trump es unveiling of the plan, the infrastructure plan in less than a couple hours from now. all of them on the upside. bitcoin i hesitate to say it is rebounding. it is up a little bit today because it dropped below $6,000 a coin last week. it is now up $85 at 8,585. back to my take at the top. hour, the media praised, gave faint praise to north korean leader kim jong-un's little sister who attended the opening ceremony at the olympics. here is a headline from cn this. kim jong-un's sister stealing the show at the winter olympics. come on ralph peters, the voice of sanity i hope. fox news strategic analyst. ralph, i'm appalled, absolutely appalled. what about you? >> the bottom line don't underestimate our enemies, we

underestimated the north koreans. for the last couple months they have been on this charm offensive. we got blind-sided what they did. they won a massive propaganda victory in the global media. your assessment earlier, stuart, was exactly right f we act now, whether it would be unilateral military action or anything else, we are the bad guys. you know the media, this is so predictable, his younger sister, kim yo-jong, she was the new girl in town, the media loves the new girl in town. she got fawning coverage and vice president pence, as you pointed out, got pushed to the sidelines, but, he did make a crucial mistake. he should have stood up when the korean delegation marched passed because the south koreans are our allies. we had missteps. we underestimated our enemy's ability to launch a charm offensive. we're on the back foot. stuart: okay. where to from here?

because the north, as i understand it, kim jong-un's little sister, she invited south korea's president to go to the north. he has not said whether or not he is actually going to the north. again, we're on the back foot. because if, i just, i just don't know where we go from here? >> well, i do. now, he is probably going to go to the north. hard to resist. idea of contributing to reunification, which is still an important issue with old every north koreans, not so much with the younger south koreans. the younger south koreans they have no experience of unified korea. they're not so concerned about that but what we need to do is not only crack down hard on enforcement of the sanctions in place, the push for even more sanctions, because at the end of the day, if the money is not going in, if the oil isn't going in, if north korea can't trade they will have to come around.

for the meantime, to the interim, north korea has bought time with this propaganda ploy. time to develop its missiles. time to develop its nukes. we need to really come down hard on where we can. stuart: well-said, ralph. thank you very much, for joining us. pleasure. thank you, sir. >> thank you. stuart: we have to get back to the markets. the dow did see some pretty wild swings last week, 1000 points up and down on a particular day. right now we're up 300 points. the volatility so far today is all been on the upside. we're holding at 24,490. that is where we are. john layfield with us, layfield report, ceo thereof. i think that this volatility, whether i think mostly on the upside, but volatility, ups and downs i think that stays with us. what say you? >> i agree completely. look this all started this past monday with exotic instrument highly leveraged. shouldn't be allowed to be on margin.

once that blew up, margin calls started happening, computer trading started kicking in. this is where you got big selloff in the week. fund managers taking risk off the table. there were simply more sellers than buyers last week. i think they're trying to find fair value. i think volatility continues, yes. stuart: we got a signal of significant calendar growth. national retail federation says sails could climb up 4.4%. that is a big growth rate. i suspect if that is accurate the economy is growing very quickly. that means higher interest rates. that means volatility on the stock markets. again, what say you? >> i agree. nothing has changed fundamentally in the global market or in the u.s. market either. i think adds to economic growth and higher interest rates. people trying to find fair value. this 4.4% number. last year, retail sales grew 4.2%. that was largely skewed by higher oil prices. oil prices will stablize this year compared to last year, looks like.

that really is a bold prediction of 4.4. that number for a large mature economy like the united states is really a solid number. stuart: sure is. listen to this one. sanford bernstein, a brokerage firm investment firm, they lift 13 stocks they say are a buy at this particular moment in the market. they include oracle, american express, microsoft, coke, pepsi, wells fargo. they're saying diversify to 13 stocks and buy these stocks because they're cheap. would you buy any of them? >> i would. i would watch out for a couple. i don't want to buy any stock that competes, we talked about retail with amazon and walmart. look at ross stores and international fragrances and flowers on this list. they're good companies. i would not buy them because of competition. i like oracle. larry ellison built a company through incredibly smart acquisition. he is getting $58 billion back in repatriation. that is lot of money to play

with. consumer spending looks to be on the upside. wage growth is showing acceleration and american express with the higher oil prices will have larger transaction fees. i like both stocks. bernstein put together a very good list. stuart: there are cheap, when i say cheap, that is relative. there are stocks that look attractive to you? >> yes. there is. and if you're buying something for 10 years out, which is how you should be buying, find a hop into stocks. what is probably better strategy, look at stocks you would like to own, put some type of buy price on those. if you see volatility dip down, automatically kicks in. you get the stocks at discount. stuart: smart move, john, food stuff. thanks very much, john layfield. see you very soon. now this. unlever, before we tell you, let me tell you unlever is a giant anglo dutch company, they are threatening to stop spending on ads on google and facebook. give me the store. ashley: they make a gazillion

products, dove, ben & jerry's, lipton, they spend 10 years a year on advertising this is a big hit by the companies if they decide to pull them. they are upset, they believe digital platforms such as googles and facebooks and so on, they say they have become a swamp of face news, racism, sexism and extremism. it goes on to say the company says unlever will not advertise on platforms that create divisions in society or fail to protect with young people. stuart: i have a problem there, unilever anglo dutch, they, europeans define hate speech very differently than we do. ashley: by whose standard? stuart: by whose standard? what do they think is hate speech and what do i think is hate speech. ashley: could be a lot of money on the line. interesting how to gets resolved. stuart: i don't know how facebook and google respond to that? how do you censor such enormous organization with so much input every second of the day. liz: lack of oversight what

advertisers say turning back to tv advertising. flooding into the internet. now could be reversed. stuart: wonder about that. liz: you wonder, right. stuart: making history at the olympics, american figure skater, mirainagasu landing a triple axle, something the an american has never done before. she is the third woman in history to land a triple axle at the owe him ticks. did it last night. got. coming up. watch out a couple minutes ago it was up 350. that sell off week, last week, nothing compared to what is coming. now that is according to the market legend jim rogers. he will give us his prediction later this hour. a former under cover in the cia spent 10 years defending her country. she led teams to help christian refugees in iraq. she will tell us her story this

hour. you are watching the second hour of "varney & company." look at those fancy new graphics. ♪

stuart: volatility on the upside. we're up 200 points. we had been up 300. where is the price of oil? i'll tell you now, it is back just below 60 bucks a barrel. 59.95. how is the price of gold doing much. it is up nine bucks. $1325 per ounce. this is a mass exodus, i think we see more of it, basically in venezuela, out of venezuela. thousands of people trying to flee the country. they're looking in refuge in neighboring colombia. what is going on, liz. liz: the president of colombia, the situation is so bad, economic collapse in venezuela, it is so terrible, he is deploying soldiers to the border

to stop the crossings for health care and for food. thousands of soldiers now on the border. he is also saying being nicolas maduro, president of venezuela, this tragedy is result of your policies. economic collapse in venezuela from your socialism why we're seeing now 600,000 people in venezuela, from venezuela in colombia, double what it was six months ago. stuart: what this is this i hear about the pittsburgh pirates baseball catcher, and his mother in venezuela what happened? liz: his mother was kidnapped. pittsburgh pirates capture, elliot diaz, she was kidnapped but released in the western section of venezuela. stuart: we don't know if any payment was made? liz: we don't know that. stuart: white house budget includes $23 billion for boarder security. i've been critical of the spending plan because it will explode the deficit. our next guest disagrees with me.

he called the budget deal another triumph for trump and tragedy for democrats. the author of that piece is brad blakeman. former deputy assistant to former president gw bush. he joins us now. brad what is this tragedy for democrats? i would have thought it was a triumph for democrats. >> it was quite the opposite. democrats wanted to shut down the government. they insisted putting illegal aliens among interest of children and military and it backfired on them. now it's a separate bill on immigration as it should be. i'm a fiscal conservative, i don't like spending but of discretionary spending we had to spend decline in military and some of our social programs to the detriment of americans. i believe with the president's positive economic plan, with taxes we'll be able to grow out way to the prosperity america needs. really, stuart, the problem in america is not discretionary spending.

it is mandatory spending. stuart: i understand entirely, brad. i'm with you to some degree. we need growth and prosperity in the country. i'm worried about the price tag, trillion dollar deficits down the road. front page of "the new york times" today, pelosi fighting to keep hold on split party, subheadline, top democrat may be losing iron grip. this is about the crumbs comment rand the eight-hour theatrical performance on the floor last week. is she losing her grip? >> yes. one of the reasons donald trump stuck to his guns on principle. he wasn't going to be bullied. democrats want to shut down the government over illegal aliens coming into the country and so be it, he was willing to do that he met them toe-to-toe. donald trump is playing chess and democrats are playing russian roulette and donald trump so far is winning the match. stuart: is it possible she will

not be the leader of the party in the house, going into the november elections? >> all depends what happens in november. since the civil war the party in power controls the white house has lost an average of 32 seats in the house and two seats in the senate. there is nothing democrats like more than victory. we have to snatch that from them. they really have to reorganize. they are a split party. pelosi overstayed her political welcome. clearly she is not the leader she was when she was in control. stuart: you want her to be the leader of the minority party? >> absolutely. no doubt we have done very well with her lack of leadership. we don't believe the democrats have a good bench. steny hoyer has been around as long as pelosi. the leadership in the senate is just as weak. so, yes, we would like to keep control of the house and senate in november and we would love for the democrats to continue with weak leadership. stuart: brad blakeman, doesn't be such a stranger to the

program. >> pleasure. stuart: come on back soon. good stuff. thank you, sir. hold on, everybody, i have a crazy, vintage story for you. the london city airport, not to be confused with heathrow or gatwick. don't confuse it, the city airport should down. a world war ii bomb was found nearby in the river names. all flights canceled. families in the area have been evacuated. the zone of evacuation will widen when they try to remove the bomb. 1000-pound, five-foot long. we'll keep you updated. liz: wow. stuart: a bit more of the lovely new graphics. can't get enough of that. ♪

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stuart: look at this iconics brands up 36%. they announced a new deal with target to sell the umbro soccer brand in target stores. they own starter, london fog, ed hardly. their soccer stuff will be sold in target. the stock is up 35%. not bad. now this, the new tax law will hurt companies that shifted their home bays overseas. we're talking about this inversion thing. gerri willis has the story for us. >> that's right. stuart: so this is the companies which went overseas to take advantage of lower taxes over there. >> they wanted that 12.5% in ireland, right? they really wanted to do that. now tax reform which we thought was just a universal positive for companies, not so much. they're losing key deductions that made that inversion

strategy all that more profitable, right? >> because they go oh seas, they have lost the deductions which are in the new tax bill? >> that is in the new tax bill. so for a company like, let's see for a company like medtronic, praxair, burger king, this could cause additional 2 to 4% in taxes. now the experts say it is not enough to bring you back here but it is just annoying enough they will make like 150 billion extra dollars in taxes coming into the treasury, right? so this is one of those things that people did not expect. there are lots of hidden things in tax reform, small things that make big differences to companies. this is one of them. let's be clear here, the companies were playing the system. it was all about that. all about finding the lowest tax rate. can't blame them for that. now tax reform is catching up to them. stuart: i didn't know burger king -- >> medtronic, johnson controls and eaton out this week saying

this will cost us an additional two to 4%. they're on record with earnings saying this. a lot of companies impacted by this. some of the names there. johnson controls. on and on. stuart: too late to go back? subject to the rules now. you have to come back. gerri, thank you very much. >> you're welcome. stuart: the media, oh, fawning over kim jong-un's little sister at the olympics, giving her what looks like a diplomatic win, that is what it looks like and i say that's dangerous. we have the full story for you. legendary investor jim rogers saying the 1000-point drops nothing compared to the correction headed our way. jim rogers next. ♪ at fidelity, trades are now just $4.95.

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tripadvisor. ♪ stuart: that is george harrison, ladies and gentlemen. we'll call it the beatles number at 10:30 this morning. we're up 167 points now. had been up 330. we were up just 100. now we're up 166 as we speak. the big tech names, kind of a mixed picture. only facebook is down, but facebook is down sharply, down 3 1/2 dollars at 172. microsoft is now down three cents. amazon, alphabet, apple are on the upside. look at xerox, carl icahn, an investor in xerox. criticizing the company's plan to sell itself to fuji film. he says the deal dramatically undervalues xerox and disproportionately favors fuji. nonetheless the stock is holding

at $29 a share. a deal on immigration hopefully? the president tweeting this. i identified three priorities for creating a safe, model and lawful immigration system. fully securing the border, ending chain migration, and canceling the visa lottery. economies must secure the immigration system and protect americans. dan whoings from heritage. i believe that heritage is the top lobbying group in america. a little compliment for you. give me the bullet points, how you see the perfect immigration plan for america? >> i think what the president is outlining is a really good start. the problem we have with the immigration debates it focuses amnesty first you instead of getting legal immigration right. we should be prioritizing people with skills and merit to come to

the country, make the country better as a whole, as opposed to relying on family relationships. if we can do one thing as we move forward, changing that system would be huge for the future of this economy. stuart: that is one side of the ledger, secure the border, end chain migration and that is the trump side of the equation there. is another side, that you have to cover that. what are we going to do with the "dreamers"? >> the other side of the equation is how do we have legal immigration that reflects the values of the country and has married baste or skilled-based component to it. what do you do for them, and we have real concerns about the president's proposal which is, amnesty or legal status for a path to citizenship however you want to define it for up to 1.8 million people. what we'll be doing in that situation, opening the door for rampant fraud. there are currently 690,000 individuals in president obama's daca program. that program was unlawful. it shouldn't have been created

but it was. those people have been cleared through a vetting process. we know who they are. there can't be fraud giving those people some more certainty. but we do have real concerns when you expand that to much larger population that hasn't been documented and background checked. stuart: you have to have that side of the ledger involved in the overall equation. you have to have some deal with the dreamers, because otherwise you don't have the votes. if it is just border security, and chain lottery, if that is all it is, you don't have the votes. and you don't have the votes unless you are relatively generous on the other side of the copy with the "dreamers." >> yeah. i think the president has made very clear that he wants a deal to some portion of the d.r.e.a.m. population. and what we have been saying is that, if you were going to go down that road, and go down the road amnesty entails, there is a side-effect, there are bad consequences from that perverse incentives created through an amnesty. if you're going to do that have it be narrowly as targeted as

possible. that is what chairman goodlatte tried to do in the house, three-year renewable status to the 690,000 daca. stuart: do you think we'll get a deal this year? >> i think it depends how broad of a deal you want, stuart. i think right now there is going to be a lot of proposals out there. i don't know if any of them will find that sort of magic sweet spot between the enforcement and, the good changes in legal immigration and what to do with daca recipients that can get 60 votes in the house and majority of republicans in the senate. if that is not the case you will likely see a short term punt into next year. taking care of current daca recipients a little bit of money for border security. then hash it out at the election saying democrats are playing politics on this issue, holding up a legitimate, thoughtful immigration discussion. stuart: that is very interesting political strategy. that could be a winning one.

dan, thank you very much for joining us. appreciate it. to north korea, the media fawned over kim jong-un's younger sister at the olympics. i have headlines for you to demonstrate the point. cnn, kim jong-un's sister is stealing the show at the olympics. stealing the show. reuters says, north korea judged winner of diplomatic fold in north korea. howard kurtz is with us, the author of media madness. am i going too far, the media in fact many instances fawned over the propaganda chief after repressive regime? >> you left out headlines. "washington post" had a front page line saying she is the ivanka trump of north korea. that was a quote from somebody but still. i don't know what was more cringe-inducing the cnn headline about stealing the show, other lead sentence, if diplomatic dance were a event at olympics kim jong-un's sister would be

favoredded to win gold. that incredible reporting from a perhaps the sister of a world's most brutal regime. stuart: they hate donald trump and don't respect vice president pence. personal emotion motivated it rather than politics. what say you? >> not sure there is anti-trump motivation. i don't think all these people become communist sympathizers but they're very easily charmed and swayed by a young woman with a pleasant smile. if you look at cnn story, the fourth paragraph does say her brother is a brutal dictator operating nazi-style prison camps, repressing political opposition, executing senior officials and his own family members. that was in there. as you know the headline, the lead, that is how sets the tone. that is what goes viral. stuart: that is the trouble with, instead of reading the newspaper, i've got one right here, instead of the whole newspaper, you open it up and you see the whole world and you read all the way through the

story. when you read that, on your facebook page, you don't read the whole story. you read the first paragraph and headline and that's it. that is a real problem. >> it's a problem but it is something we should all be aware of in the digital age. if kim's sister is making a splash at the winter games i'm not saying that is not a story. she met several times with south korean president moon and invited him to visit pongyang but cover it with some degree of skepticism. this woman is not just the sister, i'm sure you noted this, the head of department of propaganda and agitation. she is agitator. stuart: i call her joseph goebbels. am i going too far. >> i don't like nazi references but i don't like north korea either. i do think north korea got out of this exactly what it wanted, seizing, trying to drive a wedge between the trump administration and south korea and the tone of some of this coverage i think just completely missed the mark. no medal there. stuart: we're in agreement. how about that, howard kurtz?

thank you, howard. always a pleasure. thank you, sir. >> good to see you. stuart: now we have the dow industrials, we're up 240 points, okay? not too bad. volatility today. almost all of it on the upside. now, for the past two weeks we've seen extreme volatility and by the way, a 10% correction. stock prices are down 10% from their highs. our next guest says more, even worse stuff is still to come. that man on your screen is jim rogers. he chairs the rogers holding company. he is a legendary investor. why do you say, jim, stop shaking your head, you're a legendary investor, you're on the show for that reason. why do you say things get worse in the future? >> well, i'm delighted to see you again, stuart. what i said was, we're going to have a bear market again some day. by the way janet yellen says we're not going to have bear markets anymore, so if you believe her, you should not listen to me but i know she's

wrong. i say when we have a bear market it will be the worst in our lifetime. stuart, in 2008, we had a problem. too much debt. well the debt everywhere, everywhere is much, much higher now. and so the next time we have a problem it will be a mess. you should walk fox news, watch fox business. stuart: are you a debt bomb guy? we had a lot of those people on the program saying debt is astronomical, at some point the debt bomb explodes. you you know what, jim, we never quite get there, jim, do we. >> that is why the market is worried. eight years since we had the last decline, nine years since we had the last decline in the stock market. i'm not only person that knows that. everybody sees that. it is not a problem until it's a problem. when it's a problem it will hurt us all. stuart: how about bitcoin? we have a top wells fargo strategist who says the cryptocurrency inconsistency is

to blame. what the guy is saying is, the decline in bitcoin is part of the decline in stocks. is there that kind of linkage? >> well, that is why i'm into the a top strategist at wells fargo i guess. i don't see it at all. bitcoin went up 10 or 20 times last year. no stock market went up 10 or 20 times last year. the markets, bitcoin may move along with the market at times or vice versa. there is pure coincidence. no correlation. stuart: are awe bitcoin kind of guy? would you touch any of these cryptocurrencies? >> i wish i had. i wish i had bought nothing but bitcoin, just listening to our previous conversation. no, i never bought one. i'm not sure it is, i don't think it is going to work. our money problems will be handled by the internet in the future. you go to china now, i tried to buy an ice cream last week in china, i couldn't do it because i had money.

they wouldn't take money. i, why? because i didn't have the spot for the bank. so, internet is going to change our money but it is not going to be bitcoin. stuart: that's fascinating, jim rogers. you couldn't buy an ice cream because you wanted to pay in cash. extraordinary. >> if i had the right machine i could have bought a mercedes, i could have bought anything i wanted. i couldn't buy an ice cream because all i had was money. stuart: jim rogers. good story. thanks for being with us. don't be a stranger. good stuff. >> thank you. stuart: republicans agree to a budget that spends extra $300 billion next two years. we have a congressman signing on to the plan next hour. moremore "varney" in a moment. but first a under cover j -- cia agent, began leading

christian refugees to safety in iraq. a great story. she will join us. ♪ nah. not gonna happen. that's it. i'm calling kohler about their walk-in bath. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please...

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big spending bill because it gives the military the money it needs. take a listen. >> look, i didn't like taking the vote on the budget our military is very important. when general mattis the biggest, most dangerous enemy the united states army and military face is the u.s. congress we need to act. our military has been suffering under crs for 36 years. we finally got a deal with the senate. amazingly chuck schumer on board. remember something, i'm so sick of hearing people say you control government. i'd like to say wouldn't it be nice if we doesn't have a 60-vote rule. i would argue on the senate side we don't even have 51 votes. we have a lot of republicans that are registered that way but they don't vote that way. we can't rely on them for really important issues. ♪ hi, i'm the internet! you know what's difficult?

armless bowling. ahhhhhhhh! you know what's easy? building your website with godaddy. get your domain today and get a free trial of gocentral. build a better website in under an hour. stuart: now what's disney's stock doing today? it is down nearly a dollar, despite the fact it is raising price of a ticket at disneyland and disney world theme parks. adult one-day ticket will cost $120. how about that? our next guest spent time in the middle east. she was a cia agent. she wrote a book about her experiences there. the title of the book is, "breaking cover, my secret life in the cia, and what it taught me about what is worth fighting for." michelle rigby assad is with us now. i really want to hear your

story. as i understand it, you worked in the cia, left the cia, and then, you were leading christians out of their oppression in iraq. the story, please. >> yes, sir, sir. so in 2015, right after i isis took over iraq's second largest city mosul and set its sights on christian and yazidi villages all over iraq, a group of americans came together and said we can't stand by to let this happen. is there something we can do? my husband and i were brought in to operationalize this effort, to find a safe haven for the persecuted christians. we went through so much to try to make this happen. after about four months of diplomatic efforts to find a country willing to take a group of christians from northern iraq, we found slovakia. and on december 10th, 2015, by the grace of god and by multiple miracles we successfully airlifted 149 christians to their new homes.

we took them from northern iraq to slovakia. stuart: now the obama administration was criticized for not doing anything for the yazidis and for christian groups in the area. was your operation a private operation, separate from our work in the cia and separate with the government, totally private, right? >> exactly. it completely private. what made this so interesting was we weren't even a part of an actual organization. we were just a sprinkling of people with very unique skillsets. it was really great. we were no longer connected to the cia in any way but we had these amazing diplomatic skills and ability to carry out operations in really tough places which came in very handy in this situation. stuart: frankly, i think myself and our viewers are in awe of what you did, offer our congratulations. i wonder if i could ask you, what do you think of president trump. >> thank you so much. yes, so, he actually got, his administration got off on the

right foot with the middle east. i was very impressed with his trip to saudi arabia when he met with about 50 heads of state from muslim-majority countries and by showing up as they did, they were essentially saying we want a better relationship with the united states. and today tillerson is in egypt to support egypt in its new counterterrorism efforts in the sinai and i really applaud that but we do have to be very, very careful about our relationship with turkey and qatar, because we've been a little too chummy with these countries which are spreading chaos and supporting terrorism and arabs are looking at us saying, this doesn't make sense. you can't be friends with all of us. we need your help in the counterterrorism area but you can't be then working with other groups who are supporting terrorists activity. stuart: can i just add one last question here. we heard so much about the yazidis as being terrorized and beaten and murdered.

do they still exist in the middle east? do they have their own villages still? are they still there? >> there are some yazidis left. unfortunately so much of northern iraq has been obliterated by isis. so a lot of these ancient villages, they don't have water, they don't have infrastructure. so it is very hard for them, the kurds, the christians to begin a new life after everything isis did. even if they have been kicked out the whole region is still a huge mess. stuart: michelle, i want to say again, congratulations we're in awe of what you did. we hope you can do it again. michelle rigby assad. >> thank you very much. stuart: there is the book. michelle rigby assad. our special guest. this for you. medical breakthrough? new treatment for the flu that can completely kill the virus in 24 hours? how about that? dr. siegel will tell us if it

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stuart: experiment al drug promises to kill the flu virus in a day, gone, dr. siegel is

here. this is from japanese company. it's a pill. how does it work? >> this company is pioneer with hiv where they blocked the ability of the virus had to take over the genetic material of the cell. in other words, a virus, hiv virus or flu virus comes parading into your cell, goes to the nucleares and takes over hard-wiring of the cell. like something out of science fiction. this particular drug, biloxvir, it blocks the ability of the flu virus to take over your cell. they studied it to other antiviral drugs like tamiflu, it takes about the same amount of time to get rid of your symptoms , of the flu, same as tamiflu. but what is does better than tamiflu? it increases viral shedding. you test negative for the virus. after one day taking it, you no

longer have it. it will be approved in europe this spring. if it will be in the united states next year's flu season. i believe it will decrease shedding to those around you. people like you who refuse to take the flu shot, could take this pill to protect your family. stop the shedding around your family. stuart: it works. arrives in europe in the next spring. >> this spring. stuart: weeks away. >> right. stuart: it arrives here next year if approved by the fda and you think it will be approved? >> yes. i think it will be approved by the fda. they have already lined up international marketing. i think it will be approved. i think it works. it doesn't take the place of universal flu vaccine coming down the pike too. this is talking about flu advancers. advances in treating flu. this is great anti-viral drug. it looks promising. stuart: we'll leave it at that, doc. thank you very much, sir. just minutes away the president unveils the infrastructure plan. we'll bring it to you live when they give it to us. meantime watch the lovely new

graphics.

stuart: i really feel that whenever a politician appears anywhere, we should pay that song, hey, big spender. [laughter] these days it's true of republicans and president trump, spend and spend big. that is the order of the day. now, it's always been true of democrats. they are the party of government. they redistribute the wealth through taxation and spending. they've known for a long time how effective an appeal that can be. it can win elections. the republicans, when they were in opposition, were the party of austerity. their mantra was rein in that government spending. not now. they've just agreed to a budget that spends an extra $300 billion in the next two years, and president trump, he is not ideological. he's practical. he wants to get things done. and the easiest way to get things done is to let the politicians spend money. he's a smart guy. there are no votes in austerity.

no, the votes from both parties are in spending. so let 'em spend and make it happen. so with all these signs of people signing on to haugh-duty spending -- heavy-duty spending, here's what we are going to see is: number one, massive stimulus. we're going to throw money at the economy, we're going to chuck money at the economy. tax cuts, bonuses, government spending and probably infrastructure too, could be 4% growth this year. love it. but, number two, massive deficits. a trillion dollars' worth of red ink by 2019. next year, that is. isn't that extraordinary? a trillion dollar deficit with the economy growing rapidly? it's not supposed to be that way, but that's the way it is going to be. we're tempted to believe that a political revolution was at hand. we were tempted to believe that. that we would come to our senses and tackle spending and debt. not gonna happen. when it comes to spending and borrowing, nothing, nothing has changed. the third hour of "varney &

company" is about to begin. ♪ ♪ stuart: well, part of that giant stimulus is the infrastructure plan, and happening at this hour president trump meets state and local officials about the infrastructure plan. here's what he tweeted about this morning. this will be a big week for infrastructure. after so stupidly spending $7 trillion in the middle east, it is now time to start investing in our country. well, connell mcshane's at the white house. can you tell us who is going to pay for this $1.5 trillion worth of infrastructure stuff? >> reporter: well, a lot of it, in theory -- and that's all this is at this point, stuart, theory -- a lot of it would fall back on the states. hence, that meeting that the president is having right now. you get the $200 billion from the federal government, the idea is to give these state and local governments an incentive to

spend their own money, however they may raise it, higher tolls, whatever it may be to a trillion dollars plus on new roads, bridges, airports and the like. you know, if the federal government or a venture capitalisting maybe you think of it as seed money, that's the idea to get them going. but here's how the numbers actually look. this big plan you'll hear, $1.5 trillion. but as i said, the real money coming from the federal government is $200 billion. the way that breaks down, $100 billion in incentives, $50 billion in direct spending going to rural improvements, wi-fi and the like, $20 billion aimed at attracting private investment and another $10 billion to improve some of the federal facilities, the government buildings and what have you. that's kind of how it breaks down. the other area the white house says they can really help on is the permitting process. they can get, like, ten years now to get, you know, one of these projects approved, they claim they can get that down to two years. so that's how they're promoting things -- stuart: well, that would really help. you shorten that, it's more

possible. connell, thanks very much for joining us. we'll see you again soon. thank you, sir. back to my editorial at the top of the hour, we are looking at a trillion dollars' worth of red ink by the next year, and the republican party has abandoned financial restraint. david mcintosh is the president for club for growth. david, we're going to get growth. we're probably going to get 4% growth this year, but at what cost? a trillion dollar deficit in 2019? you can't approve of that. >> we don't, and we didn't. that deficit bill was of the swamp, by the swamp and for the swamp. republicans abandoned their principles in passing that bill. you're exactly correct, stuart. and, frankly, it's not that good for the economy either. i think we will get growth because of the tax cuts and the deregulation that president trump is doing, but this actually could have a negative effect on growth as the fiscal policy and monetary policy both work now to crowd out borrowing.

the result of that is going to be higher interest rates. iewfort stuart yeah. i just don't see what we can do about this. i don't think there are any votes in austerity. the moment you say i'm going to cut spending here or here, you're demagogued to death. there are votes in spending money but no votes in reining in spending, and i don't think that's going to change. >> the political problem for republicans is their base does not like this bill. i'm told that when senator cruz went and praised it as a lincoln day down in houston, it was stony silence that greeted him. and the political problem for the house in particular is the democrats are energized. they want to bring back nancy pelosi, they probably want to impeach donald trump. but republicans have to be republicans now in order to get their voters to the polls and be able to win in the fall. and this bill doesn't do that. stuart: this may not be your turf, but real fast, front page today's new york times -- i repeat, new york times' front page -- pelosi fighting to keep

hold on split party. top democrat may be losing iron grip. give me 20 seconds on that, please. >> fortunately for republicans, the democrats are in bad shape as well. yes, nancy pelosi, she's got a lot of young, more aggressive, frankly, much more egalitarian and socialist-oriented members that are seeking to replace her and move even further to the left. but republicans can't count on that to win. they've got to be able to make their case for why they'll actually govern with their principles -- stuart: but you'll use nancy pelosi to win. i know you guys. thanks very much for joining us, sir, always appreciate it. >> it's a pleasure, stuart. stuart: back to the market, please. check that big board and check the dow 30. right now we're up 217 points, i see 27 winners among the dow 30, only three losers. it's been an extremely volatile six trading sessions, the last six. up and down, up and down just like that. on your screens, that's extraordinary. you can see how much they've moved in the last six days.

joining us now is ryan payne, payne capital management president. ryan, welcome to the show. good to see you, sir. >> thanks, stuart. stuart: i don't think there's going to be any end to the volatility. i think it stays for a while, and you say what? >> it could very well. and if you look back to the last time we had a correction, it was really between 2015 and 2016, you had a year where the market was sideways with volatility. so that's very, very possible here. stuart okay. but so far, i mean, like today, for example, it's been volatility on the upside. >> right. stuart: i mean, we're going higher at this point. >> that's right. stuart: you're pretty bullish on the market overall, aren't you? >> oh, i think we're one of the greatest global expansions of all time. nothing's really changed. gdp is going up, you mentioned 4% this year which is very possible. global markets are growing about 4% this year, and valuations around the world are cheap. dynamics are some of the best i've ever seen since i've been in the business. stuart: so look at a camera and address our viewers.

[laughter] that one's yours. now, you tell our viewers with your bullish scenario in mind, what would you el them to do -- tell them to do? >> this is your gift from the gods to buy. we haven't had many corrections in this market. use it to your benefit . you're already in the market, put your hands under your legs, do not press the sell button, be patient. we're in a long long-term global expansion here, you just have to be patient. stuart: now, you think -- you mentioned some stocks have been beaten down to the point where they are bargains. their cheap, is the expression. can you give me a couple of names? do you do that in your company? >> i love the global markets, so anything globally positioned -- stuart: hold on. a mutual fund that buys overseas stock markets, you favor that? >> well, look at it this way right now, right? there's going to be a billion smartphones bought this year, and 70% of those are going to be in india and china. you know, and those markets on a relative basis are much cheaper. you know, anywhere i think buying a diversified portfolio

is a better option than just picking individual stocks, but if you're going to buy value stocks some of your stalwarts like your verizon, anything that's, you know, some sort of staple i think right now is a good buy as well. but diversity right now is the way to win. stuart: okay. i've got to ask you about bitcoin. i don't know whether you're a bitcoin kind of guy or not. are you? >> it's just not usable, that's the problem. and there's a lot of hype around it -- stuart: so you wouldn't touch it with a 10-foot pole? >> that's an accurate assessment. [laughter] stuart: this is your first time on the show sitting next to me. did you enjoy it? >> it's been an honor, stuart. [laughter] stuart: thank you very much is, ryan, good stuff. >> thank you. stuart: take a look at infrastructure stocks, why don't you. they're all up ahead of president trump unveiling the plan this hour. we have the computer hardware company cisco, it's up today after getting an upgrade from neutral to buy by one of the big investment firms. not up that much, but -- well, 2.4%, i'm sure we'd take that. and then the immigration debate,

it begins in congress, and up next we have someone who says a merit-based immigration system makes sense. and he's a democrat. [laughter] i'll also ask him about nancy pelosi. what's she up to in the immigration debate? we have some headlines on president trump's meeting on infrastructure. we're going to bring them to you in a moment. check the market again. it's on the upside all day long thus far. we're up 220 points right now. later this hour, douglas kass, he's a bigtime bear, but he says now is the time to buy. very confusing, i'd say. the thursday hour, that's it, "varney & company," we're only just getting rolling. today there, please. ♪ ♪ so from the two trucks over here... i want you to pick a new truck for your mom or dad, knowing that they could possibly pass it down to you one day. oh. cool. but before you decide, you should know that chevy silverados are the most

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stuart: headlines from president trump's meeting on infrastructure took place this morning, he reiterated what he tweeted this

morning, that we've spent $7 trillion on the middle east fixing, instead of fixing our roads and bridges. he spoke about the budget and the importance of funding the military. he also spoke about building our nuclear arsenal but added, quote, hopefully we'll never have to use it. that's headlines from the president's meeting this morning. houston-based staffing company giving their employees one of the largest tax reform bonuses to date. the bonuses ranged from $1,000-$4,000 per worker. those who have been with the company for two years or more, they get the full $4,000. 342 big companies have announced bonuses since the tax bill was signed and over three and a half million people getting the bonuses. now this: the president wants money for the wall, and he wants to end the visa lottery system and chain migration. in return, some of the dreamers can stay. that's the president's deal. joining us now is brookings institution senior fellow

william gallston. william, welcome to the program. you make the case in an article i just read for a merit-based immigration system. got it. what does -- does that mean you want to end chain migration as well? >> no, it means i want to rebalance our immigration system for the 21st century. we haven't fundamentally altered our framework of immigration policy since the reform bill of 1965. there have been momentous economic and social changes in the country, and i think our policies for the 21st century ought to reflect those changes and build on them. i think we have an opportunity now -- i'm sorry. stuart: no, no, i didn't mean to interrupt because i understand exactly what you're saying, and in the large part i do agree with you, but what about the other side of the coin? do you accept that we need border security to stop another wave of immigrants coming in unauthorized? do we need to end the lottery system because it's just not

part of a merit-based system? do we want to do that side of the ledger as well? >> well, first of all, we certainly need enhancedded border security, and i think democrats and republicans are in agreement on that point and have been for a very long time. democrats unanimously voted for an immigration reform package in 2013 that included more money for border security than the president is requesting. so it's just a question of spending that money effectively and efficiently. with regard to the lottery program, first of all, it's not a very big program, and it's generated a lot more heat than its size merits. but secondly, there is no contradiction between a lottery program and a merit-based program because you can superimpose merit criteria on top of the lottery system. stuart: okay, fair point. >> because we can square this circle. now, with regard to the heart of

the matter and that is the role of family reunification which is what democrats call it or chain migration which is what republicans call it, the fact of the matter is nobody else in the world does immigration the way that we do. nobody gives the weight to family considerations, nobody else does -- stuart: yep. >> the united states is a real outlier here. i understand the reasons that have led us to this policy, but it has outlived its usefulness, in my opinion, and there's a good argument for rebalancing away from extended family reunification and toward economic considerations. stuart: last one, what about anchor babies? anyone born in america is an american? that's the way it is here. not necessarily true elsewhere in the world. would you end that, the anchor baby concept? >> i would not. stuart: okay. >> the principle that if you're born in america, you're an american citizen does much more

good than harm, and i think it would be mischievous, all things considered, to alter that principle. stuart: i have to ask you one last question here. "the new york times" reports that a number of house democrats are questioning nancy pelosi's leadership. there's a headline in the times, front page, pelosi fighting to keep hold on split party. top democrat may be losing her iron grip. i understand that you were a democrat operative in the day. do you think that ms. pelosi is losing her grip? [laughter] >> i doubt it very much. she is the best fundraiser in the democratic party by far and especially in a midterm election year, that really counts a lot. there's no question about the fact that she is in the middle of a caucus, a piece of which is to her left and another piece of which is to her right. and she has the difficult task of holding it together, but she's hardly the only political leader to be faced with that kind of balancing act.

stuart: i don't think she should have labeled $1,000 bonuses as crumbs, and i don't think she should have said the tax deal was armageddon. how about you? >> i agree with you, and i suspect if you put those questions to her privately, she might well agree that those were not her finest -- did not represent her finest hour. stuart: sir, i think this marks a landmark for the program. i am in a good deal of agreement with someone from the brookings institute, and i think that's absolutely incredible. [laughter] thanks very much for joining us, sir. >> you should talk to us more frequently. [laughter] stuart: if you're not careful. william, thank you very much, indeed. great to have you on the show. thank you, sir. >> my pleasure. stuart: all right, what have we got now? amazon, here we go, reportedly working on a new artificial intelligence chip designed to help its voice-enabled products handle tasks more efficiently. watch out for that. united technologies admitting that four engines it made for airbus did not perform as well

as attempted. no impact on the stock. and look at this, two classic cars found in a dusty old barn. they were there for decades. wait til you hear how much each of them is worth. i guarantee it's a lot. and any minute we expect to hear from president trump on infrastructure. he spoke about the budget and the nuclear arsenal. we'll bring everything up-to-date after this. ♪ ♪ hi, i'm the internet! you know what's difficult?

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stuart: president trump just saying i ht a deal on daca and that he thinks there's a good chance of getting it done. we will play the tape of the president's full remarks when those remarks arrive to us. you'll see 'em real fast. some headlines for you, two classic cars discovered hidden in a barn in north carolina. they're worth combined a whopping $4 million. >> wow. stuart: 1966 ferrari, 1967 shelby cobra 427, sat this a garage for more than 27 years, then they were revealed. they're up for auction march 9th. $4 million for the two of them. >> wow. stuart: need an expensive valentine's gift, he asks?

the world's most expensive chocolate bar, $395, made from ecuadoran ca coo beans. how am i doing? now this, dubai opens the doors for the tallest hotel in the world. it stands at 31 -- 1168 feet, 528 guest rooms, four restaurants. it's tall. a huge breakthrough for science. researchers in edinborough have grown human eggs in the lab for the pairs time in history. scientists can now study how eggs develop and maybe this leads to new ways to preserve the fertility of childhood cancer patients. all good. china constructed the world's first forest city. they're trying to combat climate change and a lot of pollution. the emerald city as it's called, will feature 40,000 trees, more than a million plants, and its 30,000 residents will enjoy it all. building begins in 2020. that's a mock-up. and we're waiting for the president's remarks on infrastructure. we'll bring them to you

momentarily. we're also following the market, of course. it's been an up, up, up day so far. up 266 as we speak. we'll be back. ♪ ♪ i can do more to lower my a1c. because my body can still make its own insulin. and i take trulicity once a week to activate my body to release it, like it's supposed to. trulicity is not insulin. it comes in a once-weekly, truly easy-to-use pen. the pen where you don't have to see or handle a needle. and it works 24/7. trulicity is a once-weekly injectable medicine to improve blood sugar in adults with type 2 diabetes when used with diet and exercise. it should not be the first medicine to treat diabetes, or for people with type 1 diabetes or diabetic ketoacidosis. do not take trulicity if you have a personal

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stuart: as we told you, we expect to hear momentarily about the infrastructure plan from the

president. i want to know who pays. okay. joining us now is kidder or capital ceo todd hit. now, you say, todd, that more important than the money being spent is the time frame by which you get approval. that's your big deal, isn't it? that makes the big difference the you, correct? -- to you, correct? >> no question. private capital wants to solve some of these infrastructure problems, but it needs to be able to move quickly, penetrate and actually have something done. regulatory reform is a big part of the president's plan, and we in the private sector really like that. stuart: look, i don't have a problem with it except that it'll go to court. if you're doing something which the greenies don't like, they'll go to court, and they will hold it up forever. i don't see how you get around that. >> well, it's part of what i think the president needs to do is in passing this infrastructure plan, is there has to be a central regulatory organization that reviews this like the corps of engineers and really that's not appealable.

the corps of engineers does it, you get a two-year plan, everything has to be permanent in that amount of time. private capital drives these things home, we start building these roads, bridges, port, airports, etc. stuart: sounds good but, you know, my experience of environmental law and lawyers is that you haven't got a prayer. but i'll move on. do you favor a gas tax to pay for all of this? >> i think, you know, certainly a gas tax is something welcome look at and something that everyone should look at. obviously, it's a diminishing revenue stream, you know, over time. if it could help us get $50 billion, you know, of federal spending out of this, then i'd look at it. i'm not sure it's palatable to the congress, so i don't think it's something we should hang our hat on as a way to solve these problems. stuart: i've got to talk about the public/private partnership. the president puts down $200 billion worth of taxpayer money. you want to leverage that to $1.5 trillion worth of actual infrastructure spending. how does that leveraging work? >> well, i mean, it really works, you know, shove this

thing down to the local areas where it should be, states and roque governments. you know, they should be -- local governments. they should be making these decisions. i think what the president has created, which i like, is a very entrepreneurial plan which puts an amount of capital out there which he's saying he'll invest as they come to him with ideas and plans for doing this. part of that is going to create these p3s where local governments will have to reach out to the private sector and vice versa where we create ideas and plans for solving these problems. the federal government approveds them. one of the things i like is the timing mechanism. it's first come, first serve. so states and local governments are going to have to really get moving on this and establish people who actually will reach out to the private sector and vice versa and solve these problems. stuart: yeah, but it's really different, very, very different from just shoving tax money out there, go get it and spend it. very different thing. todd, we're out of time, but thanks for being with us. we need you to come back again when we get the infrastructure plan later this week.

thank you, tom. >> would love to do that, stuart, thank you very much. stuart: all right. check that market, please. we've had some swings today but all to the upside. we've never dipped into the negative yet, and right now we're up 220. joining us on the phone, douglas kass with sea breeze partners management. you've got to explain the contradiction to me here, because i know you're a bear, but you say now is the time to buy. explain that one. >> first of all, it's nice to speak to you. i think the last time we were together was during the portfolio insurance inspired crash of october 1987. i'm short-term bullish -- stuart: whoa, has it been that long? >> intermediate-term bearish. i believe history rhymes. you had a guest on, ryan payne in the 11:00 hour, who says the market's decline is a gift from the gods. we apparently worship at different pews. i believe after a near respite and in the fullness of time, the balance of 2018, ryan payne is

going to be in a house of pain. i think this is simply a trading, a buyable opportunity. you want to rent stocks, not necessarily enter into a long-term lease. stuart: why are we going to go down? why a bear market? whysome. >> i would say that just to echo a point you made in the prior segment both parties seem to be united in deficit spending. our house is a fiscal disaster. there is upside risk as a result to the rise in interest rates, and since the private and public sectors are so indebted, growth will likely slow far quicker than consensus expectations later this year. if you look at -- stuart: we keep going back to it, douglas, we keep going back to this wild spending spree both on the private -- >> well, we have -- stuart, yes, we have deficit-financed tax cuts which are going to likely trickle up a knockdown, and government spending increases in a full employment economy is a poor economic policy.

with 20.5 trillion of debt among the largest countries in the world, we're only behind greece and italy as a percentage of total debt to gdp. if you remember back when president reagan was cutting taxes, debt was 30% of gdp, now u.s. debt is 104% of gdp. stuart: douglas, i think you made your point, and it's a point we've made frequently. spending is just out of control, and a debt bomb is out there. douglas, thanks for joining us, sir. always obliged, thank you so much. and let's not leave this for another 30 years. [laughter] all right, to the spending plan, let's to it. i say a debt bomb is coming, so does douglas kass. i don't know when, by the way. the republicans, the gop has abandoned any concept of financial restraint. congressman french hill, republican from arkansas, is with us now. i'm not going to have a go at you, congressman, but i have to tell you, the gop is no longer the party of restraint of government spending.

is it? >> stuart, thanks for having me. well, i was not a fan of the bill on friday because it has too much non-defense discretionary spending in it, and it's not paid for. i voted for it because we've had eight years of underfunding and underinvesting in our defense team, our men and women in uniform haven't had a pay raise many eight years, so -- in eight years, so that was the compelling reason why i supported it. but i told the speaker, i told the majority leader this country has got to have the discussion about mandatory spending. and we've, we've supported that in the republican study committee, a balanced budget by reforming our mandatory spending programs, so that's got to be on the discussion. i think the president needs to understand that. then finally, i would say i've asked for a vote in the house of representatives on a balanced budget amendment. stuart: i got you, but i just don't see any votes for reining in spending now. i don't see any votes for reining in spending six months

from now or two years from now. politicians don't get reelected by cutting spending on social programs. they get elected by spending more. i mean, isn't that the basics of american politics today, sad to say? >> well, it's the basis of american politics for 200-plus years, and americans i think traditionally don't want to make tough decisions until they have to. you were referencing president reagan on douglas kass was talking about debt ratios back in the '80s. also mandatory spending was only about 0% of federal -- 30% of federal spending in the is the 80s. today it's two-thirds. we must make outyear improvements in our mandatory spending programs. this is something i believe that president trump, while he campaigned that he would not address that, that's something that i think he's got to work with his budget department and make recommendations on. stuart: if you were to suggest

reining in a social program, the next time you're up for re-election your political opponent would demagogue you to death. he would say that you're starving children, that you're starving senior, that you're really hurting america, that you're not investing in america. that's what that person would say and, sir, that person has a fair chance of beating you. >> well, i understand that point, but you have an economy for the last ten years that's grown about 2% per year or less, and so economic growth is important. and we've had in our medicare program, for example, it's grown at about 6% per year. stuart: yeah. >> that's not sustainable. and we've not made the reforms either through the aca or any other way that are slowing that growth curve. and for me, for our future, for our grandchildren, innovations and outyear improvements in those programs is the only way that we'll have a prudent fiscal future, and we all have to collaborate to do that. it will not be republicans only that have to come to that

conclusion, but democrats as well. stuart: maybe the debt bomb has to explode before we to something about it. >> that's what we've got to avoid. stuart: we to. but then, of course, it's too late. french hill, thanks for joining us. >> thank you, stuart. stuart: now, remember the equifax hack? might be worse, believe it or not, worse than first thought. equifax says more of customers' personal information was exposed than first reported. more than 145 million people had their information breached, maybe more information about those 145 million is at stake. look at ge. jpmorgan analysts cut ge's stock price target from 16 to 14. that's the analysts. it's at 14 as of right now. much more on this debt bomb thing. the judge joins us, and i bet he's actually going to agree with me for once. [laughter] i'm sure he is. next, a small business owner in california responds to the liberal policies that are affecting his bottom line. everything from minimum wage to

registering illegals to vote. we're on it all. ♪ ♪

>> i'm nicole petallides with yourx business brief. general dynamics is buying its

smaller rival. both stocks which started off to the upside, general dynamics now down about half a percent to 11 and change, csra is higher by 31%. this is all to bolster the general dynamics' i.t. unit. you think of navy ships and military tanks, but it's been disappointing in the last couple of quarters, part of it because of the federal budget that was not passed. we are seeing a move for the one stock to the upside, it's a $6.8 billion deal. at 40.75 a share, that's 32% premiums. but big picture people think there really are synergies between these two companies. ♪

this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets

and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. stuart: we have a lot of headlines out f the white house this morning. he's, the president is talking about infrastructure and maybe immigration too, but here's a new one. he's talking about a reciprocal tax. now, trying to get -- can i get this straight here? he's saying to the europeans, hey, you tax our products going over there, and we'll tax your products going over here. >> yeah, that's right. what's going on is say volkswagen makes a car in mexico. that has no tax on it when it's shipped into europe. but if it's made in tennessee, it will be slapped with a tax if it's shipped into europe, so the president is saying you hit us with tariffs, we're going to hit

your products with tariffs. >> two things he said, we cannot be taken advantage of by other countries, we lose vast amounts of money with japan and china. we have an incredible country, but we can't let that happen. stuart: no response from the markets. normally, you get a reaction but so far no reaction, we're still up 275 points, 24,467. now, in berkeley, california, one city councilman wants the city to come up with its own cryptocurrency. he says it would help fund municipal projects and buy municipal bonds. lawmakers have already partnered with uc-berkeley block chain lab and an online municipal finance group to try to get things started. okay, california. still in the golden state, new employment laws require an $11 minimum wage for businesses with more than 25 workers. it goes up $1 a year until it reaches $15 is per hour.

craig huey's with us, he's a small business owner in california. you don't like doing business in california anymore, do you? >> no, stuart. it's a nightmare for business owners. 5.5 businesses a week are leaving california. it's -- millennials are leaving, business people are leaving. anybody who's retired, they can't afford to live in california despite our weather. and the democrats and the progressive liberals in sacramento, they say it's a weather tax. well, i tell you, it's gotta change, and we've got to drain the sacramento swamp. stuart: but you know it's not going to change, you're not going to change that swamp. the constituents -- the groups of people that you're up against in california will overwhelm you. you have no prospect of serious change in california. i've got to be honest with you, you have no chance. >> well, you know what? i know that's the perception, but the reality is this: we have two major problems, we've got the unions that have such a

stranglehold on the politics in california, and then we have this massive voter fraud that's going on. and that's a major problem. stuart: what's the voter fraud? now, wait a second, i wanted to ask you about this idea that the motor vehicle voter law where an illegal can get a driver's license, and when you front up to get that driver's license, you're registered to vote. now, that's a system which is just opening up all kinds of voter fraud because you cannot police it. is that what you're talking about? >> yes. well, stuart, we've had voter fraud even before this. but this is happening on april 1st. it's a terrible joke on the swire united states because -- entire united states because it's going to affect congress and the senate race as well as the state races. and the electoral college vote in 2020. and basically what it is is the california politicians, the socialists in sacramento, knew what they were doing. they wrote into the law that if somebody who is not a citizen

and they registered to vote and if they voted, they would not be held legally liable for that. it doesn't matter if it's an accident, it doesn't matter if it was on purpose. they're held harmless from illegally voting. and the fact is that this makes it so easy now, you know, there's a lot of deception by the politicians in sacramento that are outright lying about this. they're not telling the truth because it's not in their self-interests. all we need to have is an audit, an audit of the voter records and it'll prove that there's massive voter fraud. let me give you one more example. stuart: yeah, go ahead. >> one more example is this. i have three kids who have left california. they're millennials, they couldn't live here. well, these three kids still get their ballot at my house, and that's duplicate canned all across california -- duplicated all across california. people born in the 1800s have

been voting. anybody who changes their name and they're on the voter list. ing some people are on five different locations. this is going on, and the secretary of state and the california politicians are doing nothing. jeff sessions, congress, somebody has to make a demand that there's honesty. that's the bedrock of our republic. stuart: craig huey, we will continue to push on this, especially that motor voter registration law which is outrageous. >> yeah. stuart: sir, thank you very much for being on the show. come back again soon, please. got it. gotta check that market, we're still holding right up there. the dow is now up 280 points. the nasdaq has turned positive for the year, that's a nice development there. stocks up this monday morning. amazon cutting several hundred jobs at its corporate headquarters in seattle. that's according to the seattle times. and look at that stock go. not because they're cutting staff in seattle, it's just that's amazon, up $38, 1,377.

i've got a bee in my bonnet about all this government spending, and i found someone who agrees with me. [laughter] judge napolitano, he's next. ♪ stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and.

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retail. under pressure like never before. and its connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver.

♪ ♪ measure. stuart: a little pejorative writing here, but i'll use it anyway. the gravy train is off and running in washington. the spending plan, the budget, infrastructure, we're closing in on a trillion dollars' worth of red ink in 2019. can you say debt bombsome be for once, i'm going to be in full agreement finish well, mostly, with judge napolitano. >> yes, you can say debt bomb. at the end of president trump's present term, the government debt -- if there's no significant change -- will be $25 trillion. stuart: that's right. >> interest payments will be a trillion a year. the government collects -- i'm using, i'm rounding a number to about 3.a 5 to 4%, and i know sometimes it's higher, sometimes it's lower, and you can't predict where interest rates are going to be in the future, but i think that's a fair number. the government collects two and a half trillion a year in revenue. that's 40% of what it collects are going to go to pay

interest -- not the principal, the interest on pre-existing debts. stuart: got it. >> how long can that be sustained? stuart: look, i think -- i don't share any blame in this, but, look, i've been encouraging a growth plan. you've got to grow the economy. we need that more than anything else. and to grow the economy, we need to spend more money, we need to -- >> i understand that argument. we have the problem of the 60-vote threshold in the senate. you have to give the democrats something to get them to vote -- stuart: exactly. the structure of the vote means you've got to have the democrats on board -- >> were you offended when the same republicans who railed against obama's spending last week voted to spend more now that they're in the majority and there's a republican in the white house? stuart: i won't say i was offended. i was certainly surprised, because it's -- it's a 180 on the part of the gop. >> yes. it is a rejection of a core value of the republican party. it's been a core value since abraham lincoln that the government not spend more than it takes in. or if it does, that it compensate for it right away.

doesn't make things worse. stuart: same old story. the debt bomb doesn't matter until it does. >> correct. stuart: that's what's going to happen. you can't change the political system. >> so woodrow wilson borrowed $30 billion to fund world war i. we're still paying interest, and we haven't retired the principal. so far the interest is $15 billion on that 30. this debt is 100 years old. stuart: last hour you told us that we were, america, borrowing $1 million a minute. >> yes. it's a figure that's almost impossible to get your arms around, but i use that number -- senator paul used it the other night when 99 senators want to wring his neck because he kept them up so late, but he did the right thing. that number resonated. didn't change the votes, but it resonated. stuart: you know how you get out of this? >> how? stuart: you inflate dramatically. >> that's the fear. stuart: so you should buy gold. >> that's the fear. stuart: judge, you were good today. [laughter] let me tell you this, big guest coming up tomorrow on fox

business. maria bartiromo has an exclusive interview with house speaker paul ryan, tomorrow morning, 6 a.m. eastern is when it begins. more "varney" after this. ♪ ♪ copd makes it hard to breathe. so to breathe better, i go with anoro. ♪go your own way copd tries to say, "go this way." i say, "i'll go my own way" with anoro. ♪go your own way once-daily anoro contains two medicines called bronchodilators, that work together to significantly improve lung function all day and all night. anoro is not for asthma . it contains a type of medicine that increases risk of death . . once a day. tell your doctor if you have a heart condition, high blood pressure, glaucoma, prostate, bladder, or urinary problems. these may worsen with anoro.

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stuart: market has been open for 2 1/2 hours, what have we seen? seems like back in december. we haven't gone down south at all today. it has gone up. >> every analyst, it will be more volatile in the next week or so of maybe until it is all flushed out. you're right, we had a nice steady rise throughout the morning. stuart: what do you have to say,. liz? liz: is the hand-holding of the market. stuart: we're up 90 points at one stage. now we're back up 362 points and rising at this point. but i would caution everybody,

the last hour of business. ashley: as always. stuart: watch out. liz: slippery rides. stuart: watch out, last hour of business. my time is up, neil, i have three seconds, left, two, one, it is yours. neil: you know it is amazing about this spending thing glad you're pouncing on it, not all the money you continue to throw away, markets don't seem to care. most in washington don't seem to care. most people polled don't seem to care. stuart: how you can have stimulus for the economy already growing at 3% and trillion dollar deficit in a year's time, when maybe you have 4% growth. i can't explain that one, neil. neil: i don't know. i don't know. what is absolutely stunning is the market okay with it, i guess for the time-being. stuart: so far. neil: that last hour as you pointed out, young man, like breaking business news.