lou: good evening, everybody. our top stories, major market turmoil today, the dow jones industrial fell more than 2%. today's huge selloff erased all of the gains of this year. the nasdaq and the s&p also suffering huge losses. president trump, as usual, looking at the positives in this economy and there are a lot of them. the president saying the united states will be fine despite the market downturn, also strongly recommending that the federal reserve stop raising interest rates. economist author of trmp trump-e

nomics joining us tonight. also tonight, an obama appointed federal judge in the ninth circuit has issued a restraining order against the border strengthening asylum declaration. this as thousands of central american migrants are amassing south of the border waiting for the opportunity to enter this country illegally. trump slamming the ninth circuit vowing to fight back against the leftist ruling. >> you cannot win if you're a case in the ninth circuit and i think it's a disgrace when people file -- every case gets filed in the ninth circuit because they know that's not law. that's what that this country stands for. people should not be allowed to immediately run to this very friendly circuit and file their case. in my opinion it's a disgrace what happens with the ninth circuit. we will win that case in the supreme court of the united

states. lou: we take up the latest in the president's fight to protect our borders, the daily columns editor in chief christopher bedford joins us. new revelations about an illegal immigrant caught on camera in a shootout with arkansas police. turns out that the obama administration thought he deserved amnesty. that story later in the hour. we begin with breaking news. the white house has handed over president trump's written answers to special counsel robert mueller's questions. trump attorney rudy giuliani issuing the following statement. quote. it has been our position from the outset that much of what has been asked raised serious constitutional issues and was beyond the scope of a legitimate inquiry. this remains our position today. the president has none the less provided unprecedented cooperation, the special council hacounselhas been provided with0 witnesses, 1 hadn't 4 million pages of material and now the

president's written responses to questions. it is time to bring this inquiry to a conclusion. president trump declared the way to reverse the amazing trump stock market rally of the past two years was to elect a democratic majority in the house. and since election day the s&p 500 lost almost a trillion dollars in market cap. the dow fell more than 550 points, a loss of more than 2%. the dow jones industrial is down 552 points, erasing all of the gains of this year, as i said, and the nasdaq down 120, the s&p falling 49 points. driving the markets massive losses in the tech sector spearheaded by facebook, ap, amazon, netflix and google, parent company alphabet. these so-called fang companies now totaling more than a trillion dollars. president trump addressing the

market today exhibiting his trademark optimism and taking note that one of the principle causes of this big market reversal. >> i think we're doing great. i mean as a country we're doing great. our unemployment is at a record low. you look at all of the different statistics. i think your tech stocks have some problems but that will come back. but no, i think we're going to do very well. i'd like to see the fed with a lower interest rate. i think the rate is too high. i think we have much more of a fed problem than a problem with anyone else. lou: and even with the day's losses, the president's positive outlook fully supported by the numbers. since president trump's election the dow and nasdaq both are still up more than 33%, the s&p is still up 23% since he was elected and it's not just the markets. economic indicators and indexes also trend in the right direction. record low unemployment, historically low jobless claims, economic growth of 3.5% in the third quarter.

and the list goes on. prosperity has been returned to all americans as the president promised in his campaign for the office. joining me now to take a look at these markets, the trump economy, the president's america first approach, whether it be trade, taxes, whatever the issue, stephen moore, a trump 202 surrogate, a trump economic adviser during the 2016 presidential campaign and importantly the coauthor of trumponomics, inside the america first plan to revive our economy. we recommend this book to you highly. let's start with the markets. huge numbers here. we're looking at 400, 500, 600-point moves and the dow. what are your thoughts? >> well, you mentioned a number of factors here. one is i think it is true that the markets are a little spoofed by the nancy pelosi agenda which is antigrowth, higher taxes, new

excitentitlements. name anything in that agenda that's progrowth, pro-business. trump is 100% correct that the fed made a big error a month agt of trace this bearish market that we've had for the last eight weeks or so to that movement. and trump out of the gates said this is a mistake. lou: october. >> now look, i don't want inflation but trump is dpactly y right. show me where the inflation is in this economy. it isn't out there. i work with donald trump. he feels passionately about higher wages for middle class blue collar workers. lou: he's delivering that. >> here's the problem. if every time we get a wage bump in the numbers the fed comes and tries to pull it back. trump is right about this. the fed made a big mistake and they ought to retract that. and it's not the moves they've

made now. what investors are worried about is the path. they're talking about higher rates for the next 18 months. lou: people are talking about their 401(k)s right now, their savings and investments. it is difficult to understand. i happen to be one of those people who felt the president should have stuck with yellen because she had learned her lesson. >> he almost did. i talked with him about it. the irony is he picked powell because he thought powell would not raise rates. sometimes you get -- lou: whether it's yellen, you know, whomever it is at the fed, they always have to have that first rate to learn their lesson. the good news about yellen is she had learned her lesson about what happened when the fed raises rates in the absence of inflation. and it's scirlless. it really is, on the part of the fed toe move on rates in the absence of inflation. >> the fed believes growth cases

inflation. it's not true. if the economy produces more apples, the price of apples falls, it doesn't rise. go to walmart and tell me the prices are rising. they're not. lou: i'm note going ti'm not go. bring me apples and we'll talk. the president is doing important work. he's the man who set the global agenda, not just the u.s. agenda. >> he sure has. lou: he understood immediately that we need a balanced global trading system and that the united states had suffered far too much, had squandered far too much wealth. they were free to everyone except the middle class, working men open women who lost their jobs to either outsourcing or a foreign competition. this is a president who has moved against china. and we're watching wall street lobby against this man, we're

watching corporate america, k street lobby against it and some within his own administration doing so. but the work that he has initiated is paying off, there's already movement. we're looking at the fact that these targeted tariffs, while they don't appear to many to be targetetargeted, in point of fa% of the impact is falling on the chinese and that they can't with stand. your thoughts >> you and i have had this discussion over the years. i'm a more free trader than you are. i think tariffs in general are not a good thing. but i have to say donald trump -- i remember when i first sat down with him two and a half years ago, he scdz larry ku loud ankudlowand i to be advisers. you're for free trade and we're not. and i started looking at the evidence and it turned out that trump was right. we're down here with our tariffs. they have not opened up their

market to american products. i was at the rose garden ceremony. trump said i'm using these tariffs as a negotiating tactic to get these country to lower their tariffs on us. you look at what's happened with canada, mexico, europe, britain. it seems to be working. lou: it is working clearly. >> china is the big battle. i don't know if beijing is going to back down. lou: there is no choice. xi jinping doesn't have the economics here. this dispute as the president refers to it and the war as she jinpinxijinping styles it, theyt going to be treated like on emerging market as they begin to dwarf. >> we did that for 30 years. they're no longer -- they're now a major super power. lou: they're no longer going to be stealing from us. >> they steal $300 billion a

year. we started this discussion talking about the stock market. you get this trade deal done with china and the stock market is going through the roof. you heard it first here. the stock market goes through the roof when we get that trade deal done. lou: i think that we have to do far more than that and the president has the corset to achieve all of it. hi thini the he e needs his ente agenda but i'll take note of it. i'm going to hawk your book. >> i love it. lou: stephen moore, the book, we recommend it. >> don't sell your stocks now. don't sell low. people always make that mistake. lou: you're not supposed to buy high and sell low? i didn't know that. >> stay with the market. keep with these stocks today and five years from now you're going to be a happy camper. lou: we're not going to wait five years. we're going to make. >> oh yeah. i'm with you. lou: thanks so much for being with us. appreciate it. up next, the president

signaling a continued relationship with saudi arabia after the murder of jamal ka ka khashoggi. >> this is a slap to the face to the intelligence community. >> this statement from the president is the most un-american statement i ever read. >> the president lets the crown prince off the hook. >> from day one the president has looked for reason to excuse the saudi regime. >> every time i hear the president open his mouth i think about if fact that this administration is a walking civil and human rights crisis. lou: and you know every time i hear the national left wing media brain, i think to myself, what is wrong with a president who speaks truth. i've got to hear more from them to understand fully their disadvantages in the conversation. we'll take that up as well as the president's america first foreign policy with christine

white joining us next as we continue. stay with us. insurance that won't replace the full value of your new car? you'd be better off throwing your money right into the harbor. i'm gonna regret that. with liberty mutual new car replacement, we'll replace the full value of your car. ♪ liberty. liberty. liberty. liberty. ♪

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beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. lou: president trump today defended his america first agenda and u.s. relations with saudi arabia. this after journalist jamal khashoggi was murdered.

>> and i'm not going to tell a country that's spending hundreds of billions of dollars and has helped me do one thing very importantly, keep oil prices up so they're not going to 100 and $150 a barrel, i'm not going to destroy the economy for our country by being foolish with saudi arabia. it's about america first. lou: joining me now to take up the president's response and his strong leadership as well as the upcoming g20 summit between president trump and president trump sh xi jinping, christian white, a senior advise ner the george w. bush administration, former chief of staff for the security council and ceo for the center of community policy. great to have you with us. let me begin with christian. the national left wing media is going nuts, as they sawls do, no matter what the president says

or the way in which he says it, on the issue of maintaining a stead fast relationship with saudi arabia. your thoughts. >> you see these jowrnists and these others, these commentators shrieking at the president like it's a freshman seminar at the college. this is the man who's charged with defending the united states who has the weigh very important thing. what they would have him do, turn or backs on saudi arabia, like jfk turned his back on the shah. hugh human rights violators, huge problems for the united states decades later. we turp our back on saudi arabia, the country that spends $70 billion a year on defense, three times what israel spends, mostly defending against iran and we open the door to the people in the highway middle

east, huge problem. these people do not know what they're talking about. thank god we have a president who will stand up, look at this and aprec approach it in a balad manner and defend our country. lou: you work for this eement and thiadministration and this l security adviser. your outlook on the president's position here. >> good to be here. being president, being a good president is hard. presidents have to make difficult decisions with painful tradeoffs. president trump could have taken the easy way out and severely punished saudi arabia. this consequently would have ruined our relationship, handed the region to iran and handed hundreds of billions of dollars in defense contracts to russia and china. that might have felt good in the short term but that would have been a disaster for the region. it would have handed the region to iran and would have hurt the american people. that's what america first is about. we shouldn't be striking international deals that might

feel really good but hurt the american people and hurt the american worker. lou: you mean like the iranian nuclear deal, for example? >> i think that's a very good example and i'm so happy that the president pulled out of this deal this time. one of his major foreign policy accomplishments. lou: one of the things about this president, whether it's foreign policy, economics, trade, whatever it may be, he is talking straight to the american people. there is no filter here. there is no organization around a particular phrase and effort ton his part. we've never seen a president do this, certainly not in attorney policy. in domestic policy, yes. but to the degree to which this president, christian, he speaks so plainly ean and communicate exactly what he's thinking. there's in reason for him to be misunderstood. >> i think that's exactly right.

and i encourage all of your reader to look at what the president wrote. it's common sense about how we're concerned khashoggi, this person, not a u.s. citizen, more of an islamist, we're concerned about his murder and we're sanctioned saudi nationals for their involvement. but if you look at the president's direct communications, it comes across in this statement, came across to his letterer to kim jong-un and that's what the media really hates here. donald trump, a conservative, has figured out a way to talk to the american people like ronald reagan had figured out a way to without going through a filter of the left wing media. that is unforgivable to them. lou: fred, with the upcoming meeting that will be held at g20, at the g20 summit with xi jinping, the stakes are very high. the president is very direct again that there will be

accommodation on the part of china to the trump doctrine, to the american first doctrine which maintains you're not going to steal 3 to $600 billion a year from us. and you're not going to run these overwhelming deficits and further cut into our economic growth because you play these games. what do you expect from that meeting? or is it too soon. >> many presidents have said they want a good relationship with china, they want free, fair and balanced trade. they want china to stop intellectual property theft. but this is the first president backing up his words with action. repeatedly putting tariffs on china and we're prepared to suffer some pain to get china to do the right thing and to stop exploiting trade with the united states and stealing intellectual property. this is a theme he's going to emphasize at the g20 summit. we'll see what happens.

lou: one of the things that would be helpful, it seems to me in this, is for the white house to expand its education program for the american media so that they can better understand what's at stake here and why it's necessary that he lead the international community on balancing global trade. thank you both. freed flights, christian white, thank you gentlemen. be sure to vote in the poll tonight. the question is do you think the activism of left wing judges is undermining the credibility of our entire federal court system ? cast your vote on twitter @loudobbs. follow me on twitter, lake me on facebook, follow me on instagram at low dobbs tonight. an activist judge blocks president trump's asylum proclamation and ban for illegals crosseillegals crossin. how could he do that? we take up that question to

roberupnext. lou: an obama appointed federal

judge has blocked the president's asylum proclamation and order. the white house responded tonight saying, quote, the injunction is yet another example of activist judges imposing their open borders policy preferences. president trump says the supreme court will set that right. we've learned an illegal immigrant caught on dash cam video shooting at an arkansas sheriff's deputy was in the country under the obama era daca program. and there he is, emerging from his car, gun blazing. immigration and customs enforcement says the gunman was brought to their attention in 2015 but the obama administration concluded he wasn't a danger. he looks very much like a

danger, doesn't he? they decided not to pursue deportation. the gunman was arrested and the deputy was not wounded. joining us now to take up the president's asylum ruling, the president's record high approval rating and much more were editor in chief christopher bedford. good to have you with us. let's start with the white house talking about activist judges, that straightforward what we're watching the president run into here. what do you expect to happen with the district court judge's order telling the president how to run the country? >> i think that the president should have directed that order toward republicans in the house and republicans in the u.s. senate. but the judge's ruling here, we've had a lot of problems with activist judges say whog's got standing. maybe the university in hawaii has standing on the country ban or something like that.

this is a case of the congress passing text in the '60s that said you cannot not accept an asylum plea from somebody. congress can fix this. they can absolutely change this. there was a lot of focus on how they couldn't get the wall done in the last two years, republicans could have gotten a lot more done on immigration and they've failed to do so and it's going to come down to washington to fix that problem. lou: i think that's all well and good. the fact of the matter is it's an activist judge interfering with the president telling him how to manage the border. and it's a matter of first of all national security and second, immigration. these people are less immigrants than they are in point of fact attacking our border for the purpose of telling us to go to hell with our laws. i don't understand why you would be so eager to cast your lot with a democratic congress led

by nancy pelosi. i acknowledge there's not much difference between here and paul ryan but there it is. >> i agree. these orders were important by the president because they are the reason there's chaos in tijuana as opposed to chaos in texas. the immigrants knew, the illegal immigrant knew they can't get over the border and seek asylum unless they do it illegally. now that the judge has knocked this down, expect the chaos in tijuana to dissipate and the chaos in the american city to replace it. lou: i think the president has made it clear that he is going to, no matter what, secure that border. so that's going to be done. and a pip squeak judge is not going to stop that. let me turn to nancy pelosi and the president's endorsement of her speakership. i found that -- you and i have been covering this president fot

surprised me, his choice of pelosi. what was your reaction? >> i thought it was an example of him playfully making fun and causing trouble. there's nothing that nancy pelosi needs less than president trump's endorsement. that kind of thing causes chaos. and him saying, listen, i'm kol in, don't worry, i'll back you up, that causes all kinds of problems for her. i thought it was playing a joke on her personally. nancy pelosi certainly is going to get the speakership this round. and the few who have tried to take a shot at the queen saying we don't want you here because democratic voters are pushing for change or because you're not a good speaker, they're going to have to band tooth to defend their members from retribution from democratic leadership. lou: i thought he was sincere and i thought it was nice to see him engage in an embrace in the incoming party in power.

i thought he stood tall on this. you and i have absolutely different perspectives on it. his standing up for saudi arabia and preserving the relationship, very quickly, we're out of time, your reaction? >> i thought -- of course it's important to not tear up a national security arrangement over something like this, many something that we've known for a long time, saudi arabia is not a friendly government. i think it sends a negative message. the saudis should be afraid of every causing embarrassment to the united states. and things should be handled on the back channel, they should always fear causing embarrassment to the u.s. president and they did a little bit with this murder. lou: how do you figure? >> by killing a resident of virginia, not a u.s. citizen in a nato allied country and then lying about it to the world. it causes attacks of negativity on the president, causes attacks on his business dealing. but the saudis have a lot to answer for, funding in europe,

there are a lot of issues that i have with the saudis. and iran being a bad country doesn't get them out of hot water. lou: well said. good to have you with us >> thank you lou: up next, the real implications of the junl's ruling against the president's asylum ban. we'll take you to tijuana mexico where the thousands of central american migrants may have a change of plans. stay with us. the drama keeps building. i am a family man.

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california where those deadly wildfires have killed at least 79 people now. the death toll rising by the day. the first winter storm of the season also expected to roll in tonight and through the week helping to clear out some of the air that is just suffocating and what's left of the fires will hopefully be dampened by the rains. officials are scrambling to get evacuees into permanent shelters as a downpour could trigger mudslides and that is exactly what is in the forecast. the commander overseeing the u.s. troop deployment to our southern border, lieutenant general jeffrey buchanan told politico yesterday that he expected the first troops to be sent home adds early as this week. it looks like he spoke either too soon, simply misspoke,

whatever. u.s. northern command today say no time line for redeployment has been set whatsoever. joining me now to take up the troops on our southern border, much more retired four star general, general jack keane. general, great to have you with us. let's start with this general who decided to announce a troop redeployment. what was he thinking ? >> you know, first of all, i think that the mission for the engineers which is the most visible one, they're putting the busbarbed wire up, channeling people from the caravans and reinforce those as well. the labor to do that and that job is probably done, i suspect. and they likely had a tentative date to go home. but given the fact that the majority of the caravan have not closed on the united states yet sending any troops home at this

date doesn't seem to make a lot of sense to me. and it certainly didn't make any sense to the four star in charge of the whole operation. lou: are you surprised that a four star would suddenly be making public announcements about -- he had heard the commander in chief, this president say we don't talk about dates specific for when we will move troops or not move troops and announce or plans to anyone. and one would think that an experienced and i'm sure a general with distinguished service would have the judgment not to get in the way of a white house communications department. >> that's absolutely right. we had the three star general who talk about departure and a four star general who shut that conversation down and declared its indea indebtor nate. we have other troops in the cue based on what's going to take place at the border.

lou: the reason i'm harping on this is we also had the sphwrood extraordinary statement that the military would not be involved whatsoever in border security, not actually apprehending illegal immigrants, which was an unnecessary statement. and they have come out a number of times, the pa at the pentagon, in seeming opposition to the white house. it has been unseemly, it seems to me, and i'm just wondering what you think of it all. >> i don't think of it as opposition to the white house. what i think they're trying to do is always clarify the limitations that are imposed on them by law, that that cannot exercise a law enforcement duty inside the united states dealing with largely the american people or others trying to enter the country. and the military is pretty serious about all of that because we don't want to adversely impact the american people. now if we had a riot that's out of control and it exceeds the

authority of police officials and the governor and he seeks authority for the president to come in and help control the american people in that capacity, yes, there are authorities that permit something like that. but something like this i think the military is very cautious about its role here and they want to clarify that we're going to be in a support role only. this is something the border patrol wanted. lou: when you say that i'm thinking to myself, that conversation should be between the commanders twb secretary of defense and the president of the united states. it wouldn' shouldn't be a separe public channel. that is the purview of the president of if united states. we're talking about his leadership, his command. >> yeah. but come on, lou. you're killing this thing, all right? the military is going to conduct an operation. it's going the southern border just like it would be any place else. and the white house will always

defer to the department of defense to answer the details of those questions. they'll say that, go ahead and talk to the department of defense about that, they have all of the information and all of the details. they're always going to have their public affairs people trying to explain what aspect of this operation they're performing and what are the rules they're governed by in that execution. lou: let's turn to china and the vice president's statement that they're going to continue freedom of navigation no matter what. effectively this administration has put the chinese on very serious notice that they're not going to tolerate whatsoever any effort to circumstanc circumscr. influence and the they're not permitted to follow their ambitiouses in the asia region. what do you think the next step is on the part of the chinese? >> well, first of ail, you're

absolutely right. the entire strategic framework has been reset by this administration. there was a ak we acquiesce and appeasement in the south china sea and in the east china sea. we did nothing about any of it. now we're pushing back and we're pushing back with our allies. i just got back from vietnam and ki tell you unequivocally, even though we fought a war with the vietnamese, they're tuned in to what the united states is trying to do to protect the interest of our allies and friends in that region. yes, we have got to step up our game. i believe this administration, department of defense and assistance that the secretary of state is providing, we're going to be about doing that. lou: as always, good to have you you're headed down the highway when the guy in front slams on his brakes out of nowhere. you do, too, but not in time. hey, no big deal. you've got a good record and liberty mutual won't hold a grudge by raising your rates over one mistake.

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lou: last night we asked you if china realizes president trump's america first policies are now non-negotiable. 65% of you said yes. here's where we are tonight, what we're looking at for tomorrow. president trump today talked about the prospects for a trade deal with china ahead of his expected meeting with president xi jinping at the g20 summit in argentina at the end of this month. >> china wants to make a deal very badly. they might not say that to you, but they want to make it very badly. i have another $250 billion

worth of tariffs to put on if we don't make a deal and believe me, i'll be putting them on. lou: that's it for us tonight. congressman matt yates and investigative journalist sarah carter among our guests tomorrow night. please join us. thanks for being with us tonight. good night from new york.