>> regulations increase costs. >> that, they do. david: thank you, have a great weekend. thank you all for watching. we'll see you here next time. president trump: i don't call it a shutdown. i call it doing what you have to do for the benefit and safety of your country. the border is a much more dangerous problem, buyinger problem. it's a problem of national security it's a problem of terrorists. >> he said he would keep the bordered closed for months and years. it's hard to see how progress will be made unless they open up the government. liz: the dow up on a big jobs

number. factory jobs the biggest gain in 20 years. the federal reserve says it may ease up operate hikes. the economy is moving forward while d.c. is still stuck in a stalemate. the president warning it could go on for quote years. but we are digging into the details. we'll show you why this fight should end now. the democrats are making a dubious case. we'll show you how flimsy the democrats' argument is and how it falls apart on closer look. critics saying it's shaping up to be a big nothing burger. go nowhere ideas out of the pelosi house to stop the shutdown, doubling down over impeachment, and tax hikes, all in 36 hours. the hard left still declaring war on capitalism.

but policies that mean major tax hikes for the middle class to pay for them. as d.c. squabbles, we go big picture with general jack keane. russia and china developing bomb technology to destroy the major order that prevented major wars for over 70 years. thank you for watching. money, politics. we have the debate over tomorrow's headlines. i'm elizabeth macdonald. "the evening edit" starts right now. let's get to kristinna kristina partsinevelos live in washington.

>> we got confirmation that vice president mike pence will be meeting with congressional staff at 11:00 a.m. tomorrow over this shutdown that continues to be a huge debate. the president says he's thinking of declaring a national emergency to fund the wall. president trump: we can call a national emergency because of the security our country. we can do it. i haven't don't. but i may do it. we could call a national emergency and build it very quickly. it's another way of doing it. reporter: the white house is look into the budget of the department of homeland security. issue is, is it unconstitutional because the house and senate appropriations committees need to approve that movement of

money. but the president can take money from the military construction budget. we had the house speaker, nancy pelosi, speaking about this. >> we recognize on the democratic side that we cannot resolve this until we open up government. we made that very clear to the president. reporter: we have the vice president mike pence confirming to fox news, not him himself. but we have confirmation they will be meeting tomorrow at 11:00 a.m. with congressional leaders. liz: stocks soaring. at the end of the day up nearly 750. signals from the fed chairman that we may not see more rate hikes. susan li has details. reporter: coming off the worst

2-day start to the new year since 2000. we were encouraged by the blowout jobs report. almost twice the number of jobs created in the month of december. that was encouraging. also we had jerome powell speaking in atlanta saying there is no fed to policy path. that means we could hold off on interest rates in 2019. so that encouraged a lot of buying today. i see a lot in the internal market dynamics. the up volume was 630 million shares. it's like 30-1 to buy versus sell. that's encouraging. also we should point out that trade talks with the chinese side finally acknowledging they

lost two days of trade discussions with the u.s. in beijing. that also helps lift sentiments today. since we did finish this week in positive territory it will carry through to the end of 2019. liz: breaking news. we warned you about this. here is bass happening. reuters reporting the california utility company pg & e is exploring filing possibly for bankruptcy protection yet again. it faces billions of dollars in liability related to the fatal fires in 2018 and 2017. we are staying on that story for you. we are getting to edward lawrence with late-breaking developments. >> there is a breakthrough in

scheduling a meeting with china. monday and tuesday the delegation will be aligned with a number of representatives. it also will be commerce, agriculture, state department, and senior white house officials will all be represented. if that goes well, then we are told from the spokesperson from the china ministry of commerce that a chinese delegation will come here to washington, d.c. the president said china wants to make a deal. president trump: china is not doing well now. we are doing very well. >> this comes as china's economy continues to weaken. we are seeing a huge blockbuster jobs report. 2.million jobs created for 2018. china's manufacturing is contracting. larry kudlow says china needs

the i am s. help to right their ship. >> china's economy is sinking. they lost all market based reforms. maybe not all. but they are moving on the wrong track. too much statism and central planning and central control. it doesn't work. so you see retail sales, car sales. it's all slumping. reporter: we'll see if there is action behind the chinese words. liz: let's get behind the democrats' case behind not giving border funding. they say they are the party much good governance and the border wall is immoral. here is nancy pelosi saying just that. >> would you accept a dollar of wall funding from this president to reopen the government?

>> a dollar? one dollar? yes, one dollar. you said a dollar. so that's not your question. you said a dollar. the fact is a what else an immorality. liz: they offered $5 billion more for foreign aid, but not for the president's wall. let me break this down. this feels like a fake, unseemly food fight over nothing. let's take on the immorality. was the border fence immoral in 2006 when chuck schumer and barack obama and hillary clinton voted for it. and was the 700 miles of fencing that the democrats voted for that came in immoral? >> apparently not.

if president trump is involved, it's immoral. if he wasn't involved, then it's okay. liz: the president says he could declare a national emergency over this. it's questionable whether he can because congress hold the appropriations. $5 billion is tiny versus doubling the debt under obama versus $800 billion obama got for stimulus and the green energy support obama put in place. the bankrupt energy companies that went nowhere. >> right now we are in a game of chicken between the speaker of the house and the president of the united states. the president wants the wall and from his points of view that was the central plank of his campaign. that it was going to build the wall. and mrs. pelosi is saying not a

nickel. but as usual with donald trump the old rules don't seem to apply. in the old rules you would blame me and i would blame you. the * changed that when he said he would take the blame for it and people thought that was dumb. in this game of chicken donald trump proved on trade, he proved he can take the pain. he's willing to take the pain. not many politicians are. saying the shutdown is causing all these problems. he proved he's willing to see that go. that's a tough thing for mrs. pelosi. the logical trade-off is a daca rye form. but it seems the democrats today don't want a wall more than they want to provide the daca agreement.

but in this case, the third thing i look at when i look at this clash. someone is going to be the big winner and someone is going to be the big loser. i think if donald trump doesn't get this wall web's a big loser. he is going into sift on it. if he doesn't get it after having made it such a big deal, i think he loses big time. liz: he could say they denied. >> he could say that but it makes you look weak. mrs. pelosi also stands to lose if she says not a nickel for the wall. i don't know where it's headed. but i think president trump would stand to lose big were his base if he lost. mrs. pelosi could lose this if she got daca. she could say this was a negotiation tactic and i got the daca thing for him.

liz: congress grabbed spending power away in the 1970s. since then it was 1997. this whole thing is fake and phoney. the border guys are saying we need a back stop, we need that wall. >> the partial shutdown. we are trying to eliminate the actual negative effects of what would be a real government shutdown it's a phoney war. but it's a washington war. maybe that's why the government is not aloud do its work. you have a good weekend. this story is coming up for you. california democrat maxine waters the chair of the financial services committee. she has seen a power. she is ready to use it. first, democrats plan to win in

2020 already falling apart. we are talk their big strategies. they are talk being medicare for all, abolishing the electoral college. tax rates of 70% and plenty more. we are breaking it down next. great news, liberty mutual customizes- uh uh - i deliver the news around here. ♪ sources say liberty mutual customizes your car insurance, so you only pay for what you need. over to you, logo. ♪ liberty. liberty. liberty. liberty. ♪

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liz: here is the democrats' policies for jobs and growth. there is nothing. right out of the gate there is a nothing burger. elizabeth warren blaming capitalism for the rise of china and russia. also suggesting government-run factories, federal drug factories. other leading democrats lookinged to hold hearings on medicare for all which would cost seven countries gdp combined. also talking about abolishing the electoral college that elected democrats going back to andrew jackson. policies that won't work and will cause middle class taxes to go up. kevin, great to see you both.

deneen, it's like democrats are walking around like they are in that movie "bird box" tblienlds folded. if they enacted all the federal programs they would have to tax the middle class. >> democrats haven't learned anything from the last presidential election which was about jobs and the economy. and they are running around talking about anything but the jobs and economy. but keep running around with the blindfold upon because they are not connecting with the voters. people want to be able to support their families and they want disposable income. what they are proposing, higher taxes, the new green. it's not going to help hard-working americans. liz: they are talking about raising taxes about climate change. but kevin, you saw what happened in france when france tried to

do that. people rioted in the streets. >> i as we have seen after day one of democratic control, the democrats have glen power for just one day. you saw late-night votes to open our government. a bipartisan solution to reopen our government and keep funding levels for the border as the same level they were in the last funding year. fan democrats are focused on solutions. in the last election cycle the americans wants went to the polls and said we want checks and balances. that warms seeing, not the fringe left. but let's focus on what the leadership is pushing for under nancy pelosi. liz: $1.6 billion is what they are talking about for the border wall. they have blown tens of billions of dollars on government waste.

cortez won with only 16,000 votes and now she wants to upend the economy. the high tax rates that they are talking about right now trigger recessions every other year during the eisenhower administration. this whole idea about tax hikes, that's their answer? >> tax hikes will not help hard-working americans. and ocasio-cortez has talked about taxing the tippy top percent whatever that means. but we won't sweelty donate as much as they do to organizations that need the money. we don't see them invest in start-up companies that provide jobs for americans.

they will help americans with jobs and help out with the economy. they will be punishing them which doesn't help with the country. >> it seems we are dealing with the d.c. bubble. just ignoring what americans are saying they want. >> americans is a said overwhelmingly went to the polls wanting checks and balances. >> the large reason the democrats won the house was because of preexisting conditions. >> i think they also wanted a check on this administration. you have one member of the house talking about this. the vast majority, especially those in leadership in the democratic party. liz: there is more than that. over 120 democrats support medicare for all which would need whopping middle class tax

hikes to pay for it. democrats don't acknowledge how middle class taxes have to go up. >> democrats would rather pay for healthcare for poor people than $1.5 billion in tax cuts for the most of wealthy. >> nothing is free. democrats are running on freebies. nothing is free. someone has to pay for it. we have enough debt and spending going on in our country. what they are proposing is not going to help hard-working americans. liz: doctors and nurses say it would collapse the healthcare system, medicare for all. thank you. deneen and kevin, good to see you both.

the canadian government said 13 canadians have been detained in china since the u.s. asked canada to arrest the cfo of huawei. 8 have been released. previously only three of the detentions have made made public. british airports deploying sophisticated anti-drone technology after gatwick airport suffered major flight cancellations during the holidays while someone flew drones over the airport during the holidays. let's get to the oscars. they are a little over a month away. and it doesn't have a host. a lot of hollywood heavyweights don't want the job. now comedian kevin hart is admitting he's evaluating taking up the hosting job again after

he stepped down from that job when homophobic tweets he maid several years ago surfaced. jimmy kimmel says he doesn't want to do it again. no, houston, you don't have a problem. nasa went into a panic when it detected a mistaken 911 phone call from dutch astronaut andre cooper on the international space station. he accidentally dialed 911. he wanted to dial 011. he said he didn't realize the mistake until he got an email about it the next day. as our leaders grapple with the government shutdown. china is testing its mother of all bombs and russia is saber rattling again. we'll bring in general jack keane. house financial services chair

maxine waters says she is ready to use her new subpoena power. mick mulvaney is the target. big fights coming up there. ... (engaging uptempo music) - with tripadvisor finding the right hotel

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liz: [inaudible] liz: democrat maxine waters new chair of the powerful house financial services committee. she has subpoena power and promise to use it to investigate president trump and his in ministration and go after the banks. a spring in the host of the next revolution, steve hilton. great to see you. >> happy new year and happy birthday. liz: it does sound like she's going at the banks and politicians who get political donations but mac the waters is

a dealmaker and in the past she's been a negotiator and the like to cut deals with your take on this. >> the thing she had said is she will go after mick mulvaney and protection bureau and address the issue of members of congress taking money from industries they regulate. it's so hip or ghetto pepper critical. we covered her in my small pot segment on the show a couple months ago. she taken hundreds of thousands of dollars from a financial service industry since she's been on a financial service committee so she may want to do deals but just as bad as the rest of them. we'll have to wait to see what she specifically means but the rhetoric she employs is totally up a critical. liz: she has reached across the aisle to do things like regulations and crackdown on china and has talked to banks

about that but is saying she wants to focus on consumer financial protection bureau which is effectively a law unto of itself and would like they will go after mick mulvaney. your take their. >> yes, what he is done is address one of the fundamental flaws in that institution was set up as you mentioned. it does not have democratic accountability. great example, terminal a sample of the out-of-control administrative state with elizabeth warren is a big mover behind that and specifically that it up to congress cannot control what it did sounds to me as if she's trying to reverse the changes that have tried but moving in the direction of more ability. she says it's all about making life better for working families but some of those regulations that have been pushed in the name of protecting families could have made things worse by making it more expensive for small businesses to get loans or whatever. liz: freezing credit.

doing data mining to find scandals by looking through data. we do know waters has had at the problems of her own and we talked about that house investigation on charges she improperly held her husband was a director at the bank and had a troubling dollar payout but did not merely pay out that inbuilt money. >> she was instrumental in that. she went and facilitated a meeting with treasury secretary to get bail money and her husband was director and she was director and they profited directly from everett she was described by an ethics watchdog is the most corrupt member of congress partly because of that and there's been other financial shenanigans in her record and now she's holding herself up as the arbiter of moral ethics and financial system is ridiculous. liz: we thought she .2 samet best wargames with subpoenas and watching that in the house

judiciary and oversight. they have real power so that the waters the big power player and broker and will meet steve hilton to break it all down. thank you for coming on to see you. catch steve's show the next resolution sundays and i'm p.m. eastern on the fox news network. coming up, left-leaning media is going crazy with the presidents surprise press briefing in the press briefing room at the white house msnbc donny deutsch, said the president appearance had an underlying message quote, to keep america white again. we take it on but first, [inaudible] is lost in the squabbles but general jacking voting that china and russia want to destroy the international order which has prevented major war for over 70 years. going big picture with the general. not his only concern will talk

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liz: a comeback. dc is lost in a never-ending swarm of squabbles. retire general is a dire warning. china and russia want to destroy the international order that has prevented major wars for more than 70 years. general jacking joins us now. great to see you, sir great to see you, liz. liz: we've got russia deployed military technology in the west atlantic what is your take on what is happening? >> similar to capability we have. they are designed to destroy ground fortifications and in the case of russia they developed their version of the bomb which is incendiary and would have devastating effect on people. it indicates what has been happening for the last two decades where russia and china

have closed the technology gap which gave us advantage in capabilities for years post world war two. frankly, this closing of the technology gap not only they caught us but pastors in certain capabilities. the reality is united states still has primacy as the preeminent military in the world but it's a big but there has been significant erosion in capability due to the war of 911 which began in 2001 and also due to the devastating effects of sequestration but that's where we are. what it really means is quite ominous. the reality is indeed that if we had to fight a war today with russia or china and i'm not hyping the threat here

whatsoever. what that would mean is the casualty rate would be very high levels we have not seen for decades in terms of people and assets. not only that but we would be challenged to win and we may even lose. i spent a year on the commissi commission, congressional commission looking at national defense strategy and what i just said was a major finding of that commission and that is the harsh reality of what we are dealing with. liz: serious. what about our airpower how does our airpower or air force stand? >> russian and chinese went to school on us as a result of desert storm in the '90s and the 2003 invasion when the might of us military way of war conventional operations investigated ground operations supported by airpower they looked at that and recognized if we would ever defeat the nazis

in a war we have to take away their air superiority so they had developed long-range anti- aircraft missiles, antiship missiles because all her ships come airplanes and cruise missiles and they can keep us at a distance where those weapons systems would be challenged to be employed to support ground forces and this is the major technology change that they have made and fundamentally gone to school to take away america's strength it has always had. liz: what can be done? president has been on this and do you think congress is ready to pick this up? he made the point airpower is weakest since world war ii is what we do to excess? >> not the weakest but i'm saying they have the capability. liz: i understand. >> to minimize that strength. what we need to do is the

sequestration effects were reckless in decapitating the united states military. we got to dig ourselves out of a deep hole. trump defense buildup similar to reagan defense buildup post vietnam war is what is needed. two years into this and what i fear it will happen is those who do not want to spend money on defense and i think we have a lot of newly elected members of the congress that feel that way will want to say the buildup is over let's take this money and do other things with it. we need to sustain the trump defense buildup for five or six years to be able to get back to the primacy and dominance that this country has to have if it will provide the ability and security in that dangerous world out there. liz: general jack king, thank you. we appreciate you and your

service to our country. great insights. >> happy new year, liz. liz: coming up, die dow skyrocketed 750-point today in the economy at its peak that is still not stopping some in the mainstream media going after trump over the of the economy. we pick it up with matt, coming up. international present umpires back after new democrat incoming congresswoman double down on an attack on him. we had that story and people break it down. coming up ♪ ♪ as someone in witness protection, i can't tell you anything about myself. but believe me... i'm not your average consumer. that's why i switched to liberty mutual. they customized my car insurance, so i only pay for what i need.

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liz: we know present him will never catch a break from the media here is what donny deutsch on msnbc here's what he said about the presidents surprise briefing in the press briefing room yesterday. president was flanked by members of the border patrol. watch. >> you for white men, for stoic, strong white men of a certain age not smiling and look, this is all donald has left. the small is not a wall but a left king keep america white again. liz: it's about keeping america

white again. did you catch that? american conservative union chair but great to see you. >> great to be with you. liz: we are hearing you may run for pat roberts senate seat in kansas, is that true? >> well, no question that this is a rare opportunity in kansas and when mercy leaves the white house today which is sometime soon we will sit down over the course of the next few weeks and talk about it. i'm honored a gun calls to think about it and it's sobering and important decision. liz: we must have you on to talk about that. what's your reaction to what donny deutsch said? >> it's repugnant. i've debated donny deutsch on msnbc numerous times on numerous topics but the idea is repulsive. the idea that border security and a wall mean somehow you want america to be white most of your

viewers know i married to a latina, beautiful and talented latina and a man over my house today was helping me on projects whose from el salvador and was talking about how he came to this country legally things everyone else should come legally. my wife's parents came to this country legally and they want everyone to come here legally. the question of race or ethnicity the question of what is america about and it's about everyone has to follow the same set of laws. the more people like donny deutsch talk about border security in the same vein as racism or kkk or ugly parts of our past the more i think they help the argument that the president is making wishes he simply wants to make sure that our country has immigration system that follows the law. liz: and a lot of minorities on border patrol in montrose with saying the same thing you make yourself irrelevant.

>> liz, can i say one thing? the attacks on law enforcement by donny deutsch need to be called out. these men define donald trump in the press briefing room are men who put their lives on the line to make sure our laws are upheld. it's wrong to attack them for how they look and for the physical appearance. these are heroes and do a great job with constrained resources and i repudiate what he said. liz: let's get to republican strategist with wilson who is slamming the present push for a portable insecurity. basically saying this is about appeasing the trump deplorable spirit did not say that is a quote that is application. let's watch. >> the wall is always been a con for donald trump's credulous route ten do -based. paul has always been a scam. it's always been a lie. nothing about the wall has ever been real and donald trump knows it. it's an insult to their

intelligent but seems to work with the space because they believe it over and over again. nothing stops the brown board but the wall. liz: this is getting poisonous and vitriolic. that is really nasty stuff. matt, your reaction there? >> i've known rick a long time and it's disappointing but they are making money off of attacking donald trump and that is too bad. let's go back to the law-enforcement again. talk to the men and women who put their lives on the line to make sure our laws are upheld at the border and make sure we have illegal immigration system. if you don't like donald trump find don't listen. >> but what sorry to interrupt but - child trafficking at the border, crime at the border, crime inside our borders and our country democrats used to be tough on all of that but you don't see any of that in the cnn or msnbc or enough of it. you'll see that in the debates.

>> practice we have a human crisis at our border, 2,000 people coming every day to come here illegally and we don't have the resources to make sure there is a system to daycare of everybody. there's a system that they should go through ports of entry and that is what we have to uphold. liz: you know what else will not be noted, the president at the press conference today that i want children to come here safely. he saying he wants immigrants for their companies and embraces it and not its pro- immigration and pro- legal immigration and pro- safe immigration and about having the migrants come here in a safe way. at the messaging issue. final point. >> other things that we have to be honest about his democrats used to be for a secure border and they no longer are. they want illegals to come here

into this country so they can advocate for amnesty because i think it's good politics at the ballot box. it's bad for america we got to call them out. liz: matt we love having you call them out on it. good to see you talk to you about your senatorial aspirations. >> that the deal. liz: up neck, freshman democrat doubling down after launching a foul mouth threat to impeach president trump. >> you can't impede someone doing a great job that's the way i view it. ♪ dad, can you drive me to jessica's house?

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♪a little respect president trump: don't impeach people when they are doing a good job. i think she dishonored herself and her family. using language like that in front of her son and whoever else was there, i thought that was a great dishonor to herself and her family. liz: congressman tlaib refused to apologize saying that she quote speaks truth to power. >> she was confronted by reporters wants to go get a response and all she could do was duck and not answer.

nobody is under any illusions this is what democrats wanted to do. they are still struggling with the fact that they can't accept the election results from 2016. the first day they are sworn into the majority, nancy pelosi is talking about indictments, impeachment is a possible birth. johnson called trump adolph hitler. the silver linerring if there is a silver line together democrats taking back the house, they can't hide the crazies in the shadows anymore. they will be front and center the next two years. liz: that's the best they can do? i know the president has been criticized for his comments. but do the democrats have any leg to stand on when they are making crude comments like that.

>> at least respect the office of the presidency of the united states. i know they loathe and despise and they have whipped themselves into a frenzy, the morning man is bad, there is a constitutional crisis answer he's an evil badman that must be taking down. liz: the house judiciary committee chair jerry nadler said watch with the impeachment talk. you need crimes and i misdemeanors when you are in office. >> i don't like that language and i disagree with what she said. it's too early to talk about that intelligently. we have if follow the facts. have to get the facts. liz: what do you think much that, ned? >> that's one of the first rational things jerry nadler has

said in years. impeachment is a political tool. liz: they could try to but it won't pass the senate. they have whipped their base into such a frenzy, it's like they had a wild fire and it started with left base. they will bear the consequences. >> nancy pelosi's reaction to tlaib's comments. >> i don't like that language. i wouldn't use that language. i don't establish any language standard for my colleagues. but i don't think tonight's anything worse than what the president has said. liz: you have got even if seconds left. >> the only thing nancy pelosi should have done was repudiate that. to say you are going to impeach the president and call him a crude name, she should have

repudiated that. there noise way to justify that on any level. liz: thank you for watching with a jam packed hour. i hope you have a good weekend. lou dobbs is here on the fox business network. lou: good evening. president trump emerging from a two-hour long meeting with congressional leaders and he's standing tall, remaining firm in his demand for a border wall in the interest of our national security. >> the southern border is a dangerous horrible disaster. we have done a great job. but you can't do the kind of job we have to do unless you have a major powerful barrier. this is national security we are talking about. we are not talking about games. we set out a number, 5.6 io