stuart: it's a very sad thing. divorce is -- what is extraordinary about this the man's worth $136 billion. in a lot of divorces, it is split, the money, 50/50. if that happened this time, they're both still very rich. neil cavuto it is yours. neil: washington state is community state. it is 50/50, right down the middle. we'll see how that pose. stuart, thank you very, very much. we're following the president meeting with republican leaders. he and the vice president attending the senate gop policy lunch. then they skedaddle back down to the white house where the president hold as meeting with congressional leaders at the white house. the idea to stop the government shutdown in 19th day. two more days and it will break the record of the big one in 1995, when newt gingrich and bill clinton were going at it. fox news senior producer chad pergram whether we'll break the record.

that looks like a gimme, chad. >> unless something breaks in couple days or hours, they have bigby cam ral group of bipartisan members, nancy pelosi, mitch mcconnell, chuck schumer, so on, that is important to have them back at the table. they had a group of staff over the weekend. they were not really deputized to try to get things happening. watch republican senators, cory gardner from, lisa murkowski, from alaska, saying we should open the government. chuck schumer was trying to decouple opening government to the border wall. i talked with shelley moore capito from west virginia, she chairs the subcommittee that chairs homeland security. would you be willing to open up the government? i would have to see what the deal is. house of representatives they're meeting as we speak late they are afternoon. they will start debate and vote

on the first individual appropriations bill to reopen part of the government. this is the financial services appropriations bill. it deal with the treasury and irs. hakim jeffries, democratic caucus chairman says there will be quote double digits when it comes to numbers of republicans to vote for that bill. in next couple days house democrats will try to move other individual bills tomorrow. interior, agriculture. on friday something we transportation, housing urban development. the one on the not table yet, bill for the department of homeland security where the wall v. sides, neil. neil: does this delay action on host of other things, the more we're at crossroads with the government, partial shutdown, whatever, that action on a host of other initiatives is delayed, on both parties part? >> they can certainly walk and chew gum at the same time. attorney general nominee barr was up here today meeting with the incoming chairman of the

judiciary committee, lindsey graham. his confirmation hearing starts next week. that is on schedule. house democrats were busy rolling out of their agenda yesterday, hr 8, which would deal with universal background checks for all firearm transfers. gabby giffords shot eight years ago yesterday, she was here. that is being rolled out. only thing sidelining a little bit, mitch mcconnell criticized, that democrats are trying to shut down the senate. there was foreign policy bill, israel, sanctions for syria, they couldn't overcome a procedural barrier, they got 56 yeas. they needed 60. mitch mcconnell turned at that back around on the democrats. in that respect, yes. most other respects, no, everything else is moving as planned here on capitol hill. neil: chad pergram. thank you. arizona republican congressman paul gozar. he is urging the president to use the army corps of engineers to build that wall.

>> neil, a pleasure. neil: i thought the president was hinting taking such action. he yelled off. i wonder it's a matter of time, he pursuits just what you're thinking? >> he has got that authority, neil. i've been one of these persistent people. neil: does he have that authority? a lot of people wonder whether he does. >> i do. my chief of staff, articulate and learned attorney and he actually thinks he does. i can tell you with the army corps of engineers he has the ability to take one of the projects on our border, lower santa cruz and move it to the front of the list. this is a water project that arizona's low ground, mexico is high ground. we have open sewage running into the state of arizona. this is an opportunity actually mexico could be engaged with. they would pay part of the bill. that is win/win situation. i've been one of those people looking beyond the normal parameters to get some of this done. neil: is it a win-win situation? i talk to a lot of big

landowners alongs the border, particularly texas, the process of eminent domain and government coming in to seize land to build this wall, whatever they will call it is going a little too far. what do you think about that? >> remember, neil, we're not building a wall from sea to shining sea. the president's proposal, $5.7 billion, funds 243 additional miles of fencing. but also includes additional 10 top prospective opportunities dhs identified. for example, more i.c.e. officers. getting more equipment to check cargo coming across the border. looking at more beds because of the crisis now changed to see more migrant children, unaccompanied minors and family units coming across and of course with those type of people you see much more illnesses, very hard, make sure they stay healthy because they have such poor reserves.

neil: i'm just wondering a lot of republicans agree with you on the concept of doing something at the border and sooner rather than later where they're getting the sort of heebie-jeebies right now, the fact this shutdown has gone on as long as it has and the president attaching that shutdown to this and my way or the highway approach, might have boomeranged on him and on republicans. are you concerned about that? >> i am, neil, the thing about it we should have had the fight last march. this is the same status quo leadership got us in over and over again. last year with the "schumer shutdown," we should have advanced the bill to pay for our military for the full year. given the senate ultimatum for doing discretionary spending for four weeks. if they didn't, the vca would have cut in. once again in august we saw our leadership go to the president saying not time for the shutdown. we'll give you your wall and give you your asks in december. once again the swamp belches. at we have to do is stand firm this is part of the problem.

neil: but do you like holding the government hostage to whatever preferred passionate legislation or initiative that you guys would not like it if democrats did the same to you. you expressed that with the "schumer shutdown." that no winner here. >> i agree with you but the thing about it is, when you start looking at 90% of the government is actually open. that you're seeing medicare, social security, our military being paid for, yes it is unfortunate to be on the short end of the stick with the 10% but you know, that is the only way that the people back here, leadership, actually come to the table with realistic ideas and actually compromise. you know, real, i'm getting sick and tired of having to say we have to compromise. it is always me, the republican, the conservative coming to the table to acquiesce to the liberal point of view. from this standpoint there has to be a fair tradeoff here. neil: congressman, thank you for taking the time.

>> thanks, neil. neil: we'll be speaking fair and balanced john yarmouth, republicans from -- democrat from kentucky, house budget chairman. because of this back and forth what people are calling a little soap opera here, fitch, investors warning it could be cutting the usa aaa credit rating as the shutdown continues. they're arguing we'll be hitting a debt ceiling t would hamper the budget process, if there is a process going on but nevertheless, that would be big news if it were to come to pass. moody's capital market chief economist john lonski. good to see you. you're not in the ratings division of moody's and rating our debt, do you think this fitch action, the warning is justified? >> we'll have to see. in the past when we had government shutdowns, moody's was willing to maintain the aaa rating as long as the prompt rye payment much outstanding government debt, payment of

interests, servicing of government debt was not in danger. as long as this remains the case, perhaps there will be no downgrade of the aaa rating. neil: when s&p did it many years back they were not doing it on the basis of shut down but kabuki theater of threat of one and back and forth with games being played with numbers and they did cut the aaa rating at time. do you think ironically, won't be a shutdown that does it but just this fingerpointing and blaming going on both parties accounts? >> gee, you know, i don't know if that's reason enough for a credit ratings downgrade because of political friction. i think you need something more than political friction. for instance, suppose, we had the dollar exchange rate tanking, treasury bond yields were soaring, markets were in disarray because of the government shutdown, maybe then, maybe then there might be some reason for a credit rating

downgrade but, those circumstances still are being met. they're not occurring. you know, when we look at the long-term health of the u.s. credit rating, we do pay a lot of attention to the role of the u.s. dollar in the u.s. economy as well as the role of the treasury bond market in the world economy and we're now, neither role has been threatened by the current government shutdown. neil: we must have a very generous grading system though. i can distinctly remember when i was in high school i got an a in chemistry, i no idea what the heck i was doing in chemistry i got an a. i had very sympathetic professor, maybe he was drunk, didn't realize. neil: saying no way i deserved this a. i often time thinks of the united states, with all the financial games we play whether we deserve a aaa credit rating? >> again the u.s. dollar is the

still the world's primary currency. neil: you're right. you're right. >> there is no getting away from that and foreigners are willing to pour money into the u.s. bond market. 40, 50% of the treasury debt is held outside outside of the united states. don't see people running away from the u.s. dollar, running away from u.s. treasury debt because they fear exploding growth by the federal deficit or debt. neil: thank you, john. i never argued with the professor about the a. i said this was a nice surprise. john lonski. enjoy the aaa rating while we still have it. head of house democratic budget committee. this guy coming in at blistering pace. john yarmouth is next. ♪

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it's a revolution in sleep. the sleep number 360 smart bed, from $999 senses your movement and automatically adjusts on each side to keep you both comfortable. and snoring? how smart is that? smarter sleep. to help you lose your dad bod, train for that marathon, and wake up with the patience of a saint. sleep number is ranked #1 in customer satisfaction with mattresses by j. d. power. and now, save up to $500 on select sleep number 360 smart beds. only for a limited time. neil: all right. the president apparently making some remarks on the border moments ago alluding to alternative solutions or desperately hoping to find them. he will have a lunch with republican leaders on capitol hill. then heading back to the white house where he will meet with leaders of both parties to cobble out something to avoid this shutdown becoming a record. day 19, certainly couple days from breaking the 1995 impasse

between then president bill clinton and newt gingrich and the republicans. that went to boomerang on the republican party. republicans hope to avoid that fate right now. look where we stand in the markets ahead of all of this. we'll speak to the house budget committee chairman on all of this. the dow is up 150 points. the shutdown, ongoing shut down, difficult for the 800,000 plus federal workers involved who are not getting paid and a lot of government contractors who are not getting paid, the fact of the matter is this happened so often that the markets have a nunn plussed reaction to that. let's get a sense of this, aforementioned house budget committee chairman, john yarmuth. good to see you. >> good to see you, neil. neil: congratulations by the way. >> thank you. neil: get a sense where the shutdown is going. where any needles moved with the president's speech. >> no, i don't think anybody had

their minds changed by last night. i don't think any thing of consequence was said except from our perspective the idea there is absolutely no reason to shut down eight agencies of government when your controversy is over one. and we've got hundreds of thousands of people who will start suffering beginning this week without being paid. some have already been furloughed. they're being held hostage over this debate over a border wall. so what we're doing, this week, is we'll be passing individual appropriations bills. these are bills that they are republican bills, that were negotiated on a bipartisan basis. the senate already passed them by unanimous vote, virtually unanimous vote. we'll put pressure on the senate to act to get these individual agencies open. the first one will be financial services which includes the treasury department and irs so that people can get their tax refunds at the end of this month. neil: the administration argued that those folks will get the

tax refunds regardless. how can they promise that if you don't have the feature you talked about? >> i don't understand, how they will have people come to work, people coming to work, expect to be paid and so far there is no money to pay them. so, i say, what is the, what is the value taking a risk. there will be inefficiencies, even if they get people to come back to work with irs. these are things that have already been done. this is one of the tragedies, these appropriations bills are example when the two sides work together in productive way to do something good for the american people. we did our work. it is being held up over the controversy over $5 billion. neil: the president apparently said, chairman, he is considering declaring a national emergency to fund the border wall. your thoughts? >> well there is no national emergency at the border. and, as a matter of fact,

virtually every metric by which you would measure border security, border security has improved over the last few years. we're at record low apprehensions at the border. just 30 days ago the president tweeted out we have a secure southern border. one of the things in this controversy over the statement whether there have been 3700 people on a suspect terror list stopped at our borders, to me the story there is, whether they were at the southern border or elsewhere, we actually stopped them. we have a system that prevented them from coming into the country. neil: do you think the system has gotten a little problematic, sir? this i maybe with the caravans or maybe accompanied and unaccompanied children, and that is emergency in that sense and that is what the president seemed to attach himself to with the crisis he says. and you say? >> if he focused on the humanitarian crisis with the asylum-seekers and the family separations and these kids being

traumatized, then i think he would have a much more sympathetic response but he continued to stoke fear in the public that the southern border is this sieve where all the criminals are coming in, drugs are coming in, terrorists are coming in, and that is not the situation. normally if a president give as prime time oval office address to talk about national crisis, the purpose is to calm the country and to provide leadership. he did exactly the opposite. showed nobody is in control and we, he stoked fears. and that was one of my biggest concerns about watching the president last night. neil: but obstinence can work both ways right? >> it can, but you have got a situation where we're being asked to write a blank economic to the administration for $5 billion. we say, come to congress, make your case for your money. we don't write blank checks for money. make a case for the wall. for border security. let us see what you plan to do

and we'll deal with it. there is no interest in the democratic caucus to preven sensible, intelligent border security measures. neil: chairman, as you think, it is important what you think because you're head of the house budget committee, medicare should be for everybody? >> i support medicare for all. neil: that is a big ticket. >> exactly. one of the things we intend to do? the budget committee have hearings on medicare for all, understanding there are a lot of different ways you can do for medicare for all. bernie sanders was not medicare for all. it was universal access town limited health care on demand with no consumer contribution. that is not what medicare is. what we're going to do in the hearing is, explore the options that are available to the country to expand health care to everybody, through a medicare-like program. consider the varieties of how we could do that, what the impact on the budget would be. neil: one of the ways you would pay for it, just so you

understand, you espoused raising the corporate tax rate 21% it was lowered to 28% is that one way to pay for that or what? >> well, i think, that would be a possibility. you know, i defer to the ways and means committee on how much we're going to raise taxes or lower taxes. that is their jurisdiction. neil: you want to raise them, right? you want to raise them? >> obviously if you were to take a significant portion of the private health care expenditures and move them on to the federal budget, would you have to increase revenue, that is now being spent in the private sector, generated in the private sector. would you have to move that to the federal side. yes you would have to do something. neil: what about on the upper income? are you looking to raise taxes on them? >> you know, i, that is not a top priority of mine. i have no problem with having a progressive rate that goes higher for super income individuals. neil: are you in that 70% camp? >> i am, fine with looking at that --

neil: really? >> the most important point, there is not enough revenue available there to make kind of invests i think congresswoman alexandria ocasio-cortez wants to make, greene new deal, medicare for all, not enough revenue by a long stretch to accomplish the kind of invests i think many of us want to make. neil: chairman, thank you very much, taking your time. you have a lot on your plate. we appreciate you taking your time. >> thanks, neil. neil: a lot more coming up. the dow up 138 points right now. the administration making a push to try to not make this government shutdown a record goes back to 1995. only couple days to avoid that. so far the signs are they are not. we'll have more after this. ♪ 'cause every day starts like a race. ♪ ♪ you got a side that loves that style, ♪ ♪ but to fit in those shoes gonna take awhile. ♪ ♪ today life's got you runnin'. ♪

♪ tomorrow big things are comin'. ♪ ♪ that's why nationwide is on your side. ♪ ♪

neil: well i want to be hear for myself. house budget committee chair john yarmouth he is open, in fact eager making a move on

raising taxes not necessarily at the ocasio-cortez rate at 70%, that the revenue wouldn't be there enough for what the democrats what to do, that high time they raise the corporate tax from 21% to 28%. he talked in the past about raising taxes on well think. the bottom line this, is whole new congress. let's talk about it with lauren simonetti, senior correspondent charlie gasparino and joe fahmy. that is not a surprise what he is saying. he long espoused that. if he got power, democrats got power, he would push for that. the question getting it through a republican senate, that is nonstarter. your thoughts. >> that is big challenge with the republican senate. the biggest concern should be reducing spending instead of raising taxes. they want to raise taxes cutting the deficit. they're better off reducing

spending, focusing on that. >> they will reduce spending? >> these guys are trump spending on steroids. one positive thing you can take from the remarks, he wants to reduce to it 28%. remember it was at 32%. neil: in other words we're not going back to the old rate. that was the billed rate. not everyone paid that. >> but you have a 20% rate now, what is it? neil: 21? >> still with deductions. if he is taking it down to 28%, part of me is saying that is a good thing. there are relatively sane people that understand something about economics because our corporate tax rate was much higher than the rest of the world. his stuff about raising the individual rate is insane because basically a lot of people did not get a tax cut. neil: lauren, he drew a distinction between raising individual top rate and pushing up to 70%. i want to you react what he said

about that. take a look. what about the upper income, are you looking to raise taxes on them? >> that is not a top priority of mine. i have no problem with having a progressive rate that goes higher for super income individuals. neil: are you in that 70% camp, top rate of 70%? >> i'm fine with looking at that but i think -- neil: really? >> the most important point there is not enough revenue available there to make the kind of investments that i think congresswoman ocasio-cortez wants to make, the green new deal, pay for medicare for all. there is not enough revenue there. neil: in other words what he is saying, if you tax them at 100% you will not be able to pay for the grand plans. >> that is the great myth. that is the great myth going back to jfk, that cutting rates actually brings in the government revenue, you have more spending out there. people feel richer. it is not raising rates that will bring in revenue to the government. i think it is cutting them. >> i think we're burying the lead a little bit.

now i heard the whole thing he said. he actually said he doesn't want to raise rates on upper earners. neil: he is open to it. what he is not open to bringing it up to 70. >> what you see here from the leadership of the democratic party -- neil: they're dialing it back. >> dialing ocasio-cortez's loony tunes back. clearly they are. >> on the corporate side, don't you run into the whole problem reason to do it, keep companies here, not have reverse mergers in ireland and more friendly corporate taxes? the whole point keep a lot of the manufacturerring everything here in this country. >> why couldn't you do that with 28%. i'm playing devil's advocate. >> not competitive with other countries. neil: what is ireland? >> 14. >> the effective rate was never 32. the effect rate was 25. neil: bottom line, lauren, rates, democrats want to move up. not necessarily 70%. they want to move up. >> you have strong left-wing of the new house. that is going to push more mad

rat members a members a little more to the left. we had corporate tax rates, personal tax rates cut, we start to see effect of all that. then came the trade spat with china and the like, we saw everything -- so unfortunately this is bad for republicans. neil: the president is, this is from a pool spray at white house moments ago. >> we're having very good times in our country. we're doing very well, exempt for the border. the border is a big problem. it's a very dangerous problem and so i can talk all about the job numbers and how well we're doing on the economy. stock market is up. over 30% since the election. some good things happening taking care of the border. we're all working together. i believe the democrats and republicans are working together. i think something will happen, i hope. otherwise we'll go about it in a different manner.

and i don't think we'll have to do that but you never know. in a few moments i will sign legislation continuing my administration's extensive efforts to combat the scourge of human trafficking. i spoke about it, last night, human trafficking. it really hits a nerve. talking about in many cases women and children grabbed, thrown into the back seat of a car or thrown into a van, with no windows, with no, any form of air, tape put across their mouths and they're brought across the border. and they don't go through checkpoints. they go through the emptiest spot they can find, with no walls, with no fences. i want to thank vice president pence who's here, secretary nielsen, acting attorney general whitaker, secretary azar, a woman known as ivanka trump. [laughter]. the great one. where is ivanka? hi, ivanka.

[applause] she has worked very hard on this. this is very close to her heart. deputy secretary sullivan, administrator green, acting director vitello, assistant secretary johnson and ambassador richmond for being here today. it's a group of people that has really, really worked and they worked hard. i also want to recognize a great friend of mine, a man who has done so well and so popular in the state of ohio, rob portman. where is rob? great job, rob. appreciate it. and senator chris coons, who on occasion we disagree but i actually like him. we pray together, right? that's a good step. representatives michael mccall, my friend, susan brooks, ann wagner and chris smith. i signed representative smith's anti-trafficking bill yesterday. that was just signed and i want

to thank you very much. you worked hard on it. we all worked hard on it, anti-trafficking. just so we understand, human trafficking now is bigger worldwide, this is not a u.s. situation. this is a world situation, because of the internet, far worse than it ever has been. would you think that was an ancient form of criminality. it is not. it is a very modern day form, because of the internet, what they do with the internet, find people through the internet is disgraceful. we're also honored to be joined by many from law enforcement who fight this heinous crime every single day. finally i want to thank the inspiring advocates and survivors. and we have numerous of them with us. maybe they will say a few words. my administration made the fight against human trafficking one of the highest priorities. today's bill marks the fourth robust piece of bipartisan

legislation. and it is bipartisan, i have to tell you. the democrats have been great. that i have signed, and in just the last few weeks. we have a couple of others here that are already signed, having to do with the same situation. little different but all related. and it is just over the last couple of weeks that we've signed this. it has been a very strong priority but it is not easy getting everyone together, chris, i would say about as easy as it gets because this is a problem, there is no definition of the other side. there is only one side. so i want to thank democrats for helping us out with this unbut still much works remains. we cannot debeat the menace of international human trafficking if we do not secure our border. they're bringing them through the border. that is where they're coming from in this part of the world. all over the world but in this part of the world, they're bringing them through the border. they're driving in.

they're not going through checkpoints. you can't have four or five people sitting in the back of the car, tape over your mouth and your hands tied and have somebody going through checking out your car or your van. unsecure borders allow traffickers clear passage to transport their victims. and into the united states, it is very easy to come. all you do is drive 20 miles one way or the other and you will find a open spot where there is no protection. then you will go hundreds of miles where you see pure open spots. in fiscal year, i.c.e. made 5200 human trafficking arrests, mostly sex trafficking. i would like to ask attorney general matt whitaker and assistant attorney general eric diban to say a few words about a case that dismantled a mexican sex trafficking organization that was brutal, that operated in the united states and horrendously abused young woman from latin america.

a brutal, brutal situation. could i ask you, matt? >> thank you, mr. president. human traffickng is a scourge on humanity internationally and here in the united states and it is something the department of justice is absolutely committed to ending. and something for which we have leadership in the federal government and across the country in law enforcement to do all we can to prevent these horrific cases from happening. we're going to prosecute those that engage in these offenses wherever we encounter them and we will bring justice to the victims of these crimes. while human trafficking happens both internationally and domestically, undoubtedly human trafficking in and criminals who engage in it are significantly aided by a porous and unsecure southern border. we need to be able to control those entering and leaving our country and, a southern border that is not secured exacerbates the incidents of human trafficking. there is a broad, bipartisan

support as we see here today to end human trafficking. there should be broad, bipartisan support to secure the southern border, so that we can more effectively combat human trafficking. we need a secure southern border and we need congress to do something about it. i will turn to eric, our assistant attorney general for the civil rights division, to talk a little bit about a case we just announced, some convictions in. i also want to introduce rich donahue, attorney for eastern district of new york, whose office prosecuted that case. >> thank you, matt. thank you for prioritizing the prosecution of human trafficking here in the united states. the case that acting attorney general whitaker mentioned was a very complicated, long-running, human trafficking case where mexican nationals were engaged in trafficking young girls and women across the border, smuggling these women across the border into the united states and forcing them into

prostitution. we, working with the united states attorney's office in brooklyn and in atlanta as well as the department of homeland security, the justice department obtained convictions of eight of these individuals. earlier this week, five of the eight were sentenced to extensive prison sentences. in addition, we're now working with the victims. in this case and in all others the victims of human trafficking whose lives have been devastated by these kinds of horrible crimes. thank you, mr. president. >> thank you very much, eric. rich also, rich has done an incredible job of not only prosecution and other things coming up. maybe you can say a few words. >> we have a tremendous team in brooklyn across the eastern district of new york. every day we go to work we see the results of having a border that is not secure, whether ms-13, drug trafficking or human trafficking we're talking abo about. our folks get up every day to work with law enforcement diligently to protect victims and our country.

reality as long as we have a border not secure that we'll suffer the consequences of that. so stepping forward we think it would be a tremendous advantage to us in law enforcement in new york and across the country to have a border that is secure so we can protect our people and protect our country. >> thank you, great job. thank you. the fact is that if we don't have a barriers, walls, call them what you want, if we don't have very strong barriers where people cannot any longer drive right across, unbelievable vehicles, they make a lot of money. they have the best vehicles you can buy. they have stronger, bigger, faster vehicles than our police have, than i.c.e. has, than border patrol has. so they're pretty good of that. they have areas they go to, like a highway. we have to close them up. if we don't close them up, you're kidding yourselves. we all can play games but a wall is a necessity. all of the other things, sensors

and the drones, that is all wonderful to have but works well but only if you have the wall. if you don't have a wall it doesn't matter a drone is not stopping 1000 people from running through. so we can all talk. and you know interestingly if you look, virtually every democrat over the last 15 years they have they approved what we're asking for. i think we're doing something. we're getting closer. but we have to think about the people of our country. this is not a fight i wanted. i didn't want this fight. we have to think about the people of our country. we have to do what is right at our border, many other places. we have to do what is right at our border. human trafficking cannot be stopped if we don't have a steel barrier or a concrete wall, something very powerful. it cannot be stopped. there is nothing, we have the most talented law enforcement people in the world as far as i'm concerned right alongside behind me. it doesn't mean a thing if

they're going to be driving women and children through sections of the border where nobody is. you can't be because you don't have enough manpower or woman power. you don't have enough of anything. you have 2,000 miles of border f you're not going to stop it, in all fairness there is not much they can do. they can get them every once in a while. the other way we can eliminate the problem as it pertains to the area that is the worst problem. probably the world's worst problem because they come into the united states because we have the money. that is true with drugs. and everything i said for human traffic something also true with drugs. so we got to get the politics out of this and go back to common sense. they said it's a medieval solution. it's a wall. it is medieval because it worked then and it works even better now. israel put up a wall. 99.9% successful according to bibi netanyahu. he came into my office a few

months ago, what is with the wall? we put up a wall. with 99.9% successful. 99.9. do you mind if i use that number? they will fact check it, say it was only 99%. the president told a fib. now tell me 99.9. maybe he will change it make it 99, but they put up a wall and they don't have a problem anymore. we have to do the same thing. the united states must not incentivize or enable these evil crimes. instead we should do everything we can to fight them. that is what we're doing. i call on congress to send me a funding bill to secure the border, build a barrier and help end this horrific assault on innocent life, not to mention the drugs, not to mention the gangs and criminals and i will very gladly sign this legislation having to do specifically with a horrible, horrible worldwide problem,

human trafficking. the my honor to do it, i appreciate the democrat support. very much appreciate it. thank you. okay. [applause] [inaudible] just i will explain to the press. my whole life i watched presidents. they sign one letter at a time, one letter. did you ever look at these things? they're a disaster. so i sign with one pen. i hand out pens. works out much better. also a lot faster. >> the i.c.e. guys. >> where are my i.c.e. guys?

just pass them around. i think we have enough. we have enough for everybody. we're pretty accurate in our count. where is my senator back there. at least we have to take care of the republicans. [laughter]. take care of the democrat, right? michael, you have it? good. >> mr. president, what do you say to those federal workers, security guards, secret service agents, tsa edge cents who are now going without pay? >> i think they are terrific. these are terrific patriots. a lot of them agree with what we're doing. i hope we have the situation worked out. they want security in our country. so do i. that is all we want. we want security. we want common sense. we want security in our country. when you look what is going on, immigration just went to very high on your list. sew even on your list. immigration very high on the list. we're not just talking about immigration. i would like it, i will say it in front of some of our democrat friends here, i would love to

see a big immigration bill where we really take care of the situation. i know you want to. everybody wants. who wouldn't want to? right now we have a problem. we have to take care of this. it is quicker and easier to do this individually but we would like to see real immigration reform in this country because we need it. and it can be a beautiful thing. with all of the companies coming into our country, with seven car companies now announcing or announced just recently, we have many car companies and other companies as you know they're flowing in, we have the best jobs numbers virtually we ever had the african-american the best ever, hispanic, asian, the best ever, the best in 50 years. overall in 50 years, that number will be beaten. we need great qualified people. we want them to come in. so i think it's a great time because of that, we need people, rob. and i mean in ohio, you need workers. and i know you feel the same way. i know chris. i won't speak for chris but

everybody wants to see immigration reform. it just, it is oh due. and it always been very political. maybe this will turn out to be a blessing in disguise. john, i will tell you this, the people out there want something to happen at our southern border, whether it is human trafficking, whether it is drugs, whether it is criminals, whether it is ms-13. the folk the behind me know all about ms-13 and how violent and vicious they are and where they come from. and they all come from the same place and they all come in the same way. they come right across that border. we've thrown thousands out. i would say thousands, right fellas? literally ms-13. you have a lot of it, i no that he, rich. we throw thousands out a year. then at the come back. we move them all the way back to where they came from. all the way back. and they find a way to come back again. we need strong borders and we need immigration reform. beyond that, we need immigration reform. let's go.

reporter: these people have to go without their paychecks. they're being, some are being forced to work without pay. some have been furloughed. these are -- >> they will all get the money. i think they will be happy. i will tell you, say it often, many of those people you're talking about, so humanly the way you express it, but many of those people that you talk about are on my side. i have had so many people, the beautiful thing is, with social media, the world can write to you. you take a look at social media. so many of those people are saying it is very hard for me, very hard for my family, but mr. president, you're doing the right thing. get it done. i have had so many of them. they're patriots. they love our country. and they want to see it be done. look, this is just common sense. they want to see it be done correctly. we need a barrier. we have to stop people from coming in the way they come in. if we don't have it, you can never have border security unless you have a steel barrier, a concrete wall, call it whatever you want, but without

it, you will never have, you could have the greatest talent in the world. you will never ever, in a million years, you will not have border security. can't happen. reporter: mr. president, current thinking on national emergency? why didn't you announce it last night and when -- >> because we might work a deal. if we don't i may go that route. i have the absolute right to do national emergency if i want. reporter: what is the threshold for -- >> my threshold if i can't make a deal with people unreasonable. reporter: what about republicans on capitol hill -- >> we have tremendous republican support. i spoke to a few of the people in the house. we have tremendous support. the senate has been incredible. mitch mcconnell has been incredible. he said if the president is not going to sign it i'm not going to waste my time. and i mean, rob portman is here. he can tell you, he is very strong on border security. we have tremendous support in the senate. we have tremendous support in the house. by the way, you know, they say oh, is it true somebody is, congressman, he broke away.

okay. yeah, every once in a while you have that. you know who else has that? the democrats have that too. because they have their people breaking away too. you know why? because they know you need border security. but you don't report that. but the fact is that there is tremendous support. i would know without support i would be the first one to know. i may be the last one too. but there is tremendous support. right now, if i did something that was foolish, like gave up on border security, the first ones that would hit me are senators. they would be angry at me. the second ones would be the house. and third ones would be frankly my base, a lot of republicans out there and a lot of democrats want to see border security. what else, any questions? reporter: why not sign other bills, so workers can get paid. >> do you think i should do that? do you think i should do that,

john? i watch your one-sided reporting? do you think i should do that. john, serious do you think i should sign. reporter: the argument. >> tell me. reporter: nothing to do with word boarder security. >> i say if you sign that workers get paid. >> you would do that if you were in my position you would do that? reporter: i'm not in your position. i'm asking. >> i'm asking would you do that if you were in my position. if you should do that, you should never be in this position because you would never get anything done. good-bye, everybody. thank you very much. thank you. thank you very much. >> we're done. >> thanks margaret. >> thank you. neil: all right. it is not very often you hear a president ask a reporter what they would do in his circumstances. the president making it very clear though that this impasse continues on what to do about the border, but he and democrats are talking right past each other. very few deny that we have to do

something at our border the issue is the president attaching it to a government shutdown, whether there is wisdom in that longer term. the republicans who are shaky about this on going shutdown as it enters the 19th day, very close, couple days breaking a record established in 1995 when bill clinton and newt gingrich battling over similar issues, shutting down the government for what at the time is 21 days. it looks like this will top that. the president is arguing something he says does have bipartisan support. he said a number of democrats who are also bolting from their party leadership on this issue. i don't know whom he was referring. i don't know any names like that who are. i do know republicans are leery this will boomerang on them. regardless, they are no closer to a deal now. the president will be going up to capitol hill, having a luncheon with republican leaders to sort of cobble together what their collective view will be.

when he later on meets at the white house i believe in couple hours with leaders from both sides to sort of try to end this. to campus reform media director cabot phillips. cabot, you have a good read on the pulse of young people and i'm curious how they are digesting all of this? >> yeah. i think there are two things to note when you're talking about young people's perception anything donald trump is doing, really. first, when his name is brought up in a conversation, i've been on over 100 college campuses talking to students about him, similar policies, when his name is brought up there is instantly this reaction of students feeling pressure to say they oppose it. there is overwhelming pressure of young people to come out against president trump and his policies before they listen to what they are. just because they're attached to his name. that is the interesting part where he is definitely facing uphill battle with young people. the second point to look at, when it comes to immigration, especially college campuses, many americans, it cite ad false dichotomy from the left, where you either support open borders

and support illegal immigrants or you are anti-immigrant all together that false dichotomy forced a lot of people into a corner, they're edged out to the fringes on left. i guess i do support open borders. i guess i do support allowing people to cross the border unchecked because otherwise i don't want to be labeled anti-immigrant. i think a lot of young people feel pressured to go along with the leftist narrative because they're afraid of the alternative. neil: i see what you mean but i see it morphed into argument back and forth whether you're for, you know, immigrants, illegal or otherwise or not, when in fact he married this to funding for the united states government and that has muddied the waters here. so i wonder this idea advanced by no less than mitch mcconnell at this time, or couple weeks ago i should say, to keep the government open and to deal with this separately, whether that has been lost now, that is just not going to happen? >> i do think it is fair to ask why president trump waited until

there was a democrat-controlled house to push the legislation forward in the first place. that is a fair question for a lot of people to ask from trump's base or on the left. that something is to look i do think when it comes to who is getting blame for this, it does come down toe what young people hearing from social media, professors, if we're talking about what the perception amongst millenials, generation z is, president trump will catch blame for shutdown. the president trump is doing this as 2020 campaign pitch. hard to envision a world that he is reelected follow through on one of his main pitches or put up a heck of a fight. that is definitely on his mind as well. neil: cabot, thank you very much. this is attached to a government shutdown. that is the issue. the government is shut down over this, after this. sing that. ♪ vanishing deductible, you can... ♪ ♪ earn $100... ♪ earn $100 off...

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>> this is not a friday wanted. i didn't want this fight. you have to think about the people of our country and we have to do what is right at our border. neil: the president making it very clear he didn't want this way, but it's on now and he's not giving an edge. he wants that border wall were some sort of a structure, one made out of steel or concrete purity is going to force the issue with republican out of a policy lunch that is scheduled minutes for now. later on he reading with congressional leaders, but at this point are not notably

vermin at the white house with that spirit it does not appear the needle is moving very much. the odds and it seems like as both sides are agreed on the bigger issues. we have to do something about the border. something about our outdated immigration system. where they differ is european in -- using a government shutdown to advance the argument. reporter: and they differ in the details as well. we heard from president trump inside the oval office talk about the possibility of a broader immigration type deal, comprehensive immigration. right now they can't even agree on what is border security. does not include a border wall, barrier, technology, et cetera. today what we've seen from president trump and democrats on capitol hill, more digging and over the primetime addresses. last night president trump, chuck schumer and nancy pelosi is surrounded by federal workers on capitol hill today. the president last night in his speech did not say he would use

a national emergency or did not declare a national emergency to try to get more than $5 billion he wants for the border wall. just a little while ago, he suggested that the white house has erupted a good he could go that route if necessary. listen here. >> we have to take care of the border. were all working together. i believe democrats and republicans are working together. otherwise we'll go about it in a different manner and i don't think we'll have to do that, but you never know. >> he was then later asked by one of the reporters what his threshold with the as to whether or not he would declare a national emergency and the president said whether or not he could strike a deal. of course there are many on the left to feel the president does not have the ability under his powers to do so. clearly the white house feels it does as they say the option is

on the table. as for president trump schedule is set to lead the white house to head up to capitol hill to have lunch with senate republican and after that it's back here to the white house for one of the situation groom gatherings once again with congressional leadership. that means republicans and democrats here at the white house. as you mentioned right off the top, we have no clue as to how this untangles itself, especially after we saw the speeches last night and yet again both sides digging in today. >> just to be clear, the luncheon is with newly minted republican mitt romney since his op-ed. >> presumably. we don't know if they spoken on the phone since then or not. president trump hopes mitt romney is a key player, but you bring up a good point. they should be the first time those who would be face-to-face along with other senate republicans as well. by the way, it was interesting to hear from the president

essentially that if republicans don't stand behind the president on this one, it will be the end of this president be. we just heard from president trump say if he doesn't follow through on this as it relates to the border wall, it will be senate republicans tell you right the most followed by the house and then followed by his base. >> blake burman, thank you very, very much. the house budget committee chairman joining us. this is what he had to say. >> the president has said he's considered declaring a national emergency. >> there is no national emergency at the border. as a matter of fact, virtually every metric by which you would measure border security -- border security has improved over the last few years. neil: markwayne mullen joining us right now. thank you for taking the time.

>> thanks for having me on. we met or is it? it doesn't look like it close to being resolved. what do you think? >> i think we're a long way to getting this resolved. i think chuck schumer has a lot of explaining to do. how can it be and 2006 he voted for the secure fence act which was no less than 700 miles of fence of $52 billion. $74 million a mile and he won't even give the president, $5 billion for a border wall. i don't see how we go past it because it's so politically motivated. i wonder are some of your colleagues, maybe not you, but some of your colleagues getting nervous that the longer this drags on the worse it looks for republicans and democrats are all for debating these issues, but not attaching and holding

the government of the united is captured in the meantime. what do you think? >> absolutely. we are getting calls from constituents. in fact, a town close to my home whose real concern. his daughter has been furloughed and several members of this church or maybe not getting paid. air traffic controllers in my office today. everybody's extremely nervous and i apologized and said you guys are being used for a political tool right now because we've got coming in now, nancy pelosi and chuck schumer not willing to do something they've done before just because they have a president they don't like and it was a campaign promise of his. neil: the other side claims that the republicans holding every one of these, including this pastor's daughter sort of captive in this. do you think in retrospect because this was not what mitch mcconnell wanted to holding the government kind of hostage,

with bipartisan support of some of these security issues that he ripped up all that current day with both sides. maybe not as obvious as republicans by attaching this shutdown to it. >> neil, it's hard to say if the president holding anybody politically hostage. when chuck schumer, nancy pelosi, barack obama, all voted for this in the past. not once, but also in 2013. when you move forward and you start talking about how do we get past this point, it's going to take people to set politics aside and say what's best for the country. we haven't done that yet. we, chuck schumer nancy pelosi haven't done that. we made an offer a one time to have $5 billion for the wall, give anybody who served in the military permanent status. not citizenship and they said no

to that. we are trying to me, but at this point it's up to chuck schumer to say no money for, we are -- that's not an answer. >> if it does in a looks could, you're still right about that. but is there a sense here. >> i know a lot of colleagues who have send letters to the office to say withhold our pay until this breaks because i don't think it's fair to have mandatory individual show up to say they are deemed essential but not pay them. neil: hold on the president is talking to the press right now. [inaudible] >> whatever it takes.

>> take a look at last night and see the result. the people know we need border security. neil: the president is going to be meeting with republican senators now. those included in the newly elected republican senators including mitt romney of course with that pretty nasty op-ed for his leadership style even though he commended him for a tax cut, regulations and all the like. but they're on the same team and they're all going to try and go in this direction. mitt romney by the way is among those for the wall. whether he attaches to a government shutdown. a number of republicans were on board pushing this issue, but not a shutdown attached to it and ultimately shelved the plan that seemed to have bipartisan support including almost every

republican until the president attached the view that it was going to be this or nothing else. the chamber of commerce is already calling for an end to this shutdown right now. it echoes moves by investors and others that are aaa credit rating could be affect that if we don't get this settled soon because the process of golf has been made a mockery. senior research fellow, is that your sons that fitch is right to say is in the drama back and forth in nothing being done of the threat to her debt ceiling, as a threat to her budget process? >> well, you know what's a big threat to her budget process is congress in previous administrations refusal to actually keep our spending under control. but i don't know -- i don't think this government shutdown

is a big, big part of the threat to our sovereignty as far as the debt is concerned. neil: so when fitch's warning like this, and that we might have to look at this aaa rating, it isn't our aaa rating given with assurance that we will always make good on our debt obligations, you buy treasury, you can be assured given that the u.s. will make good on not? there's no reason to change that. there's no threat to making good on not because but they seem to be implemented as we hit our debt ceiling. we might not be able to make good on that. >> well, so i think we should be careful also about -- there's clearly a moment where our debt level is going to be a problem and if we don't reform the drivers of our debt, which are social security, medicare and medicaid. that's the issue we should be focusing on. how we go about putting pressure on the government and member of

congress in the administration to do this is a whole different question. now, the credit agencies have actually always been warning that we need to be responsible. in fact if you remember during the last standoff in 2011 is don't jeopardize the ability to pay our debt on time, which is one issue. and of course, it would be responsible for congress to put itself in a situation where they don't because they refused the rate -- raise the debt ceiling. it's also clear, it's been proven that treasury has means to extend that lennon appeared the other thing is all these creative agencies have warned over and over again that we have that going forward because of the driver of our debt. we listen to what they say, but

not the entirety of what they say. it is very clear and they see it in the long run that again coming in now, what we call entitlement spending are a big problem we've known for a long time is a cause of major potential financial insecurity in the future. neil: all right. thank you very, very much. a live shot of the capitol hill that the president meeting with senate republicans, trying to keep everybody on board that they're all going to read from the same choir book here. later on he is meeting with leaders of both parties to try to end the government shut down now and in its 19 day. the president making it clear we need border security. it's been lost in this argument not so much the $5 billion or whatever the president wants, but where the money is coming from because we don't have that money. what we have is a trillion

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neil: all right, the president on capitol hill meeting with republicans trying to keep everybody in line. a united front on this. this is already beginning to fray up republican allies.

chamber of commerce wanting to urge the president to get this wrapped up so they can resume operating and they can get back to a more normal life, whatever that is. bernie marcus. bernie, the president is saying it's about security and all. you'd think in retrospect however people feel about that, attaching it to weather stays open or not was a calculated mistake? >> no, i don't know whether the timing was right. in february when they were coming up with the budget again because he was giving him more time to make the case for why he wants to do it. but i don't think that somewhere along the line this has been a problem with clinton as a president, bush is a president, obama, they all know there's a

problem at the border. but schumer has made dozens of speeches talking about securing the border. as your last speaker said, they actually approve $50 billion for a wall. my question is why our nancy pelosi and schumer now all of a sudden the small amount, why are you now saying it's all political as far as i'm concerned. and meanwhile things are happening in the united states. something the president didn't hit on any should have done a better job on. it's estimated that 17,000 people in the united states died of overdoses in the last year. 70,000 people that died of overdoses. that means there were tens of thousands of people that didn't die. it's gotten so bad in communities all around the country that police cars now carry narcan. they're losing the people.

the drug issue is so bad in 90% of the is coming from over the border. if that is not something that nancy pelosi and schumer are concerned about, what are you concerned about. neil: i'm trying really hard to avoid the political finger-pointing here. your comments are certainly justified. i wonder whether attaching government funding, in other words keeping the government doors open even though three quarters of government is open as a way to go about it because that just built intransigence on both sides. whatever people's views on the subject, for or against that just lock people in positions were not going to get an edge because he's attaching this to a shutdown. what do you think? >> well, no, listen, i don't

agree with every tactic he uses. maybe there was something else he had leverage on. but for him, this is leverage. in order do make a deal he's using this as leverage. there's a lot of people being hurt by this. 800,000 people are not going to get their salaries. they'll live for weeks to week. i really feel for these people. but i don't know whether congress will act on anything. they have not taken a position that if it's a republican issue were not going to participate. were not going to give you anything you want no matter how right you are and i think that unfortunately i don't know that he's made this position strong enough to the american people. neil: in the next 10 years then. the business stops the progress on crucial issues to the business community. it's not reflected obviously in the market today buoyed by optimism were going to get a treaty with china separate issue. what you make of that?

the argument that this is going to be a preview of coming attractions where nothing, nothing is getting done. >> and i say then fold the way everybody else has folded. fold the way obama folded. fold the way clinton folded. and you get nothing done. sooner or later, this guy is a businessman and he knows that something has to be done. immediately he knows it's the right thing to do. but, i understand it's going to have an effect on lots of businesses, agriculture. and on commerce. but you know, isn't that the leverage he is using? why don't those people write letters to schumer and nancy pelosi instead of writing it to trout. as you heard from them, they've come out with 40 different ways to solve the situation. you don't want to sit down and negotiate. honestly you can't get anything done. i think they're being intransigent about it. i think they don't want to do

anything to let this president have credit for anything. this is not an american issue. 70,000 people dying in the united states in overdosing, is not political? is that a democratic or republican issue? it's american issue for crying out loud. do something reasonable for once in your life and stop playing politics. neil: do you think the wall is the answer? >> yeah. i've been to israel many times and i'm sure you have been what happened with jerusalem and what happened with tel aviv i can tell you the wall has stop the bombings. i don't know if it's 99.9%, but i know there were bombings frequently. now to say that this is going to solve the problem, israelis used a lot of things. the used a lot of detection. it's a question of a fence or a wall or whatever you want to call this thing, but it also means other things. having the border patrol been

enough to take care of this issue. neil: sorry to jump you. i did want to get your take on the economy. the business environment right now. crazy time in the markets putting together their fourth game in a row. we haven't seen that since last fall. when you make of the environment right now. >> from a business standpoint, we have the lowest unemployment was had for years. more job creation than we've had for years. we have the lowest unemployment in the hispanic and black community that we've ever had. more people working than we have for years. i would say from the standpoint of the businessmen looking out at non-politically that the economy is in great shape. you know, you can't look at the vagaries of the market. the market is schizophrenic. but from the business

standpoint, i think most people are doing very, very well. the small businesses are growing. we have more small businesses forming in the united states. more people being employed for small businesses. many of the things he's doing are really coming out positive for the united states. i think that looking at it from that standpoint and i know people get so upset by what he says if they just started looking at what he's accomplished and stop looking at what he says, i think you'll see that this man is accomplishing a lot more than most people thought he would. >> good seeing you. happy new year. take a look at the dow before we go to a quick break here. you would never believe what is the best performing issue of the dow. what if i told you it rhymes with apple? what if i told you it is apple? after this.

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neil: all right, you know the u.s. delegation trade talks is heading back to the united states. but we don't know is what they agreed to or what message they're sending back to the president. ed lawrence has some details he can pass along. what are you learning? i should just say that they are looking for another meeting and another opportunity to expand on this in washington d.c. this time that would include ambassador like pfizer and others. that is a sign of progress there. no confusion regarding apple of today. a rare thing to see among the strongest performers today and even after acknowledging its cutting iphone production between 10% between now and march. simply popular science tech editor on what this means. what do you think? >> i think actually this may be

bad news for apple if they're not selling as many phones as they thought they would. it can be good news for consumers because of apple funds are lasting longer for people and waiting for longer to upgrade their saving money. i think that's good for consumers and it can be made in the apple cut on its production. bad for apple, bad for investors. probably good for consumers actually. neil: many have been envious for charging such a premium for the profit margin in the high 30s of not only the technology world, but almost any sector. the economy or in a corporate sector. are those days gone? in other words, can apple get away with charging a lot more for its products? >> it's hard to know if they're going to decide to slash their prices and operate cheaper less expensive iphone. i think that's less likely. but keep investing in their services. services have been very profitable. apple music, itunes like apple watching air pod. they're going to keep investing

in not so they're selling fewer iphone in china and the u.s., that's going to hit apple's revenue. but i'm not sure there'll necessarily say we're going to start charging less for the funds at this point. >> may be because i'm a bit of a geek i have an apple iphone. i also have a samsung galaxy phone. you're the expert. i'm not. i noticed that a lot of these competitive products, for example, from samsung galaxy, a lot of elves and whistles that they don't have. there's a great attaché to the name, but the reality is the innovation that was so rapid is not there. i don't want to say apple -- i just think they've been taking a lot for granted and i think many buyers are simply not. >> is really such a matter of personal taste.

people buy them in their very avoidable -- loyal. the same is true for apple. i think we will still see the same level of innovation going forward, which is its iterative. they released the funds slightly better than the year before. neil: they have to do something really big, getting to the content business, buy content from a major player, that sort of thing. i don't know. that would seem to be a sort of a conventional route to go. but that is their future. what do you think? >> for tim cook and the tim cook and the rest of the gang to decide their in terms of how do they want to be with new products or new offerings are features on the phone. apple tends to be cautious in terms of only releasing something when it's actually working very well. i don't think one necessarily see huge gains are innovation when it comes to the iphone line.

uric in a phone with a slightly better camera. touch idea making way for face idea. they'll improve security for example. it's an iterative process and i don't think there's any indication all change in the near future. neil: will watch very closely. happy new year. in the meantime here, this meeting still going on capitol hill. apparently as soon as the president and vice president walked into the meeting with republicans -- republican senators. they're allowed -- a lot of applause he heard here it is of course on the same team. the bigger question is a little later on when he meets with leaders from both parties. that will be at the white house. more after this. financial str. you still thinking about opening your own shop? every day. i think there are some ways to help keep you on track.

and closer to home. i'm all ears. how did edward jones grow to a trillion dollars in assets under care? thanks. by thinking about your goals as much as you do.

>> i have no problem with having a progressive rate that goes higher for super income individuals. neil: are you in that camp?

>> i'm fine with looking at that. the most important point is there's just not enough revenue available there to make the investments. congresswoman ocasio-cortez wants to make -- neil: that was house does achieve a good think about what he said, it wasn't that he wasn't open to hiking the top rate, but even hiking it to 70% for the uber rich enough to find a variety of ways over $10 million. that is an enough money to do everything that many on the left have wanted to do including the green agenda that even taxing them at that level would not bring up revenue. it might be a moot point because getting to that even if it were to clear the democratic house, certainly the president to support it that's not happening. let's get the rate firm chris poster -- chris wilson.

what are your thoughts on what is essentially knowledge in that they're open higher taxes. pushing for higher corporate raid. but not the 70%. >> it's a misreading of the 2018 election were not in the business of giving advice to democrats. they put themselves in serious jeopardy of losing all the gains they've made because it's a serious misreading to somehow believe that they have become a super progressive that is going to support the tax increases that he and ocasio-cortez are supporting. i will point out that while suburban voters were voting democrat almost overwhelmingly in 2018, were a predominant number of the pickup came from, they're voting down referendum proposals like rent control, minimum wage increases and like this tax scheme he's referring to now. it's investing in the world for republicans to move forward from

these types of policies. neil: and was wondering where they're going or where they can find common ground because both parties have been very bad fiscal steward that increase under both of them. i am wondering whether there's any concern about that. most of the reflection when it comes to taxes as these are hiking on the rich. democrats claiming that republicans want to cut them on the rich. but the deficit grow and grow and grow and no one talks about that and the spending that underlies that. >> yeah. so you're talking about the 2018 election to the reason democrats made so many games in places like the suburb of big cities as they brought their perspective and policies into a local space. they listen to constituents where they live. listen, we're one week into this 100 xt in congress. immense amount of decisions to make. the democratic caucus needs to be able to accomplish.

i don't think there's a one size fits all. but congresswoman ocasio-cortez represent the queens. not the suburbs. neil: even though that's where you hear a lot of the passion on the left, that the idea of a 70% tax rate is out of the question. >> under the reagan administration they will have that structure like this. not the first time there have been policy to have a much higher tax rate. but i am saying congresswoman -- neil: at the 28%. >> obviously there's work to do. >> what you think of this? were you going with this? >> the best thing in the world would be for congresswoman ocasio-cortez to save the spokesperson for the new democratic house. for her to continue to introduce bills that the democrats rush to get behind. if you see these sort of massive

tax increases, single-payer health care but the american people in urban voters begin to associate the democratic party coming of the republicans take back the house and trump win reelection overwhelmingly. neil: i want to take -- thank you both. those who are watching the show, any sort of consistency here, were not red or blue. we follow the green. it's fine to have your priorities. that's a lips will be fine. but it's how you pay for them. in other words you can talk about a lot of goals, but it's how you pay for them and the reality is right now neither party has been very effective at reflecting its priorities. in other words, security on the border, but walt, you have to ask yourself to matter how passionate you are about the subject, then how are you going to pay for it? no one asks how are you going to pay for it. that is why fitch investors are seeing our aaa rating the envy of the world is being

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neil: all right, charlie gasparino on who he's been chatting with the blade. charlie: nail, an 18 year process that rehabilitation of the former junk bond king continues as he know he does do a very good conference in los angeles every summer. sources are telling the fox business network that he paid a visit yesterday to goldman sachs at the invite of the ceo david solomon and give essentially a talk, a lecturer coming meeting privately with partners and managing directors to talk about market. intellectual properties, structured finance. the junk bond king, one of the smartest guys on wall street for many years got in trouble, spent 22 months in jail. has been out for the last 18 years, but clearly he's a respected guide wall street and this is another example of that.

he maintains a close relationship with solomon, goldman sachs ceo. they both work together in stating contact over the years. i believe you spoke last year at the conference. i also understand, with sources at the firm are telling us that he then spoke to employees about his philanthropy and other issues. this is kind of interesting to me for a couple reasons. again, i follow michael milken's career. it's an 18 year odyssey to remake himself. there's a lot of talk in washington about donald trump pardoning him from the security charges. rudy giuliani even put it out there. it's kind of interesting that he makes this call to goldman as this is going on, whether he stands a chance with president trump to get a pardon. the president has been mum on that. there's clearly people on wall street like michael millen and

18 years he's real building his reputation it looks like he's done a pretty good job of it. back to you. neil: all the stuff you associate with that period of time. -- >> technically a flood and from what i understand it's something that he wants. you know, you and i and journalists will debate forever whether he deserves it, whether he was the evil guy. two schools of. they said he was a very bad guy. his creation of the junk bond market in the leveraged finance buyouts is bad for the economy, bad for the mark out. i more or less subscribe to this at to this that this guy was a visionary. he brought a lot of great companies public. and by the way, they reduce discharges. he only went away for two for a reason. neil: all right, buddy.

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neil: all right. we're not too far away learning what the fed was thinking last month when it hiked interest rates we're told could be last time for a while. james bullard, st. louis fed president is already on record no more rate hikes. he said it could lead to recession. he doesn't think time something good for that. market watcher, lenore hawkins with us right now. what are you looking for in the minutes? sentiment expressed by everybody, some people, what are you looking at? >> i'm looking to see what the view was around how robust the economy really is. because they were saying in the last minutes that were released, and after the december meeting that the economy still looks pretty strong and i'm seeing indications it is not quite so strong. i also want to see how many people are in agreement on that rate hike. because they're forecasting two more in 2019. neil: right. >> and market right now is not really thinking that's going to happen. neil: this bullard, the

st. louis fed president, he will be a key figure, this time he will be a voting member of the federal open market committee, the folks that set interest rates. he seems to be a no on any near-term hike in rates. you suspect others are moving away from the aggressive policy? >> yeah. i think december hike, they really needed to do it for a variety of reasons. they said they were going to do it. then the president coming out so strongly saying, you shouldn't, you shouldn't, you shouldn't. the fed was backed into a corner a little bit. then it needed to establish, no, no we remain didn't. we need to do what is right. monetary policy actions, you don't get effect for 18 to 24 months. so it is really difficult to move that ship around. i do think we'll see more concern, particularly when we've seen the rate of global liquidity has fallen faster than anytime since the financial crisis. and on top of that, it will get

even worse because the european central bank is kind of starting, they're not tapering quite the way that the fed is. but they're refusing as well. so we are now even putting more of a damper on liquidity. neil: lenore, speaking to you, we're looking at united states capitol on the senate side. president meeting with republican lawmakers, republican senators, more to the point. this is a non-issue for the market, isn't it? >> it is and kind of shouldn't be. the market is ignoring quite a few things i think it should be paying attention to but i think it doesn't know how to price it. for example the mueller investigations, nothing about that being priced into the market, how do you price that? brexit is nowhere near being addressed. how do you price that? how do i know this is not being priced? the dollar, we're seeing weakness in the dollar right now. where else will you go? you can't go to the pound sterling because of brexit. you don't want to go into the euro, look what is happening over there. deutsche bank is still a big

systemic risk and you have a got a lot of political turmoil in the eurozone, between brexit and what is going on with italy. you're not going there. neil: none of that is moving the meter. >> no, not right now. neil: investors are looking to review the aaa credit rating assigned to the united states of america. any other day that would be a pretty big deal. whether people say we deserve a aaa, we play a lot of games, but for them to say this whole chick cainerry back and forth, circus-like way parties handle innings, that is worry for us, but no big deal. >> problem is where are you going? yes we're not doing the right things. you look at corporate debt at record high levels, at a time we've seen interest rates on short end. two year interest rates risen faster over the past two years than ever in history. that is when you have record

high corporate debt. you have the u.s. debt-to-gdp ratio is over 105%. so there is a ton of debt out there. interest rates are going up very, very fast. no one really seems all that concerned with it, where else will you go? everywhere else looks worse. neil: maybe we're the tallest midge bet in the room. whatever the case. >> for the time-being. neil: lenore, happy new year. >> thank you, neil. happy new year. neil: len more hawkins. we're waiting to see what the meeting comes with the president with republican senators. by and large they're sticking with the president. although some are getting a little bit nervous. lack of support from democrats, not budging on their position. that is the remaining story. charles payne takes you through all of that and the fed minutes. thank you, charles. charles: thank you very much. good afternoon, this is "making money." we're seconds away from the release of those minutes from the fed meeting in 2018. everyone is anticipating this. stocks are higher but you can

see muted. investors want to know, and get some pressure insight into that unanimous decision to raise interest rates that sent markets reeling. we'll see what happens. fed chairman powell seems to have changed his mind but what about the rest of the folks? right now let's go to straight to jennifer schoenberger at the federal reserve. reporter: the federal reserve opted to raise rates in december many participants feel with muted inflation they should wait before racing interest rates further. internal discussions amongst fed officials during the policy meeting three weeks ago, showed, charles. a number of participants want to wait and see how market volatility shakes out, how the economic data comes in and quite frankly the interest rates they have already done impact the economy going forward. participants did note a lot of divergence between the economic data and market volatility we've seen and said that that makes the timing of future rate hikes uncertain. officials did revise down their path for monetary