lou dobbs next. lou: good evening, the hyperbolically anti-trump business press doing their worst trying to drum up fears of a recession, seemingly intent on driving the markets lower. they failed miserably in large measure because of president trump's strong credibility and rising popularity among investors. not even another yield curve inversion coul -- could dent inr enthusiasm. the dow rallying almost 260

points. also tonight, the release of the long awaited doj inspector general report appears to be at hand. the inspector general how expected to deliver a separate report first on the internal department of justice investigation ann into former fired fbi director james comey. we have reason to believe the release is to come within the next 24 hours. we'll take that up with leading attorneys victoria toensing and joe digenova. they are with us to analyze the breaking developments. the radical dimms and left-wing media lacking historical knowledge and ignoring for partisan purposes attacking president trump for creatively prepurposing fema money to

secure our southern border with mexico. the left is trying to twist up outrage, they ignored the fact that president obama did exactly the same thing five years go. for the story we turn to white house chief correspondent, john roberts. reporter: as hurricane dorian churns off the puerto rico coast, the president tweeted congress approved $92 billion for puerto rico last year. cruz fired back, congress abrofd $40 billion. the president responded that puerto rico is one of the most of corrupt places on earth. as part of a $271 million shuffle, dhs will use $155 million of fema money to pay for

temporary immigration facilities on the southern border. another $16 million will be taken from other -- another $116 million will be taken for adult detention facilities. $276 million came from fema's disaster relief fund. democrats didn't argue with that, but they are fighting back now. fema officials say that's not correct. it doesn't do what senator schumer says it should do. that comes from money prepositioned to pay for supplies ahead of the hurricane. another account that actually

fund recovery is flush with cash with a balance of $27 billion. lou: that's flush. the trump administration tonight taking a step ending birthright citizenship. new guidance has been released restricting automatic u.s. citizenship for children born on american soil. edward lawrence in washington night with the story. >> the new rules posted online by it immigration and citizenship services without fanfare. they talk about residency and how to establish residency. it outlines how children born to citizens outside the united states are not automatically considered the citizens. temporary visits tr to the united states -- to the united

states do not establish residency. a citizen born in the united states generally meets the citizenship requirement as long as he or she can prove that the mother was not transiting through the united states. those parents would have to apply for citizenship unless the parents establish residency. this apply towvments s. military and government officials who work in embassies around the world. it would stop women from coming across the border to give birth. it will likely be challenged in court. lou: as we are used to. the yield curve inverted again, but investors not excited at all. the dow up 258 points.

the nasdaq up 30. two weeks ago, much if not most of of the leftist media and business press panicking over the inversion of the yield curve and use it to fuel their narrative of an impending recession. often forgetting to know it usually takes two years before a recession sets in after an inversion. joining us tonight peter navarro, starnt to the president, director of trade and trail policy, director of the white house national trade council. let's start with the yield curve inverted again. to a greater degree than two weeks ago. and investors dismissing it. i read that as a president who has greater credibility than the business press. their hair was on fire two

we know we have the jay powell problem where they are not lowering rates fast enough. let me give you my 60 seconds. >> can you make it 30, we are already a minute and. >> trump for pillars, tax-cut deregulation, tough trade reform. the way we get this, from 2% to 3% growth, fed credits rates, european central kit cut rates. and we get china engaging in the stimulus. it is all good. that is the key and finally all the acing on the cake.

>> usmc i, that sound a lot like a trade agreement with mexico and canada. >> what is interesting, i know you're on a roll and a hate to interrupt, but we need to understand the underlying motivation today at least reported by the business press. that is optimism about the china u.s. trade agreement, is it misplaced, the optimism, or is it well-placed. >> i think what the market was responding to was the reality of all the good things happening in terms -- >> let me try this again, i know you would love to follow -- >> i would say is optimism i'm not sure whether it's misplaced, you know all negotiations take place behind closed doors -- >> we won't buy that.

so what is your precise question? >> is such optimism misplaced or well-placed custome? >> we have serious structural problems but the chinese are coming here in september to talk about them. let's see if we can work through that. i tell you is unlikely that anything quick will happen given the structural basis of the problem. you know what they are, stealing our stuff and killing americans with fentanyl and every thing in between. but for me, looking at the economy. liz: there not a nice bunch are they? >> i think they have a reputation going back to 1949 and never for filling any of the commitments and then going back to 2001 and breaking every rule in the wto book and take over

70000 factories and 5 million main factory jobs. you think america has finally realized that's exactly who china is in supporting president trump and taking action. lou: i don't think there's any doubt about that support and it is understated power in the left-wing 8 media. i don't hear a lot of blubber from wall street anymore or the chamber of horrors or commerce or the business roundtable about free trade. the president seems to have made it very clear that there has been nothing free about free trade for the last four decades in the balance trade is the future and as a leader of the free world, he is persuading in the rest of western civilization certainly that this is a new dawn.

what do you think? >> its reciprocal trade and europe is getting on board and i think europe views china just as we do, as a country that is violating all the roles and threatening the international ability to have a decent trading system. so let's see what happens. in the meantime, in the next month or two, we need the fed to do its job, to cut rates, european central bank will help us as well. lou: let me make a forecast, that is the fed will cut rates, jerome powell has had -- he is been tutored, he is more experienced by events. there is no way in the world he would not cut rates. and i will bet you any amount of money on that one. >> let's make sure he is playing

chess not checkers. lou: i cannot make sure of anything and if you're not gonna take my bet i got a go. >> will be put money down on it. >> i bet he goes 50 basis points. let's see what we got. lou: they q so much. the department of homeland security is borrowing from going to the mexico u.s. border. in the facilities there, they are rude and disruptive behavior is a reason they been barred. the staffers from the house oversight committee were sent from elijah cummings to visit and those staffers interfered with law enforcement operations and refused to leave one site after the scheduled window closed and the border patrol and dhs officers leaving homeland security with no choice but to

bar another scheduled by the very same democratic staffers. there may be a trip, but there will not be a trip to the border. up next, the corrupt actions of james comey requiring its own report by the department of justice inspector general. will he faced charges, we take that up with a attorney victoria and joe here tonight. also tonight, new developments in the personal scandal involving congress woman l hand. she doesn't think t t t t t

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lou: it is almost an oxymoron to talk about the business press and the left-wing. there is a left-wing element in it shockingly obvious he sees and they continue to see fears of a recession despite the question of strong and booming trump economy. check out these headlines today on various outlets.

cnbc, headline, new recession warning, the rich are not spending. let's run for the hills. the hills publish this, long-term investments spiraled to record lows. the ceo of the american apparel footwear association telling fox business, we are five days for me too armageddon. if we get hit with these terms, this is a one-way ticket to retail ugly. i have to give him credit, i am delighted by his choice of words. droid amino aaron gibbs. retail armageddon and all hell is going to break loose. >> it was certainly lobbying to not have these turfs go into, they are definitely exaggerating for their own interest. but with the retail sectors and

some of the apparel on footwear. they do have real concerns because one thing is the u.s. consumer is very price-sensitive and we've seen that with a lot of retailers, if they try to pass the price increases onto the u.s. consumer, they frequently does not buy. and they will spend less. it is concerning. lou: is it that the purpose of tariffs, to make them a difficult choice consumer and importer. you want to see substitution. these tariffs are designed to protect american industry. >> how are we protecting u.s. shoe apparel when the early making the sneaker in the u.s. but importing -- >> how many do you think are made here versus china? like a rain drop in the ocean? >> mostly outside of china. most american consumers are not

going to go buy shoes that are made from china. >> is deafly not going to be endangered is your negative impact. >> cutting nexhad expired the dn rates. it's 26 and half% per were looking at an alarm that is declined 12%. at the same time, all to substitute for these tariffs and their impact and by the way these tariffs have not taken an impact, we're looking at 10% that is sweeping up by the currency exchange. >> companies are trying to change their supply chains. how to not import from china. but we stopped in for a lot of these goods. it takes a while. lou: the market seems to say, donald trump you doing the right thing. you are talking about balance trade in the market responded.

it is saying to the business press, if you are going to go into the hyperbolic over tariffs, better do your work on tariffs and her history. the reality is, we cannot in any way, think about this, tom freeman at the new york times acknowledging the president is right, jamie diamond, the head of the world largest bank acknowledging the president is right. but the fact of the matter that there is nothing else that would be as effective as what he is chosen. and i think that is how reality is. >> i think having a stronger stance and using tariffs, i think some of the reactions and the volatility have been really unnecessary. and some of these days. lou: advisors acting emotional emotionally. >> i don't think the trump tweets really help.

lou: these people are endured to trump tweets. for the first time we have a president speaking directly to the market people in a robust forthright manner, i think most people love it. >> ethic that creates a lot of chaos and uncertainty to a lot of investors i would just prefer someone who is a little more less productive or little less open. lou: investor should not react in a manner -- i consider it a football, if you're an investor you better not think of the long-term as 35 minutes. >> absolutely, that's why you have professionals like yourself. >> you tell me why anybody would be flip-flopping. >> it is hard when you see the market. lou: trillions of dollars out of the growth of the u.s. economy

which is china has done, you know how hard it is to half a trillion dollars a year be sold by the chinese. that is hard on them. that is hard to make up and even a 12 trillion-dollar market. >> i would disagree, there's certainly an impact. lou: not out of the china out of our actual property in technology. >> intellectual property, absolutely, but the fact that we are hurting some of her retailers and the manufacturers in the u.s. it is a little hard to swallow that the different industries are getting hit. for investors, is hard to process because it is so compl complex. lou: those investors process 30% appreciation since the president

was elected. >> 4% down in august. that is obviously another thing. >> we have seen more escalation in the past month and you've seen that in the volatility. it's concerning were creating a sense of uncertainty and volatility in the market. >> that's a great thing about markets, we will get a judgment by investors, and is common today and we had an installment two weeks ago in which the business press forgot to add the average recession of 22 months as their hair was on fire talking about yield curve inversions. today investor said this president has delivered a hell of an economy and these are amazing markets, maybe we will pay attention to what is action happening and see where were led over the next 22 months. >> the economy is doing well, what i'm talking about is more concern on the very pacific portion of the markets.

out of the economy overall, a big picture of the economy, things have gotten better. lou: this is a president of the forgotten man in the home enough money because were talking about 3% plus wage growth and these folks are going to have enough money to buy a a tran10 para. >> let's say another 5%. >> it is always great to see. thinking so much. we appreciate it. up next, google and facebook back project. that sounds exciting. it's always good when big tech merges their interest and gives greater power and consolidated in silicon valley. there is national because secured concerns. we will tell you about those a

lou: new concerns tonight, china could use a corporate audit system as a weapon against american businesses. the system set to start next year uses an algorithm to determine how well companies comply with the commonest regime, laws and directives. that's what communist do. experts say the u.s. companies are not complying could lose access to policies or face stricter levels of punishment in the people's republic of china. u.s. officials looking to block an 8000-mile undersea internet cable connecting los angeles and hong kong. doing so over national concert get security concerns. it is backed by tolkien company. doctor ping. a multi agency by the department

of justice, they are concerned by the ties to the chinese government. i'm sure that did not just accrue to them. it's amazing how long it's taken for the u.s. government to think about this thing. the declining economy of hong kong, a real concern as well. joining us tonight, doctor michael at the hudson enter two. the trade advisor to the trump administration. right to have you with us mike. this is one of the most particular things. 25% over internet traffic goes over undersea cables in the atlantic and the pacific. and this joint project amongst the chinese telecom and suddenly it is gaining the interest of national defense and national security.

what do you make of it? >> i think this cable has a norma's amount of data and the sophisticated software china has can engage in very deep data mining. the commute occasion's of the world between companies and individuals in it reminds me of peter's request to the president last month for an investigation in google. they said that one be necessary. i support peter on this. lou: i think that's an excellent choice if i may say so. >> google is confused about which country their prosperity is owed two. it's united states, not china. lou: it is troubling to see the attitude, the agnostic attitude, i'm trying to put it as nicely as i can, of major tech companies in silicon valley toward their obligations and responsibilities to their home

market and to the nation of origin. they are supposed to be great corporate citizens. they are not behaving like citizens at all. >> no, there's an ideology with the religious verb behind it, called globalization. borders don't matter, countries don't matter, we are one happy plana. and we have to do everything together. the chinese love this attitude, it's an open door for them and for anyone basically. globalization in china is not a very strong attitude. chinese attitude from taxicab drivers to the leadership is make china great again but there's no globalization theory. there is a center for globalization but it's pretty small. lou: i cannot agree with you more. it's obviously not disintegrate but make china dominant in the world power. which as you point out, again i think that is correct.

it is certainly an alignment of interest around the world who propel china's motivation and their aspiration. >> i don't think that word is quite strong enough for what they're doing. chinese know how to manipulate and use systems. recently they've offered specific american investment banks, by name, the opportunity to register to have unlimited operations inside china. this is a bribery. they also have favorite politicians to subsidize in the system in various ways. china exploits the globalization fever for lack of a better word. lou: you notice the president has succeeded on so many levels, he is historic, no one has done as much as he. into a half months of the first

term in office. we don't hear the words free trade, or north american union which we did which was a consolidation of canada, the united states and mexico department raising our borders of the chamber of commerce and the business roundtable used to love to say. those expressions have receded into the shadows and not to the dustbin of history. >> the president believes that china trade issue is more porn to protect th attorney general. and the democrats are for have talked a little bit about china trade but they do not seem to understand the fate of our country as leader of the global world war. it's not minor cheating going

on. it's a struggle for technological and global supremacy. he has made an awful lot of progress. lou: well said, extraordinary and the reason we love talking to. doctor michael. they get so much. we'll be right

lou: welcome back the department of justice inspector general reportedly set to release a report on james comey corrupt behavior at his time as fbi director. by written york could be released tomorrow. they're looking into classified memorandum detailing private conversation he had with president trump, comey leaked those to a friend in the media. joining us tonight, victoria, former deputy assistant for the criminal division of the justice department. in general former u.s. attorney for the district of columbia, founding partner of the law firm. great to have you both with us. your reaction to these reports and let me b specific.

this could come within 24 hours. your thoughts? >> i want to say congratulations on being number one for 40 months. i want to know when you get tired of winning. will you please tell us. >> be prepared to wait. [laughter] >> now regarding the comey report, it does not make sense to me that there was a decision not to prosecute comey and other id report is coming out so i don't think it's any big deal as far as is going to come out into the pros, they may criticize him but the decision is going to be made and i hope he is included in the fisa abuse part because he sighed the first fisa application with verification on the top of it and it was not verified and that is an error in

taking away the due process of carter page. lou: to questions, one is why why the inspector general carried a separate report on the fired fbi director, and with a suggestion that there would be no prosecution, could this possibly be a reversal of what appeared to be an earlier decision? >> no, i think they wanted to make the prosecution decision first, they had the horowitz report and he did not want to publish that if they were going to prosecute. they might've held it up if they were going to church and. once he decided not to charge he will now release his report. i understand the reasons because of the classifications that i agree with victoria. the mother load is not the report, i'm sure there will be

awful behavior by him and his lawyer and this other stuff. to be what matters is the fisa app location process. i'm sure that's what most people want to know about because remover, that is that the genesis of all the illegal activity. what they did to try to get the president through carter page. lou: let's talk about that, for fisa warrant applied for in the inspector general has indicated that all four were illegal. how could he not hold responsible every signatory on every one of the warrant applications? >> a device why people are not being indicted for this false statement. like lying to an id which is child's play, michael flynn made a false statement about his conversation with the russian ambassadors that already have

the complete conversation. but this was going after, taking the u.s. government intelligence weapon and directing it at a political campaign and the opposing party. how could this not be some kind of criminal offense. >> it is absolutely inconceivable that when you have four warrants of this magnitude involving a political campaign and they were all falsely obtained, it is inconceivable that you cannot prosecute the people responsible for that. if that is the decision that is made, not to prosecute, there better be a damn good explanation. lou: i was just underlying the! 's after every word you said. it is the mark o american peopl. i can imagine tolerating now.

dana, the only person who is still in a job at the justice department, the fbi who was a signatory on all of this. still has a job and still seems to be part of the apparatus. >> versus still there. >> that's right. how can this be? >> talk about rob rosenstein, he said i really did not mean the application. i have been at that department, i have seen documents is big. if i'm getting a document despite against our president which is what it was at the time rod rosenstein signed it, i'm reading every word at least once. and he said i was briefed on it, talk about arrogance. lou: arrogance and by the way,

no shyness about andrew mccabe in that respect. an indication is he is going to be charged, that does not seem consonant with the waiver with everyone else who signed the document. >> here is the problem. the issue is, will we have one standard of justice or two. this is a pretty simple concept, the two standards of justice seem to be winning clearly in america. the decisions that are going to be made over the next several months over who gets prosecuted and does not will be a bellwether of how we are doing on that side of things. i have to tell you, the fisa warrant process was created because the subject matter was so important, they did not like what richard nixon did so they

created a whole legal process with the courts. it has been the bellwether of the way we conduct surveillance of american citizens and others. this is an spying matters. if you can get away with what comey and mccabe and be as relaxed as rosenstein was in not reading the actual affidavit, then the process should be put to a halt. it should stop, they should not use it anymore and they ought to go back to having the president of the united states make all the decisions about who gets spied on. >> by the osos and explanation of what they did about all this. >> what did the fisa court do when it found all this out. >> and went to the chief justice of the supreme court. >> that was my next line. >> we will continue the conversation. thank you for putting me in your plot. my membership not so obviously

appropriate. victoria and joe thank you so much. up next, another democrat finds out at the 2020 race, president trump said he is breathing a sigh of relief. did somebody just make a huge mistake. did they have the president on the ropes, we take it up with patrice up next. stay with

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lou: joining us tonight patrice senior policy analyst, it is great happy with us. there is a report that for in ten people will not trust the result on the election of the candidate if they do not win in 2020. is that well played skepticism or have we become a cynical nation? >> i think many people have given in to the conspiracy theory, the biggest one being russia collusion with the trump campaign. the media and the left did a fantastic job of trying to undermine the election and president trump in the minds of 70 americans that they are going to believe that it's a person that they voted for does not win than 70 tampered with their

election. despite we know the two-year investigation that resulted us knowing there was no vote changed as a result. lou: we know we were told that. i happen to be among those who think it's a very healthy skepticism because electoral integrity has to be insured. if we do not see our government and am talking about state government in every jurisdiction including the federal government with a electoral integrity and voters are truly register voters and that voters are registered in their conducting proper and correct elections, then i think everybody should be skeptical. there better be evidence that we know what we're doing in the selection not just because of the nonsense, we know now there was more intervention on the

part of the illegal immigrants being questioned about whether there was more illegal immigrants voting in the 2016 election. this is ridiculous. >> your point about healthy skepticism and ensuring our electoral process is not tempered with. i was talking broadly about the russia collusion story. lou: that story is over. the special counsel has rested his case and vindicated the president and everyone who has been proved to be a liar and a fool. >> exactly. we have to worry as you said we have to worry about whether both been changed but because of a really good rarity in mississippi is over the great example of whether or not new technology is actually working. as we have seen congress allocate millions of dollars to

ensure their electoral process. if the taken advantage of that money that's another story. lou: if citizens are not making certain that their districts and their states are not assuring the integrity of their elections then shame on them. it is up to each one of us to make sure that's exactly what happens. patrice, you get the very last word. were a little over time. 15 seconds. >> i direct everybody to president trump's tweet as senator kirsten gillibrand just dropped out of the race.

lou: president trump slammed the free trade industrials he's getting on china. his trad -- his trade advisor ss this is more important than anything to this country. the democrats a talked about trade problems they don't seem to understand the favorite our country as the global trade order is at stake here. lou rrm we hope you will join us

tomorrow for family bruce and pastor robert jeffress. see you tomorrow. good lauren: it is 5:00 a.m. here are your top stories at this hour. hurricane dorian taking aim at the florida coast after narrowly missing the puerto rico. the storm packing winds of more than 85 miles an hour. cheryl: china speaks and britain in chaos, how world markets an and global investorse responding. lauren: the stage is set for round three of the democratic debates as kristina kristin gild bows out of the race. cheryl: from robocalls to privacy scandals, everyone is out to get your info. we're talking to one of the world's most famous scammers of