attractive value to be had in the sector and multiple catalysts to support it. liz: the russell 2000, there were people sitting in the chair a year ago saying this is small cap's year and they've certainly done well. they've had flashes of brilliance. but the nasdaq and the s&p have outpaced everything. >> yeah. i think the one catalyst you saw that really sparked the rally in small caps this year was the front end of the yield curve, interest rates came down. if you're getting 5% on short-term bonds, right, you know, that's hard competition for a small cap stock to invest in. small caps rely on bo borrowing money to grow. liz: john, a good friend to the show, thank you and happy holidays. >> thanks for having me on. liz: markets, look like the nasdaq is closing at its 38th record of this year. larry: hello, folks. welcome to "kudlow." i'm larry kudlow.

so president trump maps out his american zeitgeist this morning in a wide ranging 70 minute presser down in mar-a-lago. we're going to talk to art laffer and steve moore and grover norquist about taxes and tax delays in just a couple moments. we've also got congressman jim jordan waiting in the wings along with the latest on the mysterious drone story. we might have a plausible response and answer to the drones. but first up, fox news rick grif jenkins is live in west palm beach florida. very busy down there, huh? >> reporter: busy indeed. good afternoon, larry. what a contrast from the biden years. here we were back to the first trump administration with these wide ranging, anything under the sun press engagement. it went o on for about an hour d the president-elect talked about everything from the mysterious drones to the war in ukraine to the hostages in gaza to border security and the border wall and

even talking about tiktok. he started his remarks standing next to japan's soft bank ceo, announcing $100 million investment that promises 1,100,000 jobs on a.i. and the like and trump noted the number of billionaires and businessmen coming this time to mar-a-lago to meet him. watch. >> b biggest difference is that people want to get along with me this time. very a lot of great executives coming in, top executives, the top bankers, they're all cal calling. >> reporter: and also at this press conference, larry, was prestrump's incoming commerce secretary howard lutnick sitting them to him and he was offered up for questions and i asked a question which apparently the answer caused the dow to take a hit for a brief time though it's recovered. i said is there another china trade deal on the offing and

they said specifically, larry, reciprocity will be the key here, meaning how they treat us is how we're going to treat them and trump weighed in saying that just generally speaking he's going to make great deals to make america rich again. larry. larry: you know, that's a great answer. whatever the market did, i think the reciprocity answer is absolutely the best possible answer. they'll cut their tariffs, we'll cut our tariffs, but if they don't, we don't. i think that's the basis of mr. trump's trade policy. griff jenkins, thanks very much for the updates. so folks, trump's confidence and grasp of policy in this press conference explains why he's so wildly popular right now and that's the subject of the riff. really e isn't it nice to have a president who can effortlessly stand up at a press conference and make statements and take questions for 70 minutes sans

teleprompter. that's french for without a teleprompter. unafraid, confident, holding to his principles. that's what president trump did this morning in mar-a-lago as griff jenkins described and i think it's a wonderful thing to see and he left off by letting his japanese investment pal from the soft bank investment fund pledge $100 billion to go invest in america first technology. okay. shows people are listening to mr. trump's pitch to bring new industry to america. presumably be rewarded with a rock bottom 15% corporate tax rate. how about that? we already know that mr. trump is talking to world leaders around the globe, moving towards his priorities to end the russia/ukraine war or hell to pay if he doesn't get a hamas hostage deal or closing both the

northern and southern borders to illegal immigrants. canadian prime minister justin trudeau flew down to mar-a-lago for supper a couple weeks ago. that may have been his last supper because his deputy pm just resigned and he is supporting a low 20% approval rating. let's see how that plays out. today's presser president trump repeated this tariff warning to mexico and canada and his trade bulldog, howard lutnick, was standing right there just in case anybody doubted mr. trump's commitment. trump blasted the biden administration for not telling the truth about the drones craze sweeping the u.s. but he did tell us the administration knows where they came from and suggested it wasn't a hostile adversary. meanwhile, conservative columnist ben domenich believes the drones are following faa regulations in a planned

exercise sponsored by the pentagon to test out new drone systems. again pothey point out to a pres release last june nobody seemed to pay attention to it. there's no reason why the bidens are hiding information about this drone story. no reason at all. mr. trump's got be defending robert f. kennedy junior for hhs secretary. he's considering a pardon for new york city mayor eric adams who has been treated unfairly by the biden justice department because the new york mayor is saying he'll cooperate with trump policies to deport criminals. president trump added he'll have to look at all the facts. he was very mellow and suggesting that people who get along with him much better in the second term than in the first because they noel make knl make good on policy promises and they respect the electoral

mandate for change. however, he suggested he may bring a lawsuit against the des moines register whose crazy poll on the eve of the election showed harris plus 3 in iowa while trump wound up winning iowa by 14. and he called that election fraud and interference and i think he's dead right. he criticized the bidens for selling border wall parts for five cents on the dollar, knowing he's going to need money and equipment to finish building the wall. he called it almost a criminal act for them to do that. perhaps the only thing missing was the final decision on whether to delay trump tax cuts 2.0, that will get resolved soon enough. we're going to talk about that in the next segment. he's not afraid to make decisions, however, he's not afraid to defend those decisions and he's not afraid to speak plainly and truthfully to the american public. that's why is transition is

wildly popular. his approval rating's at record highs. and he continues to control what i call the new american zeitgeist. which means spirit and energy. and that's tonight's riff. all right. let's talk about all of this. joining us now is grover norquist, founder of americans for tax reform. grover, i believe is in argentina or some such place. art laffer is here, former reagan economist. steve moore is here, host of more money on wabc radio and he and art are co-authors of the trump economic miracle. welcome to all off. grover, give me 20 seconds, how is mr. malay doing? i met him at the mar-a-lago gala a month or so ago. give me 2 20 seconds. how is he doing? >> he's doing great. we talked for a half hour today. he's excited for everything

moving forward, the drop in inflation while they're having growth. larry: you're going to link the peso to the dollar, going to dlarlize argentina. >> i think that's coming. we'll see. larry: okay. that's good. grover, we wanted you to come on because of your strong article ousuggesting the republicans cod lose control of the congress next year and damage the economy. grover norquist says republicans can kiss their house majority good-bye if they delay the trump tax cuts. as you may know, i'm inclined to agree with you on that point. we didn't hear about that from mr. trump today. what's your quick take on that one, grover? >> it's very dangerous. we delayed the 2017 tax cut that the president wanted from early in 2017 to december 22nd when it finally passed. we had tremendous growth in 2019. a year after we lost 40 dates and lost the house of

representatives. had we moved sooner on the tax cut, the year of growth would have been the year of the election. when reagan was running for office, when he won in '80, in '81 the tax cut didn't take effect fully until january of '83. when did we get growth? all of 1983. 4 million jobs, smaller economy, smaller workforce. 4 million jobs. a year after we lost about 25 house seats. pass the tax cut now. small businesses, all businesses need to know what's the income tax going to be. i can't make decisions until i know that and that has to happen now, not a year from now. larry: art laffer, you've always taught us down through the years never to delay tax cuts. in this case with trump 2.0 it would be tax cuts and it would be extending the old tax cuts but there would be new tax cuts. you always taught us not to delay, arthur. how about now?

why should we delay now? >> you shouldn't delay. grover's completely right, larry. he's just totally right. if you know tax rates are going to be lower next year than they are this year, what you're going to do is irgoing to defer all income you possibly can out of this year into next year and accelerate expenses so it will make this year a really bad year and make next year a really good year. that's exactly what happened to reagan in '81 tax bill. it happened to jack kennedy as you wrote in your book, very clearly and it also happened to haharding and coolidge. i think trump is clear on this message. don't delay the tax cuts. there will be an automatic delay just because you can't pass the bill prior to january 21st. you couldn't. there's going to be a delay but minimize the delay, make it the least possible delay to get the most possible benefit and then what he's doing with tariffs, larry e is perfectly wonderful. he is negotiating tariff rate reductions by threatening that

these people will not have access to u.s. markets unless they use reciprocity and lower tariffs, lower restrictions on trade, lower quotas, make nontariff barriers go away and then we'll have free trade in this world. it's the most unusual strategy for him to get free trade. i love it, love it, love it. larry: i think it's interesting as griff jenkins reported that howard lutnick answered that question at the presser and i didn't know this, with talking about reciprocity. which i think is very bullish. i mean, i don't know if stocks went down because of that or not but i think that's a bullish answer. but steve moore, coming back to the other matter, there's still a lot of wrangling going on. president has not made up his mind. it looks like the senate, the republican senate wants to delay the tax cuts into a second reconciliation bill. looks like the house not so much. there's only two votes -- 217-215 in the house.

i don't know how many bites outt of the apple you're going to get. bless you for sneezing. really, they ought to make up their mind, they ought to make up their mind, that's point number one. and point number two, i don't know why they can't do one huge reconciliation bill, tax cuts, border, you know, you name it, defense, permitting for liquid gold. i just don't understand why they can't do it all at once. >> well, especially larry because right now donald trump is so popular. he has a political capital that i haven't seen since ronald reagan came in so you do not want to delay. you want to seize the moment, larry, and one of the things that i think they ought to do is just do everything. do the oil policy, do the deregulation, do the border wall, and do the tax cut at once. this guy, i mean, i defy the democrats to try stop him.

and i think the more you delay it, the more you put this tax cut in jeopardy. larry: i think that's right. i think grover, to go to your piece -- by the way, grover, you know, there are going to be some add-ons that are very important here. most of the bill is an extension of tax cuts 1.0. but you've got tax-free cash tips, tax-free overtime, maybe down the line a break on social security seniors in there, double tax. steve forbes has suggested by the way constructive things, a capital gains tax or indexing and by the way, the other thing that's interesting, steve forbes suggested to me on the radio this weekend, why not widen the brackets for the individuals. widen the brackets. that's and tantamount to a big x cut for individuals and small businesses who pay the individual income tax, grover. >> all of those things are fairly easy to score. much of what we're going to be taking out permanent, taking out

in 10 years, it's already been scored. we passed it before. republicans have voted for this before. the country saw it and they like it. this is not like back in 2017 where we were arguing about all sorts of stuff. we made certain decisions. i think going to 15% the president was right in the first place, the corporate rate should be at 15, on the way to zero, but 15, not 2 21. (accucapnt trial version) we have a 4 plus percent corp. pet income tax at the state level. when we say we're at 211, we'ree really at 25 which is where communist china is. i think we should be less taxed than communist china, that's my theory. larry: that's a good theory, grover. >> thank you. larry: the other side 06 this is the laffer curve. it has worked. it's worked -- you know, all kinds of comparisons. the cbo estimates from 2016 before the first trump tax cuts,

then 2018 gaffed wards. (accucapnt trial version) 22018 afterwards.the revenues d from what the cbo suggested. there was no loss of revenue. it's all bs. the current service's baseline should be a policy baseline. you don't score tack cuts as having a deficit impact. that's absolute malarky and the idaho senator, mike crepo is exactly right. >> larry, you're right on that. by the way, i just love being on with you and grover and steve and i only wish steve forbes were on here too. we would have all the all gang together. it would be great. but you're totally right. (accucapnt trial version) the tax cuts and jobs act paid for itself in the first two years. the increase in total federal revenues from the prior two years was way higher than it had been from the prior two years to the two years prior to that. i mean, now we even get the corporate tax revenues are up.

it's amazing. these things really work. people don't waste their time on high taxes. they just wait and when the break comes they take off and also the poverty levels were much lower, the economy did very well. it was a win, whip, win, win, (accucapnt trial version) win, across the board. bringing it down to 15% and doing the other ones steve moore and grover are suggesting it's just great. let's go for it. larry: the thing i like most about this segment is grover norquist is coming to us from baybuenos ares. >> i was down there. larry: you were down there and you wouldn't come down the show. grover is down there and grover came on the show. all of which attests to the fact that the malay revolution is working because obviously they have electricity in argentina which i think is very important. (accucapnt trial version) steve moore --

[laughter] >> ronald reagan and maly, the most popular politicians in the world. larry: donald trump and malay. reagan in absentia. but donald trump and malay. >> it's amazing what they've didn'done. it's a great thing to see the revolution spreading throughout the world. we should use dynamic revenue to take account of the laffer curve effect of the tax cuts. larry: why should the u.s. congress give state and local government employees a $200 billion social security (accucapnt trial version) bonus? what is that all about? 20 seconds. >> it's about $200 billion, it's a phony thing, no way. that's a terrible way to start a new administration. larry: they already make more money than private sector workers.

>> exactly. terrible. larry: it's incredible. anyway, this is great. art laffer, thank you. steve moore and grover norquist. you are a real mensch. arthur wouldn't do i we'll see about that later on. coming up on "kudlow," president (accucapnt trial version) trump this morning said it's almost criminal that the bidens are sabotaging our border wall by selling off parts. by the way, for five cents on the dollar. isn't that pathetic. week tall about that and a few other things with our good friend house judiciary chair, the great jim jordan, next up. whether you're in argentina, new york, florida or anywhere, you can catch "kudlow" monday through friday, 4:00 p.m., right here on fabulous fox business and if for some reason you can't get us at 4:00, please just text your favorite 9-year-old and she will show how to dvr the show (accucapnt trial version) and you will never miss a segment from buenos ares

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and the administration is trying to sell it for five cents on the dollar, knowing we're getting ready to put it up and what they're doing is really an act -- it's almost a criminal act. so i'm asking today, joe biden, to please stop selling the wall. larry: yeah. (accucapnt trial version) please stop selling the wall. i mean, it's just the pettiest, lowdown thing i've ever seen. joining us to talk about that and a few other things, ohio congressman jim jordan, chair of the house judiciary committee. mr. jordan, as always, welcome back, sir. so don't you think it's sort of petty and lowdown and cheap and dumb, i mean, they know what the priorities are. selling that stuff for five cents on the dollar. by the way, as you may know, that stuff -- that equipment is not cheap when you have to buy it new. >> it's just one more dumb (accucapnt trial version) thing, as you said, one more dumb thing this administration has done. this is all intentional, particularly when it comes to the border.

they decide r&d on day one they were no longer going to build the wall, no longer have them remain in mexico and when you got to the border you wouldn't be detained, would you be released. they want an open border policy. this is almost adding insult to injury. we're going to sell parts of the wall, sections of the wail for as president trump said for next to nothing, just again, one more (accucapnt trial version) example of how bad this administration -- someone asked me a few months back, back during the campaign, you said congressman, is there anything good you could say about the biden administration. i tried be fair. i actually stopped and thought about it for a second and i said no, i can't think of anything. record inflation. wide open border, the debacle that was the exit from afghanistan on and on it goes. this is one more example of how bad it is and the good news is in 3 30 some days president trup will take the oath of officend be pra president of the united (accucapnt trial version) states. larry: i'm sure you're in touch with the doge brothers.

they don't dance as well as the blues brothers but almost. don't you think government bureaucrats ought to show up for work, you can't work at home, working on your gym, work on your. your abs, if you don't want to come to work, maybe you should lose your job. >> of course. start cutting as much as you can, looking to reduce regulations which will help our economy take off along with the tax cuts you were talking about in the previous section but then (accucapnt trial version) show up to work for goodness sake. of course you're more productive if you show up for work. less than half the people who work in the federal bureaucracy come to work in d.c., they are all working remote. of course you have to show up to work. you're more efficient, you're better when you do that but we don't have people in the government doing so. larry: something about a five year waiver. that's just absolutely crazy. it's one of the many things that elon musk and vivek ramaswamy have to stop before killing the

(accucapnt trial version) regulatory state. so i know you would rather talk about the economy and supply side economics and almost anything else on your legislative agenda. so let me just ask you, wouldn't it be -- doesn't it make sense -- you heard the opening segmented with laffer and moore, grover norquist, three very smart fellows. wouldn't it make sense to put it all to one big reconciliation package. >> i knew you were going to ask. larry: why don't you extend the tax cuts, don't delay them? >> well, i'm for getting it all (accucapnt trial version) done. i don't care if it's one or two. i want to do what we told the american people we were going to do, what they elected us to do. let's get it ds possible and whether that's a two part strategy or one part strategy, i don't really care. i think it's already the horse has left the barn. i think it's going to be two parts. one early. but that doesn't mean you have to delay the second. you get after the second right away. pass the first, give president trump the resources he needs to (accucapnt trial version) secure the border and then get

on with the tax cuts and get those done as quickly as possible. i think that's where we're headed. let's make sure we get it done to get our economy moving like we know it was, like it was back when you were working in the white house when you were doing supply side tax cuts, let's get back to those as quick as we can. larry: can you actually -- this is a legitimate question. some people are saying and mr. thune agreed to come on the show would s so we'll talk abou. he's a good guy. (accucapnt trial version) this is not personal. this is a question of legislative strategy. if you can get the first reconciliation bill done in 30 days or 60 days, i'm not sure you can. you only got one or two votes there of the majority but suppose you can. can you get a tax bill out by july 4th. by the independence day holiday could you put a tax bill in front of mr. trump so he can sign it? >> well, i sure hope so. that would be the objective, that would be the goal. you know how congress gets. (accucapnt trial version) sometimes you get in skirmishes. i understand. i've been around the business

for a while. i think you have the momentum behind us in light of what the people said on november 5th and of course you have president trump who everyone knows is coming in to fix things and change things and put back in common sense policies so i do think we can get it done that quick and that's certainly our objective. larry: i don't mean to obsess about it but i suppose i am obsessing about it but i don't know how many bites out of the apple, i mean, you know, jason (accucapnt trial version) smith is a real smart guy, ways and means chair. >> he sure is. larry: he's worried how many bites of the apple you're going to get. you've never had two successful reconciliation bills in history. you've got a razor thin majority in the house. you're right the dye may be cast but i'm sort of giving this rear guard thing. jim jordan, last question -- >> i hope we do three. i mean, we have the potential to do three. we've got each of the fiscal years. we're kicking one into next (accucapnt trial version) year, 25, 26, and 27 fiscal year, very a chance to do three reconciliations and get things

done for the american people. let's use all three if we can. let's do it as quickly as possible. larry: all right. all three. don't you think it's terribly, terribly important that kash patel be the new fbi director after all the stuff that's come out about wray and the -- i'm sure the field agents are good people and so forth and they're the old g-men fighting crime but it's been left wing corruption at headquarters now for too many years. (accucapnt trial version) >> yeah, no, i hope he makes it. he's exactly what we need. i think here's the big irony. last week the inspector general had two reports that came out. one of the reports was about how when chris wray first took over at the fbi they were were spying on members, capitol hill staffers and one of the staffer who had the meta data taken by the fbi and examined was kash patel. the very guy who is going to replace him. i think it's critical. without kash patel we don't learn about what the fbi did when they spied on president

(accucapnt trial version) trump's campaign so i hope he's our next fbi director and i know he's the kind of guy who can fix that operation. larry: yes, sir. absolutely. anyway, thank you, jule. judiciarychair jim jordan. if i don't see you, have a happy christmas, happy new year. >> you too. larry: coming up on "kudlow," what is fueling the trump zeitgeist that's taken over the country? you know. or maybe we're going to see a trump pardon for mayor eric adams. i don't know. (accucapnt trial version) there's a lot of things to talk about. we've got rich lowry, we've got tammy bruce, we've got liz peek. we're just going to talk politics, that's all it is, politics on "kudlow." we'll be right back. in the game, son . the scout from football college is up in the stands. maybe i'd rather go to school for insurance. i didn't raise no insurance man. but you did, dad. football's your passion. but mine is providing around-the-clock protection to progressive customers who bundle home and auto. jamie, we need you out here for football. you're giving up on your dream, james.

no, dad. i'm giving up on yours. no, james, wait! oh, that's not the exit.

>> one of the big differences between the first term -- the first term, everybody was fighting me. this term everybody wants to be my friend, i don't know. my personality change heed or something. people want to get along with me

this time. they've gone through four years. it wasn't easy for me. (accucapnt trial version) it wasn't easy for them either. the top executives, they're all calling. and the press covered that fairly, actually, for a change. the first one they were very hostile. and maybe it was my fault but i don't really think so. larry: there you have it. everybody's coming to visit him because, you know, this is going to be easier. or he's going to be more polite. joining us now rich lowry, liz peek, tammy bruce, fox news contributor, author of fear itself. rich laury, i want to begin with you. (accucapnt trial version) because it is a big difference, actually. there's no russia, russia, russia hoax. that started last time. he's right, bankers, executives coming in, the japanese investor wants to pony up $100 billion. i hope he has better luck the

last time he did that because it didn't work for him but whatever. even ju justin trudeau came down and had supper. it may be the last supper. the deputy resigned. he's in the low 20s. trump is orchestrating a remarkable transition. >> i wasn't surprised by the (accucapnt trial version) election results. but this shocked me. i thought there would be unrest in the streets. this is a honeymoon for donald trump. in '17 half the country wanted to undertake divorce proceedings. there's no effort to get faceless l lek tores not to vote for trump. flares players have been playin. the media is better than last time around. larry: honeymoon, key word. i should have put that in my riff. he's getting a honeymoon as presidents should get and he is

(accucapnt trial version) getting it, liz. >> he's getting a honeymoon. he won the popular vote. that's a big difference, larry. he also beat kamala harris. the number of people excited about kamala harris becoming president you could fit in this room. in 2016, it was a very different situation. there was such an enormous hillary contingent out there and boy were they angry because in part everyone assumed she was going to win and right up until the absolute last hour they were telling the american people that hillary clinton was going to be the next president. (accucapnt trial version) there was shock. there was dismay and it pretty quickly turned into anger. larry: tammy, i don't want to lose this honeymoon period that we're having here on set. i don't want to move the spirit of it but it's one thing that really bothers me and that is the des moines register. [laughter] larry: okay. even more -- i don't want to -- you know, abc, george stephanopoulos, okay. they get what they deserve and

they deserve what they get but the des moines register, this pollster, every single front page the gold standard of (accucapnt trial version) polling and she gives it to harris plus 3 and trump wins by plus 14. now, i understand that polling and economics, you can miss your forecast by a wee bit but really, 17 points and attain what was it the sunday before the tuesday? >> i would argue this is part of why there's a honeymoon. so many absurd things happened that reminded us of the fraud of the first time around. because remember, the polls were always tied. that was the other thing, they were trying to not have be so obvious but things like that became embarrassing. (accucapnt trial version) kamala harris was embarrassing. the lies that they were telling donors that they were going to be fine in their internal polls which were not true was embarrassing. fiddling away in a few months a billion dollars and now being in debt, that's embarrassing. it was a joke.

they've turned into a joke. so there was -- now, you can't say that about hillary clinton. hillary clinton cared about the issues. she was wrong about them she cared about them. she was trying. it was the beginning of the collapse of the democratic (accucapnt trial version) party. that was a different woman with a history of delivering in many ways as did her husband but this became a charade and this is why i think this honeymoon could last. if it is handled properly by the republicans and we know of course trump is being himself. there is i believe divine intervention in him, would rarely say that on any other issue but we are in this. it is literally not a moment. it is a movement that should continue because of the shock of the fraud, of what everyone now recognizes and people are embarrassed. (accucapnt trial version) larry: how long is this going to last? >> i don't know. the economy has a big element, right, big hand to play here and he does seem appropriately focused on that but we've never seen this disparity where you have an incumbent president of

the united states who is like the ghost of christmas past, fading out in front of our eyes and someone who is a robust personality who is not afraid to throw around his weight now and people are paying attention to whether it's justin trudeau or hopefully hamas. larry: it didn't work out that well for t trudeau. (accucapnt trial version) we haven't heard the final issue. i'm not so worried about canada. i'm still worried about mexico helping us with the border because shinebaum, i think her name is, she's a real left winger, we haven't heard much on that, point number one. point number two, howard lutnick said when asked today, he's going to be the trade czar at the commerce department more or less and they asked him about the trade policy and he said reciprocity and i want to pause for a minute and say that is exactly the best right answer he could pos employ give.

reciprocity which is something (accucapnt trial version) americans understand and support. i really like that and it was a restrained answer. it wasn't a crazed answer. >> that's what happened in the first term. it was reciprocity at the time, the commerce secretary wilbur ross went through the various tariffs that other countries had on american goods going overseas and americans were educated for the first time really how lopsided a lot of it was. probably the biggest and most obvious one is the europeans charge our cars 10% going into europe and we charge them maybe 2%, a small number but that mag (accucapnt trial version) magnified by the products over all these countries an takeely anparticularly china and people got on the board with the idea that the united states was not being treated fairly. americans have a sense of fairness and they didn't like that. larry: that was the totally

right answer. we don't know what the trade strategy is going to be. we know mr. trump will adeptly use tariffs for trade and non-trade purposes. reciprocity is something everyone understands. the world trading system has broken down. (accucapnt trial version) we don't want to talk about that forever. honeymoon with bankers and executives, rich laury, they are flocking. tim cook of apple was pretty decent friend of donald trump's in the first term. a lot of the others, zucker bucks in particular wasn't. now he's come around. they're giving to the inaugural. i think that's good politics for them. i also think it helps trump's as you put it honeymoon. >> of course. the most important factor here is the most revolutionary and visionary entrepreneur on the (accucapnt trial version) planet is on his side, donald trump. that's huge credibility. it makes the movement more interesting, more vital. larry: that being? >> elon musk. larry: oh, yes. one hand for the doge brothers. >> he was on before the

election which was a key thing. a lot of the guys are coming on board afterwards but end of the day it's better having them on board than to not. larry: to rich's point, how big a boost does elon musk -- this is a technological government efficiency but it's become a political issue. (accucapnt trial version) elon musk has become a major -- he may be the richest guy in the world, maybe. that's good. that's important. i believe in free market capitalism. he's become a big political player. >> yeah. this is a man that frankly i think most people can relate to because of how he started. right. he didn't start with a trump inheritance to some degree or background that helped facilitate him, growing up in a horrible situation, domestic violence, escaping with his (accucapnt trial version) mother and sibling from another country, going from country to country. the entire family has flourished obviously so americans can relate to, in a way to a ration to riches, literal riches story.

but the musk dynamic reflects what happened in america in a subtle way. it was the assassination attempt, it was a transformational vision of who trump was, many of us already knew it but you can't know until something like that existentially happened. that's what changed musk's opinion. he vocalized that. (accucapnt trial version) he's in a sense of a different generation, point of view and americans also they may not even recognize it yet themselves but that's what's happened in this country. larry: he was against trump six months ago which is what's so amazing. >> trump's reaction is after the fight, fight, fight, that was so fr transformational, it changed the country and the voters. >> the democrats and the biden administration went after elon musk. he's being sued i think by 23 different agencies and pursued and hounded. (accucapnt trial version) why? because he bought dwitter twitd allowed republicans and conservatives back on twitter.

>> they need their own joe rogan. >> all three of those men were democrats. larry: is joe manchin the new conservative moderate democrat. >> in terms of what he says -- larry: he registered on twitter. >> if all democrats sounded like that, that party would be better off. larry: who would have thunk it. rich lowry on the honeymoon. rich, liz, tammy, thanks to all of you. (accucapnt trial version) coming up, are all the mystery drone, maybe they're military contractors doing publicly scheduled tasks that are perfectly legal and no hostile countries. that's what our friend ben domenich and we'll see, nate foye -- it's domenich. our reporter, nate foye, is going to give us an update from elizabeth, new jersey. i'm glad it's warmer out meet the traveling trio. the thrill seeker. the soul searcher. and - ahoy! it's the explorer! each helping to protect their money with chase.

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several states coast to coast at this point but president-elect donald trump applied more pressure on the biden administration today saying he believes that our military and president biden know what's going on and just refuse to tel the american people. here's a bit more of trump earlier. >> have you received an intelligence briefing on the drones? >> i don't want to comment on (accucapnt trial version) that. they don't want to tell the people and they should because the people are leally -- i mean, they happen to be over bed minister. >> have you received intelligence briefing. >> they're very close to bed minister. >> reporter: larry, this is impacting several states from coast to coast. you see video from new jersey, pennsylvania, california, maryland. the investigation remains centered in new jersey, though. governor phil murphy received a briefing from the fbi sunday, (accucapnt trial version) both new gear s new jersey and e receiving federal drone detection technology. some think even with technical reinforcements we may still be left in the dark. >> i'm going to tell you a

secret. we are not ever going to know what happened here because the u.s. government has zero clue how to handle drone threats in our air space right now and has zero will to change anything about i we are no longer in control of our own air space. >> reporter: so federal officials acknowledge that several of the sightings are in fact drones. (accucapnt trial version) while many of them are airplanes. so we did see an example of that from our fox news flight team in far hills, new jersey. you see something that looks like a drone but with thermal imaging you can see afterwards that it is actually an airplane. u.s. counter drone capabilities remains a concern, larry, both at home and abroad with a spokesperson for the u.s. air force's of europe confirming that there was a drone incursion over the air force base in germany but thankfully th theree were no negative consequences as a result.

larry: nate, thank you for the (accucapnt trial version) update. folks, i'll be right back with my last word. ... ♪you did it!♪ since 2019, john deere has invested more than $2 billion in our american factories. today, we're nearly 30,000 u.s. employees strong. in more than 60 u.s. based facilities,

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