do you buy into this year? >> i think we can still see it. now, the seasonality, obviously, something people are banking on, but you've got all the optimism around the trump administration, you've got a strong consumer, you've got bets on a.i. and growth in the economy, and there's a lot of animal spirits out there. people are excited. they want to own growth. they want to be involved in an economy that's growing, and i think we can see that extend into january. taylor: and the u.s. is certainly in the s&p 500 one of the best ways in which you can do so. david spika, so appreciate your time today. thank you. as you can see, the dow, if it does close higher for the fifth straight day, you have the s&p and the nasdaq a little bit to the downside but overall volume light. that does it for "the claman countdown." stay tuned, "kudlow" is coming up now. ♪ ♪ david: hello, folks, and welcome to a special edition of

"kudlow." i'm david asman in for larry kudlow. i hope you had a wonderful christmas with your family. president biden is jetting off to yet another vacation destination, this one in the sunny if caribbean. our incoming president-elect trump is busy making plans for dramatic changes in policy, getting right on his first day of his second term on january 20th. we're going to be talking about that with jackie deangelis and caroline downey in just a moment. but first, grady trimble is live at the white house with the very latest on president trump's energy agenda and more. grady? >> reporter: hey, david. there is excess supply of oil globally right now, and the international energy agency expects a surplus in 2025 as well, so that combined with president-elect trump's promise to expand oil and gas production in the united states could lead to lower prices for everyday americans. >> we're going to have so much oil and gas and other things, you won't know what to do with it. you'll say, please, president trump, stop. we have too much, the prices are

going too low, sir. i will direct every cabinet if secretary -- [applause] to cut ten old regulations for every new regulation, which i did last time. [cheers and applause] >> reporter: despite president biden's green agenda, the u.s. set another record for crude oil production this year, so how does president-elect trump plan to set that the record yet again in 2025 the? well, energy executives hope he'll ease drilling regulations, enact more tax incentives for oil producers, permit interstate pipeline projects and reshape programs for drilling on federal lands and offshore areas. alaska's governor sent trump a day one wish risk with several -- list with several similar items on it. business owners and in other industries are optimistic trump's energy policies will help lower prices across the board. >> we're not going to have inflation. we're going to have deflation. the price of gasoline is going

to go down, the price of diesel fuel's going to to go down causing the price of food to go down. >> reporter: and president-elect trump is also expected the rift the pause -- lift the pause on some liquified natural gas exports that the biden administration put in place. the promise from president-elect trump is that he can set energy policy unilaterally without the help of congress, david, and he plans to do so through executive actions just as the biden administration did on climate. so too will trump on energy production. david? david: that's not a problem, that is a solution. grady, thank you very much. joining me now is jackie deangelis cohost of "the wig money show -- the big money show," and caroline downey, staff writer at national review. caroline, i want to go to you first. there's been a lot written about, you know, the sleep by biden administration -- sleepy if biden administration coming in with a very energetic trump administration, but you can't

emphasize the point enough when you think of everything donald trump already has done to prepare himself and to prepare the nation if for all these changes. i mean, we've got almost a full cabinet, all these new regulators are coming in, the directors throwing down the gauntlet in front of our foreign enemies and allies alike. i'm just wondering, have americans -- are american americans girded for all the action that's going to start on january 20th? >> david, the country and the world at large knows that there's a new sheriff in town, and he hasn't even taken the badge yet. he hasn't even been inaugust rated. -- inaugurated. that just shows how committed and aggressive trump is to rolling back the damage of the last pour years and fulfilling his mandate of the republican trifecta. we saw "the new york times" report that biden plans to visit the vatican to see pope francis with whom he exchanges regular visitation tag phone calls, friendly calls, almost mental health check-ins because bind, i

think, has had a lot of poignant introspection if about his shatter shattered legacy. he feels very betrayed by the democratic machine. and to make matters worse, once again, while trump is stacking a star-studded cabinet and he's focusing on border security and deregulation as you already mentioned. biden is worse worsening his record by granting clemency and pardons to notorious fraudsters and, worth of all, his son. which is a horrible precedent. david: well, let's drill down, if you'll excuse the pun, jackie, on energy. the fact is, as grady was telling us, a lot of this donald trump can do on the first day just by the stroke of a pen by his executive order as biden did before him. although the xl pipeline was one of biden's first -- canceling that was one of biden's first things. i'm wondering how easy it will be, if possible at all, to reverse something like that.

>> let me tell you a story about a little oil and gas reporter in 2016 who used to work somewhere else -- david: i've only got an hour. >> on day one he turned my world upside down because he started signing these executive orders. keystone pipeline is only one piece of it, david. what he is going to do is reduce regulation. he can do that by executive order. he can also say we're going to drill on federal land and offshore. he can also give companies the ability to feel like they can informs in this environment whether it's in, you know, exporting, pipeline, distribution, whatever it is. ultimately, these companies are bracing for that, and they understand that under president trump they'll just be able to operate more freely. and, yes, oil prices come down, but that's good for the american consumer. and the companies will still profit because we'll be back to being number one -- david: and, by the way, there is shortage of oil in general, but specific diesel, for example. we don't have enough diesel fue- >> yeah. david: and that's, of course,

vital for shipping business, etc. that would be gotten from our friends -- >> the canadians. david: -- the canadians through the xl pipeline. that's why i'm so interested in whether or not he's going to be the able -- because a lot of these companies that were involved in the xl, in particular if one canadian company and feels ripped off. >> right. david: they a put billions of dollars into pipes, and some of it had to be sold. >> not only sold, but basically, all the materials were sitting there, they were to to go, they were about to start doing it and, of course, they put the chi bourne born on -- chi kibosh on -- kibosh on the project. he's got a busy day one coming because he's got a lot on his list, but he will hit energy. david: caroline, another thing he can coby himself which biden did by himself is change some of the executive orders on migration, on the border, strengthening the border after four years of an open border thanks to the biden administration. i had tom homan on, he's going to be the border czar, i guess it was on tuesday i had him, and i got him to focus on how much

it would cost to do all of the deportations. there is a big price tag on that. he puts an $86 billion price tag on that. do you think the president would be able to to get that quickly from congress? because there's a lot of other things that needs to be done. >> well, there's overwhelming support for mass deportation programs which is the only legitimate response to mass illegal immigration, and that includes a third of democrats who back that, by the way. and i'm here based in florida, there are two major companies that operate here that deal with the prison system. part of that is the detainment centers that are already gearing up for these deportation efforts because they're anticipating that this is serious, this is not lip service. this is absolutely going to happen, and it is the will of the people to reverse the horrible influx of a foreign population into this country that is unvetted and has led to

serious casualties in my other home, new york city. we saw on the subway. so i do think trump will successfully do this. the question is, will this administration in the final weeks undermine him as a form of sabotage? we saw that the daily wire reported about the biden administration auctioning off the remaining border wall materials, very expensive, totally wasteful. and if trump has to restart the funding fight in congress, that's going to be a very onerous process, and we can only hope that there won't be that many obstacles in his way to get the resources he needs. that. david: and, jackie, if he does start on the border, it might push into the distance frighteningly from supply-side point of view, the tax extensionses. >> yeah. david: if they end the year, 2025 15, without -- 2015, without a new reconciliation, tax extension, we're going to see a huge rise in taxes. even if americans have to wait, even if they do get it before the deadline, december 3 1st,

2025, still don't americans need money in their pockets sooner from the new tax cuts on things like overtime pay and tips? >> they do. and i'm really with harry on this one, that they should -- larry on this one that they should try to do it in one package. and i realize you just brought up the border. it's a lot toes pass through when you put it all together. on the tax side, what i find interesting is with a slim matter in the house, you've got democrats saying there are places we can come together on this because they realize how badly their constituents need the help. that's one piece of it. david: but, i -- let me just stop you there. he's talking about extending essentially spending programs. they call them tax cuts, but extending the child tax credits which is just an outlay of mone- >> right. david: -- to people, it has nothing to do with deducking from your taxes because with most of these people aren't paying taxes. >> i hear you, but that's how you can get a deal done.

you might have to give something up to be able to get something. you know, we know how it works. ultimately, you've to got a person in charge who is a master at making deals, and i think he will figure out a way to do it. he promised americans that he will do it, and that's part of the reason they voted for him, the economy. david: and, caroline, you have the deductions on state and local taxes which were capped to $10,000 during the 2017 tax code. democrats, particularly those -- and some republicans, by the way, in blue states -- want to extend that at least to $20,000 if not higher. is that the a deal to be made inside the beltway? >> well, to jackie's point, trump is an expert negotiator, and i know that he will come up with something that is compelling probably to both sides. but, look, this once again is the mandate of the people which is overwhelming deregulation as well as reducing red tape as well as please don't raise our taxes. and, you know, i'm just looking

and i'm astounded at what biden is trying to do just out the door one of the proposals from the irs is -- in addition to 87,000 new agents which is certainly not what the majority of americans voted for, we have this 1099k guidance -- david: right, right. >> -- which is for companies that receive income through e-commerce and credit cards, that's reducing that threshold dramatically. i mean, that needs to go. there's so many items that trump needs to address and suspect a.l.t -- david: i'm pushing you both along because i want to get one more thing in, jackie9ful i'm doing to. what kills me, some republicans are using the same rhetoric that biden did on the tax cuts saying that they cost $2 trillion. they didn't cost. we had an increase in revenue of $ -- 48%. we got an extra $1.5 trillion from those tax rate cuts. it wasn't a cut in revenue finish. >> right. david: revenue increased.

>> absolutely, a thousand percent. and i think, basically, we would go back to that model where we grow our way out of it. it's not going to be that it just adds to the bill. ultimately, that's why the model works. we've seen it in action several times throughout history, also under president trump before. of he's going to do it again, and 76 million people said that's what they want. david: you with all are too good. i'm in trouble, we've got to wrap it at that. caroline, jackie, thank you so much for being here, ladies, appreciate it. don't miss jackie, by the way, along with cohosts taylor riggs and brian brenberg on "the big money show." >> i'll see you later. david: i heard a rumor, we're going to be doing this at 6:00. [laughter] coming up, the left screaming that trump wants to invade panama. really in are they missing the real story of china's takeover of the canal that we built? we're going to be talking about that with gordon chang when "kudlow" continues. ♪ ♪

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david: president trump is raising concern about china's expanding influence over the panama canal. most americans are unaware of communist china's enormous and growing interests there even including controlling interest

of entire islands are along the canal route. china controls two of panama's principal zone ports, one on each side of the canal route, and they're finishing work on a cruise terminal on the pacific side. they have three bridges across the canal with another one planed and numerous chinese companies -- planned -- like huawei have set up distribution hubs in panama's pacific free they'd zone. -- trade zone. is the growing presence a threat to the united states and a violation of the panama canal treaty, not to mention the monroe doctrine? joining us now is gordon chang, author of "plan red: china's project to destroy america. " gordon, great to see you. we don't have to to go as far back as the monroe doctrine, a although maybe we can get there. we'll talk about it. but what is china up to in panama? >> well, certainly, it dominates the canal zone as you just pointed out. and we got to understand that although these are civilian

companies, they can be turned into military ones right away. in the middle of 2022, general richardson who was then head of u.s. southern command actually took a helicopter tip over the zone, and she said those facilities could be turned into military ones. she was being polite because what she was really saying was that china could use those facilities to close off the canal in wartime. and this is a broader issue because china can use its influence in southern -- in south america and in central america to actually interfere with sustain thement flows and deployments of american military assets in the case of a war. david: gordon, this is precisely why united states presidents up until very recently have talked about the importance of u.s. control, if not a very strong the influence with the panama canal which, after all, we built which we had the canal zone right up until recently that our southern command was based there

until 1997. and it wasn't too long ago when democrats understood that as well. jfk, when he was trying to become president, in his party platform and i'm going to read to to you, talked about reaffirming and i'm quoting here, our historic policy of opposition to the establishment anywhere in the americas of governments dominated by foreign powers. that sounds exactly like what's going on in panama. >> yes, it certainly is. and there are rumors today that the chinese ambassador to panama actually visited the president of the country to talk precisely about this. we know that chinese propaganda from the foreign ministry has talked about beijing's support for the sovereignty, quote-unquote, of panama. and this was in connection with president trump's comments. there's so many things that china can do to actually block the canal. and this is important for us because we have navies in the atlantic and the pacific. and to get ships from one place to the other, we depend on the

canal if. the canal. we know the chinese want to dominate cape horn at the tip of south africa. fortunately, we've got a conservative government that was elected in argentina, but china was on the verge of getting a naval base at the tip of south america, so we're talking about chinese domination of the whole continent. david: you mentioned that. further south you have the strait of a magellan, where a lot of ships that can't passage through the canal if have to go. it's a long, averagous to trip. it's very -- arduous trip. it's very dangerous, but, frankly, the chinese are there as well. they really have scouted out the western hemisphere and are going to try to make things as difficult as possible for us not necessarily if we're at war with them, but any kind of conflict. they like to make life difficult for us americans. >> yes. and they've already made life difficult for us because they've got listening posts in cuba, they are starting to build a

military base there according to initial reports. they have thoroughly penetrated venezuela. i mean, the list goes on and on. if you take mexico out of latin america, china is the biggest trade partner of that region. and that says something, because they are extremely influential. we saw that last month at the apec meeting in peru where xi jinping got literally the red carpet treatment and a state visit, and president biden was humiliated on not only the arrival in peru, but also during the apec meeting itself. that shows you how influential the chinese are and how uninfluential we are. david: and, frankly, they were eating our lunch during the biden administration, even taking advantage of tax benefits. the whole solar i would call it scandal where you had the chinese solar are company which was taking advantage of as much

as $1 billion of tax credits by eating into our solar businesses. so it's just -- they're taking our tax money literally, not only taking our business and gumming up the works for us, but actually taking some of our tax benefits. >> yes. and as the daily caller reported, we are still funding scientists who are part of china's thousand talent program. this is to today. today to. it's not just something in the obama administration or the beginning of the biden term. it is going on today. and we're continuing to fund all of these chinese enterprises to the detriment of our national security. david: well, last question because you know the people that were in the haas trump administration. do you have -- last trump administration. do you have any doubt what so far that the trump administration is not going to act almost immediately once in power to stop this? >> i think that they will because, you know, president trump talked about it. there are some people that he's appointed or he is chose to who

are sort of pro-china, but i think on these issues with regard to latin america, panama canal trump is going to be as good as his word, and he's going to actually start asserting american interests in the canal zone and around the region. and that's a good thing because we've neglect ared what we call our back with regard for a very, very long time. david: too damn long. gordon chang, thank you very much, appreciate it. coming up, rfk jr.'s pushing to to ban drug advertisements on tv as president trump's health secretary. we're winning to be talking about that with roma drab by and alex marlow when "kudlow" continues. ♪

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of breitbart news. what a bright couple of people i have here. thank you thank you very much for coming in. alex, talk about the belly of the beast. i mean, he is not wasting any time. these people are going to shake up the foundations of the established class, and there is no firmer a foundation than the pharmaceutical industry. do you think trump is gourd board -- onboard this idea? >> yeah. this is a highly aggressive move, but it's something that is a great sign of what's to come, i think, from this administration because they're not going to let something that's way outside the box be considered on day one. this is a huge mistake trump made in his first administration, was not being aggressive out of the gate. so i think doing these things would be great, and let's be ohioan, these pharmaceutical advertise thements lead to a really toxic patient-doctor relationship because they're not advertising cheap drugs that we know work. they're advertising drugs that would make a lot of money, and if they're sort of marginal,

just being figuredded out. and so the patients come in, they command this stuff from the doctors. -- demand this stuff from the doctors, the doctors say no, and then the patients resent it. yeah, let's shake it up. david: and there's another term you could use which is enabling you know? not to suggest all these drugs cause addiction, hay don't, in the all of them. but the point is, is that it enables people in a pill culture to be even more so. i want to switch to another slightly related topic here, roma, which is his -- the shake-up of the world government establishment. nothing, i think, better represents it than the world health organization. we saw that during the pandemic, how badly managed that was. of course, it's terribly corrupt institution, has a history of all kinds of corruption from sexual corruption to money corruption, etc. should we pull out from w.h.o., from the world health organization in what do you think, roma? >> well, david, it should be no

surprise to the american people that this is something that president trump is seriously considering, and we might see happen on day one. he ran on an america first policy agenda, and that is what the people voted for in november. finish the w.h.o., the world health organization, has been lying to the american people, to the world for years. we've caught them in those lies, especially during covid. and one thing that is really important to point out is that the u.s. is the largest fender of the world health organizatio. so we pull out, they lose all their money. we spent $500 million, the taxpayers spent 500 million in 2017. 2022, nearly over doubled, $1.2 billion. canada, the same year, only spent $200 million. those numbers do not add up. and it's about time that the u.s. stops footing the bill for the restover of the entire worle

world especially when they're lying to us. david: and, alex, what about the mother ship of all these, the world health organization, the world bank, unrwa, i'm talking about the united nations. there is no larger an anti-american, corrupt, globalist organization than the united nations which is located right here in new york. should we be considering pulling out of it altogether? >> yeah, of course we should. i mean, the whole point of the organization is just to legitimize some of the worst actors in the world, terrorist organizations. they spend half their time literally just condemning israel which is petrie unpredictive -- completely unproductive at this point in time. the world health organization doesn't include taiwan in a lot of stuff because china doesn't like it, and they got this pandemic treaty where they're going around the world lobby bying, trying to get it so the

world health organization is the only entity that can declare a pandemic or epidemic giving it untold amounts of power. we should be offended by this concept and, absolutely, let's get out. david: and, by the way, it's not farfetched or not that far in the future when it could happen, the bird flu. we now have the canadians screaming bloody murder about the bird flu. they may be on the verge of another pandemic. god help us, and i haven't heard anything to that texts, but it could happen. roma if -- to that extent. i want to switch to another fascinating, you know, this is the trump world, there's this and there's this and there's this. [laughter] i mean, it is the going to be a busy time for all of us following it. canada, this suggestion that it could become a 51st state of the united states. service the, i think, done to kind of throw out there and just snake things up, but people are -- donald trump is talking more seriously about it, even suggesting a leader, the great hockey star, wayne gretzky, and suggesting also he could lower canadian taxes by of 60%.

is this complete folly, or is there something to it? [laughter] >> well, you're absolutely right, david. the media's going to have a hard time keeping up with all of the things that president trump is already tackling. but just wait til he gets back in that white house. they're going to be juggling nonstop. finish this is one of my favorite things that we've seen over the last few weeks, president trump is not only one of the smartest and strongest people in the if world, he's also one of the funniest, and he is extremely good at trolling people. you know, the american people love his personality, the sense of humor. it's just so fun the watch. and it's the art of the deal. it's all part of it, you know? if these jokes, they're not all jokes, like you said. and so we'll see what happens with some of those discussions that he's having with trudeau, you know, the trade topic is a huge one that everybody is focused on. but again, this is one of those fun things that we sew from

president trump -- see from president trump that just makes you love him even more. david: alex, how much fun do you think trump is having with all of this? he doesn't have to worry about rubbing again. he's got the cabinet he wants, he's got washington pretty well spied out. he had that first term where he tested the waters and found out which part was boiling and which part was safe to walk on. i think he feels more secure than ever, don't you? >> he certainly does. and hes has every right to feel that way. he'll never have to run for another election again. and this should if be -- this should be absolute horror and and terror-inspiring for his foes and the left and the establishment because he's really only accountable to himself at this point. that's an amazing thing. and canada really ought to be liberated. the question is, what does that look like and what are the results? because they've got this system where trudeau has really entrenched power on himself, and it's very hard to remove him from that power. but if we do, we would be able

to have access to the untold amounts of energy sources, with we could help them fix their immigration system, and the trade stuff is a real issue. we don't want to be libs to come into america -- [laughter] david: [inaudible] >> we'll just take the good canadians. exactly, exactly. david: what a pleasure seeing you both. thank you so much, appreciate it. switching gears, israel is ramping up airstrikes on the northern gaza strip, launching retaliatory attacks against houthi militants in yemen. fox news eye trey yingst is live in tel aviv with the very latest. trey. >> reporter: hey, david, good afternoon. today the israelis struck back against the houthis in yemen. explosions rocked the capital with idf fighter jets in the skies overhead. we know the israelis say these strikes targeted the main airport in the city in addition to power plants, and they were in response to continued ballistic missile and drone attacks against their country. israel's prime minister benjamin

netanyahu oversaw the strikes alongside his chief of staff and israeli defense minister,. >> translator: we are determined to cut off this terrorist arm of iran's axis of evil. we will persist until we complete the job. >> reporter: today marks day 447 of the war between israel and hamas as diplomat pick efforts continue to reach a ceasefire agreement. reports indicate both sides are accuse the other of adding conditions or changing positions as it relates to the ongoing conversations being facilitated by the qataris and the egyptians. egypt's foreign minister spoke about the negotiations this week, saying this -- >> translator: certainly, at the heart of the arab cause was, most importantly, the palestinian cause and the catastrophic conditions in the gaza zip and the efforts made by egypt in cooperation with car that to stip-- qatar to stipulate an immediate ceasefire

and a full and unconditional access to aid to the gaza strip. >> reporter: while these conversations take place, israel is continuing strikes against gaza. overnight five palestinians were killed if while in a van marked with the word press. the israeli military claimed they were members of islamic jihad. remember, there are still dozen, of israeli hostages being held by a hamas inside gaza, so time is of the essence here when we talk about these ceasefire if negotiations. david: absolutely. trey, thank you so much for your work, as always. appreciate it. for more on this, let's bring in aaron cohen, special ops veteran and host of the aaron cohen show. aaron to, great to see you. you know, these terrorist thugs have done extraordinary damage. i know you know this, but just for the audience since december of 2023, terrorism in the red red sea has cut the sea traffic by 90% this is an international blockade which is a declaration

of war against the whole world. when, if not day one of the new trump administration, is donald trump and the u.s. going to work with israel to stop this terrorist blockade? >> well, david, it's good to see you as always, my friend. you nailed it on the head. as far as trying to determine, i think those conversations are probably already quietly being had. trump and bibi are very close friends, and they were in, you know, they've worked together for years. and trump knows that israel has had a really bad deal with biden over the last year dealing with the houthis, dealing with hamas, dealing with hezbollah. but you really nailed it on the head. it's really about understanding the global market impact of what the houthis are doing right now because of the red sea and how it impacts the shipping. and so in addition to attacking israel incessantly over the last week, the u.s. with trump and israel, they're going the parter

in up on this thing -- partner up, and they're going to unleash counterterrorism wrath on these houthis. they have to be dealt with. it's the only language they understand in the middle east, david, you know that. [speaking in native tongue] cuff to speak that language -- you have to speak that language, it's the only thing this terror group understands. david: absolutely. and, well, for the whole middle east, power is the only thing they really get or believe in. israel has, of course, been harnessed by the biden administration, but it hasn't stopped them a bit. i mean, they've -- on all fronts they have attacked. they have been proactive, not just reactive. the biden administration just wanted them to react after israelis have been killed. netanyahu said, no, no, no, we are going to be proactive, we are going to get them before they get us. and, boy, the work he has done, when are they going to hit the belly of the beast? when do you think israel, working with the trump administration, can go after the

pay masters in tehran? >> david, that's the million dollar question. are from what i'm hearing from my friends in israel and around the intelligence community, i know that david -- the actual head of the mossad right now, has just come out publicly and said it's time to start really looking and potentially targeting iran. and i don't just mean in that clandestine space. so i think there's conversations being had right now. i wouldn't be surprised if we see more -- i always connect this to trump getting attacked and getting shot with that failed secret service detail back with that woman who was running that failure of an agency at the time. and you just, you can't concern -- you have to be in a place of readiness and activeness when it comes to operations whether you're protecting the president or protecting a country. you have to get in front of those threats.

so i think those conversations are being had right now, and i think we're going to see continued aggression towards the houthis with intelligence-based strikes like we just saw with the sana'a if airport and with the port and that power plant that israel hit. but i think you're going to start seeing some more eyeballs getting very closely looked at iran to to final finally put this thing to bed. i just don't know when. but it's going to be the interesting to see how this thing continues to open up. david: the biggest thing that needs to be put the bed is the nuclear threat from iran. and i'm told -- i don't know details, but even as strong the as israel is, they would need help in taking care or of those targets. do you think it's possible over the next couple of years if not months to eliminate the nuclear threat from iran? >> i do. it's a really good question, dade. david. the last time israel put together plans, they were leaked in regards the a nuclear strike.

so i think israel, i think the mossad, the intelligence apparatus, the whole idf right now needs to wait for that transition. i don't think there's a lot of trust right now with the biden administration. bibi needs to wait until the 20th, let trump get in there nice and smooth, and then i think those conversations about going direct to threat which is right to that nuclear reactor, i wouldn't be surprised if that happens sooner than the later but only once biden is out and trump is in. david: and p aaron to, we've only got 15 seconds. what about the hostages? the israeli hostages and the american hostages still being held by a hamas. any chance of getting them out? >> well, yeah, there is. i mean, look, we rescued a number of hostages over the last 13 months. i just don't think that hamas is idea, a hamas doesn't want a deal, david. they never did and they never will. and i think it's about trying to to get as much actionable intelligence to get that

counter-terror group to spring on as many targets as possible as soon as they can. that's where i'm at with that. david: aaron cohen, thank you so much. really appreciate you being here. >> good to see you, my friend. dave:ed good to see you as well. surprise, surprise, another massive downward revision in job growth under the biden administration. we're going to be talk about it with e.j. antoni when "kudlow" ♪ finish. ♪ hardest-working folks ♪ ♪ that you ever could know ♪ ♪ now the farmers work the land ♪ ♪ and the land is the home ♪ ♪ the home is the families ♪ ♪ and the families need care ♪ ♪ when care is close ♪ ♪ we all can grow... ♪ ♪ oh... ♪ jpmorganchase invests in healthcare to help create healthier communities. ♪ make the green grass grow all around all around ♪ ♪ make the green grass grow all around ♪ ♪ since 2019, john deere has invested more than $2 billion

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it's our son, he is always up in our business. it's the verizon 5g home internet i got us. oh... he used to be a competitive gamer but with the higher lag, he can't keep up with his squad. so now we're his “squad”. what are kevin's plans for the fall? he's going to college. out of state, yeah. -yeah in the fall. change of plans, i've decided to stay local. oh excellent! oh that's great! why would i ever leave this? -aw! we will do anything to get him gaming again. you and kevin need to fix this internet situation. heard my name! i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people.

david: the biden legacy's all about downward economic revisions. will we now enter into the era of upward revisions? joining me now is e.j. antoni. 'em j., great to see you de.j., thank you for being here. we keep hearing from joe biden about he's handing off a great economy to donald trump, etc. nothing exemplifies the combination of bad policy with lies that we have seen better than the jobs reports where you continually have these downward revisions. there have been a couple, every blue moon they have an upward revision, but it appears now, be by the way, the philly fed says that q2, the second quarter, was actually a down -- i mean, we had a serious down quarter in jobs now because of those revisions, no?

>> david, that's exactly right. so originally the bureau of labor statistics had estimated we added over 650,000 jobs during that 3-month period, and now we get information from the philadelphia federal reserve that indicates, no, that was actually all a lie. we lost jobs during that quarter. so that account -- i should say amounts to a downward revision of over 700,000. by the way, this is on top of the previous annual benchmark revision from the bureau of labor statistics. that was down 818,000. i suppose at least that was the over the course of a year. this is over the course of just three months, and it's almost as large. the labor market, david, is nowhere near as robust or healthy as we've been led to believe. david: and then while jobs are down, money creation is going up because you continue of to have these spending, you know, the treasury has to fund it somehow, and the printing presses are turning, no?

>> absolutely, david. and, you know, for a long time there, several years, the federal reserve was essentially keeping a lot of the money it created sterilized. in other words, it was paying banks not to lend out the money. and so once the treasury had spent it, the money then got parked at the federal reserve. now that's all starting to unwind itself, and that means you have $2.a 5 trillion that are beginning to work their way through the the real economy. that's going to continue to create inflationary pressure in the months and years ahead. and on top of that, the federal reserve started cutting interest rates in an unprecedented move in what i think is election interference to try to get their preferred candidate across the finish line. clearly, that didn't work. but the next president, donald trump, is still going of to have to deal with the inflationary impacts of those wrongheaded decisions. david: by the way, the incredible thing about the fed's decision to cut rates, and i think we have a chart we can put up, the market was going in exactly the opposite direction.

while the fed was -- no, that's the wrong chart. that's the money supply. if you have the other chart -- there it is. going down, that's the fed's cuts on the arrow pointed downward. at exactly the same time, the 10-year treasury yield was going up. in other words, the market is betting that we're going to have more inflation, and the fed is betting that a we have inflation under control. who has it right, the market or the fed? easy one for you, e.j. [laughter] >> oh, the market, hands down. i mean, this fed hasn't been right on anything. these are the same folks who told us inflation was transitory, for crying out loud. no and, david, you're absolutely right. while we saw the fed funds rate go down 100 basis points, the yield on the 10-year has gone up 100 basis points so, as you said, moving in exactly the wrong direction, and it's because of the reason you articulated. investors are increasingly anticipating more and more inflation because of the fed's easy money policies flooding

more cash into the system. and if there's going to be more inflation, they're going to demand a higher yield so that they can be compensated for those real losses. david: and finally or, it is got to be really quickly, this is all good reason why we need tax and regulatory cuts right now to incentivize businesses on supply side to create more goods and services, and that brings inflation down, no? >> well, absolutely. inflation is fundamentally too much money chasing too few goods, david. and the reason why reagan was able to bring inflation down so fast was not only the fed's tight money policy, but also the fact that he grew the economy so quickly. you know, we had 12% annualized growth at one point during his presidency. i think president trump can repeat that economic miracle. david: anybody inside the beltway really believe it can get done in the firs >> i think so. david: okay, you the did it. thank you, e.j., great to see you. appreciate it.

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david: well, thank you for watching this special edition of kudlow. i hope you had a wonderful merry christmas and you can catch me co-hosting the bottom line in just one hour, right here on fox business, but first, edward lawrence is in for liz m. take it away, easy ward. reporter: doing every other hour it seems i appreciate it. i'm edward lawrence in for elizabeth macdonald welcome to this special edition of