here because we are definitely looking out. >> welcome to "the kelly files." i am megyn kelly live in new york city. tonight... breaking a kelly file investigation the administration taking new heat tonight after offering a big job at justice to the man that volume peer tiered had taupe ho help out a cop kil. tonight see what now turned up. plus we will show you one arrest bird's-eye view the night for fallujah as they find out who is responsible for al qaeda taking over that city. the mother of the toddler in this disturbing video speaks out for the first time.

>> from the headquarters of fox news it's "the kelly files" with megyn kelly. >> we start tonight with a stunning new jobs report revealing an alarming new first. as the number of americans who could be working but are not it's an all time record low. a new report reveals 92 million americans nearly one-third of the country could be in the labor force but will not. 92 million. in december more than half a million americans gave up looking for work. the implications are not good and not good for this country. melissa frances and mark is a mell columnist of the "washington post". i will start with you as the business guru on this. the december jobs numbers were bad. they were bad by my standard. but the more significant numbers

they go up and they go down, it's the number of people that gave up. >> this is an enormous number they went to the side lines and have given up. they said i can't find a job. i might as well not even look any more. on the left they like to say these are baby boomers retiring. that's only a tiny fraction of these folks. a lot of people have gone out there and said it doesn't make sense for me to work any more. maybe it is more profitable not to. >> we have heard from this president the focus of his second term is going to be income inequality which he believes is a threat to the american dream. these numbers and the people who have given up on finding a job in this economy prove that it is right it is a threat to the american dream. the question is who is responsible. >> it isn't a threat to the american dream. if you were a ceo i was a

factory worker both got 33 percent in income income equality would increase but we would both be better off you would make more money than i would do -- >> you are not making me do math. >> the problem is the factory worker is on unemployment because he can't find a job. the obama administration are fraught working. it is not that the safety net is too generous it is two many people need the social safety net. the economy is not creating enough jobs to keep up with population growth. you have millions of americans who are dependent on government who don't want to be dependent on government. one-third of the american people have at one time or another slipped below the po vert line. people want the dignity of work. they want opportunity and they can't have that. >> the numbers haven't been that

bad since 1978. the work forc participation rate hasn't been this bad since 1978. >> the president has issue it actually got worse in the month of december this deep into the administration. the stock market is through the roof. last year the dow was up 26 percent. it had the best year in 18 years because of the federal reserve policies because of washington policies that has made the rich so much richer at the same time when you are looking at the unemployment numbers this month the number of hours fell. those that had a jobbing they were part-time. >> the president wants to blame the rich for being richer. there is no other place to make money given you are not making interest on your money. the statistics are terrible for what it means for the united states of america. it is not just your neighbor's problem just a couple to pick

off here's a tuj ryhuge risk fa for divorce. worthless of a spouse in terms of the stress level significant increase in death rates in the year after you become unemployed and don't want to be. two times more likely to experience depression and low success he have tease. parents become more depressed. and on and on it goes. these numbers are more than oh let's give them temporary unemployment and we will solve their problems. they need jobs. >> the rutger's university study found the american economy has unger do-- undergone a permanen change. they think this is what norm a al is like. >> you think about the

manufacturing jobs that have gone away. there are millions of jobs in computer programming not being filled. there has been a shift and they are not going to find more jobs. >>. >> i disagr. the new normal we have to find a way to create framing and opportunity and jobs for the american people and not claim people. what we need to be worried about is republicans can't fall into the trap of mitt romney and we are going to become a nation of moochers who don't want to take care of themselves. nobody grows up saying i want to be dependent on the government. we need to focus on upward mobility so people can get a shot at the american dream. >> i have to run. see you guys.

>> a story out of colorado where senator is under pressure amid suggestions his office pressured the colorado division of insurance to cook the books, to change the numbers so it would look like fewer people had been canceled thanks to obamacare than had been canceled. now we have obtained the actual e-mail exchanges between the staffers. the senator's office insists the numbers were misleading that's why they had to meda meddle. joining us a republican who had his own insurance canceled under obamacare he's demanding answers from the colorado insurance commissioner. good to see you. what exactly is it the senator's office did? >> when the colorado division of insurance announced about 250,000 people lost their insurance in colorado, meaning they had their insurance canceled they started pushing back using his office using his

staff to push back and what was called and described as a very hostile way. the division of insurance is trying to get them to change the numbers. >> we have the e-mails that one -- there is a director of intern t internal affairs. she wrote hey senator says our numbers were wrong. they were not wrong. cancellation notices effected 249,199 people. they want to trash our numbers. i am holding strong while we get more details then she goes on. then she later writes in an e-mail, following my e-mail i received a very hostile phone call from senator udall's deputy chief of staff. margarita is on with the chief of staff. happy friday. is this inappropriate meddling or is it a senator's office trying to correct when they believe was a misleading

information. a lot didn't get canceled they got canceled with a renewal offer. >> the president's promise if you like your healthcare plan you can keep it didn't come with an expiration date. 50,000 had their insurance plans canceled in colorado. senator udall i see why he is concerned it may jeopardize his election in 2014. there's a difference between calling up an office and saying are these the right numbers verses a hostile fophone call forcing them to say we are standing strong. this was an attempt to use an office to use a staff to pressure a public policy maker into changing the numbers of people who have had their insurance canceled. i think it raises a big question about abuse of power. >> the cancellation notices were coming in and the pressure was mounting on these democrats who voted for the law from their home state. why did you vote for it? why did you say i could keep my

plan. there's a push back saying the numbers aren't 250,000 cancellations. it was technically but alo were offering renewals. how unusual is it to have them call up the division of insurance and start pushing them to change their messaging? >> i think it is highly suspect and unusual. while they are trying now to down-play it saying we were trying to verify the numbers at the same time they were panicking trying to deal with it to try to hide the problems created his vote for obamacare. what we are dealing with here is a question of bullying and we need to get to the bottom of it. >> only 13,000 plans were actually canceled without the option to renew. the 250,000 number was misleading and they were basically correcting the record. thank you for being here with your perspective. >> thank you. >> coming up a new and angry letter being sent straight to the president over a controversial doj nominee who volunteered to help this

convicted cop killer. we will show you who is behind the new complaints tonight and we will sepeak live with the naacp about their support for the president. we got a dramatic bird's-eye view of a fight from fallujah from a man awarded silver star for valor. he weighs in next on who is responsible for al qaeda now taking over the city in which he lost a friend and comrade. ask about the air optix® contacts so breathable they're approved for up to 30 nights of continuous wear. serious eye problems may occur. ask your doctor and visit airoptix.com for safety information and a free one-month trial. what are you guys doing? having some fiber! with new phillips' fiber good gummies. they're fruity delicious! just two gummies have 4 grams of fiber! to help support gularity!

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>> we have new reports that al qaeda linked fighters have dug in in fallujah in iraq. terrorists make unprecedented gain in that country. fallujah once a major battle ground for our own american troops were many of them died and where al qaeda flags now reportedly fly over the city. this was the scene, watch this here, back in 2004. (rapid gun fire)

>> our next guest took that video fought in the battle you just saw and is one of many veterans asking what were they fighting forgive enwhat we are seeing today. joining me is staff sergeant david belavea was awarded the silver star in battle. also "house to house" author an epic memoir in war. your thoughts your reaction to seeing the al qaeda flag now over the city you and your comrades so bravely fought to win. >> it rips my heart out. it absolutely breaks my heart. every inch of pavement that we took in november of 2004 was paid for and the blood that was spilled. that's hallowed soil to me, to the families that just had another christmas holidays without their baby boys home.

it is almost ten years. could you image ten years after the normandy beaches were secured to fly a nazi flag over the beaches in normandy. every american should be outraged and the veterans of fallujah are heartbroken by it. >> we had the president who was re-elected by a strong margin make clear. when he was running. >> four years ago i told you i would have the war in iraq and i did. i said we would end the war in afghanistan and we are. i said we would refocus on the people who actually attacked us on 9-11 and today al qaeda is on the run and osama bin laden is dead. >> your thoughts? >> you know, megan, the enemy that took over fallujah and is occupying ramadi right now they came from a town in western iraq

that is on the syrian border. which basically means this enemy, this al qaeda enemy that is in anbar providence right now they were fighting the assad regime in syria. this is the very people that this president appealed to the congress and the american people that we should intervene on their behalf. he wanted to take the assad regime out and help these fighters that are now in anbar providence causing the issues we are seeing in iraq right now. the leadership vacuum of the united states military has been filled by iran. that's why the tribes don't want to fight for the malki government because they don't want to support iran. we were the buffer to the iranian leadership in the ayatollahs and the omars in iraq when we were there. all they asked for was a standard of forces agreement. a standard of forces agreement

would have eliminated what we are seeing in anbar providence. >> there was a question they were going to allow americans. it broke down for political reasons. the president seems to be arguing all along when he was running for reelections that was a war he didn't agree with. he was going to fight the people who attacked us on 9-11 by seeing afghanistan through. now we pulled out and we are seeing sal kwied claim the city that you fight for. what does that feel like for someone who saw your comrades die who said that was a bad work we are not going to fight or at least support the gains you won? >> you talk about the declarations of people in the combat. those kids with the purple heart they earned their awards every

day they woke up in the morning. when they had limbs that were gone these families these parents who lost their sons. every day they earn that award to be told you fought in a bad war, how can you support the troops? this president likes to use us as backgrounds when it comes to giving out best actor awards we are the prop that shows up for these wonderful pr events. how can you support us if you call the very action and the war that we fought in the bad war. i don't appreciate that i don't respect that. it is repugnant to me actually. the families we have spoken to you were talking about the amnesty deal it broke down under the bush administration when they were dealing with eye can ra. he gave 175 americans amnesty

because he had a will to get it done. all we need is the will. if this president wants us to believe he sports us you don't make comments about war being bad or good. i understand you were against this war, mr. president, but you are still the commander-in-chief. we are going to follow you and give our lives under your commands we ask you to do your part and stand behind us and the blood sacrifice we gave for this nation. >> thank you so much for your service. they don't just hand out the bronze star and silver star. we commend you for your bravery. thank you for being here. >> thank you, ma'am, i appreciate it. >> for many americans it was near impossible to enroll in obamacare. up next wait until you hear what's happening when many try to see a doctor and wait until you hear one of the nation's largest health insurance company is saying about how the roll out is going right now. the latest rounds of attacks against governor chris christie

are a few surprises in terms of who is coming to his defense. >> first of all the liberals are foaming at the mouth. this is like porn for them. they are so excited to finally get at this guy. got this blankie that he brings everywhere he goes. nd since he'ch an adventurous little boy... whee! [ giggles ] [ grandma ] ...it gets filthy. b he's got such sentive skin that you worry about what you use in the laundry. , when i'm in charge, we do things grandma's way. my tid downy, and bounce all come in free & gentle. so we get a cleaner, softer blankie. and grandma wins. [ ggles ] [ female announcer ] tide, downy, and bounce free & gentle. great on their own, even better together.

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>> ten-days into observe care official start many consumers are not happy. an insurance insider and former executive. bob, why? >> the insurance company and on sumers have been given a bad deal here. healthcare g healthcare.gov was extremely broken. >> we know that. what's the latest? >> because healthcare.gov is broken as people try to get

their insurance bills get them paid go to the doctor that sort of thing call their insurance companies 800 number they are not getting good service. >> is it happening? do you have any specific examples? >> there are plenty of examples in the press. new york times article document the a number of circumstances. the fund amount that will problem is most of the enrollment came in the palast t weeks of december. it takes insurance companies two to three weeks process enrollment in a normal time. they haven't had the amount of time they need to process the enrollment. they are dealing often still with inaccurate data. they are not able to reconcile the information they are getting from healthcare.gov. >> jay carney says the administration has aggressively addressed the back end issues of the web site the web site is being repaired he says of the 1.1 million individuals who enrolled in private insurance of federal exchanges only 13,000

are problematic. >> i am hearing from health plans upwards of 5 percent with the latest enrollments are still coming through with data problems. i am hearing they have a number of things that haven't been corrected from earlier enrollments. they can't do a reconciliation because they can't reconcile the federal and insurance data. >> they are still doing it by hand? >> that's right. if for example someone has a baby healthcare.gov can't put a baby on the new health plan. if someone has a big cut in their pay and they are entitled to a bigger subsidy healthcare.gov can't ramp into higher subsidy. they can't do any changes. >> the insurance giant humana is now blaming obamacare for adverse mix of enrollees. they are saying the risk pool is unbalanced thanks to the president's so-called fix where he tried to makes the promise if

you like your healthcare you can keep it come true. that according to one of the architects of obamacare he told me a couple weeks ago when the insurance pool is unbalanced you have too many sick people in it not enough healthy people that could be the beginning of the death spiral which means the end of obamacare. is it just humana or other insurance companies saying this? >> they signed up 2 million people. there are more than 20 million eligible for the program. they signed up less than 10 percent of the uninsured. there is no way you can have a sustainable risk pool until you get 70 percent of the people. they are och to a bad start in terms of having a sustainable risk pool. many people who are uninsured are passing on the insurance because it costs too much of their after tax income and looking at deductibles of $2,500

and $4,000. people are saying the value isn't there. if we don't get the uninsured signing up for we can only say we have the sick uninsured signing up they have a lot to prove here. >> bob, thank you. >> good seeing you. >> likewise. top spot at the department of justice continues. we have the inside story of the new complaints about the man who is now been nominated to head up the doj civil rights division who once volunteered to help the convicted cop killer. with he will speak with the naacp on why that group is supporting the nominee. hot on camera case of a toddler being taught disturbing lessons. just ahead that child's mother is now talking. being your own boss! and my customers are really liking your flat rate shipping.

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. new >> new developments on the controversy of the department of justice. the president receiving another angry letter from the police group over his decision to nominate this man for a top spot at the department of justice to head up the civil rights division. the reason folks are angry about this is he volunteered to help out this man abu jamal who was convicted of murdering a philadelphia police officer daniel falkner in cold blood sit over him and fired four more times after the initial shot. five total. he was working for the naacp legal defense fund at the time he vl tiervolunteered his servi. now he's up for the top post. we will be talking about some of the reporting on this in a bit.

first we have a chance to speak with hill re shelton the washington bure redirect tore. thank you for being here. >> grad glad to be with you. >> there's no question you don't always agree with the client you represent. but you also get to decide which case you take unless it is assigned to you. he was not assigned to his case. it wasn't assigned to him. he volunteered to defend a cop killer. that's what happened here. explain to the viewers why they should get behind this guy on this nomination? >> first let me say our hearts and prayers continue to go out to the falkner family. it is a shame in our country when we lose a public servant as dedicated as we have been. we are all heartbroken that this is happening. we know our legal system is adversarial. it requires lawyers to represent unpopular clients whether you

are john adams or john roberts. they have to make sure most cases are heard and not only do we determine whether someone is guilty or innocent we need to make sure the bpunishment is consistent with our justice system. >> he didn't have to take the case. he did. he got the sentence reduced from death penalty to life in prison and argued his conviction should be overturned a man who -- the defendant never said he didn't do it in fact witnesses said admitted to doing it. he was standing over him shooting him in the face as he was dying on the sidewalk just trying to make an arrest of the defendant's brother. people out there say okay i get that mandy serves a defense but he doesn't have to -- the man who choose to defend him doesn't

need to run our doj division. >> he is an extremely well qualified lawyer. he's an american success story. family was one time homeless and able to rise above it to become a well accomplished lawyer. someone to serve the public interest all of his career go into other phases of the law and made an awful lot of money. he was very dedicated. he's senior council for the jude dish ry committee. he deserves this position. >> there are some reports out there i haven't independently confirmed it that he was deemed unqualified for a position on the bench for the american bar association. his nomination never went forward. but even the aba found him unqualified. >> i have never heard that before.

we have to see how accurate that is. >> i don't want to say it as fact. it is out there being reported. >> i have known him for a long time. i have watched his career grow. i have watched some making justice is served. he's the best candidate i have ever known. he tried more cases before the supreme court. >> what about hon -- getting back to the controversy at hand, i mean, you have got these cop organizations saying this is a thumb in the eye of our nation's law enforcement demonstrates total lack of regard who keeps the united states safe and our president. the anger, they say in representing him that this nominee and others they say they turned the justice system on its head with unfounded unproven allegations of race i am.

that is why the police organization who speak for this fallen officer say this is not the man. >> keep in mind he argued the case before a judge. it was the judge who made those decisions. he is eminently qualified. >> you think he is qualified despite -- you don't have a problem with his representation we should look at his overall career. >> i think he in very good company. you know john adams represented british soldiers after the war. we also know john roberts represented a serial killer in florida. we expect our lawyers our good lawyers to be able to represent any american people to give that kind of defense. our ad cassie system and democracy deserves no less. >> thank you for being here. >> the administration has now received another series of letters from different police groups angry about this nomination. the latest from a group representing more than 3,000 sheriffs across the country.

katie has been covering this story in the capacity of news editor. to listen to him tell it this is a man that did what lawyers do represent unpopular client but had a stellar career as a legal advocate. >> i think it is important to distinguish that he didn't represent abu jamal in 82 during his trial during the guilt and innocent phase. he started representing him 30 years after his conviction was upheld by 11 judges. he went out and was seeking this case. not only did he seek the case but the legal defense fund took on his cause which separates him from being a regular attorney. one of the most important things that people need to know this malling hauli man has been nominated to head the civil rights division. that person is responsible for

ultimately determining which cases are brought against police officers and law enforcement agencies through out the country. we have this nominee who not only volunteered for this position but was responsible for lessening his sentence from death to life. >> the judge decided the case. does that vindicate the lawyer in the position? >> that's not the issue. the issue is why they took on the case in the first place. this week during his testimony, he testified in p front of congress in this case and made the case they took it on based on a legal issue. when you loobk at the videos an rallies and the notes from the

naacp legal defense fund at the time they were representing him race was the key issue. w you have one of the key attorneys under his leadership introducing a new legal team saying it is an absolute honor to represent abu jamal we are doing it on behalf of the naacp. we will defend it on the fact that it has to do with race. going to what the fraternal order of police have said they are saying this is a man responsible for turning the justice system on its head based on false allegations of racism. he will be charged with bringing cases against police officers. >> some of his defenders claim this is a black white thing because the cop was white and they came he was racist making arrest in any event that is totally untrue. there is no evidence of that whatsoever. the reason they got it commuted to life was because it was on

mitigating factors. >> good too see you. >> up next the disturbing video. the child's mother giving her side on what we have here. plus the story behind a photo of a doting father that has everyone talking. tell us what you think about this. tweet @megynkelly or a comment at "the kelly file." [ dennis ] it's always the same dilemma --

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>> kelly files follow up for you. the mother of the toddler in this video we have been showing you is now speaking out and making shocking allegations. trace gallagher is going to update us. >> the video runs 1 minute and 27 seconds. during that time he made 35 obscenities including racial sclurs and -- sdsh slurs and holding up the middle finger. the parents and family talk about racial and gangs. >> you a ho. >> you a ho. >> talk to the camera, dude. >> no (bleep). >> now the child's 16-year-old

mother is speaking out saying she was not involved in the video and she is a good mom and authorities did not take her son away because of the video but because her family had run ins with gangs. he went to to say quoting here he's a smart little boy all of that cussing he did somebody told him to do that. my son doesn't cuss like that, i don't allow it. critics have gone after the union for one posting it and two using the word thug. the aclu says quoting it is disconcerting to have the officer's association use such racially charged language. officers should be working to build a culture where any one feels comfortable calling law enforcement. on the kelly file the union responded by saying thug is common word for violent offender. >> tucker carlson co host.

chris hahn is an li news host and former senator chuck schumer. let me start with you on this david. the mother basically dismissing it as a nonstory even though the child and the mother and two others have been removed from the home which has been the focus of law enforcement repeatedly. >> before you even get to this you have a 16-year-old mother which is essentially a child raising a child an the facts before you get to the video. you have a visit neglect. four months later someone shoots up the home and braises the child's foot. december 16th th december 16th police raid their home they arrest the mother five guns are found in the home. this is what is tragic about children raising children. it's already a bad enough environment. to the charge of thug? are you kidding me? this is not a resch shally charged word. it's an issue of bad parenting. she is in charge of access to

chew child. she is in charge of people around the child. she is irresponsible and incapable of performing a role of parent. >> the grandmother had been charged she was arrested. >> she is 16 years old she was probably 13 years old when she got pregnant. why aren't nebraska teaching kids about sex. >> they don't require sex ed. this is a 13-year-old girl getting pregnant but be honest here. this is what happens when kids have kids. it's a real problem that needs to be addressed. unfortunately nebraska -- >> it is not neb's fauraska's f. >> there are a lot of kids who have children at a very young age unfortunately. they don't wind up in this situation. the only how police department or police union is trying to shine a light on a situation that he this think needs addressing. >> it is ludicrous to the point

of amusing. it has to do with the breakdown of the family which has been under assault. i am hardly evangelical. i am saying there is no good mothers at 14 years old. you can't be a good mother when you are 14 years old. >> there's a photo of a father and two daughters. you can see he is doing hz one daughter's hair and the other in baby bjorn. i have a dream people will view a picture like this one day and not think it a dig deal. why is it such a big deal. >> i am a great father tucker is a great father. >> this is a story everyone should take heart. look at the first story and the second story. the second story is a man taking responsibility. took time off from his job he's a stay at home father to help raise his kids. men and women do this in

america. they stand up to basic values. >> i totally disagree. i have three daughters men should not get involved in their girl's hair. >> more with the panel after this break. don't go away. we're gonna be late. ♪ ♪ ♪ oh are we early? [ malennouncer ] mmute yo way with the bold, all-w nissan rogue. ♪

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raksaw new reaction from an >> reaction from an interesting corner after chris christie apologized for the bridge scandal. >> people died because of this. >> let's back up. first of all the liberals are foaming at the mouth. this is like porn for them. they are so excited to finally get at this guy which he didn't know anything about. >> they are accusing him of murder already. easy big fella.

>> chris harrison host from the bachelor. chris harrison. what? gutfeld said it earlier he outed himself as a nonliberal. >> it is not just about dating. oo i'm shocked by the number of liberals who came out and supported christie including david axle rod and the number of conservatives who use it as an opportunity. >> why is that? >> they suspect chris christie isn't like them he is a liberal. they see him as authoritarian shouldn't use government to pressure political cause. >> i am not going to jump on it. >> it has been greatly exaggerated. if everything he says at a press conference is true and they find out he gave the order this will blowout in five months. he won't have the free ride he has had in the media. they have been very good to him over the last couple years and his entire career. >> i don't faux if the liberals are backing him.

whoopi and others saying he is guilty of murder. >> with liberals and conservatives who are for or against him either nailed him to it they gave i am had an hour. it was his aid. >> if they had e-mails directly tieing him. he's got huge you know what. >> you want to fabbing el obama with low ryes learner and benghazi and others until you get an document or e-mail you can't tie it. one standard of application. >> have you noticed a difference in media coverage noticed the overwhelming interest in bridge gate with a new jersey governor with the irs and others. >> he would have been happy if we did the key bridge not happy we are talking bridge at all. >> is a politician ever hurt because he seems too strong? is it good for christie to get a

little push back make him a little more nimble. >> by the way you need to sell a state story. >> how do you think the doj or any other network, the controversy over this nominee they don't want to talk about that. i got to go. we will be right back. plus hannity at the top of the hour. >> what did the governor come out and do? he owned it. he said this is my watch i am responsible. that is one thing this administration doesn't do. weeknights are for favorites. olive garden's signature favorites now just $10.

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dea >> do you agree that fathers should not be doing his daughter's hair. he thinks it's perilous. my husband does my daughter's hair. send me a tweet at megyn kelly. have a great weekend. >> the wealth gap is getting worse. >> this is the defining challenge of our time. >> the super rich are getting richer. >> the other 99 percent of workers are left to suffer. >> really? you suffer because these people probably make more than you? >> she is the biggest earning female athlete in the entire world. >> you suffer because ceo's make more than you. >> does it bother you mosome people have more than others? >> everybody should get higher income. bigger taxes for rich people. >> every major city which is senator is run by democrats. >>