details. i am alisyn camerota. >> and the proposal would slash the number of service members and contains billions in cuts targeting benefits and pay raises. and officials maintain it is needed but could our country's security be compromised. we'll bring in lieutenant oliver north and author of american heroes on the home front. >> great to be with you. it locks like what we are about to hear from secretary hagel what the troops refer to the unlateral partial disarmament plan. it is a page out of jimmy carter's playbook. >> let me tell you what secretary hagel is going to say and what we believe he will argue for. he argues coping the military at the level of 13 years is

financially unsustainable. >> you don't need an military who will fight wars two wars right now. but you need i military capable of defending this country. what he have seen. it is capable of defeating any enemy. and those kinds of words give you pause. a parentally they didn't do it the way most presidents have done. it jimmy carter is an exception and so is this president. what the military is to look like and force posture is based on your adversaris and your alloys. the obama team started with a number and backed in to the forestructure that is a formula for disaster. >> we are spending 53 percent of our discretionary budget on the

military. would you be open to spending less? >> i am open to spending a lot less. but the problem is what you are going to cut. if you go back strategy concepts. what is china korea and venezuela. they talk in terms of having a more agile force and nimble force and what they have so far on the street, i don't see any new additional c- 17 air lift for example if you are going to move the force, how are they going to get there? they can't walk. talking in terms of projecting the force where you lay a port and air-head, you don't have ships being built. they are guaranteeing that the navy can build two nuclear

submarines a year. but we haven't do that in ten years. and look at what is happening in teheran and moscow and pyongyang and/beijing? >> and what will secretary hagel talk about getting rid of out dated equipment and such as cold war spy planes. one of the things we understand he's going to increase special forces ops. will that make it more surgic surgicalment >> no doubt special ops will dominant and no doubt money devoted to cyber warfare and pilot aircraft which the media calls drones incorrectly by the way. things like global hawk to replace the u2, but the bottom line alisyn, the most component

of the military is not a tafrpg or plane or ship. it is the people. we have the best military force than the word has seen. first time sips the american revolution every person serving in the war is a volunteer. it is the brightest and best and bravet of an entire generation and what they would would do with the personnel cut in terms of pay and allowances to family support and medical care and schoolingly and base housing, that will flush out of our military the most comp at the present time of noncommissioned officers who look at it and say my family has taken enough. i can't stay longer. the best and bravest will be forced out of the army, and navy and marine corps. >> we are standing by for this announcement in ten minutes.

colonel north stick around. >> i will be here. >> thank you so much. fox news alert, this one over obama care numbers. the president claims that the medicare expansion plan gave 7 million americans access to health care. that claim is urched fire. the washington post slams it with four pinocchios. it is the highest number for whoppers. and how far off is the president and what does it say about the public's trust. >> he said 7 million and others say not even near that and not even one- third. >> it is not that he said it. but he said it again, and again, and again. and they are reulentless with piece of misinformation. they are rounding in and at the

very least in the like most farerable to the crediblibility of the administration they are including people eligible for medicaid anyway. they would have gotten it anyway. and people are signing up for this. and they credited themselves for everyone who signed up for medicaid. and that is at best an exaggeration. and 7 million where on earth is that from? and one gets the sense that this is a deliberate effort to exaggerate and create the impression of viability and sustainability in a law this critics say is not and won't be. >> will they continue to say this, do you think? >> nothing will deter them. they need a nuclear level four pinocchio and we'll have a four

gepetto rating. it was like whacka mole. every time they find whatever we want to call it, the administration gets caught in this and they come out and say not accurate. the assumption is they repeat it enough time it will be true or people will forget what the truth is. >> it is not funny at all. and the president of the united states, the commander in chief and goes out and basically tells a fib about the numbers of enrollments. this is at the time cbo said they need 7 million and the vice-president said 5 or 6 million that is a hell of a track. they are not back tracking those numbers. >> when you are carded for

having the lie of the year by a truth squad organization, the standard for what you are capable of is different. everything that we look at when we come to this administration and this law is through the lens of a president if you like it, you can keep. it that pithy phrase that helped him to win reelection. and the dishonesty of that everything else is a to the note of larger deception of the law. >> medicaid expansion is in trouble. they are not approving it so far. in a problem that is in place. >> the states are concerned about what happened in the beginning. it will be a welfare program for poor americans for people who earn four times the federal

poverty level. and the sweetener is that the federal government will pay for it. the states know people who gets on the rolls, very few welfare programs in human history will shrink. they don't want it. and there is nothing to do to change the fiscal realities. >> you have to start your own pinocio. >> i like. that >> and do that. >> i like. that thank you, thank you. >> there is new developments in the tug-of-war between western style democracy and russian dominance in ukraine. there is an arrest warrant out for the ousted president.

and saying it was in power as art part of an armed muttunny. nhi, alisyn. it goes further than that. russian foreign ministry issued a strong statement saying they are concerned about the situation in ukraine. they say certain elements are using "terrorist methods to pressure those centers in parts of ukraine that are not falling in line with the interim government." and they are worried about the rise of neonazi groups and they are accusing the west of facilitating the regime change in ukraine. the former president victoryanukovych is officially wanted for mass murder. there are warrants out for people. yanukovych was seen last night

in crimea. and he had tried to escape from two different airports. and the mood is somber and people are grieving for the losses and the finality of it all set in. many are worried about the future as politicians of different stripes let them down in the past two decades and pariment is putting new people in the posts and the acting president said he was voted in over the weekend said he really wants to restart ukraine's move with european integration as soon as possible. >> thank you for that update. >> we are awaiting the new's conference from chuck hagel on the future of the military. coming upment puss buzz john bolton will weigh in on the big cuts and the pentagon's budget and america's ability to respond around the world and whether the

proposals could harm america security. >> watch this 18 wheeler sideswipe a police cruiser. what happens when the truck's driver has to answer to police. an american is dead after being shot in a israeli prison. >> there is a number of different issues that are looked into. and how did he manage to get a hold of the pistol and carry out the incident? ve got a big dat, but my sinuses are acting up. it's time for advil ld and sinus. [ male announcer ] truth is that won't relieve all your symptoms. hmm? [ male annouer ] new alka seltzer plus-d reliev more symptoms than any other behind the counter liquid gel. thanks for the tip. [ male announcer ] no problem. oh...a hair products. aisle 9.

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fox news alert. we are waiting for the secretary of defense to go up to the podium and lay out the future of the american military. the news conference is expected to start any time and the plans we are told that basically to shrink the army to the smallest

size since 1940 before world war ii. so what does this mean for us, john bolton former ambassador to the united nations and fox news contributor joins us now. ambassador there are active duchlt going down to 490 and then 450,000. and the now realities and new technologies we don't need the number anymore. is that true and what does the planned cut mean? >> i don't think it is true. and i don't think you can evaluate or happen the proposed cuts unless you look back at the defense budget cuts in the obama administration over the first five years and i am not referring to the savings from the cost of winding down operations in iraq and reducing operations in afghanistan. we are talking about the base level of expenditures in the

war. the administration in the five years and sixth budget year carried out a systemic strategy of reducing defense capabilities and the president said in the state of the union that large american deployments feed terrorism around the world. i think the president wants to reduce the size of the military to reduce our international capabilities and this is nothing to do with budget savings begin the expenditures in the domestic size. the president is reducing america's power consciously. >> and what does that mean? looking at the numbers we would have active duty service in burma and colombia and china has more than 2 million enrolled and north korea a million or so. and russia would be double more

than we are? what does that mean for ours national interest as we go forward? >> i think americans understand. we are the only true global power. we have interest in allies. russia has one treaty ally. belaerous. and china in his region. and it is not a comparing us to the countries, we don't worry about china in the mediterranean sea. we have to worry about china there and russia and iran in the mediterranean. in the we will be must less able to protect our intchlt should allies do more to help protect the interest? absolutely. we are not doing it for them. we are doing it for ourselves and the signal to adversaris all over the world. you have three years to take

advantage of the budget decreases before there is a new president. i think we will see threats and challenges to the united states increase. the policy that president obama is pursuing is opposite of reagan peace through strength. increasing america's weakness does not foster peace and security in the world. it fosters the opposite. >> we see threats right now. china and japanese islands there and syria and assad. and iran and the nuclear program that continues unabated despite negotiation. ambassador there is a proposal and plan to fight two major wars and military actions at the time same. the secretary of defense will say we can do that? you obviously worry as we go forward? >> first two major regional contingency after the cold air.

and that was one in korea and two in the middle oast and one and half major regional contingency with a win hold win strategy. we are less than one in my view. and in an argument that the president is going to make for the domestic damage time for austerity is over. how about cutting the entitlement programs so we can build up the military. jobs in the military can construction are before the for the economy and country than loan guarantees to the like like solyndra. >> what does it say to the brave and men and women who served the country. we have freezing pay and cutting thee in the commissionaries a billion taken out of that and prices will go up. >> to the military that bore so

much stress in the past ten years it is it a wrecknition that the president doesn't believe in military power not as something to be used, but the importance of the deterient capability. is it fair to say he doesn't believe in american military power? >> is that fair? >> he doesn't pay the level of attention to america national security that presidents since franklin roosevelt. he is wary of american military power and our adversaris understand that. take the case of iran's nuclear weapon's program where president obama repeated in a bored fashion all options are on the table. no one believes. that iran is moving to nuclear weapons and see the reductions in the capabilities and china see the projections and they draw the appropriate conclusion, the president is weak in ina attentive and our adversaris

will take advantage of. it >> and we'll hear chuck hagel with his announcement, let's listen in. >> our chiefs and secretaries who are here. as well as our comptroller and our acting deputy secretary of defense christine fox, for the work they have put in over the last few months in particular to get us to this point where we have a budget that we are going to present to the congress next week. i want to talk a little bit about that today. chairman dempsey will add his remarks. i am grateful and president obama is grateful to the men and women who spent an awful lot of

time and people they represent and their services in putting this together. i particularly want to note comptroller bob hale, this will be his last budget or cull him back to doubt before he goes to find an island somewhere and doesn't return calls. i am particularly appreciative of his willingness to stay through the budget and was not a easy task for bob hale. you know the service he gave in this department for many, many years. thank you to you and all of your team down there, we are grateful. today, i am announcing the key decisions that i recommended to the president for the defense department 2015 budget and beyond. these recommendations will adapt and reshape defense enterprise

so we can protect the nation security in an era of unprecedented uncertainty and change. we end our combat mission in afghanistan. this is the first budget reflecting for after 13 years of war. longest conflict in our nation's history. we are repositioning to focus on a extra teggic challenge and opportunities that define our future. new technologies and new centers of power and a world that is growing more volatile and unpredictable and more threatening to the united states. the choices ahead will define our defense institutions for the years to come. chairman dempsey worked in a pragmatic and collabative way to build a balanced force our nation must have in the future. i worked closely with the chairman and vice chairman and service secretaries and chiefs

in dwending recommendations that began with choices and management reviews. i want to recognize today the senior enlisted leaders in each of the services for their contributions and their involvement and leadership and what they continue to do every day for our country but in particular their help and enput in crafting the budget. our recommendations were guided by an updated defense strategy that deals on the president's guidance. as sdroebed in the upcoming defense review report, this defense strategy is focused on defending the home land against threats. and building u.s. influence in deterring aggression and remaining toy prepared to win against any adversari. the dod will shift its

operational focus to the asian pacific. sustained commitments to key allies and partners in middle east and europe. and continue to aggressively pursue global terrorist networks. our reviews made two new realities very chlor. first the development and proliferation of military technologies by other nations that means we are entering into an era where american dominance in the seas and space can no longer be taken for granted. second defense spending is not expected to reach the levels projected in a five year budget plan presented by the president last year. given the realities we a dafl and make difficult decisions to make sure our military is ready and technical and maintain technological edge over

adversaris. but the large budget cuts, our future force will have certain risks in certain areas. in crafting the package we prioritized dod's interest and matched them to budget resources. and this required a series of difficult choices. we chose reductions in every military service active and reserve in order to sustain our superiority and critical operation forces and cyber resources. we chose to terminate or delay modernization promise to protect higher priorities in procurement and research and development and we chose to slow the growth of military compensation costs in ways to preserve the quality of all volunteery force and freed

up funds. >> we are listening to secretary of defense chuck hagel for modernizing the military. we'll bring back in lieutenant colonel oliver north. and he is author of american heroes on the home front. thanks for sticking around. basically you heard the premise sentence there. secretary of defense we chose further reduction in troop strengths and forced structure in every military service to sustain our readiness and technological and predict special operations forces and other words cut down on the troops in order to do better technologically. and the break of all of this here, it is going to hit the personnel and the families hardest. every defense contractor no matter if they build a bullet

and or bomber and ship has a lobbyist in this town except are the soldiers and gaurs men and marines. they will hit hardest and idea of simply reconstruct that and you can build's tank inside of a month. it takes years to build combat capabilities that our military has today. and perhaps secretary hagel has forgotten or the generals and admirals have forgot ep, those are the young people who use the equipmentment if you flush them out of the military as they are about to start doing. you will lose the capability of maintaining and prettying those systems and equipments and that doesn't make us safer. >> it is not only the cutting down in number of troops, salary freeze for officers and reducing the subsidies on housing and

increase in deductibles for health care for soldiers and you disagree with all of that. what would the answer be in order to cut funds and his argument stay at the same level as we have fought two wars. what would you have cut? >> i think we are falling in the trap of regulating what they want to do. john bolton said it clearly and i made the comment in the front of the show. the strategy is a force capable of deterring war and defeating it quickly. they say that but they don't have a force to do it. >> ronald reagan strategy was peace through strength and created millions of jobs and taxpayers by growing america's defense capabilities. we never had to fight the soviet union to end the evil empire

because ronald reagan built a defense capacity. they are not improving the ballistic missile defense quickly. the russians are quicker. >> it is very trouble and important stuff and colonel north thank you. >> and we'll monitor and report on the pept -- pentagon's now plans. remember the comments from susan rice. >> the best assessment that we have today, in fact it was not a preplanned and pre-meditated attack. >> now she said she was wrong but what she said next left one military veteran speechless. >> and why is it so hard to keep

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>> we'll check the headlines. egypt prime minister announced the entire cabinet resigned. no explanation for the surprise

move but it could pave the way for the top general to run for president. >> and calling it a career after 60 years in congress. the 87 year old took over the michigan seat his further had in 1955. he went in to congress when dwight eisenhower. >> living in north dakota and south dakota and nebraska and minnesota and montana topping the survey of happiest place. it ranks on personal relationships and income and personal health. least happy is ohio, alabama, mississippi, kentucky and west virginia. hum. and we want to know, what is your happiest place? >> where is your happy place? >> tweet alisyn. >> send it to me.

and eric shawn on tox with your happy place and we'll find out about it. >> and the days after the attack in benghazi, you may recall the ambassador to the united nations susan rice said it the video. >> he hit all five sunday shoes and this weekend since the controversial remarks she was asked if she had regrets. >> do you have regrets? >> david, no. what i said to you that morning and did every day sense was share the best information we had at the time. the information i explained to you was what we had at the moment and it could change and i comment that it was based and provided to me and my colleagues and congress by the intelligence community and that is well val

dated in many different ways sense. it turned out not to be 100 percent correct. but the notion that i or anybody else in the administration misled the american people is false. >> let's debate all of this. and richard fouler and tony is a correspondent for news. thank you for being here. >> richard, she said that information turned out in some respects not to be 100 percent correct. it was false actually. >> that is true. and i think you talk about it. and it was a blunder that the intelligence give in talking points and the situation developed and the talking points and situation changed and she was right to say i don't regret saying those. we tried to correct it.

>> couldn't she have said i read the talking points and i regret misinforming the american people. >> she could have. i agree with you on that point. listen, i had the information and presented that information and it happen to not be true and the president spoke about it in the rose garden a couple of hours later and working to make sure our embassies are self. >> dow buy that it was the best information. the carter in the pentagon got a phone call and new it was a terrorist attack and he told panetta and they go to the white house. >> they told washington and libyan authorities that immediately that it was a well coordinated terrorist attack. and that is false. that was the best information we

had. it may have been best information she had. i think she was deceived herself. and a year or so later after rewarded with the job of national security advisor for going on the sunday shoes and hillary clinton knew it was a deception and turn out to be a lie, susan rice is doing what the administration does best. deny accountable and contrition. >> and what would you have want wanted to hear. >> it would be nice to hear what secretary clinton said. benghazi is the most regrettable incident that she participated with. it was regrettable and a tragedy and the administration deserves accountability for it. >> richard, why wouldn't they express level of contrition. >> i mean with susan rice yesterday. >> i don't know susan rice personally and she said it was not the right information.

but to be honest the blame should be pointed on the hill. we had more hearings about benghazi than hungry children and raising the minimum ways or russia we need more hearings on russia and i think the hill keeps making a story and it was just wrong information. >> that is not true it. you had a bipartisan report come out of the senate intelligence that points to blame on the state department. the reason that benghazi matters and without addressing it properly and that lets al-qaeda get away from something. and we learned from history they will do it again. >> we have to leave it there. >> thank you for coming on to the debate. great to see you. >> and meanwhile, moving on to it obama care tis supposed to

reduce the ranks of the uninsured. but the problem is no one in the administration or analyst on the outside knows how many uninsured americans are covered and experts say we may not know for a long time. david asbin is co-host of after the bell. why is it so hard to figure out how many uninsured don't have insurance. >> they never asked. no where on the form when you are registering to get in obama care were you uninsured before you applied for the insurance. they never asked the question. and you don't get a answer. >> that is a design flaw. they should have asked that. this is one of the tenants on which obama care was solid to the american people. was it roughly 40 million people

would be able to be insured and not use the emergency room as the primary care. and does the administration know how many people have insurance or do they not know either? >> they claim they don't know and there is so many miscues about the questions that are from the people signing up. one is private insurance and the other is medicaid. they lowered the bar so low as to who can apply to get medicaid 6 million people joined up. if you are above the middle-class like rand paul. if you have a choice, one thing we do know is that 6.28 million americans lost and 3.3 americans gained insurance policys through obama care and so that is a loss of 3 million. >> david asbin thank you for

breaking down the numbers. >> and he is considered the most notorious drug lord in the world. will he ever face charges here? we'll look at that when we come back. ♪

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(bag shaking) (vo) bring the thrill the catch... now with new shrimp flavor.en. friskies. feed the senses. it is the wild, wild west in the sky. drivery drones and have the feds lost the battle to regulate our air space? and word of another stomach virus outbreak on a cruise ship and shocking allegations on board. >> and net cast gives cop tent at a decent spread. and fresh from sochi. the silver medallist joins me live all on the real story in the top of the hour. >> in the effort to bring the most notorious drug lord to

justice. he faces charges of running the most powerful drug cartel from mexico. william has the details from los angeles. >> reporter: u.s. and mexico share an extradition treaty. mexico could deny the request and prosecute guzzman itself. that is likely suggested by the mexican ambassador. the takedown on saturday was a dramatic takedown. he is indicted on charges from drug tracking and murder. prosecutors are afraid he will escape again from jail. he hid in a laundry cart in '93 and another drug dealer was set free from a mexican jail. he was convicted in the death of a dea agent. u.s. law enforcement want him

sent to the united states where we can't bribe guards and judges. >> he's escaped once and he's the most powerful man in mexico if not the world and the flight risk and security risk is tremendous in mexico. he needs to be brought out of mexico to the united states. >> and the u.s. mexican team is seen as a major milestone of trust and cooperation. you don't want toous. that no condo was an ordinary concrete building and a man on the run. and here's the dilemma for mexico. it could avoid the burden of trying him in mexico and send him up here and will not run the risk of bribing and escape. it is possible they could

extradite him and he would serve time in a super maximum prison. >> it is it a huge win on the war on drugs. >> we'll bring in doug burns. great to have why would mexico over to us? >> only because he escaped and it's very embarrassing that that happened and the last thing they want to see happen is to see that happen again. that's really the only reason. >> here he's wanted in illinois, in california, in texas. 80,000 people have been brutally killed, beheaded, tortured at the hands of drug cartel violence. where do you even begin prosecuting something like this? >> that's a great question. the first question is, mexico or the u.s.? the second question is, if he's extradited, what district is going to go for it? that decision will be made in washington, d.c. the eastern district of new york, where i work, has a huge indictment against him for something like 100,000 tons of cocaine. i was trying to figure out how much -- do the math on that. >> it's a lot. >> it's a lot. and the fact of the matter is, you know, it may be in new york. it's hard to say. it's not going to really matter,

not to be glib. you have seven really big cases against him. so if he's extradited here, he's going to be in tough shape. >> stick around, doug. we're going to ask you what happens if he's not extradited here. >> of course. >> we'll be right back.

we're back with former federal prosecutor doug burns. so what happens if mexico refuses to extradite el chapo here? >> they can go to an insurance policy. >> what does that mean? >> well, that's not an official legal term. first of all, they got what's called a provisional arrest warrant already, which means you can provisionally arrest him pending the full completion of the extradition. the point is, you lodge that warrant in pakistamexico. then god forbid he gets released, we have a hold on him and could arrest him and bring

him to the u.s. >> but he's not going to be released. he escaped from prison. they want him to serve the rest of his time. >> right. the point is -- all i was saying is if there was some change of heart in mexico, some legal technicality in his favor, at least we would have some kind of hold toward an extradition to the u.s. but having said that, they really should extradite him, honestly, because of what happened with that prison escape. not to be a broken record. >> basically, they can't be trusted in mexico. plus, there's so much corruption, he could pay people off. >> flipping it on its head, that's exactly right. they can't be trusted. but the officials themselves who have nothing to do with it simply don't want the country to be embarrassed again. >> oh, so you're saying it could be a face-saving issue for mexico to send him here. >> that's the way i see it. think about it. high mexican officials sitting around saying, look, there are seven indictments against him in the united states. send him up there. then the pressure is off us in

terms of him potentially escaping again. just my thinking on it. >> well, he's never going to see the light of day again, we hope. >> we hope, but he escaped from a maximum-security lockup. >> all right. doug, thanks so much. >> my pleasure. >> over to eric. >> all right. a new poll, have you heard about this? it finds north dakota is the happy estate. so where's your happy place? your best tweets next. the new guy is loaded with prote!

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a little lou reed for you. >> we've asked what's your happy place? >> katherine writes, everywhere i am. happiness is a choice. very zen. >> david hamilton tweets, my happiest place is my man cave here in dallas, texas. i like that. >> peggy says, moving into a

hallmark christmas movie. i mean, actually taking up residence in one. >> can you do that? >> that does seem great. well, thanks so much for watching. >> "the real story" with gretchen carlson starts right now. see you tomorrow. thanks, guys. today on "the real story, america's been polio free for 20 years. but doctors in one state are baffled by dozens of cases of a mystery disease. it's a lot like polio, leaving children partly paralyzed. plus, dale earnhardt jr. wins his first daytona 500 in decades. a daytona like no other in history. by why do so many people think somebody else actually won? and remember when the faa said it would regulate drones? all those folks using drones to deliver dry cleaning and beer, guess what? they're not waiting for the feds to get their act together. is it turning into the wild, wild west right over our heads? hi, everyone. i'm gretchen carlson. americ