america. [cheering and applause] next. [♪] jesse: welcome to "watters world." i'm jesse watters. remember all this? >> there is not going to be a president donald trump. it's not going to happen. >> a lot of people have no idea trump is head for an historic defeat. >> i just want to say, you are not going to be president. all right? jesse: the so-called political pros lost their credibility last year. so why do we listen to them this year. everything the establishment says about the president is wrong. >> in the events done prr wins i

have no doubt in my minds the market tanks. in the event donald wins, i have no doubt in my mind the market tanks. jesse: the trump bump has brought the stock market to historic highs. speaking of tank. so not only was trump going to destroy the economy. he couldn't even get anything passed thriewb congress. remember? >> this is a test for president trump's legislative abilities in terms of fashioning legislation and he has big items coming up. tax reform is one. it looks like he can't deliver. >> i don't think they will get a consensus to get tax reform done. >> he's a powerless president. jesse: repeal the obamacare

mandate and begin drilling in anwar. one of the most of irritating things to listen to is pundits saying cutting corporate tax rates won't help workers. >> it's a matter of fact. when corporations get thanks cuts like this, in this economy, they buy back stock. jesse: comcast, joe's msnbc announced they will give $1,000 bonuses to 100,000 of its employees. at&t also promised bonuses. wells fargo promised to hike its minimum wage to $15and boeing promised to spend $50 million on

employees. >> donald has been all over the place on isis sometimes he says he won't tell anybody what he will do because he wants to keep his plan secret. it turns out the secret is he has no plan. jesse: i remember what part of the plan was. president trump: i'm going to bomb the [bleep] out of them. i don't care. jesse: people from all stripes didn't think it would work. >> people run for president, they talk tough. we are going to carpet bomb isis. we'll make the sand in the middle east glow and you can't carpet bomb isis if you don't know where they are. >> this is something that will go on for a long time. it's a generational threat. you don't say bite in 30 days. it's insulting to the individuals who have been been attempting to put all their

strength on the line to defeat it. jesse: it didn't take a generation. it took a year. isis has been driven from the battlefield in iraq. even the new york sometimes piece said a war trump won. if you told me in late 2016 almost a year into the trump era isis would have been all but beaten, i would have been surprised. credit is due to rain shower president and soldiers and diplomats as well. why should we believe anything the haters and the press say about trump when they have been proven wrong two years in a row? the answer is, you shouldn't.

your local weatherman keeps telling you it's going to be sunny, but it rains. that's fake weather. so find a different weatherman on a different channel. find people with trusted track records like me. here to respond, former communications director anthony scaramucci. >> how do you respond to that? you left out one thing. merry christmas. christmas is back. jesse: you were involved in some of these fake news items. what do you think of these people. why do they keep being put on air when they keep blowing it. >> i think it's something about the president's style. he's a larger than life figure. he believes in the impossible. most of entrepreneurs know how to go from zero to one.

and that's him. on isis and tax reform. at the end of the day, in my cell phone he's listed as ted rose. short for teddy roosevelt. at the end of the day what the trump legacy will be is empowering middle class families with more positive income. $1,000 checks getting written by some of the largest corporations in america. jesse: that wasn't supposed to happen. the greedy ceos were going to scwirlt away. >> at robber baron era when teddy roosevelt got in there, he pushed these guys to create better living standards for their workers and for people who are employed. he said we'll build the cars and we'll give you enough money to pay for the cars you are

building. trump is that sort of person. jesse: you guys still talk? >> we do. i won't exaggerate how much i talk to him. i was coming offset the other day talking about tax reform. i was in israel. i had a couple of rabbis with me going to the tel aviv airport. i said let's call the president. it took about five minutes for him to come on the phone and he turned to the rabbis, he said you tell bb i'm going to israel and i'm going to beat him as prime minister. jesse: they have tax reform done, drilling, and things are moving on the border. what would you like to see happen? the mid terms will be tough. you know how that swings historically. >> mid terms are tough for all these presidents.

the first mid-term is always a tough one. but i think this president is going to surprise even on that. the filtration of the tax reform ending up in the economy, more disposable income for families. my liberal friends don't like perhaps his style. but when i pressed them super hard, just pressure liberal cousins. what policy has he prom you will gate that you don't like. it's hard to come up with one. if he just stays on course and the beautiful job he does with his messaging, he's going to surprise people in 2018. jesse: what are you up to these days? >> i'm unemployed. i don't even have a business going. i hope to get a $1,000 check from some of these big companies. i have had a number of

interesting conversations so my guess is something will materialize by the first quarter of next year, which would be exciting for me. i'm also waiting for my deal to close. if for some reason it doesn't get cfius approval which is too boring to tell your viewers about. entrepreneurs rarely use plan b because they always have to use plan z. that's the problem with entrepreneurship. jesse: and you are not running for any public office. one of your former colleagues said -- there was a report he would run for president. >> when he runs for president, i will enlist you as my vice president, we'll run against him. it would be a pretty colorful

primary debate. people are ready for ethnics like us. jesse: am i ethnic? >> you probably have ethnicity back there somewhere. >> ryan lizza, you blew up with hem on the phone. something happened to ryan. i think he got canned or sexual misconduct. care to comment on that? >> my first reaction to it is the guy has a family and has to make a living. his family members that are innocent are involved. my second reaction is it's good news for america so he won't be doing what he did to me. karma has a way of turning back on people. i did something wrong. i obviously was talking to him.

our families go back 50 years on long island. so i was speaking to him inappropriately. i tell kids when you do something wrong, admit it. i understandy lost my job and the good news is it set up amazing opportunities. so when one door is closing another door is opening. as it relates to ryan lizza, i would tell people, you know the difference between right and wrong. howie kurtz said what he had done to me is something he has never seen in 40 years in washington done to people. jesse: do you find it commonplace where people set you up for failure? there is so much animosity out there. >> not all. but i think one of the mistakes

made early on was the declaration of war on the media. you are not going to win that from the presidency or anywhere. it's okay to have an adversarial relationship. but the on thing i'll be remembered for is turning the cameras back on in the press room. jesse: that's great. sarah huckabee sanders is doing a great job. >> she is doing an amazing job. when sean resigned or retired, he said are you okay with sarah being the press secretary? she is doing a great job. she carries the message well. she is extremely professional. and there is a sense much kindness about sarah. and i think the american people see that and appreciate it. jesse: there are reports the

president is thinking about shaking up the staff. there was a whirlwind shakeup where it got chaotic. so, you know, 2018. do you think there are opportunities for the president to get new blood in there and move people around? >> this is his genius. people don't like this about him. the political establishment doesn't like the. he thinks like a corporate ceo. so hiring and firing people from the corporate setting is not as big of a deal as it is in government. unfortunately when i got fired, and general kelly fired me, i was on the receiving end of it. i had been on the other side of it in a corporate setting where somebody i liked, and i had to deliver the information that the person is fired. i have no problem with what the president is doing it's important for him to get the

people around him that he likes and he trusts. jesse: do you like the people he has around him right now? >> if jack welch was sitting here telling you he eliminated the 20% bottom performers each year. i think by and large the president has been served well by his post-july staff. myself included for that matter. but there is room for improvement as there always is. my guess is he will have new people who are exciting and fresh who will help him out. jesse: do you see the russia investigation as a huge threat? >> i only see it as a threat, what happens with these special prosecutors, ken starr was appointed to go after the whitewater situation 25 years

ago. he stayed there for five or sticks years and ended up hitting the president on the monica lewinsky situation. so for me these things get reckless. i don't like it on either side. if secretary clinton was in office they have would be hitting her on uranium one, the erase our of emails. there is always a scandal in washington. it's done to distract and attack and disfigure people. american people are actually tired of all that. they really want results. in the last 11 to 12 months the president delivered results. you left this out of your tapes. you left out the fact that the obama administration said we would never grow at 3%. here we are, we have three plus

gdp prints this year. it's because of the president deregulating and setting the pro business business policies around the world. jesse: the democrats are saying the tax cut is a handout to the corporations and the wealthy. how effective do you think that is going to be going into the mid-terms. do you think the economy will be strong enough where people will tune that out? >> i think they will tune that out. but there is one thing about the americans, speaking as a partisan republican. typically the american people strike in bam and recovery. so even though things will probably be very good in my minds economically going into the november election, the american people sort of like that balance, and that's running up against the republicans. so they will have to work three times harder. look at what happened to barack obama in 2010 or ronald reagan

in 1982, store george w. bush? 2006. typically the starty in office gets routed. but this is a dynamic sort of president. he thinks very differently than these other sort of people. if it's impossible to retake it house and senate in the mid-term election, he will probably do that. jesse: if president obama were around and companies were christmas were handing out $1,000 bonus checks, he would get all the credit. but the press has moved on from that story. he has to claim the credit himself and do it over twitter. >> what we learned and the reason he won, open% of the press was decidedly negative on him. yet he still won the american presidency. the people know.

they have a good noles for this stuff. lincoln once said people have a very good noles. they can smellal rotting cadaver in their basement. the rotting cadaver now is this super lib val press. it's also elements of the establishment. they don't like the self-dealing or lobbyist scheme. steve bannon often talked about the swamp being a business plan. i do agree with him on that. there is no question that circuitry the president is trying to distrupt and break will be good for the american people. they will continue to mitt shim because he represents change and disruption. if i'm on the other side, what if he's right. jesse: if the president is successful and the president is right, is december detroits the two-party system and the culture in the swamp. taken outsider businessman to

come in and accomplish things makes these politicians look feckless. >> it opens the door for other super talented people. it could be left-leaning bill why airs. the swamp is war yet is about a jeff intee zoala -- jeff bezos s donald trump. do i get to say merry christmas again? happy new year to you. can i give it to you straight? that airline credit card you have... it could be better. it's time to shake things up. with the capital one venture card, you get double miles on everything you buy, not just airline purchases. seriously, think of all the things you buy. great...is this why you asked me to coffee? well yeah... but also to catch-up.

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president trump: more legislative victories than any other president. this is the biggest tax cut, biggest reform all time. jesse: that was president trump friday patting himself on the back for finishing the year strong. but the obama administration is stunned their legacy is in tatters. here is joe biden with a whopper. >> i never met any president with more character, integrity and backbone than this guy does.

it's an honor serving with him. 8 years, not a hint of scandal. jesse: joining knee fox news country bite jr. lieutenant colonel allen west. the va scandal. people died waiting in line to get service and care. you have benghazi. >> the list goes on and on. >> you are absolutely right. when i hear with former vice president joe biden said. in 2013 he was awarded with the politifact statement of the year for being able to keeping your doctor and insurance with obamacare. but you brought up a series of incredible events. and you didn't add the black

panther intimidation case that went away. when you have think about the veterans that lost their lives in the va scandal and think got four americans and others wound during benghazi, these are serious incidents, but no one really took any responsibility. and that continues to be a blight on the face of the american people and the obama administration. jesse: eric holder was held in contempt for not being forth coming the be congress with regards to fast and furious. now political reported because the obama administration was so desperate to cut a deal with the iranians that they let a bunch of hezbollah arms dealers and cocaine traffickers off the hook. these people tried to kill americans, they are pushing drugs into the country. that's going to be investigated, now we are hearing.

>> those of us following national security issues know that iran has been supporting hezbollah which has been a terrorist proxy army for some time to get a foothold into south america. before there was al qaeda. the largest incident after terrorist attack, 243 marines, soldiers and sailors lost their lives in the beruit bombing and that was hes bow la r -- that was hezbollah. the iranians hah not been adhering to the agreement and it, disconcerting. jesse: the rest of the press won't cover it. that's why someone like bind can get away with saying he's scandal free because no one is

going to challenge him. when he comes out with a play and the lie like that, he can get away with it on the network shows, but he can't get away with it here. after president trump unveiled his national security strategy susan viets said this, quote. relinquishing the nation's moral authority in these difficult times will only embolden rivals and weaken ourselves. it will make a mockery of the very idea of america first. so, when four americans are left to die and not rescued on the anniversary of 9/11 in benghazi. that was not putting america first. she has no legs to stands on here. >> absolutely. that's the same susan rice who

says the united states of america needs to live with a nuclear north korea. she continues to advocate for the strategic patience strategy of barack obama. when you look at the lack of respect, that was horribly diminished. think of what president trump has been able to do in less than a year. something that a barack obama came out and talked about in his strategy but never accomplished it. he kept telling us something was coming and was going to take action. i think we are seeing as you mentioned earlier, this is something that is not sitting well, to include an economy that is click around at 3.2% gross domestic product when president obama never hit 2%. jesse: let's get into some other obama officials.

here is the last one. you have a photo, and this is a tweet from dan five. i hope this is a photo they use on the front page of the times the day trump is indicted. ben rhodes said alongside the obits for ryan, mcconnell and pence. really, the obits. steve scalise responded. you may want to reconsider your rhetoric. if you are out there and you are talking about the obituaries for trump people. come on. not in a season -- >> one of the things you have to understand is when you have a senior leader and officials espousing this type of rhetoric,

there will always be someone to take action. unfortunately we saw steve scalise be the victim of said rhetoric. but we have to move beyond this. let's have the conversation about policy and issues. this cannot continue to be demonizing people. showing commercials much fall of ryan pushing grandmother off the cliff. and armageddon and things of this nature. that's the rhetoric of people that don't have solutions to offer. i hate to see that happening in the united states of america. we have tried the previous 8 years and that did not yield us the results, be it our economy, foreign policy, whatever. so it's time to look at a different way to move forward. jesse: it looks like you have come together in the christmas season with that vest. >> i only wear it once a year.

so it's all for you, jesse. jesse: i'm honored. up next dave chappelle playing the race card. >> i never had a problem with white people ever in my life. but the poor whites are my least favorites. to "watters world."

jesse: the left taking any opportunity to attack president trump including his use of merry christmas. here is don lemon. >> donald trump isn't the on president who says merry christmas. president obama said it's times. no one will ever stop saying merry christmas.

this is a dog whistle. jesse: what he's saying when the president says merry christmas and emphasizes it, he's saying it's signaling to his white supporters what exactly? >> it's a ridiculous assertion to call that a dog whistle. it's the term merry christmas. the reason he says it so boldly is president obama is the one who removed crucifixes before he spoke at georgetown university, rebiewkd the sisters of the poor. christians were attacked and they could not live freely without government intrusion. jesse: i was on the front lines for the last 10 or 12 years in the field. this was happening in the

country it was department stores, it was schools. it was a cultural phenomenon. now it looks like you can say merry christmas again and a lot of people aren't super p.c. about it. that's what this is about. political correctness, right, brit? >> i'm just glad don lemon is counting how many times former president obama said merry christmas instead of obsessing over president obama's tweets. the bawms said happy holidays on their official cards. the trumps said merry christmas. it was beautiful. melania trump did an amazing job. but "the washington post" slams her and call her decorations ominous. it was beautiful. but the media will never give her that credit. jesse: president obama's

christmas cards said happy holidays, now they say merry christmas. take a listen to this. >> i never had a problem with white people ever in my life. but full disclosure, the poor whites are my least favorites. donald trump is going to go to washington and he's going to fight for us. i'm standing there thinking you dumb [bleep]. you are poor. he's fighting for me. jesse: he's just a comedian. but there is an under tone that the dumb poor white trump voters are getting hood winged. do you take this seriously? >> i do take this very seriously. we live in a society where liberals like to put people in

groups based on their socioeconomic status. this was completely over the line. imagine if this were reversed. you can never say it. this is ridiculous. let's move on to a society where we can judge people by the contents of their character, not color of their skin like martin luther king said. jesse: he is a comedian and it was kind of funny, but he's crossing into the political zone. if you cross into politics there will be blowback. >> he should call chelsea handler about where the ratings are going after attacking donald trump and the voters. electing trump and the economy we now have is the lowest unemployment rate for black americans in 17 years.

so really maybe he should be grateful for those people that he condemned so much. jesse: as you said at the top of the show, those tax cuts and those corporations, you are getting $1,000 bonus checks for the holidays and they go into workers pockets. the left not having a lot of success on the policy front. this is what some "huffington post" guys said when president trump did the gala. and black senator tim scott from south carolina was standing by. quote what a shock. there is one black person there. and sure enough they have him standing rate next to the mic like a manipulated prop. way to go, senator tim scott. the senator responded and basically buried him.

probably because i helped write the bill for the past year, got multiple senators on board and have worked on tax reform my entire time in congress. but if you would rather just see my skin color. please feel free. this is liberals trying to play the race card on a black guy. it didn't work out too well. >> i think apologized for that as he should have. this is a good case study of the liberal world view. when they see tim scott, indianapolis what they saw. they saw his race. they didn't see that he has one of the greatest conservative records on the hill and he worked tirelessly for this. they looked at him for his race. i can promise you if this was a conservative who had done this, he probably would have lost his

job. jesse: i don't know what the democratic party believes when it comes to border security, healthcare, taxes or defeating isis. i do know the democratic party thinks trump is racist. >> i find it funny that the writer in his apolicy said he should have expressed his view differently. you are trying to discredit a man who put hours and excessive time into significant tax reform. if you are going to focus on race, why don't you highlight he was the first black senator elected in the south since reconstruction. why don't you highlight he's an evangelical christian. but no it's always for insults. jesse: when you play the race card it's usually the last card you have left to play. ladies, merry christmas. that's not a dog whistle. merry christmas. up next, a ufo sighting.

jesse: what do you think the e.t.'s agenda was? >> when i was struck down, one of them came and straddled me. they were taking tissue samples down in that region. this is where it gets really weird. you have got the believe me. a mantis comes in and gets in my face and looks at me as he's writing things down on a file. jesse: i have seen aliens before when i watch msnbc. >> right, i know. jesse: that was "watters world" at a ufo convention in arizona.

the pentagon spent $22 million researching the existence of unidentified flying objects. my next guests say they had this up for gettable -- unforgettable encounter with one. jim, i don't think you discussed this before. you saw something while you were out in the air. tell us about it. >> sure. actually it's commander slade. i was lieutenant commander at the time. we were flying off the nimitz doing a standard training op. triple vector. headed east towards mexico or the san diego area. as we approached and we are look around, we noticed down below just about the surface of the

water was what is really best described as a tic-tac. jesse: what was your feeling? was it something you knew was something you had never seen before? were you curious? >> my initial thought was maybe it is a submarine and had launched a missile. jesse: we are look at it and it does not look like a missile from a sub. dave, you were there as well. what was your encounter like? were you confused or scared? >> jim and i saw it at about the same time. what is it first. then the curiosity of let's see if we can get closer to it and see wait really is. and that's when it started to mirror our flight path and start to climb towards us. jesse: did you feel nervous when

it behaved that way? >> no, you are kinds of maybe adrenaline kicked in. it's something you have never seen. it's got flight characteristics of stuff you have never seen. jesse: either of you ever felt threatened by it? >> no. jesse: when you went back to your spearers, did they think you were crazy and file a report? men in the military are usually pretty evidence-based. jim, you guys come out there with this video, an unidentified object, were you nervous about telling people? they might think you are crazy. >> i wasn't worried about telling anyone. we knew we would catch a lot of grief on the ship for seeing something like this. i don't think anybody played it off. because they had been tracking

them for two weeks. jesse: do you believe in aliens from outer space, why or no. >> it's certainly possible. jesse: dave, what about you? >> i don't think we are alone. jesse: you heard it here first. the evidence is right there. it is an unidentified flying object. i don't know if it was an alien or e.t. driving the. but we are definitely curious about what's going on. we hope president trump declassifies the ufo files. he did jfk. gentlemen, merry christmas. a 3-year-old girl taking on santa claus.

>>

jesse: parents tell children around the world if they behave

santa will bring them presence. but one 3-year-old is catching on. >> he knowed the deal. this ain't my first rodeo. he those when i'm awake? that's really creepy. you bert not cry? santa's standards are way too high. jesse: mila, do you believe in santa claus? too yes. jesse: but you think there needs to be some improvements with the way santa delivers the toys? >> yeah. jesse: what would you like to see santa do to make things better? >> i don't know. jesse: what are you going to be

asking for for christmas this year? >> i don't know. jesse: you don't know. you didn't make a list. >> a real dog. jesse: i want to play a video of you when you had advice for how much santa could be more efficient. let's hear that. >> flying around the world, just because it's christmas. dropping presents christmas will be efficient. jesse: have you been naughty or nice this year? >> uh-huh. jesse: katie, do you agree?

>> she has been pretty good. but it's been an interesting year. jesse: you are a big internet star, mila. how does it feel to be so famous. >> i don't know. jesse: well, i have to say you are probably one of the cutest little girls i have ever seen. >> i made pizza. jesse: pizza is delicious. when you are my age you can't eat too much of it because you will start looking like santa. but at your age you can eat as much pizza as you want. katie, thank you for raising such a cute daughter. >> thank you for having us. merry christmas, you guys. >> thanks. jesse: up next, last call. my name is jeff sheldon,

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[♪] jesse: time for last call. tuesday's nba game between the bucs and the cavs was wild. but most of of the action came during a time out. these are members of the milwaukee burkes cks grand dancers. they perform at all the bucks' home games. that's all for us tonight. be sure to follow me on facebook, instagram and twitter. justice with judge jea jeanine p next.

remember i'm watters and this is my world. [♪] katie: welcome to "justice." i'm katie pavlich in for jeanine pirro. trump fakes square aim at the fbi leadership in a series of tweets. we'll break it down along with the other headlines of the week. plus judge jea judge jeanine's t justice" is here.