job we continue our 66-year tradition at cbs news. the end of the year correspondents' round up jan crawford is our chief legal correspondent. margaret brennan covers the state department. david martin, our national security correspondent. on the other side of the table john dickerson, our political director. nancy cordes our congressional correspondent. major garrett, our chief without correspondent you don't look like you've been here 66 years. glad to have you back. i always say this is one of my favorite things at cbs news i can remember when i was first at cbs news hoping they would invite me to be at the table some time. it was a long time before they did. let's talk about start with north korea.

margaret, what are the president's options really when you come down to it. >> this is bad movie about a bad movie that creating this international incident. diplomatically the tools are limited. you put north korea back on terror black list, list they were taken off of in 2008 by the bush administration. in an effort to keep them going what ended up with to be failed nuclear talks. along with that you get more targeted sanctions, directed at leadership. keep in mind this country is already very much sanctioned to the hilt. >> schieffer: what about beyond that, david. can we take some sort of cyberaction? there seems clear we do have certain capabilities in that area. >> u.s. certainly has set of capabilities. question is, do you want to expose those capabilities on such a puny target as north korean infrastructure. you are giving away more in your techniques of how you conduct these attacks i think than you

would be gaining. i think most people believe that the most effective thing you can do is go after the leadership bank accounts that are overseas. the bush administration did that in 2005 and succeeded in freezing the accounts and north korea very quickly started to change its behavior enough so that the funds got unfrozen. now, since then leadership has been done better job of hiding bank accounts. still that is the surest way to make north korea pay a price for what now the president has called not an act of war but just an act of vandalism. >> the white house there was a joke speaking to david's point about cyber-counter strike. we can attack one north korean computer. someone say, yeah, the atari computer. that would suggest that the white house doesn't really few that as productive line of

retaliation to go after them in a cyber-way. financial mechanism by more far much more important. the the other issue, whatever do you with north korea you must do with our conversation ongoing with china. this becomes a front and center issue in everything that we do with china economically, militarily, climate, every other conversation now north korea has injected itself unhealthfully. that complicates things for chain. that in the last 12 months china has been more helpful in dealing with our concerns, they have to get back in the game. >> schieffer: john dickerson, unusual thing for american president to go after an american company as he went after sony saying they set a bad example. >> very forceful about that. he wished they would have talked to him first to give him a little presidential guidance on how to handle the issue, how to deal with their theaters. he said he recognized that the had its own interest in legal issues but very forceful in that press conference that he gave. where he kicked off that, sort

of emblematic of the entire press conference, he was much looser than we've seen before. that was really one of the strongest examples of that is his strong position. >> schieffer: how did all this go dob down on the hill? congress was not here when we found it about most of this. >> they were gone. but the reaction that we heard from lawmakers, we need to do something. what that something is, there is absolutely no consensus. i think lawmakers will want to know lot more when they come back about what the options are before they get behind one strategy or the other. >> schieffer: what street this year going to be like, jan? >> i think i'll leave the predictions until the end. you look at so much with surprising in 2014, what is 2015 going to be like about north korea, the president, new posture i agree with you he seemed kind of freed now to do some things that he'd been talking about including closing guantanamo bay which i think

would be really interesting to see how forceful he is with that. every candidate including going back to george bush said they wanted to close guantanamo bay. the president said that was one of the first thing this he wanted to do when he took off. not so easy. i don't know legally and politically how he could do it. i don't think he can. >> schieffer: lindsey graham has been one of those, you heard what lindsey, senator graham said this morning, i think we ought to put more people down there. >> if you look at that, what senator graham said to you that is what you're going to see on the hill and going in to 2016 democrats are going to get behind the president wanting to send potentially 60 -- pretty serious terrorists. >> schieffer: what do you do with them if you close them down? >> release about half of them. >> contaminated evidence or difficulties in presenting that evidence in security or

classified perspective. there is as president said routinely a real conundrum. where do you put them, do you hold them forever, what way is that consistent with american judicial values. >> where you couldn't make progress on the dozens who have already been cleared for transfer. that's what you saw this weekend with the four afghans who did go back to afghanistan. and diplomats are working on seriously trying to resettle them, find country who will take those who have been cleared of charges or bring them back to the country where they were taken from in the first place. you are going to see large numbers transferred. >> i agree with that. that still leaves about half -- >> right. so then it becomes what do you do with those. the president will try to argue that it's just too expensive, $2 million basically inmate a year versus bringing them here. i don't think anybody is going to care. the american people overwhelming leo posed to this going in to

presidential election. democrats are not going to want to be on -- holding banner of let's bring some terrorists. >> schieffer: speaking of things that are seesier said than done. let's talk about the cuban surprise here. president says reestablish relations with cuba. obviously going to be considerable opposition from republicans, but i think republicans will face some hard choices here. here you have the u.s. chamber of commerce coming out strongly for this. you have the texas business council. there's no more republican than the state of texas. but all of that grain that we're already selling to cuba as humanitarian aid it goes through the port of corpus christi, texas. that is the main point for aid to cuba. i think this is going to be something that is going to be debated and i think it's not going to break on partylines. >> it will. but i think at the end of the day you still have far more

republicans in the house and senate who favor placing restrictions and keeping restrictions on cuba. you have republicans from farm states and maybe more libertarian leaning republicans like rand paul who feel that, once we've tried hasn't worked. i still think by and large republicans think we've got to keep restrictions on cuba until we see democratic action. and most importantly the speaker of the house, john boehner and new senate liter, both oppose lifting the trade embargo. i don't think you're going to see any votes with it. >> schieffer: margaret, my sense that this came not only as surprise to most people in washington but to lot of people in the state department. >> well, this is a policy that many diplomates had privately support. and have for some time, though publicly were unable to. you're right, having foreign policy negotiations directed out of the white house, not the

state department, been ruffle a few feathers fair to say. the way to frame this what actually changed when you talk to people at the state department now going to be on the front lines of that diplomacy, little slow, deliberate, quiet. not getting on u.s. airline and delivering back cuban cigar to sell. the business community. that is who is going to benefit up front take another six months before we look at whether cuba comes off that terror sponsor list and then you might open up more sanctions being lifted. but this is really going to be about migration issues, smaller scale things than the way this is being framed right now. >> schieffer: david, what did they did i of this over at the pentagon? >> cuba had lone been seen as national security threat. not like an opening to cuba suddenly releases the pentagon from great burden of defending against an attack from cuba.

it was always just a nuisance value. it was favorable developer but not game changer for the pentagon. >> schieffer: what i thought was interesting about the president's end of the year news conference. not a mention of terrorism. isis did not come up once. syria did not really come up. did immigration come up? i'm trying to remember? i don't think it did. mostly about cuba, mostly about -- >> right at the end of the year it dominated discussion but i think in the new year, north korea and possibly cuba are going to recede because you have pressing issues, president wants authorization of military force to go against isis that is going to be a huge debate. talking about iran these are the foreign policy issues that are going to dominate. >> the president wanted to put a bow, literally, on the economic year for the united states of

america. feels very good about that. one truism about that, however, is that the economy improves and washington had nothing to do with it other than getting out of the way. none of the state domestic initiatives got across the finish line yet the economy improved. washington basically didn't scare anybody with the threat of government shut down or default and the economy using its own means, own moxie and own energy created economic growth and jobs. that's a telltale symbol about what you can and can't do and limits of your own aspiration. >> how do they tray in that lesson. you can see which improved economy means more money, more revenue, you want fight over scarcity the way we've had it which could encourage more mischief. more efforts to try to get some things done. if the lesson of the last couple of the year is don't get in the way, they are still going to push to try to get in the way. the president will be trying to keep the economy -- his legacy

now so tied to that economic upswing as it continues. >> schieffer: we're going to take a little break here we'll be right back. i've been called a control freak... i like to think of myself as more of a control... enthusiast. mmm, a perfect 177-degrees. and that's why this road warrior rents from national. i can bypass the counter and go straight to my car. and i don't have to talk to any humans, unless i want to. and i don't. and national lets me choose any car in the aisle. control. it's so, what's the word?... sexy. go national. go like a pro.

bob back now with cbs news correspondents roundtable. jan crawford what is going to happen on the court? is justice ginsburg going to retire? >> she says she's not. she's 81 years old. recently had a stint put in. she's made clear that she's not going to give president obama a nomination. who would be better than me? from a lib balance perspective she's right with republicans going to take over senate. i think president obama probably

has got to be content with making two nominations to the supreme court. the interesting question is, the next president. obviously supreme court is president's most lasting legacy. affecting american law and life long after the president has left town. the next president's first term four justices will be in their 80s. that would give next president real opportunity to shape the direction of the supreme court. president obama didn't change the direction of the place. placed two liberals with two liberals. if conservative or liberal were to retire and president were different ideology could turn the direction that have court which now 5-4 conservative. >> schieffer: let's talk about capitol hill. nancy cordes, who is going to be the leader mitch mcconnell or ted cruz? >> i think it will be mitch mcconnell. ted cruz can make mischief but his influence has waned some of the fellow republicans feel that in 2014 he went too far few

times. last last week had to apologize toe fellow republicans because he tried to maneuver ended up making them stay in town through the weekend, members of congress like nothing less than everything to stick around here especially at the holidays. i think mitch mcconnell, will put the pipeline up for a vote, it's passed the house and like three pass the senate the big question will be does the president veto it. then i think see series of jobs bills. republicans want to rack up early wins to look to pass some bills that they thinking get some democratic support as well. things like making easier for veterans to transition in to the civilian workforce, things like restoring the 40 hour work week threshold and obamacare. feel that lot of people have been put on to part-time work because companies are trying to evade that threshold in obamacare. they want to restore that get some democratic support for that as well.

>> schieffer: and what about the state department, what will be john kerry's main priorities? what would he like to leave of his legacy if there would be such a thing? >> i don't know if i could speak for him except for, he really believes in pushing diplomacy on middle east peace that is going to be quite difficult until after march when you see israeli elections. primine material netanyahu has been difficult ally for this administration and in the peace process. you see palestinian position weakening. doesn't have lot to provide to his people at this point. >> schieffer: do you think there is any chance of an agreement on nuclear matters with iran? >> i believe that you will by march get clear read on what is going to be possible and the hope is really extension of what we've got. the freeze, partial freeze, partial sanctions released believed to be solid. you heard president defending earlier this morning as well. >> schieffer: david, at the

pentagon. >> still got two wars going. war against isis and iraq and syria and war against taliban and al qaeda in afghanistan. u.s. had 1300 airstrikes against isis targets. just last week commander of the operation there said it would take three more years just to get iraqi army up and equipped and ready to retake all of the ground that has been lost. that's not saying anything about what goes on in syria. that's just iraq. >> schieffer: let me ask you a question that i've often thought about, i don't know if i know the answer bud like to get your take on it. we talk about how long it takes to train an iraqi. in world war ii we sent kids to officer candidate school we had 90 day wonders. three months they sent them off. they spend less time training

enlisted people. why is it that takes so long now? >> the difference was in world war ii those young men had a reason to fight for their country. the government of iraq has not given many of the young men -- >> schieffer: best answer i've heard. john, 2016 what happens? >> it started already. i think have two debates, both parties. democrats having big debate about difference between effective leadership and who really speaks for the party and republicans talked about it with mcconnell and cruz fight between who is going to try to get things done through the system of washington. who speaks for the real principle of the party. what has been unanswered is what americans want. in the last election only 22% thought next generation would be better than this one. that used to be the definition of the american dream. >> schieffer: yet only 37% of those people voted. >> there's that. then you got the nearly 70% who

say they think the economic system tilt towards the wealthy. those two questions, those two issues are not being scratched by the politicians those people out there looking for answers, debate within the party may or may not speak to those needs. >> schieffer: do you think jeb bush is automatically the front runner? >> he's a front runner if you can be front runner with 14%. lot of people running. what's interesting about jeb bush he's running, even though everybody knows the -- he's running as a bomb thrower. and i'm going to run a different kind of campaign, really hear thing to do but going to try to do it. >> schieffer: hillary clinton will be the nominee of the democrats? >> if she chooses to run she'll almost certainly be the nominee. the question for her who is her campaign about? >> schieffer: all right. prediction time. jan crawford. >> predict that by beloved alabama crimson tide going to

beat ohio state on new year's day. >> schieffer: now that they don't have to play tcu. >> i have to say, sorry we won't be able to place a bet. we'll win the championship. >> u.s. military will succeed in killing the leader of isis. but won't make much difference. >> cracks in the coalition against isis are growing frustration there's not strategy just a vague vision for syria. and keep in mind you still have at least two americans being held there. three americans being held in iran. hostages and how to handle that is going to continue to be an issue for this president. >> you're going to have republicans consider variety of strategies to dismantle obamacare then probably see them pass border security bill aimed at going after what the president did on his own on immigration. >> president obama will talk in the state of union push for trade promotion authority as to

trade deal in asia, incite the wrath of the progress stiff democratic party and enjoy it and work with republicans. >> republicans will rally around the governor who will be their nominee after complaining about president who is only in the senate for one year had no executive experience, they're not going to do the same thing. >> >> schieffer: thank all of you. thank you for being here i'll be back with some personal thoughts about leaving 2014 behind and you all are captive audience you all have to stay.

>> schieffer: finally a little holiday poem. holidays hurry come fast as you can, i'm done with this year, it's all i can stand. yes, i'm one who thought i'd seen it all. but this was as bad as i can recall. is it any wonder in a year that so screwy that d.c. is the seth row began movie? some red lines got crossed what a mess, putin popped off, add that to the stress. the job front got better, not many noticed. but something went wrong they blamed it on potus. the poor guy got slammed for many a sin, every time he played golf something else would fall in. the white house forgot to lock the front door, no wonder that guy dropped in to explore. congress found new ways to daudle and diddle, if they -- mitch mcconnell just look at him beam, running the senate,

living his dream. but as he figured out part two of this news, suspending more time with his bestie ted cruz. still count our blessings, hey, we did survive, and who knows what will come of the cuban surprise. so merry christmas all around, i wish you good night. but just put this old year way, way out of sight. back in a minute.

>> schieffer: thanks everybody, we'll see you nest week right here on "face the nation." captioning sponsored by cbs captioned by media access group at wgbh access.wgbh.org

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