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And economic recovery.
Was President Obama make AA -- somewhat dubious suggestion.
In light of new fourth quarter.
GDP numbers that show that the United States economy actually shrank for the first time since the recession that immediately follow the panic of 2008 back in the -- of 2009.
So after three and a half years of kind of growth of what economists call.
Eight a growth recession.
-- which your growing but not enough to make up for new people coming in but.
You're still we're still above water we sank below water for the first time and this is power play and I -- Chris -- at all and guess what.
If the economy is shrinking.
Almost anything else that you want to talk about goes by the boards it's very hard to talk about controversial issues or anything else.
In an atmosphere in an environment where the economy shrinking because really.
When you get down to whatever voters say their interest -- and they're never interested in anything quite so much as their own checking account.
So how will a contracting economy or temporarily attracting -- contracting economy at least.
Affect the political discourse in this great nation of ours in this great capital will talk about that.
We'll talk about Obama setting a deadline.
For lawmakers to reach a bipartisan immigration deal before he says he will come in and swung the wrecking ball.
And we will forecast what it will look like for Chuck Hagel.
He's a former Republican senator from Nebraska and he's gonna have his confirmation hearings tomorrow we will talk about -- with KT McFarland -- I know you will enjoy way.
I also know that you enjoy I know this is true -- you tell me Internet.
I know that you enjoy talking to David -- because recommit roll call you follow him at David M Drucker.
And he makes you smarter and the energy issues -- David welcome back good to be here thanks and as you've done -- all.
And you've you've got it all for the Internet so.
The economic news the United States -- -- not a lot but the expectation was for another quarter of sort of anemic growth.
To put it this way.
The economy needs 2% is basically holding around that population growth of immigration and other things to present is like.
Keep in it you're like you're like keeping the lights on you're not losing -- anything under that you're starting to hit it hurts a little bit.
And anything under zero when you're actually shrinking the pain the pain begins what is the consequence for the discussion in Washington of of that.
Well it depends how the pain is felt around the country reminds me of what we kept saying during the presidential campaign and has just concluded which is.
-- unemployment rate and job growth of the lack of job growth is one thing how he'd feel about it is something else Tyre itself.
-- lack of economic growth this contraction means people have a harder time finding work means they lose jobs means wages are stagnant or go down.
This becomes a problem for everybody in Washington particularly the president who has a number of agenda items and lately chief among them immigration reform this could be a very big problem.
For immigration reform because when the economy is Roth.
Americans get very skittish about making it easier for people from other countries to come here find work by the legal means or any other means I -- and so what I want to see really.
What is the next few what -- the next few job courts look like -- because.
Here's here's the counter -- to this very piece of real and negative news right if we're still creating anywhere from a 115180000.
Jobs a month.
And unemployment isn't getting worse and underemployment isn't getting -- people may not be that happy things may not be that great.
But I don't know that there's going to be some negative backlash and I don't know.
That the president is gonna feel the need to spend anymore time.
On the economy and economic growth.
Then he has indicated he's going to at least in his is inaugural address last week when basically said hey the economy's better I got -- these other things talk.
Well look though.
Bad economic news tends to be cyclical.
And if people -- bad economic news and they think that things are going to get worst day.
Pullback we saw this very much in 2009.
As consumers themselves and others say -- -- the storms coming in -- it's still bad it's often times a self fulfilling prophecy.
There's also -- -- prophecy in Washington.
If I guarantee you.
And you both of you this that if this number were in the discussion during the lame duck session in December.
The president would have had a lot harder time getting his tax increase than he did.
When everybody thought things were basically okay I.
So you know let's go to the -- on this thing.
I think everybody would have looked at this differently and and I'm wondering Chris that's a good point you make it will change the discussion about the sequester.
-- Trillion dollars in military cuts which Democrats are happy to allow.
You go into -- and Republicans have sort of resigned themselves to allowed to -- into effect is that.
Nobody's figured out a way to replace this.
The sequester cuts and there's actually a growing number Republicans more than many might think who were okay with the sequestered because.
There's so worried about the state of of our fiscal health about the budget that trillion dollars of cuts is trillion dollars in cuts.
-- will that change it and here's an interesting thing for policy makers.
It's one thing to support a massive reduction in government spending but if you don't couple that with the growth policies.
Ways of injecting money in Washington hands back into the economy right cutting taxes banners stimulating course and in some fashion that you could end up with a problem -- it.
It's clear that.
If there's a good case -- to make as you know that big government is not the solution to our lack of economic growth but.
Government spending on defense products what's real US -- right to work building things and if you.
Eliminate those jobs and that injection of capital and you don't replace it with something that.
President bode ill for the -- you're -- know.
You boys and girls over the Cato Institute -- day -- -- obviously yes government spending if you cut it and that's -- they're talking met with the sequester which is basically 5% across the border back into government spending -- stuff that we talked about before.
Are -- cuts which are decreases to future increases in spending which is.
-- even that to happen in Washington but what -- -- -- and the sequester which is coming up next month.
We're at the end it will it's the end of February correct.
Is across the -- actual cuts like the money starts getting taken out of defense spending.
Correct this is not look this is knowledge government money to study that that the mating habits trying to -- this is government money that's kinda that was an American workers were building planes and ammunition and taints.
And good things that are real and then you have all of the down ticket vendors and subcontractors.
Building parks for all of these things and so did it.
A massive defense cut defense spending whatever you think it means for our ability to wage war and keep the country safe.
And it will have a very real effect on the economy if at least not replaced with some sort of growth policy that takes money that's in Washington in other ways and injects it back into the private economy so what.
David is telling us and this is that that this would cheer you up today what David is telling us is that we have created sort of a perfect storm.
In which we are following.
Separate elements of both economic theories that keynesian and -- Milton Friedman gang.
Both got something there were cuts and there was a tax increase.
Simultaneously so as a result of divided government -- dysfunction.
We now have higher taxes and that's for every worker remember that it's not just for those 400000 about because the payroll tax holiday ended so everybody's -- shrank.
Even those people who don't pay any federal income taxes at all to give a tax increase coupled with they treat addicts slashing.
In government spending it seems like.
Like they're doing it.
Yeah in and I.
I don't think there's any other way I -- I couldn't say it better.
And you know I think the question is.
That the house and senate appear on track to produce budgets that will then going to some sort of conference committee.
And I wouldn't be surprised now this becomes -- part of the discussion and of course what you'll see it is the democratic senate.
Probably look at this and say this proves right that we need more government spending right now and -- more tax increases on the wealthy.
Because now -- -- -- want with us bolster the argument for tax increase -- does what what Democrats believe is that.
They look at the Republican plant and they they call -- austerity meaning basically all you guys wanna -- was cut right and everyone -- in case you want to balance the budget.
Let's get more revenues that they're going to say -- house Republicans are gonna say.
This proves that we need a -- budget and we need to inject more money back in the economy right.
-- tax cuts via.
Any warm up private sector capital injection from Washington.
And and we're gonna have a I think because of this the very interest in policy today it'll be interesting to see if the president.
Pushes for more tax increases.
On taxpayers he -- wealthy or or will he kind of stay quiet and let congress national.
One wouldn't -- wouldn't have to suppose that what will happen is that.
-- did nothing essentially what happened that this will add to the argument that this sequestered -- -- done.
As defense spending so much part of this but also led to the conservative argument that higher taxes or bad she wouldn't think that there be a tax increase are tremendous continue drifting.
Well I don't think there will be a tax increase what I'm saying.
I'm saying this is will -- the -- And what I'm also saying is that there aren't there will not be Republican votes undo the sequester.
-- replacement costs this is true and because of that I don't think the sequester will be and do you go to Fisher.
They've addressed the -- a very good column for peace or whatever the.
Craft -- About Ted Cruz who is these star freshman of the Republican class.
In the senate.
And he is from Texas they've given -- a grassroots role that remains.
-- -- -- TE DT VD TV dearly but it's good you should read it.
And if you go over there you can see it it it's quite good -- so we thank you David for being with us expressed.
Frank and Kuroda who follows me at -- -- all wisely wisely frank because you get my column.
Each day for you.
You -- -- -- our -- says this bodes better for the dams in the GOP because they would say we can't cut now even though we need to.
You and David are reading out of this the same hymnal and -- Probably right but I think -- we will continue more ineffective drift will be the dominant theme.
Of the federal government for the next two years we will get more of your chest we will talk about other exciting and fun things when we come back.
Congress is unable to move forward in a timely fashion.
I will send out a bill based on my proposal.
And insist the big -- on it right away.
And that was President Obama laid the smack down.
In a speech at del sol high school in Las Vegas, Nevada calling for the speedy passage of a -- -- permanent residency to illegal immigrants.
And this is power -- -- the president was doing there was saying -- congress.
You know that if I editors smile and -- it will never pass and in fact comprehensive immigration reform -- his opponents refer to it will never pass.
Because I was so toxins by the -- But he says if they don't act speedily.
They'll go ahead and do it -- swing the wrecking ball on them so this is the president's way of setting a deadline.
They either act in bipartisan fashion where he's gonna come chase him down and use it as a political weapon against Republican so we know what the stakes are.
And you saw the response from Republicans and Democrats.
That eight -- sharp intake of breath.
The president's challenge.
Will they get it done what was the consequence -- Who knows I signed up to people who probably know.
From -- He knows because he's a partner at singer and budget strategies and owner of the -- company but before he made real money.
He worked four Dennis -- speaker of the house he worked for the Republican conference and the senate.
He is a Republican and very good standing.
And Richard Fowler.
He's a nationally syndicated radio talk show host.
He's a man of the left yes this will stands there -- good Democrat in good standing now we know what every good team everybody's playing for.
The so Richard we'll start with you the president said.
You can try your little Marco Rubio thing you can go out there and give it a shot if you want to.
And we know that big Hispanic caucus went to the president said please let us try to work this through -- around because if you come in and do this the Republicans are gonna walk away from the -- give us a shot.
To the president acknowledged that said if you can't get them passed -- in a country should what's the consequence well I think there's two things.
First of all the policies and nervousness change so much from the claims of election Republicans understand they have to make some sort of inroads and immigration and at the moderate on the topic we're not talking about or stop talking about it for them to have any -- when he fourteen.
Also going into that I think we've seen the president -- -- to leave it to my congressional colleagues to get the work done but.
If they don't get the -- I will act and he's been very clear that I will act if they don't get on the consequences of the president acting.
Is you set up you know the perfect power play I would say are also on alert as -- -- -- for the 24 election he goes out to campaign to a lot of Republican rightly come you know modern additions and listen I try to get it done you remember this to your particular member of congress and the wife hates Hispanics.
All right now Laden's -- with the -- -- it was today that was -- man.
The Republicans do want to stop talking about this your party is eager.
To stop talking about immigration and would almost except if you get to the sense right now that it's like anything that we can do just to have this go away as an issue.
But the president wants more he wants provision for same sex marriage he wants a speedy pathway to citizenship the Republicans -- documents of its years long.
He's talking about a lot faster than that.
How far do you think Republicans are gonna go to get out from.
Under this I think it's gonna read it's -- real arduous process for Republicans you know we think we're good we're definitely -- united on this issue are ready senate -- -- several senate Republicans.
Have come forward to oppose.
The you know they they -- of bipartisan members who brought -- their proposal.
Senator McConnell waiting to see what happens this year committee and little else.
Whatever passes is going to be heavy hearts over there so -- -- you -- some Republicans are realizing the politics.
Yet many Republicans that it won elections very safely that.
You know don't necessarily worried about yeah now worried about the power play service.
Let's few you -- is that if you if if you represent North Dakota for example immigration is not a huge it is it but it is a big issue nationally there for us for the next presidential will be -- Virginia North Carolina.
Iowa those -- -- states that have significant and growing Hispanic populations and is a big part of why Republicans have struggled states and that's a fact that's -- that -- -- what's the timetable we're hearing basically that.
The senate hopes to have its work done by the -- on recess in August.
But if they're not when would you expect.
When you when you think president swings it well I -- I think you know within the Jersey video that I would hope that we -- you build something come deformed by eaten by you know the by the -- time frame.
Bomb and I think you do that we'll see you know we'll see -- -- from the president of the White House to get a passengers -- -- the president I think with that being said.
Almost that you left out of state of Texas which people aren't really talking about but there is the possibility that Texas could become blue state and Republicans understand that now -- Yeah now -- to Democrats say they're currently in the demographics -- there but Hispanics in Texas.
-- But the you think Texas Ron is is headed towards the blue column.
I mean look at Smart Democrats try to play in any city can -- an enemy here that there I would say that if senate today that the senate is trying to get something done by August that means.
That's there that's -- -- sick you get done.
That's usually code for by Thanksgiving or right it -- as if they hear it then it spills over new election -- in house Republicans in an election year.
Faced with his immigration proposal I don't know what would make it out of the house that well -- -- -- -- allow didn't allow the majority the majority -- public.
All he -- that he had to fight hard.
Are these guys that again if he does that again he he will be back tending bar owners -- -- -- ourselves in Internet that would happen I mean I think it's -- -- -- -- and you're -- if you look at the timetable -- in the republicans' best interest to get this done before because there -- other areas -- all right -- -- relatives back -- -- We'll see something and you can take you can say you -- orthodox Easter if you want to come back a little bit if you wanna buy yourself a few weeks Ron says look for Thanksgiving.
Now you know these guys know how it works now they've told you gentlemen we thank you.
Okay now that we're gonna take a quick break but when we come back KT McFarland is gonna be here and she's going to suss out for you.
What's going to happen -- Chuck Hagel former senator from Nebraska goes out to answer questions tomorrow.
Power play speculates sound and fury signifying nothing but maybe she will disabuse us of those -- -- do that when we come back just -- a.
It's -- on what he says -- hearing Thursday but the one thing I'm not gonna do.
Is vote on a new secretary of defense until the old secretary defense Leon Panetta who like very much.
Testifies about what happened in Gaza I haven't forgotten about -- Gaza Hillary Clinton got away with murder in my view.
That was Lindsey Graham -- Republican senator from South Carolina.
On the record with Greta Van Susteren on Monday threatening to hold up the nomination of Chuck Hagel to be secretary of defense.
He doesn't get answers about these terrorists or the Muslim or the you know what I mean.
Raid on V compound.
The US consulate -- -- Ghazi is he on the level will Republicans actually blocked Chuck Hagel.
Somebody who knows is KT McFarland she is a Fox News national security analyst she is most importantly for your purposes Internet today that's what I really wanted out.
She is the host of Fox News lives Defcon three.
Which you watched it 1 o'clock -- welcome back.
-- -- -- You know I don't think they're gonna -- -- and block the nomination I think it'll be contentious I think the hearings will be contentious.
Not just about Ben Ghazi and what did or didn't happen before but I thinks senator paid health -- -- -- really -- question about Israel.
Q what's your relationship is with this or -- you.
But -- perceived to be you know where you said I'm not the senator.
From Israel -- the senator from the united from them from Nebraska what do you mean by that are you gonna stand by -- -- we've had a longstanding.
-- relationship not a treaty -- a mutual defense relationship with Israel and I think that.
Next question they're gonna really grown on us a -- how we just topple Iran's nukes you talked about negotiations you said sanctions aren't going to work.
What are you prepared to do more for you prepared to let the entire region.
Have nuclear weapons -- once Iran does everybody does.
KJ as a consequence of technical problems and the Internet we'll just have to stay tuned until 1 o'clock eastern time to watch you on Defcon three it's good I've seen it and thank you for making time for us thank you.
Okay all right Internet we have to go on Jonathan -- is up next you know that you're looking forward -- and of course beyond that you've got Defcon.
You've got to Defcon situation.
With -- even before you get to those things.
How about some power points.
Every day those -- your power points for today every day.
Now this is a sad thing to talk about but it's something that's necessary whenever the national discussion turns in this direction and today much of the discussion.
Is about gun control as it relates to -- shootings in schools and sandy -- and other things and you'll hear a lot of politicians today is -- -- -- almost any thing.
Whether it's the deficit.
Whether it's any real social issue there we'll talk about doing it for the sake of the children so here is.
The terror most terrible PowerPoint that I can set up.
And it's 1560.
That's how many children.
Were killed as a result of abuse and neglect usually at the hands of their parents or another caregiver in the year 2010.
Most recent stats available.
That's ten times more than were killed through gun violence.
And a great national tragedy.
Second PowerPoint is.
A matter of substance and in most of those cases some substance was involved drugs or alcohol very often involved in those -- families and those things that are going on.
We don't have much of the discussion about that we don't have much of a discussion about this kind of child abuse.
Here's your third our point.
Why because there's nothing to gain because politicians can't get out anything out of talking about such a sad topic they can achieve and -- on the deficit if they talk about what it does to the future children they -- receive -- gain on gun control if they talk about child victims but when it comes to the day in and day out.
How children across the country or are treated.
And how they're suffering well you don't hear very much about that and also I would only -- this.
Be cautious of any politician who tells you that they're doing it for the children until you see them doing it day in and day out on the issues that are really affecting Americans young people.
That's the truth I'm sort of have to tell you but it is.
And now as we like to do every day we want to leave you with the word from our French -- -- Politically it's an act of sabotage and I think the way that you want to do it is a way Schumer did.
Which is he agrees that he would raise it.
And I think for logical way to go about -- to have lists as a separate provision -- the house.
And the senate to decide on this and -- and leave it as a separate.
A vote and have the rest of the bill however it emerges as also a separate decision.
Because if you put them back together you created a poison pill.
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