tv Cavuto Coast to Coast FOX Business April 14, 2017 12:00pm-2:01pm EDT
on the other end wouldn't do that. would have tap danced to the top of the hour. we almost made it, have a happy easter. we have a lot more to cover on "cavuto: coast to coast." i'm connell mcshane in for neil. president trump is in large large. there are signs that it will be anything but a quiet one. in a new interview north korean official is blaming the president for building up what north korea says vicious cycle of tension. saying his aggressive tweets are making trouble. north korea is preparing for the day of sun, as they call it, where the militariry will be on full display. last year on the day of sun, there was a intermediate range missile introduced. today there is concern there may be a nuclear test coming. white house warned against test like that. north korea said, no, we decide
whether the test will happen. we released a picture, show you the military might, we'll show you the picture when which get it back, military might that to intimidate kim jong-un. that is the picture. nbc news saying the u.s. might strike first. official telling fox news those reports aren't true. what to believe. north korea says the tension has to be stopped before it reaches an irreversible stage. if you die guess all of that, why we're saying this will not be a quiet weekend for the president or for any of us. former u.n. spokesman. connell: ric grenell is with us. what do you make of all this? we build up on both sides wonder what the north koreans are making of us, we wonder the same on the other side of it. what will this weekend bring, do you think? >> hopefully it will not bring anything. it would be terrible if something happened. i'm actually encouraged because
i think the north koreans understand that donald trump is not barack obama, and that there is a credible threat of military action. i think they watched what has been happening in syria and in afghanistan and don't forget the chinese president had a great meeting with president trump and the chinese went back and moved 175,000 troops to the border. so, the north koreans see this. they see that this is a serious situation. and i think we've bottom china's attention. one thing you have to remember is that china is not threatened by north korea. so they have never really looked at the situation as a huge problem. they understand that the u.s. make this is a priority but they have never really taken it that seriously simply because they personally are not threatened but i think two things that have changed.
they have moved 175,000 troops as i said to the border. that is a serious situation. that's, an admission on the chinese part that they're concerned about refugee overflow should something happen. and secondly, the meeting between xi and trump went so well, that, donald trump gave this refreshing statement about, you will have a better trade deal, china, if you help us on north korea. i thought that was an amazing moment to bring in all the tools of u.s. government. connell: do you think that works? the whole idea of holding trade over the chinese, you see the two presidents on our screen from the meeting in palm beach but do you really think that will have influence over china? >> something that doesn't work making a moral argument to the chinese or russians as what they should do. doesn't work. i sat across the table from them, you should join the
international community or do this because it is right thing to do. that doesn't work. connell: money talks. chinese look at military action. knowing a credible threat of military action out there. everybody is making a big deal what kind of message that sends. whether messages sent to syria or north korea in that action, maybe there is action or message sent by president trump, economic message we mean business. we're willing to act militarily and economically when you hold it over them, right? >> i think it is refresh refreshing to say all the tools of the u.s. government will be used diplomatically. we too long haven't done that. we have not been able to say we have this trade issue or we having a cultural issues or we have border issues. we have a lot to offer when trying to push forward on u.s. policy priorities. we've never been successful bringing those together. we tried to make some sort of a
moral argument to countries that really don't less inch to that. connell: let's hope it leads to a whole lot of nothing which we're rooting for this weekend. thank you for coming on with us. ric grenell starting us off on "cavuto: coast to coast." i want to get to the story of the "mother of all bombs" we've been talk about the last few days with new video coming in, dropped on isis in afghanistan and to the why, why there, why now. even adam shapiro joins us from d.c., what now? what are you learning? reporter: i want to give us the latest news, national security advisor h.r. mcmaster will head to afghanistan. he will be assessing whether we need to send as a country, more u.s. soldiers, military personnel to confront isis in afghanistan's security crisis as it has been quoted in different newspapers. now in addition to mcmaster traveling to afghanistan, secretary of defense general
mattis is actually going to be going to the middle east and africa. he will leave on monday after easter, and he will hit saudi arabia on the 18th, egypt on the 19th. israel on the 20th. qatar and qatar on 22nd and djibouti on the 23rd. the leaders and national security advisor on the road with national security at the center of their trips. the other issue of course is the video you see right now, the mother of all bops as it is referred to. a defense department spokesperson said it was the right weapon for the right target. that bomb, a gbu-43 massive ordnance air blast or moab, was deployed in a remote part of afghanistan where u.s. forces have been fighting isis terrorists. the afghan ministry of defense says the bomb killed 36 islamic state militants and destroyed several caves, bunkers and
munitions depots underground. the device known as mother of all bops was sent to afghanistan some time ago according to a pentagon spokesperson.the comman afghanistan and as isis loses territory and mounting their los angeles, they resort to tunnels, bunkers and ieds to carry out attacks against u.s. and afghan forces. he says the bomb is the right munition to reduce those obstacles, something president trump was asked if he authorized. >> what i do, i authorize my military. we have the greatest military in the world and they have done a job as usual. we have given them total authorization. that's what they're doing. frankly that is why they have been so successful lately. if you looked what happened over the last eight weeks and compare that really to what's happened over the last eight years, you will see there is a tremendous difference. port okay. afghan officials say no civilians were injured. that bomb was dropped a few days
after u.s. marine green beret was killed. military officials said the bomb had nothing to do with that green beret's death. lt. general john nicholson, command are i of u.s. forces in afghanistan. he has authority to use the bomb. doesn't need the president's authorization. connell: had the authorization in the previous administration. reporter: yes he did. connell: to former you know ambassador to iraq, james jeffrey and the message this sends to other countries. would it be a large message too? we were talking about with ric grenell and north korea, message to russia, syria, iran all of the above, what do you think? >> what do you think all of the above, connell. commanders have been often restrictedded by micromanaging out of washington. i saw it in my own eyes in kuwait 1998 were bombing with saddam but couldn't fire a surface-to-surface missile at an
appropriate target. this is the kind of thing that drives our military leaders crazy and unnecessary. you can't do these kind of decisions out of washington. so that is the military side. the political side though is more interesting. clearly coming after the strike in syria, coming after the about face with the chinese distanced themselves in the u.n. from russia after we struck and what is going on in north korea, there is symbol i can side to using a weapon system that using a weapons system that certainly gets everybody's attention. connell: no doubt about it they got everybody's attention. we have military advisors going, james mattis, defense secretary, to the middle east around mcmaster to afghanistan. what ask your impression of the new team the president put in place? >> i know many of them with my time in the state department and working with endings on. this is as good a team as we have had doing foreign policy since certainly bush 41.
these people experienced. they cooperate very well together. they're in the men, in case of nikki haley, women of character, i think they're coming together very, have he well. connell: are there big changes happened? the president argues there are obviously. we made that comparison eight weeks versus eight years yesterday when he was talking about the obama administration. as add dam reported to us the authority strike with authority of quote "mother of all bombs," was in the authority of the general in afghanistan. from what we understand, and reports that authority was there in the previous administration as well, even though we have been led to believe maybe that was the case. what do you know about that? >> as someone who worked in the white house often authority is given to commanders in the field for face-saving value but they're told to check back with the pentagon and even the white house. so that is the first thing. second thing, not all that much is different in terms of our military operations. we struck in yemen under obama. of course the campaign against isis and in iraq and syria
basically put together by obama and continued by trump. the big difference, but an amazing one was the strike against the syrian base that launched the chemical weapons. not only because that was a departure from what the obama administration did, it was how quickly that was done, and the willingness to strike even though there were russians on that base. that shows both trust in our weapon systems they wouldn't go astray. it also shows a willingness to take risks to advance critical national security interests. president was right. this was a vital one. connell: which brings it back to some degree, mr. ambassador, full circle there is a message to these other country what is we're doing and you think the syrian strike sends sounds like a stronger message with the mower of all bombs message though we've been striking not to this degree with this weapon in afghanistan? with north korea as an example
they read more into what we did in syria? >> exactly. at the end of the day you need a political strategy. military force around military success eminating from that force is not an end of itself. it support as political strategy. connell: right. >> we're still working on -- we have one with isis for sure. we're still working on the bigger problem of syria, iraq, russia and iran in there. we're still working on a larger problem of north korea as it moves -- connell: we don't have a strategy formed you're saying with any of those with north korea or syria? no strategy formed yet in your view? >> we have general principles and they have existedded over the last several administrations. what we don't have is a specific, if you will, game book to get to a different place with the syrians, the russians and the iranians in iraq and syria. and that's understandable. it just has to be worked out. you can't just continue doing military operations without figuring out what they are to serve in the end. connell: thank you, sir.
day 85 of the trump administration. we appreciate you coming on to talk to us about that. we have new information, meantime, we have speaking of the administration, steve bannon's role in the white house. a lot said about this week alone. charlie gasparino has done excellent reporting on it. he has more news to share with us. he will have that coming up. senator mitch mcconnell has made new comments on one of our favorite or least favorite topics depending on the day, tax cuts and when they will happen. grover norquist is ahead on how the republicans can get reform through and get it through now. we'll be right back. ♪ yes?
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say hello to internet speeds up to 250 mbps. and add phone and tv for only $34.90 more a month. call today. comcast business. built for business. ♪ connell: so we continue with this conversation about the military action we've seen from this white house, first in syria, in response to the chemical attack there. now began ban where 36 isis fighters are dead from u.s. bomb, the "mother of all bombs" it is called. our next guest looking back at history, 31 years ago today united states bombed libya in retaliation for terrorism against u.s. troops. presidential historian doug wead is with us talking about president reagan acting quickly in the face of conflict, and are
you seeing parallels 31 years ago today with what president trump is dealing with today in 2017. >> connell, it is uncanny. both men came into office with guns blazing. they both inherited a climate of appeasement and fear. qaddafi is example. you couldn't call the enemy the enemy. reagan gave a speech calling them the evil empire. the left was hysterical. you will cause more trouble. today you can't call islamic terrorists or you will create mortar rifts. it is uncanny, on campus embracing fun funnist islams. they're throwing gays off tops in the middle east. christians executed. rape victims are executed. in their culture the rape victim is the crime. all this occurring, similar
atmosphere what happened with reagan. connell: comparing the two presidents, president trump woulding welcoming to a comparison to president reagan. some of his detractors said there are differences. i have seen articles differences one of the case president reagan success he knew what he didn't know and delegated very well and this president is criticizes not knowing what he doesn't know. what do you think? >> they are not exactly the same, no doubt about it, but the atmospherics are very similar. i think he is underestimated like reagan was. connell: right. >> the climate, national media in opposition to him and academia in opposition to him. i think it was worse under reagan. we had a million people marching in the streets of new york city when reagan introduced intermediate nuclear missiles in western europe. all of western europe, the campuses were going crazy.
his approval ratings lower than donald trump t could get worse before it gets better, issue of the military is one thing. we made the comparison to libya in 1986 but the other thing happened back then that tax reform got done, right? that also has to be at least something of a parallel conversation to the one we're having now? we're worried from people we're talking to maybe that is going to be more challenging this time around t was pretty challenging back then too, wasn't it? >> it could be. donald trump inherited two extremely difficult crises with north korea and with iran that have been passed on to him that he has to handle. if he can handle them the way reagan handled the cold war which nobody believed was even possible, that ushered in the greatest economic growth period in american history. connell: right. >> it covered uninterrupted three presidencies. one interruption under george h.w. bush but a marvlous economic recovery. if he can deal with some of
these issues -- connell: what didn't president reagan specifically on taxes do a pretty good job working with speaker tip o'neill and the like, and will this president be able to do something similar? hard to imagine right now but maybe it was hard to imagine then too for some time? >> yes, you're right. we're looking back on it with a full eight years in mind. remember the first 100 days of ronald reagan he was shot. the only thing he signed in his pajamas in a hospital bed was dairy supports, ending dairy supports. so we have to give donald trump a little bit of time to make these things happen. he is actually out of the gate pretty quickly on many of these issues. so, there's, there is a lot of hope still for donald trump. i think the stock market reflects that. connell: it does. i believe the dow, 3 1/2, little bit more percent since inauguration day, far more since the election. doug, we thank you very much, sir.
he is the author of a new book, called, game of thorns, about the election in 2016. you can relive all of that. boy, there is plenty to relive. >> thank you, colin. connell: republicans are in a tax fix and we started to have that conversation about tax reform. does grover norquist have that fix? grover is coming up in just a moment. we know where he stands on the issue but the question will be can republicans get to his position? we'll talk about that. congress getting involved in this whole story involving you united. what one lawmaker is now proposing that actually could change the in-flight experience. you think that needs to be changed? all that coming up in a moment. we'll be right back. ♪ at fidelity, trades are now just $4.95.
he is back with us. globalists winning, geyerry cohn in the mix. what is going on? >> gary cohn, former number two at goldman sachs. that is the last guy i thought -- even be the white house gardener in the trump administration. connell: maybe you don't know, why did he take the job? wanted to get out of goldman? >> he was number two to lloyd blankfein since 2006. he made a lot of money. he will not replace lloyd blankfein. he wanted, maybe a few times he thought he would leave goldman sachs over the lags five years. connell: it's a good tax move and all rest of it? >> it's a good tax move. goldman sachs, we did a little digging, did banking with jared kushner and kushner family. he developed a relationship with jared kushner. when this came up, jared helped bring him in. they are now the most formidable
duo, advising duo in the trump administration. connell: are they going to push bannon out? >> it is such a weird place. usually the chief of staff reigns with these things or vice president. connell: you don't hear much about the vice president. >> or valerie jarrett key person to the president. this is very horizontal management structure. you have got bannon, you have priebus, you have these guys. right now the cohn, kushner, they're ascendant. bannon is not. bannon loyalists are going out there, listen, going on the offensive, if you get riof steve, they really think he might go or might be fired, if you get rid of him, trump get rid of him will be hard to get reelected. he needs that part of the trumpkin base so to speak. connell: talking about the show with north korea and cone text much all that, these moves, other domestic issues, the president clearly changed. >> he is becoming more of a globalist now. that is the influence of kushner and cohn. connell: not saying good or bad thing but definitely it is a
change. >> i think some of it is good. i think it is good we're not butting heads with china. potentially big trading partner. connell: right. >> we can do stuff with them. they're actually much more powerful than the soviet union. you know, having vladmir putin on your side just gets so much. you get some oil maybe. china is a huge economy. connell: right. >> i think some of that is good. where it gets bad, where we have to see is in tax cuts. is in tax cuts. do they go through on the tax cuts both on personal side, corporate side. we've been hearing, reporting they're not thinking of doing big corporate tax cuts. connell: counter intuitive two guys known for their place of policy expertise would be the economy, on both kushner and cohn you wanted to argue. >> they're much more liberal. they're liberals. connell: so they will not push for tax cuts. >> we don't know. i can tell you this, we reported this out on foxbusiness.com right now, we reported this out yesterday, my producer brian schwartz and i, they're looking at replacing the big corporate
tax cut, taking it down from 35 to 15, with something more marginal, kind of a gimmick. what they're looking to say, we'll allow you to repatriate foreign profits. these companies, all this money overseas, repatriate it. we'll tax you at 10%, instead of 35%. connell: on that money. >> on that money and some of it goes to infrastructure spending for a infrastructure bank. connell: cush in loves that. >> particularly cohn. goldman sachs is a big believer in that type of keynesian stimulus spending. that is part of their dna. those economists. that clearly has kushner and cohn written on it. not bannon. we'll see if that comes out. connell: i want to ask grover norquist about that. >> that is the perfect person to ask. connell: he is with us, at least listening. grover, having you joining us what charlie was saying at the end. what do you make of that, this, more and more influence from these two guys jared kushner and gary cohn that charlie is
reporting on may make the changes to tax reform what do you think? >> i kind of think not. the idea of taxing and repatriating or deeming repatriation a 10% tax on 2 1/2 trillion overseas, that was idea from obama. nobody wanted anything to do with it. the high-tech community felt completely betrayed by barack obama. if there is reason trump had an opening to the microsofts and the facebooks and google and all of the high-tech and industrial companies, is because he said he will take the corporate rate to 20 or 15 and go to territorial system so you can bring the money back permanently with no tax on the way back. this was a huge opening that obama was so mean and nasty and dishonest to the business community in promising them things, never delivering on the tax side. trump comes in and says, i will give you a better deal than you could have imagined. companies internalized that. they expect that.
stock market expects that. if they walk away from going at least to 20%, watch the stock market go down. if you start getting infrastructure tied into tax reform, then all of the money that revenue, that would normally go to pay for rate reduction disappears down the rat hole of bridges to nowhere. >> that's a freight point, particularly on the stock market. the stock market priced in a lower corporate tax rate which, it flows to earnings, right? so that's why stocks are up. we don't have an economy based, dow 21,000 based. my one thing is i would ask grover, you're in washington all the time. what do you hear they're doing? they keep, they tell us, when i came to them, came to the trump people, the white house with the, what i have heard out there, that from my sourcethat are close to the white house that he literally wants -- one of the ideas on the table i should say is replacing the corporate tax rate with this
repatriation gimmick tied into infrastructure, they did not push back. they said everything is on the table. mick mulvaney was on fox news, asked that same question by martha maccallum the other day was not pushed back. sounds like this is where they're going. are you hearing that as well? >> if somebody at the white house thinks that obama's tax policy makes sense at this point, they're going to be a little bit lonely. i don't know who they will talk to on house of representatives side or the senate side with this because the majority of the house and the majority of the senate have both agreed to go to 20%, to take the subchapter s-corporations, businesses that pay the rates to 25. republican small businessmen are expecting tax cuts. congressman and senators telling everybody for a year this was trump's idea because it was trump's idea. connell: to charlie's point, what you're hearing, grover, what are you hearing directly?
i would assume if the white house is working on a tax plan, at least some officials working on it in the white house would be consulting with you, are they and if so what are those conversations like and have they changed over last couple weeks when these reports come to us that the likes of kushner and cohn are on the rise? >> this is going to come from the house and senate. the white house will not negotiate with itself. the white house has a plan out there. it is the republican blueprint which is a 20% rate for companies, 25% for subchapter-s passers. i've talked to guys. only thing i heard white house guys, some of the folks we're talking about, we did promise 15, we did promise 15 i'm all for that if we can do it. if we start at 20 we should move towards 15. >> i think everything is up in the air. the white house has a plan, handed to him by three supply de economis, larry kudlow, steve moore, art laffer. connell: those guys are not
happy. >> they're not in the administration. kudlow almost got, i think gary cohn blocked him. connell: saw a quote in the paper that wasn't exactly complimentary of the current team. >> he was going to get. but my point we're back to square -- listen, they may come out tomorrow. connell: that messes up a timeline. >> let me be clear. 15% corporate tax rate, individual tax rates, go back to the plan they proposedded during the campaign. i'm just telling you that they are telling us everything is on the table. when you tell me everything is on the table and you used to have a plan, that means that plan has been downgraded. connell: what do you think, grover? >> everything is up in the air because the republicans in the house have not passed a trillion dollar tax cut, the mother mothf all tax cuts getting rid of obamacare. when they do, that than they will pivot immediately and run on tax reform the. connell: what if they don't? no way to do it other way around? no way to say we couldn't get health care done so we have to move on to tax reform. that is impossible?
>> you could, get a much weaker tax reform because start a trillion dollars back. connell: that might be what we end up with? >> that would suck, yes. >> not being green eye shade about this? >> we do have that in the cbo score. >> grover, ronald reagan did not sit there, uh-oh, the cbo is going to come after me. i mean, you know, there comes a point here -- connell: you're saying you have to be innovative. has to be a different way to figure it out. >> might be a point where you go back and say your way worked. cbo, green eye shade, obama mom it mix did not work. we have lousy economic growth. we have lousy wage growth. we have people hurting in this country. we're going to try something different. that is what ronald reagan did. by the way it did work. connell: doesn't sound like that he is working now. listen to grover, use your own words, if we do get something it will suck in your view. that is not exactly an endorsement. >> if we don't start by taking a
trlion dlars of obamacare taxes off of the table, u don't have room for a lot of other things. that's why it is so important to get the house republicans to focus, get this done. then move on. connell: something gets done at end of the year and comes obamacare repeal and replace first, taxes you're still relatively, what is your level of confidence that can actually happen? >> 80% they get themselves together to get health care done. we turn immediately to tax reform. as long as 20% for corporate rate, 25 for pass throughs, 16 1/2% for capital gains, trump paul ryan fan, everything else is fine. >> i agree with that but a lot of ifs there. connell: heavy lift. >> i don't know. let's be real clear. health care did not pause because of the freedom caucus. i know those guys. i like them. they're true believers. if you carrot and stick them a little bit, they come around you got health care reform. wasn't that stopped health care reform? connell: essentially.
>> they didn't think they were killing health care. they thought they were negotiating. trump thought he was lied to by them. he is a little irritated at them. they have also, i mean, stepping outside the economics, there is defunding of planned parenthood is in that health care bill. all of these very conservative freedom guys have spit in the face of the pro-life movement by not getting it done. that is going after them. connell: we'll wrap this. >> there was a lot of crap in that thing too. there were promises made, the way the white house negotiated that and ryan negotiated that did not create any sort of good will with the freedom caucus. by the way they gave them their pound of flesh at end. said, why are you giving to us now? why didn't you give it to us at the beginning? when you start negotiating like that, we need cooling off. mike pence might be the guy to do the deal. >> pence is working on it. >> that's good news. connell: thank you, grover. good discussion on all this. charlie, we'll talk to you a little later on in the show.
by the end of the year we'll see how it ends up. stocks yesterday fell. it is good friday, no market trading. with this "mother of all bombs" story, if tensions keep escalating what does it mean for the markets and your 401(k)? we'll talk about that coming up after a very quick break. we'll be right back. i have asthma... ...one of many pieces in my life. so when my asthma symptoms kept coming back on my long-term control medicine. i talked to my doctor and found a missing piece in my asthma treatment with breo.
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connell: discussion on taxes, obviously that all affects markets which are closed today but investors heading into the long weekend with sights set on not only whether tax reform gets done but what may happen overseas, afghanistan, north korea, syria, russia. with all that is going on and all in the news, stocks when you think about it are still relatively close to record levels. if these diplomatic issues keep piling up though, does that mean stocks will really make a serious turn to the downside? fox business network's gerri willis is here. former knave at this seal turned money among r manager, michael
zapata and market watcher jason. michael, start with you, where we are. what do you think in terms of everything hanging over this market it is up 3, 3 1/2% since inauguration day? >> i think it is a little concerning. market multiples are elevated. more so since the election. connell: risk is to the downside. >> risk is absolutely tohe downside. connell: what worries you most before we go to everybody else? >> what worries me most, domestic tax reform takes longer than expected and not to the amplitude most people expect, and global conflicts, syria, iran, seeing all that now. flashpoints. connell: that is the question, right, gerri? how much of it? people have adjusts expectations to election until now with a new administration what can actually get done. michael says, maybe enough is not baked in, what do you make of it? >> that is absolutely right.
you make a very good point. market selloff at the end of the week. people get out markets before the weekend hit. anything can happen. north korea out there. sabre-rattling seems concerning. issues across the globe. "mother of all bombs" dropped across afghanistan. people are concerned. let's keep in mind that the market is pretty robust. if you look what happened at end. week, we saw defense stocks playing pretty well. connell: that makes sense. jason? >> i disagree. i think a lot is baked in. trump said for quite some time he would wipe isis off the face of the earth. these are things we want to see him doing. i think syria attack was very precise and targeted. what i think would really impactedded market if we dropped "mother of all bombs" on obamacare. >> listen, you say this is all expected. talk is one thing, action is another. that's what we haven't seen. this week we started seeing
action. i think that made a big difference. >> but, gerri, we elected or america elected a president really a ceo, developer. when the electricity goes out at trump tower he doesn't call a speechwriter to figure out what to do. he calls electrician. same thing overseas. calls generals. what will dough we do with north korea. he is pragmatist and problem solver. >> i agree with that. connell: as much as it is big news story it is with the previous discussion on taxes if you do not get a large reform package through as someone like grover norquist says, we may not, if we don't get obamacare repealed and replaced you heard what he said it wouldn't be as good, it would be a watered down tax package. >> i think there are high expectations. with high expectations comedies pointment. what the market doesn't like, they don't like uncertainty. with the volatility index closer to 16, it could ramp up to 20 pretty quickly. connell: what are you assuming then?
when you make your investments decisions you're assuming what? that corporate tax rate comes down, get infrastructure spending through, what assumptions have you baked into your own cake? >> we like underappreciated stocks. we like cheap multiples, low mouth peltz. we're value funds. we focus bottoms-up. when we take the macro position we are longer our positions but shorter the market. >> if the market sells off five% if we go into north korea or strike north korea i think that is a buying opportunity. long run there is buying opportunity if the market sells off. connell: what if we don't get tax reform done? >> this is the thing that has been baked in for some time that we would get tax reform, that obamacare would be repealed and replaced and those 20 taxes in obamacare would go away, right? that is a thing many ways also a huge risk to this market. corporations already decided okay, i can reduce my costs here and here, i can expand here and there because i will get a big fax tax break. connell: grover norquist was
more pessimistic when he summed up outlook. he said this is not going to happen you about i think we can get it done. he thinks we can get obamacare and repeal done. >> why can't republicans come together? it is essential stop acting like the party on the outs and start acting like a party leading the country. connell: this seems like a scattered discussion there is scatter world and there are all sorts of cross kuntz. michael let me ask you about the geopolitics. we've been asking but the economics but your life experience would lend me to believe you have some thoughts overseas and everything else, what do you make of it? >> absolutely. there is a lot positives turing happening with the new administration, north korea and russia and putin there is a lot of lot of teing of this administration. what this administration is doing showing a strong hand and willing to do what is required in order to regain the footing on the global market and i think with that is concern because you have something like, kim jong-un who is out there, north korea, they're very volatile.
we're not sure what reaction is going to be. we don't know when they will stop do you think that is to us as well unpredictable nature to the president as well? i don't know how it impacts it all. >> absolutely. unpredictability, uncertainty, with increased elevated market multiples that leads to risk. >> just want to add on real quick that the unpredictability is a good thing to your enemies. the flexibility, that you're not an ideologue like barack obama was and dictate exactly when you go into the country or strike the country. connell: good points all around. thank you for coming in on good friday with the markets closed. we appreciate it. good to see you, gerri. we're getting breaking news or some of it on apple today. it is taking the next step towards self-driving cars. so that story has come up. now while our competition may be on tape and unable to cover it, guess what? we're all over it. plus united in legal trouble for that airline it may be just beginning after this disasterous
story. lawmakers, as you would expect they would, are chiming in. your flight experience could change as a result of that. we'll have a explanation after this. >> oh, my god, look what you're doing to him! your large cap equd has exposure to energy infrastructure mlps? think again. it's time to shake up your lineup. the alerian mlp etf can diversify your equity portfolio and add potential income. bring amlp into the game. before investing, consider the fund's investment objectives, risks, charges, and expenses. read the prospectus carefully at alpsfunds.com/amlp
for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $509 on auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. connell: shift gears here to the legal fallout over this united airlines fiasco.
it continues with democratic senator chris van hollen introducing a new bill to prohibit removing passengers who are already boarded on overbooked flights. the attorney, nicole is with us. are you in favor of this, nicole. >> normally i'm not in favor of new laws. in this circumstance though seems common sense did not prevail. they put officers and air marshals using force when these people should not have been allowed to board the plane the first place. maybe airlines need instruction from the law, not placing officers in position of having to use force where it should have never been necessary at all. connell: right. if you think about it logically did you ever think scenario force would be necessary before you get on the plane? then it would be just on argument, right? would be a verbal argument. >> that's right. if you don't have to reach into the seat to drag someone out of their seat and off the plane, that is much better scenario. if you are simply in the
situation where you're telling all of the folks at gate, we've to the overbooked situation and you try to resolve it there before anyone is on the plane, you're not in close quarters. you're not in a contained small place and putting police officers and air marshals? the-- having to decide they have to use force to extract somebody that is the worst position for law enforcement. connell: what is your view on overbooking in general? should that be outlaud? >> that may be too far. airlines do studies how much they can oversell a flight to have the right number of people on the plane to make it economically feasible to fly it. they should be allowed to do it. to the point it didn't work as they anticipated they should not put law enforcement in the position of having to remove the earnings. connell: crazy story, thank you. nicole deford with us on airline story. we're getting new comments
meantime from china on a growing threat for north korea. president trump giving new details on a border tax. a fox business exclusive. we'll play that for you, debate that for you. a busy hour number two. "cavuto: coast to coast," coming up. yes? please repeat the objective. ♪ thrivent mutual funds. managed by humans, not robots. before investing, carefully read and consider fund objectives, risks, charges and expenses in the prospectus at thriventfunds.com. thithis is the new new york.e? think again. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment.
north korea, kim jong-un being defiant, north korean officials warning about a test of nuclear weapons whenever they so choose. let's start here before we have a discussion about it with blake burman who joins us with the very latest on all of this. and i know the president will not be there at the white house this weekend. but, boy, it's not going to be a quiet holiday weekend, even down in florida by any stretch, will it? >> no. not at all. down in mar-a-lago, connell, and the white house official telling me earlier today here at the white house that this is something the north korea situation that they are continuing to monitor very closely, and i was told by this white house official that includes the president of the united states. there's a whole lot that north korea could test a nuclear weapon underground at some point maybe tomorrow as it is their big national holiday there in north korea. and top officials inside that country are not backing off that threat. take a look here at what the foreign minister told the associated press in an interview today as it relates to a possible nuclear test
quote that is something that our headquarters decides that time and at a place where the headquarters deems necessary, it will take place end quote. that vice foreign minister also saying that north korea is building up its nuclear arsenal in quantity and quality. also saying that they are ready to go to war. connell, there is a lot of tough talk on this day coming out of north korea as it relates to all of this. i want you to take a listen here to an interview that greg just did inside of north korea, and it gives you some context of their thinking there inside the north. this is an interview with the colonel inside the north korean military. listen. >> even though that the u.s. trying to invade our country to attack, do it because we have such a mighty strength and if they do, then we would smash the head and blow them up. >> we would smash their heads, we would blow them up if
there's an invasion. step back for a second, connell. the white house here pushing back on this report that is out there from nbc news that the u.s. could preemptively attack north korea if indeed the north korean's go down this nuclear test. one white house official i was speaking with earlier today saying that report is entirely overblown. a lot of push back throughout the as it relates to that report. in all of this, connell, i'll leave you with this. the vice president mike pence begins an 11-day trip to that region. he'll be in south korea tomorrow as the north hosts their major holiday and potentially has this underground nuclear test. connell. connell: boy, oh, boy. you're right. he's right in the middle of it. hey, real quick, blake, on the push back, the nbc report you referenced. that's pretty aggressive push back, at least what i've taken away from some of your reporting, some of our colleague jennifer griffin's reporting. more so than what we see on other stories. they seem to be almost upset
about it. >> overblown was the word that i was told. and if you think about it, connell, i mean, that's a major not allegation but at least a major report, a preemptive strike would be something of massive proportions, especially when you're dealing with north korea and the entire instability there. so the feeling that you're getting coming through all levels of government, whether it be at the pentagon or over here at the white house is this report calm down with it overblown was the way i was told. connell: all right. blake burman on the white house on the north lawn. it's busy day there, even with the president out of town, it's a busy day here. you have china adding to all of this, the tension between u.s. and north korea saying it has to be stopped. so can president trump rely, maybe on china to help him out when it comes to kim jong-un and north korea? we have former army intelligence officer andrew pique with us here in studio. good to see you and as blake was saying, there's a lot going on at once. are the chinese helping us out
here do you think? >> you know, the statements coming out of china over the past week are striking because for the first time, they are criticizing actively the north korean regime through state-owned newspapers and urging north korea to avoid provocation, so i think they are helping us in that. the concern for china is that provocations by north korea give the u.s. cover for strengthening its military allies, particularly japan and south korea. and the chinese view over the long run, those countries, particularly japan as a sort of long-term strategic threat that they don't want to see get stronger. connell: the reports of the north korean coal, so maybe there is the idea that there was some effect from the conversation president trump had with the chinese president. do you think there was holding trade out there as a carrot in all of this? >> yeah. the coal ban was huge. i mean, coal is the majority of north korea's exports, 90% of north korea's exports go to china. so the fact that they're
turning away coal imports i thought was a significant shift. maybe more than the conversation the president had with them was simply the president's action against syria. i think that is a genuine deterrent effect, and i think the chinese would like to see the north korean situation not escalate any further. connell: yeah, we were having a conversation to some extent last hour that the way the story's come out, we should focus on the story of the day and the mother of all bombs in africa, and it may be important that that type of weapon was used. i don't know. but it seems to be a consensus from experts and people who have been in the field like you have the serious story and the serious strike has more kind of long lasting geopolitical effects. is that fair? >> absolutely because the u.s. changed the policy of its predecessor. the u.s. finally stood up to its own red line. you know, we took an action that i think a lot of rogue regimes around the world like iran, like syria, like north korea thought we wouldn't take. connell: so what do you think north korea think so now?
they think president trump's serious? >> what concerns me with north korea right now is that kim jong-un came to power in 2012, so he has only known the red lines and limits of barack obama. i don't think he quite grasps that the ground has shifted a little bit. so this is as we head towards, you know, the nation's celebration tomorrow, i think there's a genuine chance for a confrontation. connell: really? when you say confrontation, this may sound like a silly question but what do you mean by that? >> well, i think almost certainly the north korean's will go ahead with some kind of nuclear test. i think in response, the most likely u.s. response would be ships heading toward north korea, some exercise. i don't think we'll see a military clash. i mean, as you know the white house push back on that report very hard. connell: it could end then, i guess more sanctions. it seems like we have so many sanctions imposed on north korea already, don't we? >> we have two rounds of un sanctions after each of
north korea's major nuclear test. i think there could be additional ones, and there could be an increased willingness to help us in north korea as well as in places like syria. connell: yeah, that's the real question and maybe the real effect of all of this. that china becomes more cooperative with us. thank you, andrew peek. and as we continue to talk about north korea, there's a question about the president's role in all of this, our president as well as the north korean leader kim jong-un. but president trump's role in how he communicates. especially when he communicates over twitter. north korea official had been saying that the president is actually adding fuel to the fire. now, you could argue that's just an excuse for aggression or something like that. or maybe there's something to it. from the independent women's forum, chris wilson is also with us and democratic strategist andrew feldman is here as well. has hadly, let me start with you because we always talk
about what we think of north korea. but what they think of us is also impornt. do you think the way the president speaks publicly sometimes off the cuff as he did yesterday or as we know sometimes in the way that he tweets in the language that he uses affects that perception and if so, how? >> that's right. it's sort of the tweets heard around the world; right? twitter has become and social media has become an opportunity not just those of us who are sort of nobody's to express our opinions but people like president trump and world leaders pay attention to this kind of thing. so of course the words we use and the words our leaders use are important. i think a lot of what we're seeing out of north korea is not just a response to th the president's twitter account. but the u.s. is changing stance and action in the middle east like what happened in syria with the missile strike. so this isn't just a response to words but a response to action and the u.s. on north korea cannot be one turning a blind eye, cannot be one of inaction, obviously the atrocity of human rights and tough talk coming out of north korea, quite frankly. president trump isn't the only
one talking tough about a potential conflict. connell: when you think about it, chris, i don't know what your point of view is on this. but if you think about the way the news stories are reported here, you'll hear in mainstream reports that, oh, that crazy person over in north korea, and that is a reference to the leader of the country. and kim jong-un. and that's how it is reported here. and being serious, that's how it's reported all the time and how it's often being discussed, and that may be the right way to discuss it. but i wonder how the conversations are in north korea when they see the rhetoric used on twitter or the conversations that are off the cuff and comments that are made by the president of the united states and how that affects how they deal with us. the unpredictable nature of this new president. what do you think? >> well, i think andrew's point a little bit ago was probably exactly right in terms of how this is being dealt with in north korea is kim jong-un came to power in 2012 and so his entire reign he's had nothing but the obama policies strategic patience, which is really a synonym for doing nothing to deal with. and during that time, they have -- let's be blunt. they have prepared for war with the united states.
they are close to shrinking a nuclear weapon and putting it inside an icbm that they can launch and land here in the united states. and there are reports coming out of theentagosaying that could happen as soon as 2018. so we're in a situation now that time has run out. we may be as little as a few months away from them having the capabilities of attacking us. and, look, they already have attacked us. you look at the hacks and cyber warfare attacks that have taken place. this is a situation that i believe the president is taking is probably a right one. we cannot stand back and do nothing at this point. this regime cares about nothing but staying in power. north korea is nothing but a prison camp for its citizens. they don't care about economic sanctions and the fact is that nuclear warhead is their ace-in-the-hole to be able to stay in power and as long as they think they can achieve that, then they don't care what the rest of the world says. and that's why it's important we no longer sit back and practice strategic patience. connell: you're referencing andrew's point, and i want to ask you what you think about
all of this and how the communication strategies impact the policy that ends up being made after the communications go out. >> connell, it's great to be with you again. look, i've said for a long time that twitter diplomacy or twitter foreign policy is not the way the president should be going about things. but, look, he is -- those are things -- you know, those are things that he does. he is, you know, a loose canon in that sense but here's the issue. this is not a partisan issue we're dealing with; right? both democrats and republicans can acknowledge we need to make sure that north korea does not get a nuclear warhead. so, look, the question here is what happens with president trump's inexperience on foreign policy? because he is one of the most inexperienced foreign policy presidents we've had in decades, and i get worried that when he's tweeting up a storm that this is not good -- a good way to make sure we are working with china and working with our allies to stop a nuclear warhead from happening. but, look, let's be clear.
this is not a partisan issue. connell: he would argue i'm sure, has hadly, don't you think that the president has made some progress with china and did so face to face with the chinese president. i don't know if it's true or not. in a time i guess it's one of those -- i hate to say time will tell, b it actually will in this case. what do you think of the president has gotten done so far with china? >> well, that's right and some analysts would suggest that we're not going to find the solution to what's going on in north korea without help from china. connell: uh-huh. >> and obviously the situation there with our allies in that region is complicated. when when it comes to china's recent decision to stop importing coal from north korea, i think that's a sign for progress, for cautious optimism. 56% of the people in our recent cbs poll says they have misgiving about purpose's able to handle north korea. 39% confident in his ability. so as we continue to watch things unfold, we can stay step by step some steps in progress and maybe that will increase american public perception that president trump can handle this.
connell: we're getting closer and closer -- >> connell, one thing to add. connell: i want to give you both a quick chance to say what you're expecting or fearful of maybe this weekends. andrew, you were jumping in there, so why don't you make your point and we'll wrap it up. go ahead. >> look, i think we are making some progress on china. the problem is the president doesn't communicate to the american people what's going on; right? so the question is here, you know, what is really happening in those meetings? i hope that he is continuing to not only have tough talk but continuing to talk to these leaders and actually make some progress, and we need mike pence to really lay out a strategy. since the syrian situation, we haven't heard a strategy. we need a strategy that american people deserve that, and i hope we get a strategy from president trump. connell: what do you say to that, chris, the idea there's military action, yes, we've seen it in syria and yesterday in afghanistan. but there also has to be a strategy, a longer term
political strategy that is included in that. what do you say, chris? >> well, i think donald trump has made it very clear from the very beginning that whether you agree with it or not, he's not going to telegraph what his strategy is. he's very critical of the obama administration for saying what they were going to do and then it would fail because the enemy knew what was happening. frankly, i think there is a little bit of benefit when it comes to dealing with north korea forth to be a bit of a chaos theory approach to it in the fact that they have no idea what's going on. which is a very different approach than, again, the failed stregatience approach the obama adminiration. and the reports coming out of china and the president's comment being far more supportive than we've seen in the past i think shows that they recognize the destabilization of korea could be very damaging to the entire region. and hopefully they're coming around to more of the u.s. point of view in terms of what has to be done here. connell: we'll watch it all weekend. has hadly, chris, andrew, thank you. a good discussion back and forth between all three of you, and we were just speaking a moment ago about vice president mike pence heading to south korea. charlie gasparino is coming back with some news on that and what the trip may mean for
. connell: back to this mother of all bombs story and the message is sent out, some concern after that from investors even speaking to when wall street resumes next week. our next guest, though, says it was the right bomb at the right time. retired lieutenant general thomas with us, director for the center for national defense at the heritage foundation. right bomb, right time, general, tell us why. >> connell, thank you very much. so this is a bomb that has been in afghanistan for some time now. the target were presumably in tunnels, caves, in a isolated area in a province. no civilians nearby, no real easy way for u.s. forces to get there. this bomb came in, it could take out a number of people and surprise them. so with little bombs, people get a heads-up, they can take cover. with one big bomb, no warning, and you can kill a lot of
e tunnels. connell: you know, it's interesting because there's been a lot of obviously reporting on it the last couple of days any time something happens that has never happened before, you're going to see that. but to your point, it could have happened before. the authorization has been there, and we learned in today's reporting that the authorization for this general to use this type of weapon was even there in the previous administration or at least we're told that was the case. but you point out, and maybe it's an important point to make that as strong as this is, as strong as this weapon is and the big title of it, the acronym mother of all bombs it's no way near nuclear. you made that point, you thought it was an important point to make. >> yeah. there was a lot of early reportings turning to equate the moab, mother of all bombs used in hiroshima, and they're nowhere near. they're thousands of fraction of the power of one of those bombs, so i think people become especially at the start as you mention a little breathless about this bomb and
a little perspective and context is probably useful. connell: so will we see more use for this type of weapon? and if so, what's the strategic significance of that? >> yeah. i think we probably will. there are not many of these bombs. there are only 16 as far as i know in existence. maybe 15 now that we've dropped this one. it requires some special circumstances. you have to be far from civilians and cities. you have to have a fairly lucrative target because it's a 16 million-dollar weapon. you don't want to drop that on two or three people and take them out. but i think in the situations where there's a fairly good-sized target away from surveillance and their cities, i think we could see this again. connell: the other conversation, general, that we keep having this week is that is what -- in terms of what might happen next is whether as you say it may be used again and certainly nowhere near nuclear. but what's the message? everybody says, well, is there a message to north korea?
is there a message to syria? is there a message to isis? is it always a larger message? or is it just about accomplishing some sort of strategic initiative in this case going after these fighters near the border with pakistan? what do you think? >> i don't think the general in charge over there, general nickelson intended it as a message. i think he's over there trying to prosecute the war as best he can. other people will look at that and probably take something away from it that the united states, the commanders on the ground have been given the authority to prosecute the war, the restrictions, all the limitations that might have been there in the past have come off, so i think that does send a message. maybe not the same message that some people are kind of reading into. connell: well, it would probably be a larger message; right? if it was the president himself authorizing this specific bomb being used as opposed to a general taking advantage of an authority that he's been granted by the president; right? >> i think you're right. but i also take a lot of comfort the fact that that general has been trusted enough to use a weapon never been used before, and he's been granted the authority to use it. connell: you think the culture's really changed in
the military? >> i do. i think we have seen this over the past couple of weeks and months. generals have been given authority to conduct operations and strikes in somalia that they did not have before. i think things are changing. connell: so all positive you think? no risk to that? or is that -- that's a good thing. i'm sure people in the military, that's your background would argue, yeah, we needed this; right? >> i don't see a draw back. you know, there are standing rules of engagement that weapons can only be used in certain circumstances. civilian casualties minimized. the generals, the admirals, they're well aware of those rules, so i don't think there's any dangers in this. connell: all right. it's a good discussion and good perspective now that we have at least a day to step back. general, thank you very much, sir. we appreciate you coming on with us. >> thank you, connell. connell: the republicans facing, you know, a lot of scaming, for lack of a better term, during recess at these town halls. people get up on stage screaming and yelling at them about what they're not getting done particularly with regard to health care. up next, what they all can do to make these angry voters maybe a little bit more quiet. yes?
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♪ >> that's not my job. i pay to you figure that one out. >> he said you pay for me to do this bull crap, i paid for myself. i paid enough taxes before i ever got there for my company to pay my own salary. this is a service. no one pays me here to go. i do it as an honor. >> i'm a saying, thiis service for me. not a career. i thank god this is not how i make a living. connell: that is a little taste of town halls. congressman mark wayne mullen, faces backlash for he goes back for a town hall. anger not getting tax cuts through. usually maybe health care and tax plan through and things get better. republican congressman robert pit tinder there. >> he is good man.
connell: i'm paying taxes forever. i pay my own salary here. i'm sure you're experiencing some of that. what do you make the environment? >> people are concerned about what the future holds. we had a campaign, an election, that was very divisive. you have a split country. certainly most of the people who show up now at these town halls are those who frankly voted for the other party. they're coming out to express their concerns. it is valid. i appreciate that. connell: i can certainly understand that side of the argument. they are not people that didn't support you in the first place. what if they are people that didn't support you. congressman, i've been listening to you and your colleagues say we need to repeal and replace obamacare. you had all the years to come up with a plan. doesn't seem like you have. they say to you what are you going to do about it? what is your answer to that question. i'm sure you get that. >> couldn't agree more. we're there to govern. ronald reagan was the model in
governing. we need to follow his practice. ronald reagan was once asked, some people think that i have lost my convictions. and he said, i really haven't. but some folks want me to just off a cliff waving the flag. i will come to the table and find common ground with those i need to find it with. i take 50% now and another 50% later on. so we have to govern. we have to be respectful of the requirements of other people who represent different constituency groups. some of us come from rural areas. some from urban. some from poverty, some from more seniors. republicans sit around the table, we're a broader range of individuals. you have got a few people holding out right now. we're in frankly in agreement of 95% of what needs to be done to reform this debacle of health care. it's a colossal failure major carriers are pulling out. aetna said it is on a death spiral. we have to reform it.
we've got to come to respect an agreement for us as a body, us as a team it, that we have to move forward, we need to pass this legislation. we can't keep moveing goalpost, give him an attaboy, we're with you, and not come to agreement. connell: away from town halls a bit, to specific policy questions. can i request you to give us some sort of a prediction for out look what you think will happen. will you get this repeal and replace done? if you don't, move on to tax reform or is it a must, you must get health care done first? >> it is important to get it done. there are trillion dollars of health care savings. connell: move on to health car reform. you have to get health care, no matter what? >> i think healthcare is first base. this is critical we win this one before we move on to second base. there is momentum good or for bad. we need to win this one. connell: that is what the
president was saying. congressman pittenger, thank you very much. we'll follow up. >> happy easter. connell: you too. the media and some other groups on the left have been focused a lot this week, we've seen a lot of coverage of president trump's policy shifts. now what will all that mean? rasmussen political analyst, amy holmes. to be fair there have been shifts. you can pick out your issue. a lot of people focused on nato. there have been comments made on china and import export bank, all of these things. there have been different comments made now than they were in the campaign buy by candidate donald trump. that doesn't necessarily mean that is a bad thing? doesn't necessarily mean that you change your mind it's a bad thing? >> donald trump was not this right-wing zealot the left painted him. connell: he was not idealogically. >> he was never idealogical. during the campaign he changed his mind. he wanted a muslim ban. he rolled that back. he wanted extreme vetting.
donald trump, if republicans want ad conservative they could have nominated jeb bush. connell: right. >> or ted cruz or marco rubio or carly fiorina. connell: he is not idealogical. the political risk in all of this, he has idealogical base of supporters who elected him thinking -- >> no. actually, connell, that is where i disagree. connell: in what way? for example they didn't think they would have interventionist president. >> right. connell: they thought he was going in and starting wars overseas. we see the strike in syria and some of those people are angry about it. >> if you like primary, their supporters were across the spectrum. connell: they wanted change. >> he picked up as conservatives as conservatives dropped out of the race. if you look at republican primary voters idealogically they were across the spectrum. they wanted strength and change. i know donald trump's pollster from the campaign. he said every day we drove the message of change. connell: that makes sense. i understand that argument. i understand that argument 100%.
>> if they want ad cut and dried washington politician you would elected hillary clinton. >> others available on the republican side. >> exactly. connell: there were 16 running. people who support, these are identified, i don't know if it is right term as true believers. >> trump percent. connell: steve bannons of the world, trumpers some of those are not happy. they think the president betrayed is too strong a word but gone against what he said. >> certainly some are not happy particularly when it comes to the middle east and policy intervention. connell: even trade with china. >> tweeted don't get into syria. we did the tactical strike in syria. connell: yeah. >> those people were not necessarily idealogical. when it comes to the campaign promise gets tough on immigration, jeff sessions got very tough on illegal immigration. i think trump supporters can be very heartened by that. connell: you think contrary to popular belief that he is not disk losing his base over some of these actions? >> i think that if these actions quote, using trump terms, wins,
if he gets wins out of this, he doesn't have that risk. he has to lead. he has to govern. he has to govern with strength. connell: that is the bottom line. that is what motivates the president when he was businessman and successful. not ideology. >> right. connell: they should have known that. >> he wrote a book called "art of the deal." connell: that they got a president not married to one ideology or another. good to see you. >> happy easter. connell: you too. it was fox us close sieve interviewith mia. i'm sure you saw. something dividing many in the republican party. one thing you won't get from the other business network today? this trailer, part of a new movie. you guys are lucky neil is not in today for this. ♪ it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it. what are you supposed to do?
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everyone bows crazy because they like free trade. when you say a reciprocal tax, i'm not saying that is not what i'm doing, but there has to be a certain reciprocal nature to it. when you say reciprocal tax nobody can get angry. even the other countries, if they're charging 50% tax, okay, whatever you charge we're charging. >> like china and india? >> they may not like it but they can't get angry because they can't win that battle. connell: president trump in his interview with maria this week looking to rename the border tax, describe it as a little more appealing in the process. does that work? we have a couple market watchers with us right now. steve cortes and jonathan hoenig. steve is inclined to be a fan of the president. jonathan not so much but i don't think either agree on this point. jonathan because you were the laughing over the intro i will allow you to go first. you find humor in the way -- >> he remaim name it, when the
democrats renamed government health care the affordable care act. renaming it didn't change its nature. this is what the president is advocating for, connell, a tax on trade. you can call it border adjustment, tariff, call it whatever you want, this is a tax on trade. central planning like soviet russia. maybe that's where the president gets the idea. connell: come on. >> the jobs will come back. this was disproved 200 years ago with the wealth of nations. i don't know if the president read it but he should. connell: you're inclined on most issues believed to be a support of the president, is this bad economics by any name? what do you think? >> i very rarely disagree with the president. i would modestly on this. i don't like the ideof a broad border tax, calling it reciprocal isn't just a change in name it, may represent a very well a change in strategy. one of the reasons he won, this is correct, i think free market economics is that we right now are in some terrible trade deals where there is no reciprocity.
meaning china and sell its good and services almost freely into the united states and we have no reciprocal rights into the chinese market. that is just up did. it's a bad trade deal. if we have to use taxation to way to get a free, good trade deal, that makes perfect sense for america. connell: to the point, steve, still a border tax? doesn't seem like a different policy. strategy is one thing but not a different policy, right? >> sure it's a border tax but the point, when he says reciprocal, what we're saying if you play by the same rules in terms of imports into america that we will then play, be our exports we're fine. but if you don't, we have, by the way, we have acted for so long in the night as if we don't have the strong hand in sort of this poker game of trade deals. what donald trump is saying, we hold the strong hand. connell: okay. >> the entire world needs access to the american market because of that we'll finally demand ross prosty. connell: jonathan has one more point and one more topic. make this quick, jonathan,
response to steve. >> we hold the cards if we're free. to steve's point what do we say, we can't have free speech until china also has free speech? we have to make that reciprocal. free trade make this is country prosperous. always made this country prosperous. that is the direction we should move on trade. connell: this is the other topic. this is completely different topic, story broken today about apple. apple secured an autonomous vehicle permit in the state of california. it allows testing on public roads. i will start with you, jonathan, on this. then we go back to steve. idea of self-driving considers, what do you make of it as business decision from apple's point of view. >> only in america! this is where this is happening, connell. silicon valley is best example of it. every two or three or four years, come out literally miracles on earth. i'm all for apple. you seen it in it is stock price. not too far from its all-time highs. this is the way it was in free economies.
200 years ago, faa would have said no, no, you can't use wings. encourage companies like apple, let them test, let them inknow straight and thrive. connell: what do you think, steve? >> i agree with jonathan. we're in like mind. there is innovation in the state of california alone than the rest of the world combined. one. reasons, jonathan is right, tech, by and large untouched by government. unregulated. amazing what american capitalism can do when regulation is rolled back. by the way president trump already taken significant action to roll back regulation. there is more to come. connell: i'm sure those companies, apple included would like a corporate tax break to add to that, make it more competitive. >> amen. connell: do you either of you guys think that get done? that is big topic already or are you starting to get worried about taxes, jonathan and steve we'll wrap it up. >> front and center of the elements of campaign but a lot of elements have been reversed.
what about cutting spending and taxes. that is what republicans used to be about. i'm not sure about this president. connell: steve. >> tax reform will get done. i will challenge joe namath, we will get tax reform done. i guarranty it. connell: we'll go with one finger wagging as you leave the studio. good joe namath reference. sales from retailers fallen in the second march of month. worst two month stretch we've seen in two years, when you put it all together. speaking of putting it all together, that is what jeff flock does for a living. he is at lincoln mall in illinois. reporter: there may not be a zombie apocalypse but may be a zombie mall apocalypse. this may be the last sights of the lincoln mall in the town of madison. this is about to be torn down. they got the permit to tear it down. if you like inside of the mall you see one of those, that is
not long for this world. you know. one analyst today in light of retail sales numbers says america is grossly overstored. many more stores than they need. and many of them are in malls like this. we've got exclusive pictures for you, by the way inside of this mall. fellow who wrote a book, called, "autopsy in america," took some of these pictures. this is happening all over the country. and i tell you, the experts say it will get worse. why? because it was about 10 years ago, just before the 2008 financial crisis that a lot of malls did some heavy borrowing, ten year notes with a balloon payment at the end. if you do the math, 2007, 2006, 2008, they're starting to come due. we could see, maybe an apocalypse of mall closings. this is one of the zombiemas on the list. still here. but for all intents and purposes dead. connell. connell: wow. the timing is something, you're
right about that, especially financing 10 years out. jeff, thank you for that. jeff flock with a very important story today. another one we've been talking about throughout the program involves the vice president mike pence and his big trip heading tomorrow to south korea as tensions have been escalating with north korea. back to charlie gasparino with news on that after this. ♪ the comfort in knowing where things are headed. because as we live longer... and markets continue to rise and fall... predictable is one thing you need in retirement to help protect what you've earned and ensure it lasts. introducing brighthouse financial. a new company established by metlife to specialize in annuities & life insurance. talk to your advisor about a brighter financial future.
♪ connell: well the vice president is heading to south korea this weekend. tensions certainly as we and everybody else have been talking about between the united states and north korea have been escalating. charlie gasparino is back now on this mike pence trip and maybe a bit of a go-to guy, vice president pence, i don't know. >> listen we were talking with grover norquist earlier today about taxes and about health care and how important it is to get the tax cut plan. i know you just had jonathan hoenig talking about tax cuts, where is it? he is an investor, jonathan. connell: yes. >> every major invest saying please give us the corporate tax cut. but it is being held up by health care reform and freedom