tv Lou Dobbs Tonight FOX Business October 12, 2018 4:00am-5:00am EDT
>> there is always a chance and that's why i disagree with it. >> we have to leave it here. >> good evening everybody. our top stories tonight. the strongest hurricane to hit the continental united states and more than half a century bringing devastation and destruction to the florida panhandle. what is not tropical storm michael is making its way out of the carolinas leaving almost 1 million people without power and crushing some towns and communities and taking lives. we will take it to the hardest hit areas. plus, volatile day on wall street. stocks falling sharply. trump is saying it has more to
do with policy from the federal reserve than any other influence. the president putting what is now an official market correction in proper context. >> we are still up 40%, the markets are way up over what they were. it's a correction that i think is caused by the federal reserve with interest rates, the dollars become very strong which, frankly people can debate whether they like a strong dollar or not. >> no debate about the strength of the market though. despite the correction, the dow jones industrial average since president trump selection remains nearly 6800 points higher. the president boasting that the strong economy and his continued success will allow the republican party to keep control of congress and gain a stronger advantage in the senate.
we'll take that up tonight. they join us for what appears to be a presidential -- for the grand party we will take a look at the movement that began under president obama that has fundamentally transformed the identity of the democratic party. it's leaders working hard to assemble angry left-wing mobs and higher anyone in protest anything if the price is right. there is no political correctness, only vento men hate. >> don't hate. >> your little whitey, aren't you. >> we will look at the modern democratic party that has been radicalized almost completely. california's republican national committee chair woman is joining us tonight and i missing
washington post columnist feared dead in turkey. accusations that saudi arabia murdered him. general jack joins us on that as long as the tentative white house to to release an american pastor held in turkey. we begin with tropical storm michael as it takes heavy rains to the carolinas and high winds to virginia. what was once a category four hurricane that registered as the third most powerful storm to hit the united states has left a vast trail of destruction. killing almos six people. rick leventhal has our report from panama city, florida. >> for many residents of panama city, the only way to get out is with a chainsaw. hundreds of roads are blocked by
down lines and trees. including 150-year-old oaks. major thoroughfares are reduced to one lane. buildings are shredded. there is no power and limited phone service. >> i prayed a lot. i was in a bunker and just prayers. and how half of this mistress, i have no idea. >> florida governor surveyed these from the sky. >> this has devastated our golf coast and panhandle. lives have been changed forever. homes are gone, businesses are gone. sue mcmichael made landfall east of panama city and mexico beach as a category four. winston topped 155 miles per hour. swamped vehicles and flooded streets. the strongest hurricane ever to hit the florida panhandle sue make it busted the sliding doors we had to go to the fourth floor. the rain and wind was so strong he didn't know what was going
on. >> 25 miles to the northwest, the air force base suffered widespread catastrophic damage but no injuries. >> president trump said the storm seemed to have one saving grace. >> unbelievably destructive, powerful. one good thing we can say is that it was the fastest hurricane anybody has ever seen. it was speedy. >> authorities say at least five deaths have been confirmed in bay county alone were half of the 120,000 people told to evacuate actually did. >> i've lived in st. andrew since 2007 the panama city for over 60 years. this is the worst i have ever seen. my parents have motels on the beach and we've never left for hurricane. >> the only people getting in our utility crews and first responders. police and the national guard have set up roadblocks telling
people you cannot go home yet because this is what home looks like on street after street, blocked roads impassable or too dangerous for residents. three dozen healthcare facilities are evacuating patients to other cities because of issues because of power, water and other problems. the situation remains very fragile. >> thank you. the some of the worst damage. the nasdaq is following into correction today. the nasdaq is down 1.3% in the session. the dow and s&p have more to go to be in a correction. both are down about 6% from recent all-time highs. president trump today weighed in on what was a session of volatile trading. the president lanes and out-of-control federal reserve and its rapid pace of interest
rate hikes is what has been this long anticipated correction. >> i think the fed is out of control. i think what they're doing is wrong. i think they are far too stringent and they are making a mistake. it's not right. despite that, were doing very well but it's not necessary in my opinion. i think i know about it better than they do, believe me. >> lou: there is an axiom in monetary policy. the fed raising interest rates without the presidents inflation could be considered arbitrary somewhat even say capricious. either way, the president putting his opinion straightforward to the american public. the general business was so overwrought. they would have you believe that the market was to blame for this correction that trade was to
blame. here's what one of the countries leading market thinkers had to say about president trump trade balance initiative. >> the more likely outcome is that china will understand what korea, mexico, canada have understood. what europe is in the process of understanding. in a trade war with the u.s., the best outcome for you is make concessions. diffuse tensions. >> a reminder since president trump was elected dow remains up 6793 points. not a bad return. all bull markets experience corrections. eric holder, the former attorney general responding to his thuggish threat against republicans sue make it is time for us as democrats to be as tough as they are, to be as
dedicated and committed as they are. michelle would say when they go low, we go high. no, when they go low, we kicked them. that's what this new democratic party is a part. >> lou: this new democratic party that he has much to do with transforming. holder tweeted in part well, i'm obviously not advocating violence. i'm saying republicans are undermining our democracy and democrats need to be tough, proud and stand up for the values we believe in. what values does he believe in? he's the only sitting cabinet member ever to be held in contempt of congress. it's quickly becoming a party of hate fake outrage. what are those democratic values he's talking about? we have been told by trysail presidential candidate, hillary clinton that it is not civility.
>> you cannot be civil with a political party that wants to destroy what you stand for, what you care about. if we are fortunate enough to win back the house and or the senate, that is when civility can start again. >> a price for civility. the price tag is high. all hillary clinton wants his control of the government. her recommended lack of civility has been seen over the past two weeks. radical leftist client at the doors of the supreme court to try to assault justice brett kavanaugh and an elderly motorist verbally attacking a senior citizen in a wheelchair, disrupting traffic in portland and an angry mob violently shouting at ted cruz and his wife until they were forced to leave a restaurant in d.c.
>> that is your new democratic party. it all started under president obama. some wonder how much of this he is orchestrating as he attempts to be a shadow leader of his party. remember the scope from 2008? if they bring a knife to the fight, we bring a gun. does that sound familiar? does that sound like the beginning of this vast fundamental transformation he sat for the country but certainly has carried out for the democratic party. it has come so far the dams will do anything they can to stop republicans. with president trump empower they have gone blind with rage. nancy pelosi telling the chronicle editorial board that the dems would make exposing his tax returns. that would be the top priority if they won the majority in the house. how's that for deep thinking,
visionary talk of the minority leader. the dems are so far beyond civility or any integrity they will do anything they can for power and viciously go after republicans instead of working on issues that matter to working men and women, the middle class, and focusing on american values and the american way. the democrats have lost their way. up next, breaking news on the deep state infusion and glenn simpson. president trump is not happy and rod rosenstein has refused to testify. rnc committee woman joins me. we way on hey guys. today we're here to talk about trucks. i love trucks. what the heck is that?! whoa! what truck brand comes from the family of the most dependable, longest-lasting full-size pickups on the road? i think it's the chevy. ford. is it ford? nope, it's not ford.
were learning about the tense relationship between rod rosenstein and former fbi chief, andrew mckay. during the critical months of may 17 with special counsel robert muller was appointed. fox news learned that days after the appointment muller met with mccabe and rosenstein with rosenstein and mccabe arguing over who should recuse themselves from the russia case. mckay believed rosenstein had a conflict because he wrote the memo used by the administration to justify the firing of james comey in may of 2017. mckay believed rosenstein could be called as a witness of obstruction against mr. trump. rosenstein said mccabe acted on ethically and then he put a central role in the 2016 investigation of hillary clinton's e-mails on the mishandling of classified information. all this matters because of the connection to a former top fbi lawyer, james a baker who testify behind closed doors last week.
baker said mccabe it told him rosenstein comments about secretly removing the president removing him from office was serious. the president personal attorney confirmed that earlier rosenstein assured the comments were sarcastic. giuliani did not believe rosenstein was serious about removing him from office. during a phone interview this morning, the president questioned if all that was true why rosenstein didn't go to the hill to set the record straight. >> i was surprised at that. he mentioned certain things to me that are very positive about that event. i would imagine you'd want to put that down. frankly whether you are under oath or not shouldn't matter. he mentioned things to me that i think would be fine for him to testify. when congress calls. i'm a little surprised that rod would into it. >> they asked if rosenstein was refusing to transcribed interview under oath which is a standard for handling witnesses,
the spokesperson referred our question back to the committee. >> lou: that's fascinating. were learning more about the role of andrew mccabe and making it possible for there to be a special counsel. rod rosenstein to choose who that counsel would be. >> there is also late breaking details about the cofounder of fusion gps, glenn simpson. fox news obtained this letter sent to the house judiciary committee. it confirms that simpson is going to take the fifth if he's called to capitol hill. that letter says he quote will invoke his constitutional right not to testify under the first and fifth amendment to the constitution. this committees require is not designed to find the truth. the obvious and goal of this committee is to discredit damage
witnesses. they say simpson is facing legal jeopardy. in one episode he told the senate panel last year he did meet with bruce or until after the election. but the e-mails show that it was as early as august 2016. as you know, simpson used or as a back channel to get russia information to the bureau after the fbi fired the british spy who compiled the dossier for simpson. >> lou: thank you. great reporting. joining us tonight, attorney and republican national committee woman for the great state of california. thank you for being with us. you have heard katherine astonishing report on what is going on. we are learning more every day about andrew mccabe. the tension between he and rosenstein, the one who ultimately did appoint the special counsel. it looks like it was predicated
on the interest of andrew mccabe to damages president. his political motivations are starting to be revealed. >> absolutely. clearly we have learned he is part of hard left people at the fbi. he was executing a plan. rosenstein came on the scene. it's very interesting that rosenstein did it recuse himself and mccabe didn't. they both stayed on and now we have this mess. it's paralyzing our government. >> lou: as catherine just reported, the smear merchant fusion gps is glenn simpson refusing to testify and will take the fifth amendment. where does this leave in your judgment, glenn simpson? >> clearly he fears legal jeopardy from lies that he is
told. thus the correct implication. that's troubling. ultimately, unless the doj pursues him for perjury, nothing is going to happen as a result for refusing to testify in congress. rod rosenstein is effectively in charge of that. i think red and impassive people seem to be waiting out the clack in judiciary hoping the democrats take control. >> lou: they are trying to run out the clock, they've done pretty well. they have the special counsel going that's on his face illegitimate. it is conflicted. it is without question antithetical to the interest of the president in this governments. it still appears to be in the hands of barack obama. the justice department is
basically paralyzed. it is toxic corrupt leadership, the scum on the top of the cesspool that is the justice department has been moved aside. seven officials taken away including james comey, the list goes on. we haven't heard much about loretta lynch, have way. we haven't heard much about the holdovers of the obama administration. this is an intact justice department that was put in place principally by eric holder and president obama. >> it writes. i can't agree with you more. for all that the president has accomplished she could have accomplished more without the distraction and obstruction from people not doing their jobs. it's been a disappointment. it will be a while before that gets turned around, if it ever days. it's a critical failure.
the big tech to look at perjury and look at what happened with the issues in the hillary clinton behavior and her foundation and so forth. it's a big step back. hopefully the president will continue on course and appoint the right people once the top people clear out. >> the president has made it clear, either support him, vote for republicans on november 6 to assure the corruption will be exposed in the justice department and fbi and those people replaced. it will effectively be a vote for democrats weapon icing once again. congress and the justice department against the president. thank you for being with us. good luck in november. >> thank you. >> lou: do you believe every
republican should urge and help for five friends and relatives to republican on november 6? cast your vote on twitter at lou dobbs and then vote on novembe november 6. follow me on instagram and twitter. tonight, president trump says the gop is in good shape going into the midterms. >> were talking about a very short time before the midterms. i think we are going to do very well. there are senate races that we were not even going to contest that we are leading in. >> he is in good shape going into the midterms. we are coming right
o'rourke among likely voters. president trump holding a major rally for cruise this month. stay tuned. joining us, top strategist for great america pack, fox news political strategist, analyst ed rollins and a new york post columnist. he is the new york post columnist. >> absolutely. >> i defer. i think that's a classy thing you just it. it saves both of us. michael, it's good to have you. let me start, ed, this is something i cannot believe. obama said he wanted to fundamentally transform the country, he lost that battle and now he is tearing up the democratic party, radicalizing it.
it may be beyond redemption. >> he destroyed it in the presidency. he lost seats and recycle going forward. his philosophy has been rejected by the country in the country doesn't want to go back, his policy of leaving from behind was not something that basically gave us recognition anywhere in the world. >> lou: is not an accident that hillary clinton is talking about civil war, that eric holder talk about re- kicking republicans, the rhetoric of his talk is dismal. this is a frightening thought. once the country leading law enforcement officer and then obama and his guns tonight fights rhetoric, this is appalling. your thoughts. >> i think it's desperation time for democrats. that's how i read the series of events. started with maxine waters and cory booker and get there facing congress and then clinton and
holder. this to me says they are desperate. frankly, lot want to run for president and are trying to distinguish themselves from the crowd from being the most radical and outrageous. it makes the whole party look stupid on the party -- >> it doesn't have far to go. >> lou: the republicans haven't look like geniuses either. >> by comparison. but, what it is revealing is the democrats don't have any ideas. this language is about frustration and craving for attention. i'm so tired of saying they feel so bad about the election two years ago that they act like fools, and violent fools. i'm so tired of hearing the crying and the steps on the supreme court. who cares. it's an adult world. we are two-party system.
one party always wins and the other loses. what's going on? >> when your premises we should tax the people more and spend more on social programs versus give them more of their own money and create jobs said easy sale if we make it. that's all they have. they want to spend more in programs, tax more and the first thing they would do words undo the president tax programs. >> lou: how are they going to set a tone to inspire small business. as he said, he will restore prosperity for all americans. he wants slice and dice it like the democrats. he is lifting every american right now. irrespective of identity group, race, creed, we have a middle class that's expanding instead of contracting. we have an economy growing
nothing new normal where you have to diminish expectations, this is madness. republicans are walking around with apologies to insurance clerk. there is no passion, where are they? i'm watching rhonda sanders running for governor of florida. what is he doing? >> that's why he's behind. he better turn and run quick because that's an important state. you take someone like cruz he began as an underdog, and a cabinet and he has a great campaign going. >> lou: the president has made it clear he will support him. >> increase will support him. i think will win the senate and add seats and that's important. >> as we talked before, the candidates who embrace the trump agenda and do not holder knows
about it are the ones who are doing better in this environment. they're the ones aligned with the republican party as it is right now. those who are still fighting it, the polaroids of the world or be left behind. >> i mention it just to rile you up. >> it's october, it was fine nine months ago. >> the only thing i want to say is the president made it clear this morning on the fed policy, he basically said they should not be raising the rights. larry, his economic advisor said just the opposite. he's a staff guy. he needs to get on the reservation. >> he works for the president of the united states. first of all, let me be kind, if you're listening tackle the son
from a turkish prison for this is from john roberts. bronson has been detained for two years, charges expected to be dropped during a court proceeding held tomorrow. president trump addressing missing saudi journalists who vanished just one week ago at the saudi consulate in istanbul. >> were looking at is very serious. i don't like it at all. you don't have an american citizens, but that doesn't matter. i don't like it. i don't like it with respect to reporters, it is a terrible precedent. we cannot let it happen. we are being very tough and we have investigators and we are working with turkey. frankly, were working with saudi arabia. we want to find out what happened. >> lou: we want to find out what happened. joining us now is foxbusiness chief analysts.
let's start, the president stepping in with a reporter in a forceful way. now, will find out what the saudi government does in response. what you expect? >> first of all, an investigation and hopefully a complete one that turks are involved in saudi arabia obviously we have our own investigators there. i think we have to look at what we know already. one, news reports in the united states for last two years, if we just react to news reports we can come to fairly premature misconceptions of what the facts are. number one, the fact that seems indisputable is the journalist enter the council it and no evidence he left. if you left by the backdoors there would be evidence of that
it could be turned over to the saudi consulate so there's already some legitimate concerns about this. the reality is the geopolitical implications of something like this would be quite damaging in the transformation strategy they have. as ambitious as it is, he's touching every aspect of saudi life, political, economic social, religious in terms of trying to transform it and bring it into a modern age in a way that none of the predecessors have entertained. not the least is getting the young people employed inside saudi arabia. >> lou: he has immense challenge as he tries to transform saudi society and institutions. at the same time, is the reporters disappearance and if
it is demonstrated that the crown prince had anything to do with his disappearance or perhaps murder, what are the implications for u.s. and saudi relations? >> they would be significantly damaged. he would likely lose most of our congressional support for what he's doing. he needs internal support particularly among young people is he's trying to change their way of life. he needs regional support from the fellow sunni arabs and international support. so far he has had the there has been criticism is something as ambitious as this. it would clearly damage the relationship. it couldn't come at a worse time. we are trying to negotiate a political and military alliance to stand up against the iranian threat in the region. and to have them bear a burden
and come together to share intelligence and military capability. have the united states being less burdened by that. >> in central to the disappearance of the reporter is saudi arabia. in turkey and their counsel in the turks right now have apparently negotiated with the white house and the president appears to have won at least tentatively a deal to free pastor brunson. that could be in jeopardy as we go forward. the complexities are mounting in the region and as everyone knows, that is one thing the region does not need. >> everyone clearly wants to get this millstone of pastor bronson in the jailhouse. the economy is tanking and
certainly the sanctions we imposed our frustrating any recovery that they want to pursue. by the way, we need to take with agreement assault with the turks are telling us about the saudis. they have significant issues. and they have people in their jailhouse as we speak. another ally we have in the region whose behaviors not concert with the values of america. >> lou: what would be the result as we tried to see who is telling the truth and who is lying between the saudi in the turks. >> i will leave that for next time. thank you so much. >> good to talk with you. >> lou: up next, despite what the left wing media would have you believe is the trump economy is still strong, still running and still built for the american worker and middle-class. >> under republican leadership,
>> joining me now is james freeman. assistant editor of the wall street journal, co-author of the newly released book which we recommend to become a borrowed time. in a few other things as well. good to have you here. >> good to be here. >> lou: let's start with the presidents on the fence. the president saying they're trying to put the country into a ditch by simultaneously, he didn't say quite this way but simultaneously winding down the over $4 trillion on the balance sheet and at the same time
trying to save off inflation which is running now at what rate would you say? >> a little above 2%. his argument may be got better this morning and it was last night when we got the consumer inflation number. it was reassuringly not too high. personally, i think stable prices should be the goal. despite what the fed says they want it was pretty close to perfect. >> lou: why are they raising rates? >> i think it is a positive thing that we are going back to a normal economy from the obama era ideal or actual situation. >> are you saying the obama ideal? >> you have the crumbling economy and the only fuel was printing lots of money. it's good the fed has stepped back, the real economy has been allowed to grow.
>> lou: i am shocked with this great affection settling for interest rate hikes that the wall street journal editorial page and other savants were not urging president obama and the one before him who created stimulus, why you were not calling for higher interest rates the midst of the great recession. >> i think we have frequently over the years, with administrations from both parties we have criticize loose monetary policy, we criticize the early 2000. >> can you ever tell me one example of where it raised the interest rates as the president says he does mention this part but i will, raising interest rates in the absence of inflation is idiotic. >> it's not the absence of inflation, slow inflation. what we want is back to normal. this is a statement.
>> try to keep it simple for me. >> lou: the fed has its target, perfect. >> a little above their target. very close to perfect. >> lou: now, what should they do? raise interest rates again? >> they want to keep stable prices. >> lou: are you tell me that's not stable prices, 2%? >> i think zero would be perfect but they like to. they feel like to maintain the, given the strength of the economy. >> lou: is the president right or not? >> certainly he called them crazy, local and wild, they're not that. >> lou: calling the editorial board crazy, local and wild. >> i think they're doing a good
job. this fed and yellen? >> lou: this fed seems to be needing to learn the lesson that the yellen fed learned at the beginning of her chair ship. that is, you do not raise rates for the hell of it. this is the fundamental issue here. >> lou: the encouraging news is it looks like an improvement over the yellen. powell wants to get back to a normal economy where the fed isn't playing such a huge role. part of that is shrinking the balance sheet. they played an enormous role in the economy people felt like there be no good incentive coming out of the government and we needed the fed to be this active. we don't anymore. were allowing the economy to grow there doing the right thing. a bit. >> lou: can you tell me a time
in which the federal reserve has raised interest rates and the result has not been recession? >> there have been many times when we have had higher rates than we have now. in a good economy and market. >> lou: when they begin raising rates what is the ultimate result? >> your say they always kill the economy? >> lou: kill the economy is a little jerk corneum for a journalist of your new house. i am the only one who would
lou: here is where we are and what we are looking at tomorrow. glenn simpson, the co-founder of fusion gps will take the fifth amendment to avoid testifying before congress next week. har met dillon -- harmeet dhillon discussed the implications. >> unless the doj purchase sues him for perjury, nothing is going to happen for refusing to testify. lou: the trump administration is
working for the release of pastor brunson held in turkey >> long overdue for action. our my is so good and so strong right now. >> a strong economy with higher interest rates was the worry. but things may be turning around. overnight president trump is going to meet with chinaing the selloff. >> investors don't want to sell into the weekend because look at this u.s. stock futures are way up. dow gaining 180 points nasdaq gaining 84. >> relief this morning after the dow sank 545 points yesterday losing nearly 1400 points in two day. >> out of. energy stocks leading market lower after a 3% drop in oil prices yesterday alone. right now oil up almost