tv Cavuto Coast to Coast FOX Business February 13, 2019 12:00pm-2:00pm EST
and gentlemen. i thank ash and liz. a lot happening today, in politics and money. why don't i turn it over to connell mcshane, who is in noor for neil. a lot to go. >> i don't know if the flip phone works for 5g. we have a lot to an administration official has told fox news that president trump will not make a decision until he has seen the final bill. if you see reports it is done, don't believe them. fox news chad pergram will know before anybody else i have a feeling. he join us from the hill. it isn't done yet, chad. what is the latest? >> it is not done yet.
i spoke with house majority leader steny hoyer. here is the prospective schedule. they hope the bill is texted out by 4:00. to give members, white house, time to process it, see exactly what is it. the white house will not make any decision until they have gone through and vetted this bill. there will not be any vote or debate on the bill until tomorrow night after 6:30. here is the logistics. there is a funeral tomorrow for john dingell the representative. also people want to go to north carolina for the late walter jones of north carolina. that will delay things at earliest. one of the questions whether or not they have enough time to pros special this, for members digest in it. here is what steny hoyer said, do a cr, give them a couple extra days. here is what he said. it does place in doubt the operation of government. it creates anxiety. we need to resolve this here is the other pressure though, connell, there is an old expression about houseguests an
fish. if they forge this agreement on monday, this starts to sit out there a couple extra days, they do an interim spending bill to keep the government open for a weekend or couple weeks, you could see people start to jump off this bill, say i will not vote for that. that could scuttle prospects for finishing this up. house speaker nancy pelosi indicated she hopes the bill would pass. she said members should vote for what's in it, what's not in it. connell: that is always an interesting approach to these things. through that kind of question, chad, follow up on you, with something you've been reporting on, explaining to people, because they don't seem to know a lot about it. say they do pass what is in it? then this is obviously a hypothetical. we get into the quote-unquote next step for the president. you talked about the idea, and i know the president made reference to moving money around, this transfer authority, that he might be able to get more money for his wall, for example, or the wall through that process, that seems to be a
complicated process though. it sounds easy when it is but it is not. >> it is. two things in the statute you should look at. number one says you have to go to the appropriators, the chairs and ranking members of the appropriations subcommittees and committees, can we move this money around? can we take the money appropriated for defense and move it to homeland security. there is another part of the statute that says you don't have to do it. i was not a great student in mrs. sherman's seventh grade math class in seven mile, ohio, there is $750 million, with an m. available to move here. if the president got $3.7 billion for the wall, he uses that transfer authority, that only gets you to two billion. guess what? that has to come from defense or some other spending priorities, you will have members from both sides of the aisle, defense hawks, people advocated for programs, wait a minute, you're taking money for the perhaps. don't forget, connell, they got a big plus-up on the defense
side. if they try to do that they will strip it out. this could raise serious hackles on both sides of the aisle. connell: i'm sure mrs. sherman is proud what you have become. >> thank you. connell: thank you for explaining that. it sets up the conversation how the president can make up the difference in wall money if he does go forward with this bill which includes 1.375 billion, not 5.7 billion as he wanted. former i.c.e. attorney, immigration lawyer, john gyon is with us now. john, we're a little bit ahead of ourselves, what chad said, whether capitol hill or the white house, we don't know whether the president accepts the bill in front of him. he doesn't necessarily know what is in the bill yet. nobody seems to. if one of the considerations i guess he has, if he goes down that route, to take this deal is what he can do afterwards. you heard chad say it is not that easy to move this money around though, is that your understanding? what would he do next?
>> hi connell, thanks for having me on. what president trump is going to do next, who knows. because we don't have text of the bill, we don't know what is in it. all we heard is the framework. president can't commit to anything, because he doesn't know exactly what he is going to be signing. what he will do in the next step, i'm pretty sure he has an idea what he can do, whether declaring an emergency bringing some of that money forward they can use or just reappropriating it. i'm pretty sure he has contingency plans in applause because he won't get the 5.7 billion he wants. connell: whether he gets 1.4 or doesn't sign the bill or who knows, we're back to something else entirely. let me ask but the legalities of the emergency declaration. seems couple weeks ago that was the favorite in people's betting minds. well if the president doesn't win this particular showdown, that is what he will do. that opens up a whole can worms, might not go anywhere fast, it
will be challenged in the court? >> absolutely. like everything else president trump tried to do in the administration, he will see lawsuits or different groups will bring him in district court to seek restraining orders or injunction against him. whether he declares a national emergency to build walls or barriers he will get sued in district court and i'm pretty confident the individuals who sue him will find a sympathetic district judge to stop him. there is some money there, certainly not enough to make up the 5.7 billion. connell: chad said, millions, rather than bills. that doesn't get you that far. as a final question, this is a political question but i suppose it would take a legal expert to look at. president comes and says, for my base supporters here, what i need to do i need to get as close to 5.7 or rather than 1.34 billion. i need to get as close as 200 plus miles, rather than 55 miles of fencing or wall, how do i
actually get there, what advice would you give? >> what i've seen so far the president can do, there are civil, criminal forfeiture funds out there not allocated by congress. president has pretty broad authority jumping through the hoops to use the money. that is not even a billion dollars what i've seen. there will be department of defense money, probably one or two billion he could reallocate for anti-drug trafficking, narcotics trafficking initiatives. that could be barriers along the southern border. those could be done with a few different red tape issues in the way without declaring a national emergency which i don't think anybody has the politically appetite to do because it sets unbelievably dangerous precedent for both parties. connell: that is what i keep hearing about. thanks for exploring all of this. john, thanks for being with us today. want to shift to china the market with the midst of a rally, one of the reasons off the highs we started to pop up again, fox business network just
confirming that the president of china, xi xinping, will meet with the delegation from the u.s. that is in beijing this week to talk trade. that seems like it would be good news, right? that he would only meet with lighthizer, mnuchin and company if they were getting close to a deal. at least that might be the read for investors. "wall street journal" executive washington editor gerry seib joins us. is that right, gerri, if you're president of china you will sit down to meet personally with these guys, we must be making progress, don't you think? >> i think so. probably a, there is signs progress is being made and b, the symbol system important that president xi wants there to be progress made, would like to get to the finish line. we can assume he wants a deal near march 1st. i think it is also interesting that president trump said yesterday, willing to let the deadline slip a little bit, not necessarily raise tariffs march 1st which was the plan if progress is being made. it appears both sides have the
at least vested interest in appearance of progress. i have to caution. there is a long way to go here, everybody agrees on that and in particular there is question how the u.s. will enforce any deal made with the chinese on trade. being close is not the same as being there. connell: let me follow up on enforcement because that is something the u.s. trade representative robert lighthizer publicly last time we saw in the oval office with president trump he brings it up repeatedly, enforcement, enforcement, enforcement. from people you talk to what the is mechanism of enforcement the administration might use? this will be important to investors. maybe it will be simply keeping tariffs in place. a deal might mean some of the tariffs might not get rolled back? >> chinese enforcement knows the risk of tariffs coming back. this almost has to be arms control situation where there have to be negotiated mechanisms where one side can look at what the other side is doing. that may involve having more
transparency what the chinese government reports. may mean having u.s. representatives on the ground. may mean having a way in which u.s. companies can more clearly declare when they're having problems. there is also related issue though, it is not just enforcement. it is systemic changes in china, dealing with things like amount of subsidies they provide to the domestic producers to compete with american companies. those are tough issues. the easy ones we'll buy more soybeans. that is relatively easy, quick, temporary fix. these things we're talking about now are tougher, permanent ones. connell: term they use is structural changes. to me it is business culture, for example, on the forced transfer of technology if you talk to government officials or business lead that's have dealt in china or are from china they look at it, you know, completely different than people do in the u.s. they will say that is not what happens. that is just kind of the price of doing business in china. you have to make a deal with the chinese company.
you're asking them to basically change the way they have done business for however last many years? >> you're right, it is not forever but certainly for the last two decades there was a switch. the chinese wanted u.s. investment. were willing to open the doors, to the country's economic benefit. in the last two decades that has changed some. they, i think they believe foreign investment is helpful to allow them to build up their own domestic industries and that is now the goal. the goal is to create national companies that can dominate areas of the economy. that is different. that is certainly been a significant change in the last decade or two decades. there is a requirement to roll back some of the habits i guess developed over that period of time. the chinese are willing to do that to some extent probably. certainly not as easily or as quickly or as much as bob lighthizer is trying to make them. connell: he is known as a hawk. probably pushing them quite hard. gerry seib from the journal. the xi xinping meeting, if it happens, now we're told it most
likely will, that is being, i would think seen as a positive that at least progress is being made. in the meantime not a positive on the debt front. you've seen this number where the national debt has topped, believe it or not, $22 trillion, the first time ever. if anything further increases are likely because, well that is what happens to the national debt. it keeps going up. the question we'll ask, when will this time bomb finally go off? what if anything will be done about it. then we'll get to howard schultz ripping that green new deal in just a moment. - my family and i did a fundraiser walk
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the top of the socialism this is the most corrupt regime, which is criminal organization we've seen in this hemisphere in last 30 or 40 years. the amount they have stolen, literally stolen, everything from narcotrafficking they're sponsoring and stealing proceeds of oil and oil and things on the black market, stealing food, selling it on the black market for a profit is extraordinary. connell: senator marco rubio on fbn, talking about a crisis in venezuela. as the opposition leader in venezuela, juan guaido, promised relief aid, humanitarian relief aid will be able to enter the country on the 23rd of this month. now today, at the white house, president trump is meeting with the president of colombia, which is important because that is where that humanitarian aid is. or would come from, across the border from colombia, into venezuela. former senior state department advisor under president trump and president bush 43 christian
whiton chinaing us from denver. christian, always good to see you. the meeting today is important in the context of what happens in venezuela. this next step, that complicated do you think, the humanitarian aid to people that need it? maduro is trying to block it. >> there was already an effort to bring this in. as the footage you saw briefly, you saw the three bridges going into venezuela blocked by containers or trucks. so you know the thing that needs to happen is, for another crisis to provoke the venezuela, giunta if you will. the key question when the military cracks. senator rubio is great to point out. he tweeted out the names of generals and admirals that have to break from the regime in order to have change in venezuela this country desperately needs assistance. it desperately needs food. there are people actually starving in venezuela, despite
the immense oil wealth. every time the regime has to say no it provoke as crisis. connell: to the point about the immense oil wealth, obviously one of the reasons this is such a big story for the united states. also for china by the way in the relationship with venezuela, but is patience kind of the key right now? is there some more action not being taken on the part of the united states that you see happening? what's next? >> you know, i think, it is a impossible to time these things. you can't time freedom movements. everything is looking good. you have things coming to a boil within. you have a viable opposition leader in guaido who we recognize as legitimate, temporary or interim leader of the country. you have the international community, such as it is, actual nation states next door, not just colombia, with whom the president of which trump is meeting with today, but others in the region. you have this rightward shift for the better across south america. colombia, argentina, more recently brazil, under proper
right-wing control, pushing for freedom in venezuela. florida's two senators, rick scott, marco rubio have been very good on this. but a key pillar ever support for the regime in venezuela has been cuba. the more problems, the more political problems cuba can encounter at this point in time is better so they can be distracted supporting maduro. cutting off sources of revenue to the cuban government is a beneficial tactic. connell: interesting. in general it is kind of a matter of when in your view? >> i think so. i don't really see how the toothpaste gets put back into the tube by maduro. so much is going wrong. he has a viable exit. he can go to cuba, mexico, russia, or china. he should exit now while the getting is still good, if you will. connell: christian whiton, thanks for coming on. we appreciate it. we will monitor the meeting with the president and the president
of colombia. this push for socialism happening on left side of the spectrum in our own democratic party. the other thing that is forming backlash forming against that. bill richardson, on the direction his party is heading. he is coming up after a quick break. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪
connell: head out to california for a moment where the new governor gavin newsom, scrap ad plan that called for $77 billion to be spent on a high-speed rail system from los angeles to san francisco. a big deal. too much money. i'm out. hillary vaughn in the newsroom out in l.a. with more on this. reporter: hey, connell. this high-speed rail project was part of former governor jerry brown's legacy and now it is not going to exist because the economic reality hit the state and $77 billion infrastructure project is being called off. only a small fraction of track will be completed. the high-speed rail project promised to shoot passengers
between two of the state's largest cities, l.a., san francisco and will be a small stretch of track between two towns in the middle of the central valley. >> the project as planned would cost too much, and respectfully take too long. there has been too little oversight and not enough transparency. right now there is simply isn't a path to get from sacramento to san diego, let alone from san francisco to l.a. i wish there were. reporter: over $10 billion in taxpayers money has already been dumped into the project, with 3.5 billion of federal funds on top of that. the high-speed rail promised a trip from l.a. to san francisco but that quickly lost steam. the ticket prices became higher, and time to get the tracks installed soared to years. they will get bakesser field and merced, a stretch of farming
communities with no one to ride it. local representatives say the train is built in their communities and they don't want it. jim nelson, state representative, said the plan is humorous, and put a train in place where ride no ridership, no freight to haul. what economy will improve the central valley any was raised there. i farmed there. it is not a plan for the valley. newsom is not ditching the idea, he will try to find private funding for the deal, this will look like close up to $100 billion. it will be interesting to see if anyone steps up to actually build this project. connell. connell: yes it will. we've been hearing about it for so long. an interesting move from the new governor. hillary vaughn in l.a. let's move to howard schultz. he was on television last night blasting this idea of a green new deal. here is what he said. >> when i see politicians, start, throwing things out, that
i know is not realistic, that is not being honest with the american people. it is immoral to suggest that we can tally up, 20, 30, 40, $50 trillion of debt to solve a problem that could be solved in a different way. connell: in the meantime senator mitch mcconnell, the majority leader in the senate is now asking democrats to go on the record on this idea of a green new deal. he wants to have a vote on it, just for show, but to get people to show what they really feel about it. let's get former new mexico governor, former democratic presidential candidate bill richardson's take on this and other topics. governor, this has become a big story the last week or so with alexandria ocasio-cortez but also the democrats running for president in 2020. many have already gone on the record supporting this green new deal. do you think that will turn out to be a mistake for them politically? >> no, i don't, i don't. i think we're talking about
climate change at 10 to 12 years, our scientists are saying we're going to have a catastrophic result. i was secretary of energy. i know a little bit about this. i'm also an oil and gas governor but i think we have to move, what i see the green deal, is not more regulation but massive investment in solar, in wind and cleaner cars, and transportation fuel. in energy infrastructure. our grid needs enormous modernization. so i don't see it as a poison pill. i disagree with howard schultz. i think what you're seeing is the alternative, connell, is the president saying there is no climate change problem. connell: know get that. >> what is happening around the world. connell: you're going on the record right supporting something, if we're being honest about it is not technically or literally going to happen, you don't think that is a political issue. >> i would go on the record. i would support it. i was in congress for 15 years.
it will not pass intact. it is not even probably going to pass the senate but i think it is good to get on the record. the american people really want action on climate change. these are voters, these are republican, democratic, independent, voters and they're seeing the catastrophic effect unless we do something. i think this is a bold move by the democrats. you know, it is not, you're not going to end oil and gas. i mean i can tell you that. connell: yeah. >> but if we move towards less regulation, more investment in renewable energy, you know a lot of states are going to 50% renewable energy. my state is going that. i started that at 20% 10 years ago. i think that is a good thing, connell. connell: progress. let me, if i may, just because it's a breaking headline looking down, capture some of them now, asking about a few different issues. we'll try to bounce around a little bit. the president is in the oval office meeting moments ago with the president of colombia, juan marquez.
certainly venezuela came up there. before that the press pool was allowed in, i think we'll get the play back, this just happened, he was asked about the budget deal that you know, whether he will sign it. he says we haven't gotten it yet. we'll be getting a look at it, taking a look for landmines is how he put it. this is interesting. a lot of people thought last night for sure the president would accept the deal even though it didn't have all the money he was looking for the wall, now maybe that is less clear. what do you think happens here? >> well, i believe i believe the president will sign the bill. neither side got anything they wanted. i think the president doesn't want another government shut down. he doesn't want 800,000 people or businesses suffering. a lot of senate republicans would not support him if there is another government shutdown. i suspect he will sign it. the republicans didn't get what they wanted on the wall.
they got a fraction on what they wanted. democrats didn't get a cap on detention beds. it's a compromise he will sign and i believe he will sign it. connell: no other options committed to it yet. venezuela, i'm sure you're following what is happening there. the president was asked about military options. all options he said would be on the table, a plan b if maduro doesn't give up power. i do. i have a plan b, c, d, all the rest. what do you make of how the president handled the situation in venezuela, putting united states and other countries that followed behind the opposition leader guaido? >> i think the president has been correct in u.s. policy towards venezuela, recognizing guaido. he is the legitimate president because the election of maduro is fraudulent. puts us on the side of a reformer, own the side of human rights. what we need to do is continue the policy. more countries are following us.
organization of american states. colombia is very supportive. we need to move mexico on our side, but i stand with the president what he has done and, you know, marco rubio and what they have done. i think it is the right course of action. connell: fair enough. something you would follow very closely as former energy secretary for sure. before you go, we're trying to cover a lot of ground, governor, expertise in north korea, i know you've been there a number of times. the president will meet again with kim jong-un. ahead of that stanford university just put out a study, it says north korea may have been able to add as many as seven nuclear weapons to their arsenal the in the past year. that leads to you believe they're still working on the program. the staple study concludes, the threat from north korea may be diminished because of the freeze put in place on testing. what do you think about the president about that and what he should do with the meeting with
kim jong-un? >> i want to see real progress in this next meeting and this next summit and i'm worried. because the north koreans has done very little as that report indicates on denuclearization. there is less tension, that's good, but the i think the president needs to listen to his advisors who want some kind of a framework that the north koreans are moving towards denuclearization which they haven't been. connell: right. >> in exchange, maybe a lessening of sanctions. i want to see some meat, some substance, not just a handshake and you know, a vague worded statement. connell: right. >> so that is my hope. connell: good enough. governor richardson. always good to see you. we covered a lot of ground. thanks for joining us. now, in just a moment, we'll take to you the white house. we will get play back of the comments from the president i referenced in the interview with governor richardson and a meeting in the oval office covering a number of different topics with the president of colombia. juan duque marquez.
here is the president. >> we'll see what happens. thank you. reporter: united states will be able to tolerate oppression of -- [inaudible] >> right. >> currently there is fear of a new president, you recognize opposition president but limited in authority. how much longer? >> we have great respect for the man that most people, many people think is the real president of venezuela. he's very brave. it's a very brave situation, what he is doing as you know. i've seen what's happened in the streets. and i have seen what's happened with executions. so i really give him a lot of credit and, i think it is going to work out very well. reporter: see any military solution for venezuela? >> i think there are a number of solutions, a number of different options. we look at all options. reporter: are you thinking of sending troops to colombia? >> i never talk about that. >> let me, let me, let me add something on the first question,
that was raised by vanessa. president guaido, who is the person about to lead this transition in venezuela has strong support and we need to give him even stronger support. i think what happened with the eu has been very important. we will host the lima group next week in bogota, we will, all the countries in the hemisphere give him stronger support he needs to lead the transition in venezuela. reporter: if president maduro stays in power do you have a plan b? >> i always have a plan b, c, d, e, f, i have always great, flexibility. i have great flexibility than any mon ever been in this office. there are many plans. we'll see where we go. right now we're in incredible period. i saw the tremendous numbers people yesterday, you know you're talking about, during the week, maybe, just numbers you rarely see anything like it, the protests.
so we'll see -- a lot of things are happening in venezuela that people don't know about and there is a lot of support for what we're doing, for the people we're talking to, a lot of support. tremendous support. [shouting questions] >> what? reporter: [inaudible] how will people get into the country? >> they have to let the food in, medications getting in, they have blocked one bridge. they haven't been able to block the others. i think he is making terrible mistake to allow that to happen. it is bad thing. we're trying to get food to people. people are starving, people are starving in venezuela. shows what can happen with the wrong government. if you you have the wrong government bad things happen. you have many people in really trouble for just hunger. so we are delivering an we're sending tremendous amounts of food and other things, supplies. [shouting questions]
>> mr. president, if i may add to that, we have to give a strong message to the dictatorship, obstructing access of humanitarian aid is a crime against humanity and we have to insure that the humanitarian aid gets to the venezuela yap people and colombia is highly committed to receive humanitarian aid from the u.s. and other countries so it can access venezuela and help the venezuelan people. [shouting questions] reporter: [inaudible] >> we haven't gotten it yet. we'll be getting it. we'll be looking for landmines, you could have that. it has been known to happen before to people because we have not gotten it yet. it will be sent to us at some point. we'll take a very serious look at it. we have a lot of things happening right now. we're building a lot of wall right now with money we already have and, when people see what we're doing i think they will be very surprised. we're doing a lot of work and we have planned to do a lot of work
but i have not seen it yet. i appreciate all the work the republicans have done because they're really going against a radical left. it's a radical left, and they're going bense it very hard and hard and they're fighting. but we're in very good same. we'll look at it when it comes. i don't want to see a shutdown. a shutdown would be a terrible thing. i think a point was made with the last shutdown, people realized how bad the border is, how unsafe the border is. i think a lot of good points were made but i don't want to see another one. there is no reason for it. we'll look at legislation when it cops. i will make a determination then. [shouting questions] reporter: sign on table a few months ago? >> actually it will be regardless, what i do, we already have, as you know a lot of money where we're building existing wall, with existing funds but i have a lot of options, just like we do with venezuela, we have on the
border. we have a lot of options. a lot of things are happening, very positive things. you know, the numbers are almost $23 billion, which you don't report too often. it is about an 8% increase over last year. so if you look at the total funding it is over, it is almost up to $23 billion. it is about 8% higher. the border area is happening. it is going to happen at a really rapid pace. we're giving out contracts right now and we're going to have a great wall. it is going to be a great, powerful wall. people will not be able to get through that wall very easily. and, i think you see that. i think you see it happening. it is very important. it will also have technology. it will have drones. it will have everything else we have. if you look at the other elements, i.c.e. funding, it will be complete. we have other things happening which people are not talking about. we have a lot of funds for a lot of other things. with the wall they want to be stingy.
we have options that most people don't really understand. [shouting questions] reporter: 5000 troops to colombia? >> you'll see. [inaudible]. any other questions? [shouting questions] say it? i really want to. i want to visit colombia. i look forward to visiting. we're working very, very closely on the drug situation. >> amnesty for maduro? >> something we haven't thought of. something we haven't thought of. reporter: [inaudible]. chapo money to build wall. >> anything ted does is interesting. certainly interesting. reporter: drug policy? >> we're working together so that colombia eradicates some of what they're growing in colombia. i wouldn't say that at this moment you're ahead of schedule but hopefully you will be
sometime in the near future. >> let me mention something to that question, mr. president. in the first four months of our administration we eradicated 60,000 acres, more than eradicated in previous eight months. we have a goal and we will commit to that goal because it is our moral duty to have colombia free of illegal crops and free of narcotrafficking. we have to deliver. we will deliver because it is our moral duty. reporter: mr. president -- >> i want to say, before you believe the economy is doing incredibly well. numbers are really high, really good. we have a big team of people, very talented people over in china right now negotiating on the china deal. it is going along very well. we'll see what happens. but i think it is going along very well. they're showing us tremendous respect, something a lot of countries didn't used to show the united states. they're showing us respect now. big difference from the old
days, i will tell you that. the deal with china is going very well. the economy is doing fantastically. you saw the "gallup poll" came out. 69% say they will be in better shape next year than even this year. they're very happy right now. that is the best numbers they have had in 16 or 17 years. but the economy is strong. we have a lot of companies coming into the united states. they want to come into the united states. so we have a lot of good things happening. the wall is being built as we speak. thank you all very much. thank you. >> let's go. make your way out. come on, guys. keep it moving. [shouting questions] >> thank you so much. we go out this side. >> keep moving. >> thank you, mr. president. >> thank you. connell: president trump, and the president of colombia meeting in the oval office at the white house a short time ago. a number of topics covered there. just to go through them, the venezuela story obviously is one we've been watching quite closely. the president saying again all options are on the table,
whether he has to plan b, yeah i have a plan b, c, and d, if things don't work out the way he thinks they will. at one point he referred to himself as something along the lines of the most flexible president we've ever had, saying that he could, he could change with the times on that. he was asked by one of the reporters about the speculation of 5000 troops possibly being sent to colombia, with the president sitting there for possible assistance in venezuela and his response was, quote, you'll see. now on china it is notable, the market is up, the dow is up 80 points the president made comments things are going very well china is showing us great respect. remember xi xinping, the president of china, it has been confirmed by our own fox business reporting is scheduled to meet with the u.s. delegation on friday. i want to talk about the other topic the president addressed there, that would be the potential budget deal. we have former cbo director douglas holtz-eakin with us, bill club ton's former chief economist at the as of
management and budget, joseph mierick with us as well. doug, the president hasn't gotten the bell yet, didn't commit to anything. he said at one point we'll be looking for landmines. there is a lot of speculation, i don't know, the last 12 to 24 hours, even though it doesn't have all the money he was looking for the wall he will sign it. how do you think this ends up? >> i think this ends up with the president signing the bill. simultaneously he had his office of management and budget scrubbing around looking for funds available to reprogram toward uses to build the wall. as a result he is trying to top up whatever he gets in the deal. he didn't get everything he wanted. neither did did the democrats, that is the nature of these deals. he will try to pursue his policy objections he didn't get through congress. connell: what if you back in the day, with president clinton in that case, political story, whatever he was coming to you would be quite different, saying we need to find money for
something else not allocated to do it? would you be able to do it, you folks work through it to find some money? >> yes, you generally can. there are some issues has reported in the press, director mulvaney made the point. you have some flexibility within the existing framework. you have the ability to declare a emergency. the emergency declaration gives you more freedom but it subjects you to challenge in court. it subjects the congress to the ability to reprimand the president in effect, by rejecting his declaration. president ultimately wins he can veto such a declaration. but if that happens, many of the president's allies in the
congress feel like they're in a corner. connell: let me shift slightly. this is along the same lines of spending and debt and deficits. we get caught up in headlines. we have quite a headline coming in this week that we found out the debt has topped $22 trillion. first time we have ever seen that anytime it goes up, first time we've seen it. all it does, joe, i will start with you, then go to doug on it, is go up. so the question is when do we do something about it? both parties deserve blame for not having done anything yet, but what is the trigger that makes us care? is it, maybe when it was you were dealing with issues in the '90s, will it be the bond market? >> i worked for leon panetta as the director, first director of the office of management and budget in the clinton administration and he would always say we have leadership, we make change either through leadership or in crisis.
connell: yeah. >> we sure would like to have leadership. the problem with crisis, think about it as a heart attack. connell: right. >> some people recover from a heart attack, start exercising, watch their diet, become healthier. other people just die. the problem is are we going to have a therapeutic heart attack that drives people to mend their way this is time and we don't know. connell: i know you want to talk about this, doug the unfortunately because of the president's comments we're running over. i will have to go to break or we will get cut[ off. i appreciate you joining us. edward jones grew to a trillion dollars in assets under care, by thinking about your goals as much as you do.
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connell: president trump offering no assurances after meeting with the governor the new york yesterday, andrew cuomo, in terms of deductions and state and local taxes, the salt deductions as they're known. charlie gasparino has been all over this. >> cuomo goes there, trying to be nice to him, trump says, no, no, it is your fault you have this problem, a high-taxed state. you're looking for farmers in iowa bailing out fat cats in new york city. i thought that was pretty appropriate response. connell: we thought that was going to happen. >> we give you a lot more than we get in return. connell: redistributing the wealth which republicans hate.
you're taking it from the rich states of new york. that the democrats support. >> you know, let's be real clear. new york has a massive, massive welfare state. it has done, it is caused for many years people to flee the state. businesses to flee the state. now what we have with the ending of the salt deduction, or basically a capping of it, it is capped at $10,000. you can't deduct more than that. you have more of an exodus from new york say to florida, where there is no state and local florida. connell: people own a house there, but now want to live permanently in florida. >> here are the two things. here are some impacts, impacts that could affect people watching the show investors in muni bonds. a lot live in new york city, new york state, you get a triple tax-free advantage. value of that debt is likely to go down at some point. why is that? because when you have bigger budget deficits which new york, cuomo is saying that will happen. they're predicting that in california, all other places where there are high, state and
local taxes you can no longer deduct the full freight. people leave, erode the tax base, the bond rating agencies are focused myopically i hear, new york, new jersey, illinois, california, potential downgrades. they're not being downgraded yet but could be imminent. connell: they are not -- >> when that downgrades, when those downgrades hit, even if you put them on credit watch the prices start to go down, yields go up. you get the picture. you lose money if you're an investor in those bonds. connell: before we hit the top of the hour, i want your thoughts, i haven't followed closely, saw it up on the screen, the hearing between t-mobile and sprint, what is going on? >> they don't like big media mergers. i tell you this, this is the same story as this, meaning the salt deduction. what trump said, no, we're not going to change it. senator grassley, said can't happen. the reason, it would blow a hole in the deficit given tax cuts
would go on. trillion dollar deficit to $1.5 trillion deficit. we need the money. connell: right. >> same thing here, not for deficit reason, the trump justice department has put a hold on some mergers when there is content and distribution and they think it can impact the consumer within that way, withhold content, to screw over other rival distributors. that is not what is going on here. they will not listen to the democrats on this, they will approve this deal probably. connell: this is different than the at&t situation? >> you have content. you don't have content here. see, i can't extort from a rival cable distributor my content like at&t can go to rival distributor, i won't give you time warner unless you pay x. that is not what we're talking about here. connell: thanks for that. and you will the other stuff, mr. gasparino. we'll take a quick break. the president still to decide whether he will sign the border deal, whether he likes it or
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>> will be getting it here it will be looking for land mines because we could have that. it been known to happen before two people appear but we have not gotten it yet. it will be sent to us at some point and we'll take a very serious look at it appeared drained your president trump a short time ago saying he will decide on signing this border deal once he gets a look at the bill. like berman at the white house the white house for us. looking for a landmine the president says beard reporter: there is the whole thing they have to get the text of the bill. i was stressed to me by a white house official i spoke with earlier today. you've got to keep in mind it is not yet been produced and not as one of the sticking points over here at the white house or at least one of the considerations they want to go through page by page, line by line of what is in the thing.
but also those who work over at the department of homeland security. as we've heard from the president there in as we were told by white house officials this morning, the president has not yet made a decision on whether or not he will sign the spending deal put together on capitol hill or potentially whether or not he might veto it if it eventually makes it to his desk. one thing you got to keep in mind here is this thing is likely to be at least 700 pages. it could be many more pages larger than that as well. the number two on capitol hill earlier today said they might not actually have this legislation until tomorrow. here is steny hoyer. watch year. >> let me say that the conferees have indicated they have pretty much reached agreement. obviously working on this and we hope to have the papers done and ready to go by tomorrow and we hope to passerby to marinate. thank you.
>> if you start to add everything up here, the white house wants to go through all of this. it's probably not going to be written in full until tomorrow. it is going to be at least 700 plus pages. there's got to be some sort of deal signed by the president. tamara courses thursday. it starts to become a timing question here as to whether or not all of that can be accomplished by friday and if not how does this thing proceeds from then. another fact to keep in mind as i'm told by the white house official and we heard some of this from president trump yesterday that some of what the president has been briefed on he is not happy about. to sum all this up, the president wanting to avoid landmine. he's not happy about certain things, but the white house wants to be able to go through it line by line in the president -- trantor is going to make a joke about how quickly people read.
it does bring up a half serious question. if they want to look at it you take this time you take that and split it up between them. >> at them and they could do that but at the end of the day the president has to be briefed and so you've got to fit all of that in. when you talk about a bill this large, it is based pending bill for the entire year through september. the border wall, 1.375 billion as you heard from the president is roughly $23 billion of the department of homeland security funding. 1.3 of that is such a sliver. a lot they have to go through and that is some of the argument when we speak to folks at the white house there may not today. connell: 103 on wednesday -- >> your guess is as good as mine. a lot of work to do. like urman at the white house.
on the politics of all of this, there's questions about the base. congressman mark meadows says he's optimistic that trump supporters indeed will stand by as long as he builds the wall. >> with me just a second ago, congressman who argue he would lose his base. the president to lose his base signing onto this. >> yeah, i don't think he would lose his base as long as he follows it up and shows the american people he's fighting for them. if he's willing to do that with executive action, the vast majority of us, myself included with certainly recognize that he is doing all he can do to fulfill his promise to the american people. connell: former chief of staff, senator mike lee joins us now. that's been the question throughout is the president except something to raise doesn't like, what happens to that political base. what is your view?
>> i don't think he is at any risk of losing the base over this because the first question is where would they actually go? there isn't any place for the base to go at this point. the president will also continue to threaten executive action, which is always an option. your previous guests have talked about that not being a great option. it always ends up court. never ends well. use the asset forfeiture funds out there. some in the army corps of engineers and so on. there are ways for him to continue to push data move it forward in the way people can say that actually make sense. >> he could get hit and miss deal has already gotten hit on the talkshow circuit. the sean hannity's of the world know this is not a great compromise. so if that happens and you don't think that has a political effect just on the energy surrounding the president as he heads into 2020. let's be honest, and he made this a big, big deal the last
time around. >> he did. one of the important things for the american people to recognize this funding the government in the immigration and border while issues are completely separate. there's only one reason why there has been a shutdown or will be a future shutdown and not as congress not doing their job passing a budget every year in passing the appropriate spending appropriations bills. if they would've done their work in september, you can't shut the government down if it's funded. we need to separate that. the president needs to communicate to the base and the rest of the american people that congress has got to do their job. let's have a conversation about immigration and border security because here's the thing. 94% could be done in the afternoon on the floor of the house and senate because everybody agrees. when a border security, entry exit system. if disneyland can tell me where my family is at any point in the park for three days, surely the united states government can do
that. connell: we know we get caught up in so much but at the end of the day is not necessarily, but that's the world we live in. most people think this is solved with some sort of a fence, border wall, whatever you want to call for and a daca deal. it hasn't happened. >> o'connell, schumer, pelosi mccarthy or controlling congress and they're not interested in solving the problem because they raise hundreds of millions of dollars of campaign cash as a result of it. you just mentioned that we had $22 trillion in national debt. biggest security threat to the country, by the way. guess i come you cannot get $22 trillion in debt through conflict. the only way you can get there is collusion and you can ask my wife coming in now, if i go home and say we need a bigger big
screen tv but it's going to blow a hole in the budget and we have conflict about that, we are making a better decision. but if we collude and failed to chew a living room couch in a tv, then we make bad decisions and get further in debt. the 700 page bill you describe the very few members of congress are actually going to read love all kinds of other spending than it that is really the national security issue is the national debt. trying to lead nasa center in us. his wife is actually booked for tomorrow. [laughter] will get a rebuttal. thanks, good to talk to you. the president of china xi jinping will meet with the u.s. trade delegation this week and not meeting we are told is likely to take place on friday. the word as we heard from the president yesterday he might be open to it. they may have a delay of the deadline, march 1st from the tariffs go from 10% to 25%. let's get to the market reaction or anticipation of all of this
the chief investment strategist here in the studio. good to see you. to the extent that good times are coming out of what's happening in china come is this the best we can hope for wall lighthizer and mnuchin are over there? >> i think so. it would be optimistic to have resolution of time before march 1st. there's so much to be done. their secular issues here at stake that the military and intelligence apparatus are involved in intellectual property rights act, someone is and so forth and these will likely be resolved in 90 days. the best case of the market is we are encouraged by the fact that meetings are occurring. that's a good signal on the part of china and ultimately even if we get the march 1st deadline, there's still a timeline that allows the negotiation process to occur within reason and sulfur bigger issues. connell: financial markets have a habit of praising and then i
wondered if that -- when we get whatever that is. >> is always the risk around it. at the same time it's difficult to decompose a movement in the stock market up or down and say it is due to this. the government shut down at stake and while that's a low probability, it's one piece of uncertainty that at the moment been removed from the table and as consequence of what is sold in the market hostage for months now has been this trade. >> absolutely. the only thing left at the moment is troublesome for investors potentially. any migration we've seen towards a resolution to have an open dialogue around it will be good, but at the end of the day that has an expiration date and our macroeconomic fundamentals will provide the next leg up in
equity. true into our political guess all the time are after they talk about the details of a deal might look like and how we tackle the big issues are not. from an investor's point of view do you care about the details for us about getting a deal done? needless to say the devil is in the details. to the extent trust but verify us allowing for whether u.s. companies will feel comfortable around doing business in opening up the borders to having companies in the u.s. in manufacturing and so forth. for the market purposes to know that we're not going to have an imposition on potentially 25% in 25% or whatever it might be to the last tranche, let alone what the retaliatory response maybe we'll go a long way to soothing fears that this could metastasize into something. connell: i don't think anyone us are going to 25%.
a lot are assuming that won't happen. connell: thanks for joining us. we appreciate it. we move on now to the green new deal we've been talking about. eliminating fossil fuel use. 100% get rid of it. we have the poll tightened. robert murray. i can't guess what he might think of all of this. we are next. i'm a veteran
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guess that how mr. murray might feel. i don't like to put words in our guest mouth, the robert murray says the green new deal is nonsense. would you say? >> i say it is an outrage. they can't work. they are attempting to legislate the law of physics. you can't do that. in the process, they are attempting to destroy reliable low cost electricity supplies in america. my concern here is these politicians are attempting to mislead americans about supplies. these new congress persons such as ms. ocasio-cortez don't know what they don't know. that could be excused, but those senators who are supporting that kind is so damaging to our country. i do. senator ed markey, elizabeth warren massachusetts. bernie sanders, vermont.
they should know better. >> they're going to have to go on record from what sonoma connie has died today. they say we want these democrats to go on the record and vote for this. how important of an issue do you think this is for 2020? if the president were not to be realized it, what type of a difference in your business could we see? >> i realize the senate is going to have a vote to see just to support this nonsense that will destroy americans. but i'm not about politics. in fact, my expertise is in providing reliable low cost electricity to americans and what they are advocating is so outrageous that we have to call them on it. i take it very seriously when you asked me that question that we have senators, standing
senators that actually are so tempting to mislead the public. it bothers me very much. people really need to understand the complicated issues on the energy. they take electricity for granted. there it is. unfortunately, the green new deal destroys the. and it will destroy our standard of living. >> as i said a moment ago, looks like the senators will have to make that known on the record which will have political implications. speaking of which, as i mentioned you've been a big donor to republican causes over the years, so before i let you go i want to ask you about a story that's come up in the news over the last few days. the president treated the other day the following. call is an important part of our mix and should give serious
consideration before voting to close viable power plant at paradise number three in kentucky. as i understand that buys its fuel from you guys, from a subsidiary of your company if i'm getting it right. as a large political donor to the president, is this something you spoke to him about? >> i did not. never did. never spoke to the administration. that story was invented by "politico" yesterday, broadcast on msnbc last night for a 20 minute exposé. it was a total lie. they created news. they didn't report is here as msnbc often does, they created news. i've had no contact with anyone in the administration, but the president is right in what he's saying. unfortunately democrats don't. >> robert murray, good to see you as always. thank you for coming on on these
>> that is why he wants to travel the country and talk to americans to see if there is an appetite for this. we believe that there is and we have research that suggests there could he room. he also believes that there is a path to 270 electoral votes for an independent candidate. connell: howard schultz team now a member of that team they say they see a path to 270 for the
former starbucks ceo despite all the backlash is facing now. kristina partsinevelos joins us with more on that. >> howard schultz spoke last night in the overarching theme was he was going to bash the right and the left that focusing on centrist policies. he did say he still considering a run for the 2020 presidency, but there several times throughout the night where he was asked specific policy questions and he didn't provide an answer. firstly he was asked several times about health care instead of responding in giving a solution, he alluded to the right and the left. listen to what he had to say about polarization of politics. >> the majority of americans who are not on the extreme left in the extreme right feel as if they are not being represented and we are losing something good we all know something's not quite right. when i look at the situation, i have a strong belief that it
time to disrupt the two-party system that is broken, that is based on revenge politics. >> he was also asked about hurricane harbor and the damages in what what he thinks about climate change. he used that opportunity to go after alexandria sub tens new green deal in pretty much said it was immoral. however he did say if he was president he would make climate change his number one priority. another policy for an aoc was the tax rate. the 70% tax rate she suggested on those who make $10 million or more. he doesn't think that's feasible. he does believe wealthy should be taxed more. you couldn't get the number appeared several times throughout the entire evening where he didn't answer the questions or didn't provide policy and one last question he was asked about his starbucks shares. he was asked if he would ballot. he wouldn't answer the question but said there is many opportunities to put it in a company. that seems to be the overall theme of the evening.
focusing on the centrist from the slogan goes fiscally conservative here the question is how many americans will go for the. >> that is the question. kristina partsinevelos, thanks. to kristina's point on aoc ideas, you heard heard president trump inventor publicans using the term socialism to go on the attack against alexandria ocasio-cortez or other democrats. the former clinton energy secretary bill richardson was on with us last hour saying the green new deal is a counter move to terms policies. here's how he put it. >> i disagree with howard schultz. i think what you're seeing is the alternative, connell, the president saying there is no climate change problem. >> you're going on the record in supporting something people being honest about it is not technically going to happen. you don't think that's a local issue appeared
>> no, i would go on the record. i would support it appeared connell: bill mccurtain joins us now. interesting to hear that narrative to republicans especially as this is like a political gift to them to get the democrats on the record. >> the meanest thing the republicans are doing to democrats on this is asking them to vote for it. it's a brilliant move because it's amazing how quickly everyone moved to adapt the position. but they don't actually want to vote for it. connell: i thought you were going to say who's a brilliant move -- brilliant following the editorial board suggestion. after that happens, and governor richardson's point is there is energy on the left on these issues and even though it is almost overly obvious that some of this could never actually happen, that energy is worth
something to them. be careful what you wish for. >> if there's energy, that's the only energy they are in favor of. we are now in energy exporter. look, i think they'll have a problem with this on the price tag. it's one thing to say i think there is a problem with climate, but there is no cost benefit. you've been talking about the debt and would just run up a lot of stuff on the basis of some caused by a theological proposition . tree into $20 trillion in debt. >> if it's going to be a free college, medicare for all it's not the only spending, right? train to the story we've been following as the democratic primaries or at least the run-up to the primaries begin. that seems to be the competition for now. but that is sort of normal in
the primary season that you go to your extreme and they don't come back? >> you are talking about howard schultz. to me the best thing he could do if he adopted some real kind of policies as inserts in discipline into the democratic primary process and force them not -- look, amy klobuchar is more reasonable in terms of working with republicans in coming up with some kind of solution but she jumped on the green new deal, too. connell: what did you think about? >> i don't think it helped her. you see again howard schultz is having problems being specific. it is one thing to say there's extremes on the right in extremes on the left, but then you have to say what would you do differently i may have a hard time doing that. howard schultz said he came up within a reasonably market-oriented health care reform, not obamacare, maybe not
quite what the republicans want, but something in the bill that would work in some other things he could push democrats back a little. >> it really was kind of tough. that's his issue. it's almost like they're used to not answering questions. >> .the problem with sensuous. this big, mushy, bubbly thing on the center, but they can't define how it's really different in policy from the democrats. connell: bill, good to see you. we talk about this huge number, $22 trillion. can they really just print money and not worry about this is that one seems to think? when is it an issue? when will we care? up next.
confirms xi jinping will meet with the u.s. delegation that is in beijing later on this week. let's get to edward lorenz who has been breaking these details. would you know? >> the trade talks have been going so well that those lower-level talks scheduled for one day in beijing now gone three days. primary negotiators will meet. stephen mnuchin and robert lighthizer will sit down. president xi jinping has added to his official schedule a meeting with the u.s. trade delegation. the meeting is much like what president donald trump it on january 31st, meeting in the oval office, also planning on taking the u.s. delegation for a banquet at a chinese restaurant in downtown beijing. another good sign like the u.s. delegation taking the chinese to the metropolitan club for dinner washington d.c. when they were negotiating. one big issue to be worked out
dell is the mechanism of enforcement. should china break the agreement? the u.s. wants to protect intellectual property, open market access and then the partnership with chinese companies. president trump says that it looks like there may be a deal he might relax the march 1st deadline adding he is not inclined to do that, though. connell: seeing how all this works. we are not even close to a deal. edward moran in d.c. this headline about the national debt, with we shouldn't even need a reason to talk about it, but when you reach a big round number like this comic gives us a reason. over $22 trillion, fox business covering this for years, but sometimes it is like neil cavuto is the only one that cares. was top $22 trillion or that is why neil took off today. the former dallas fed official
to come in and talk to us about this. it's true though. nail talks about it all the time. it seems like no one else does in either political party and you start to say to yourself, what will be the trigger that makes them care? would you think? >> hats off to neil off to kneel because what you're describing is bipartisan blindness. a lot of politicians are emboldened to speak about the national debt in such a casual manner because we've had almost the longest expansion in u.s. history if we get past june. so as long as they send economic prosperity while we tacked on a trillion dollars in debt over the last 11, and they assume we can continue until the cow comes home and there'll never be any ramifications. other countries don't feel the same. connell: everybody out to debt. that's why when we say they expect it to go higher. of course it would.
just a numbers terms, 3.1 trillion now it 22 trillion. that's ridiculous when you think about it. back to the original question, do you think it a market that eventually drive says. the clinton administration official back in the 90s that's kind of what happened. the bond market told us to care about spending a little bit of a cut the control for a few years. >> that's exactly right. part of the problem is you've got the federal reserve acting as a complicit allies. if you think about the last 10 years, and they kept interest rates at artificially low levels and that makes it a lot easier to get away with deficit spending that really goes unnoticed. the question is what say when china's economy recovers, are they going to continue stepping up to u.s. treasury options or other people going to continue to do so?
the bond vigilantes are eventually going to raise it her hand and say no more. connell: that's probably what we'd do it. the only thing that would do it as once the rates start to move in as they're known, vigilantes get after people start to react. can you explain in the simplest terms possible why this matters so much to people's heart dawning every time we talk about it. why does it actually matter? >> for a very brief history lesson, it didn't matter for the united kingdom until it did matter. until they watched the british pound sterling and many of us in the united states did not reserve currency status of having the dollar b. in the world supreme curt b. as reasons we can keep printing. and they not the. that's not how the real world works. if a currency were instead being a war. i'm not trying to be hyperbolic at all. other empires in the past have fallen because of this hubris that says our currency reign supreme. nothing else matters. >> as you say until it does.
it's hard to get back into people's heads. you put the solid single dollar bills only go to the moon and back a couple times. >> our richest expense has ballooned and doubled and we are looking at going from $600 billion this year to over a trillion dollars just to service the debt here over the next seven years. connell: good to see you commenting out. i guess we'll keep talking about it. another kind of interesting story because there's new details coming out. apple wants to apparently to some sort of a netflix for this type of service. apple is pushing if it does this come in true apple fashion to keep 50% of the subscriber revenue. make it tricky to make deals with the people supplying the content. publishers are said to be
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blame fortnight. one research firm suggests more than 40 million people logging on to play fortnight every month in the game is just about two years old. it has taken a lot of attention away from act division. guitar hero and call of duty. call of duty does have 100 million players but it's been up and running since about 2007. they exceeded analyst estimates for the fourth quarter earnings and sales, but this year and the gaming company is cutting positions of workers who don't directly work on this popular game so 80% of its staff and 800 people archive. back to you. connell: deirdre bolton up the stock exchange. that's an interesting story to bring the scott martin now as we look at the stock price today is higher up by 6.5% with moves to cut from the workforce.
the whole idea here of the industry you're blaming fortnight. >> you know, i was afraid you were going to ask me that. there's nothing wrong with it. i'm so plain a lot of castle dania in elevator actions of this stuff is way beyond me. i know the code by the way. >> train to the idea that fortnight comes in. it is a phenomenon. i know from personal experience at my house. not me, but my kid. you play this online thing you play it for free so other companies could do things like this and i would've thought it's kind of the industry at the future. profits are going to be coming in like crazy. maybe the model for these two companies. what do you think? >> well, the models change. what's happening is you've gone
into the games now downloading them for free. so once they have you hooked, that is when you do the purchases and other things that make the profit for the company. instead of going to the store like you when i did, picking the game off the shelf, and getting people hooked on the game, you get them to download it for free once they're in their coming any power ups, we've got it on the screen there. how do you look at those companies, as investment. >> that tells you from the stock price. they've been dead stocks for months now. that's not a coincidence with the rise of this new regime of gaming. the interesting thing is they
are laying people off, they talk about who is going to get cut. the reality is wired shoe hiring more details like the guys who started the fortnight series because they can retain their competitive edge because they've fallen behind. it doesn't seem like how they're going to catch up. >> area nicole: the great legends all the players of all time scott martin. in a moment, the president actually talked about this in the oval office, this plan thrown out with ted cruz calling for all choco, and a drug kingpin. his money to be used to pay for the border wall. talking to the judge.
anything ted does is certainly interesting. that is an interesting one. connell: president trump was being asked about the proposal for senator ted cruz from texas he wants to use 14 billions if and when seized from mexican drug kingpin "el chapo" to use that to pay for the wall, the border wall. we thought, you know what? let's ask the judge if this is something we should be talking about. judge andrew napolitano. senior judicial analyst joins us now. >> always a pleasure. connell: ted cruz came out and said we should take the 14 billion to use to build the wall. what happens to that money. >> he actually introduced legislation for that purpose. i will not give you my purpose whether this is a wise use of the money, but it would certainly be a lawful use. connell: he could do it, right? >> congress under the constitution, it can't regulate any area, can't make you change the color of that very attractive tie. connell: well -- >> it can tax the tie and spend
money on other ties. it can spend money however it wants. it can spend money from whatever source derived, borrowing, tax revenue, assets seizures on whatever it wants. connell: money is money, right? or would it be actually these dollars? if it is 14 billion, you seize that, you write a new bill and spend 14 billion, right? correct. that is what assets seizures have become. they haven't saved the government anything. they spend all the money. whose noses will be out of joint, the justice department. they have seized that. they have promised a lot of it to various entities throughout the country. connell: is that what they do? >> that is what they do. they basically said to local and state governments, when the money comes in, here is the chunk you can have. think about what goodies you want to buy. that is in the absence of legislation, assuming they actually get the 14 billion. the 14 billion is not in the u.s. it is in mexico. connell: they may get a fraction of it, all of it or how that
ends up. >> correct. connell: this is a big number by the way i would assume. >> this is the biggest asset forfeiture in history. connell: normally, i don't know if you have any experience of this kind of thing, how much normally do we get percentagewise when we seize someone's assets like this? >> ordinarily what is seized a finite amount. connell: right. >> which rarely bears resemblance to the harm of person caused. are you ready for this, before conviction that is very, very serious constitutional issue, because it is phenomenal punishment, if the bank account, money to hire a lawyer, unbelievable interference with your constitutional rights, to say nothing of your property before you have been convicted. often, this again bears no resemblance to the magnitude of what the crime. connell: what they did. where is this money sitting i wonder, 14 billion for "el chapo"? >> i imagine it is in assets. i doubt it is in a bank account.
connell: yes. >> i once had a case where a young man was driving ladies across the george washington bridge for an immoral purpose and they seized a $200,000 mercedes-benz. it wasn't his. the guy comes in the courtroom, where is the car. we seized it. obviously i made them return the car. that is example of seizing an asset worth far more than harm the crime caused. connell: cavuto, you and he are friends. he was not angry about losing his car. >> i promised i wouldn't use his name. connell: what happened to my car. judge. quick thought on the "el chapo" in trial in general. i was reading something it's a good example of how the justice system works. >> evidence of guilt is overwhelming. rarely is a person tried in state b, because of crimes committed in state a. rarely the judge gets to release to the government at the last minute, sexual excesses, you
don't have the time toe defend it. two appellate issues. connell: thank you. wrap up the two hours of "cavuto: coast to coast," with the dow up to 87 points. to charles payne. charles: connell. good to see you, buddy. this is charles payne. and "making money." u.s. china trade deal is fueling markets. every sector is higher except the utilities. nasdaq is on track to exit a bear market. naysayers they blew it but will they change their mind and finally get into the rally? will president trump sign the border deal when he sees it? will a national emergency be the next thing if he doesn't sign it? there is a lot of intrigue going on there. i will ask texas congressman chip roy about all of it. the national debt is topping