tv The Journal Editorial Report FOX News January 5, 2014 12:00pm-12:31pm PST
we will see you next "fox news sunday." this week on "the journal editorial report," from washington to wall street and aaron the world, our look this week from wall street to washington to around the world a look at 2014 after obamacare's rocky rollout can the president get back on track and push forward with his populist jane did a? will 2014 be another big year for stocks? are there signs of a slowdown? are there be historic peace accords? welcome to "the journal editorial report." this week we are looking ahead to 2014 and the challenges face
it is obama administration at home and abroad. we start on the home front where the president no doubt is happy to put 2013 behind him. can the white house move past their obamacare woes? push forward with what's shaping up to be a populist agenda. let's ask dan hager. assistant editorial page editor james freeman. dan, the president has has a comeback strategy, i suspect. what sit? what are the prospects? >> i think it is going to be difficult for the president himself to come back, paul. i think that the -- damage that was done to his credibility with obama kir is pretty significant. you know, saying you can keep your doctor or your health care plan which wasn't true and when the public withdraws its belief in the president, he has a problem. nonetheless, they have a big election contest in november of 2014. i think that a lot of the effort is going to go into -- to the
republicans trying to suppress republican turnout and make the republicans look like something you don't want to vote for. >> financing tea party challengers. >> they don't want the republicans taking control of the senate. so i think that is what we are going to see across the legislative agenda in washington. >> mary, there is also an emerging on the left economic pop list many which is, of course, fascinating since they have been in the -- in charge for over five years and now saying that we need this new aggressiveness object economics redistribution. we are going to promote a minimum wage referendum around the country if they can do it, push congress -- talk about extending unemployment benefits. variety of these arguments aimed at saying republicans, for the rich, and we are for the little guy. >> right. i don't think that it is really about getting any of that done. it is really more about using it -- take advantage of the circumstances to demagogue the other side and i think we are
seeing here with this president is his lack of experience in politics. when he runs into a problem or opposition from the other side, he doesn't sit town tray to figure out how he can get part of what he wants done. instead he uses it to basically, you know, as i say, demagogue the other side. for that reason, i don't think that he's -- there will be my change. >> has it it worked? he won in 2008. he won in 2012. they are figuring, hey, it worked in 2012 against romney, let's use it against boehner and company. >> well, the only game he knows. but as dan said, his credibility is hurt and i think he needs one or two wins under his belt. so i -- i think he is in for another troubling year. >> let's talk about congress. what can get done? >> i think there are two areas where he really has an opportunity if he wants to put aside a lot of the class warfare receipt rick and campaigning,
i'm not betting on it. while he's vacationing in hawaii, his campaign organization was frantically sending out e-mails and trying to raise more money for the next, i'm sure, set of inequality gripes but i think he does have an opportunity in two areas. one is housing. the other is immigration. housing, this is a moment where there is, i think, an opportunity to get a bipartisan agreement that government and these mortgage monsters created, fannie mae and freddie mac, should withdraw from the mortgage market. it is a good time to do it. >> because the housing market has come back and house prices are rising glen the senate is ripe for a zeal if -- if he either stays out of it or doesn't decide that this is another opportunity to campaign against bankers. >> what billgration, dan? >> let's talk about that. >> i think boehner -- i think he wants a deal. if he can get it. i know paul ryan would like to get? kind of a deal.
a lot of republicans would like to get this issue passed. >> yes. i think there are two ways to think about the immigration issue. obama is port among hispanic voters, key parts of the base in re-election, has fallen off. he is down about 14 points among his panic and young vote offers as well. he can go in one of two directions. put the republicans in position where they -- it is impossible for them to vote for the immigration bill and hispanic voerts, look, republicans don't like you. you can't vote for them. or -- >> here is the -- use the issue against them. >> or he could get an immigration bill which i think would show that he and washington can do something. the result, i think, would be a status quo vote which would mean that maybe some of the democratic senators would survive. >> it would help them in the senate. >> without it help them in the senate. the question is does obama have it in him not to scapegoat the republican party? >> your short answer? >> i don't think he does. >> i think that -- i think -- thinking he would go for
immigration deal is triumph of hope over experience. >> just go for something small. high-tech immigration. let in as many engineers -- that would be a good start. >> what about obamacare? is that going to see a revival because obviously the republicans are pit g their election hopes in 2014 on attacking obamacare and saying, look, everything we predicted about it has come true. >> yeah. i don't see the revival. obviously the media is very excited and ready to do the comeback story and the -- look after all of that problem, websites working now and everyone was getting coverage and they are going to talk about the numbers who will now get insurance. i think it is the quality of that insurance that the patient is not going to ignore. that they don't get the doctor they had, don't get the coverage they wanted and it is built in now that we are going to get rates by next fall based on who is signed up. mainly older, sicker people. >> 2014 will be the story of
well, 2013 was certainly good for investors wi 2013 was certainly good for investors with the stock market matching its best year since 1995. the s&p 500 posting a whopping 30% gain. with the market momentum continue in 2014 or is a slowdown ahead? mary, lets talk about apart from the markets the economy is showing signs, some evidence, that maybe we are getting out of the five-year doldrums here and popping up, finally getting what they call liftoff in more normal growth. what do you think? >> i think this may be the
recovery we should have had four, five years ago. but i think we have to be careful because what you have is corporations doing very well. why are they doing well? falling energy prices, a lot of pressure on wages. so they haven't had to raise wages. and they have done quite a bit financial engineering with very low interest rates from the fed. >> they are not -- they haven't been hiring. >> the effect of that is a wealth effect in the stock market. so you have the corporations doing very well. stock market going up. and, therefore, lots of people who own stocks feeling wealthier than they did four, five years i think that the thing to watch here would be business investment capital expenditure. if that starts to look like companies are actually committed to putting more capital to work, then i think we start to see -- then we can say, okay, we are in the throes of a real recovery. but until then, i think that -- a little bit of caution would be in order. >> that's it. a function of confidence. do you see sort of generally
things getting better and then as a business you are able to be -- willing to make a bigger bet on investment and we are beginning to see some signs that may be the case? >> i think one of the reasons why we are see thing signs is that the loyal opposition in washington is actually starting to show it will push back against some of the things that have caused so much uncertainty over the last four, five years. >> i think there is reason for optimism. very good growth in the third quarter and good report this week on manufacturing. orders are up, production is up. i think that -- i think the economy not -- because of the drag from washington not doing what it should. but should be a good year. >> vindication for the federal reserve and ben bernanke as he hustles out of town? i mean, finishes -- was he right? >> as he hustles out of town, not taking the punch bowl with him. that's what i worry about. is they have been printing money, doing everything they can to offset all of the mistakes on the political side that the political authorities have made. and they have maintained very
low interest rates. now the economy is growing again. i don't see anything in the record of janet yellen to say she is the one that is now going to stop all of the money printing and they are talking about a taper. this is a teeny tiny baby step towards less intervention in the mark. >> taper is -- fewer bond purchases by the federal reserve. janet yellen going to be ben bernanke's successor at the central bank. you are worried if they -- do start to taper more aggressively that's when the markets will get shaky. >> this year -- i expect a good year for the markets and the history says based on last year, after a -- that kind of an increase, you normally get an up year the next year. i think the reckoning probably comes later and it might be worse because i don't see her stopping the money printing. >> maybe -- go ahead. >> forget about the monday xwrimoney print going forward you already have $3.4 trillion on the balance sheet. if investors start to see opportunities out there and that
money starts to get off the balance sheet and into the economy, you will have the risk of inflation. >> here is another good sign. that's what you might call a virtuous gridlock. the fact is -- republicans hold the house and they are stopping most of the bad things happening except in regulation when they can. and the president has this agenda but the -- he can't get it passed. not much happens. businesses go around and say, okay, they have done a lot of harm. they are not going do any more. maybe we can risk that invest in building that plant, hiring the extra 100 people. >> there's a couple of words in there, maybe they can risk doing that and -- congress is the one that's caught in gridlock. the executive branch is not caught in gridlock. and, you know, i think we made it clear the real economy is poised to take off, corporations have a lot of cash. they are ready to invest. they are patient to invest. but there is a significant regulatory drag out there. both the uncertainty over the obama health care plan,
dodd-frank is still being implemented. the president is showing self-willing to -- environmental protection agency or labor department on various sectors of the economy. the problem is, i think the president himself doesn't fully understand the way the private economy works. he thinks these regulatory interventions don't matter. they matter a lot. so we will get some growth but i don't think we are going to get back to the growth level we should be at. >> just as a final point, the big weight on the economy particularly small businesses, small business, job creation continues to be obamacare. we have to wait and see how that weighs through before i think we are going to see more hiring at that small business level. >> when we come back, the obama -- administration making diplomacy, top priority in 2014 with a push from middle east and nuclear accord. as fears grow of al qaeda's insurgence in the region will it abfear of historic accords or growing world disorder? my mother and my grandmother are very old fashioned.
i ink we both are clean freaks. i used to scrub the floor on my knees. [ daughter ] i've mastered the art of foot cleaning. oh, boy. oh, boy. oh, boy. [ carmel ] that drives me nuts. it gives me anxiety just thinking about how crazy they get. [ doorbell rings ] [ daughter ] oh, wow. [ carmel ] swiffer wett. you guys should try this. it's so sy. oh, my. [ gasps ] i just washe this floor. if i didn't see i wouldn't believe it. [ carmel ] it did my heart good toee you cleaning. [ regina ] yeah, your generation has all the good stuff. [ daughter ] oh, yeah.
well, the obama administration is kicking off the the obama administration is kicking off the new year with a renewed push for peace in the middle east with secretary of state john kerry arriving in the region. this week for talks with the israelis and the palestinians. will 2014 see historic accords and the tribe of diplomacy? or growing global disorder. we are back. matt kaminski also joins the panel. let's focus on the diplomacy first. what chances are -- is there for either of these deals? >> it is strange to see john kerry arrive in israel by some kind of reflection of the last decade. i will try to get peace to israelies and palestinians. >> he is spending a lot of time there. >> he is.
all around israel you will see in lebanon, syria, iraq, in egypt and growing instability and the spread of the syrian conflict across the borders, the rise of al qaeda again, we are told it was almost dead. al qaeda because of the syrian civil war. and these are really going to be the concerns for 2014. >> you are saying that's the big problem and meanwhile, he is paying attention here to conflict if not settled at least contained. >> just very bizarre. reflects an ambition president obama came into office saying they are going to extend hand to the enemies and focus on trying to negotiate peace. without realizing in sends a message of weakness to our adver sayer niece the region. particularly iran which is very much behind the civil war and spread beyond. >> what about the iranian nuclear deal? this is going to be the big story of 2014. >> well, i -- i don't have much hope for the iranian nuclear deal. i don't. i mean, for --
>> for getting it done as opposed to a bad deal done. >> well, i -- you know, they had not even able to agree on the terms of the interim agreement. so it is not -- >> bad sign. >> that will not make the six-month deadline. i think the -- obama would like to keep the focus on that just to sort of distract attention so he doesn't have to deal with some of the other issues like syria. but the problem is that al qaeda, for instance, is on the rise in iraq and just taken over half of fallujah and ramadi and anbar prove skins spreading in syria. these are all places obama has withdrawn from or decided like with syria he doesn't want to commit to. so he has gotten himself in a dilemma. the places where they are really hot, he does want to go. he rather concentrate on something diplomatic like iran. >> i think obama would say, well, that is the probably loefrm there. we got out of iraq and it is not a big issue anymore for us. the american public don't want to go back there.
so, look, that's -- it is unfortunate but there it is. it is not our concern. >> the problem is that if it blows up high enough, the united states inevitably gets drawn into the conflict because we are the only one that can intervene. that's the danger. >> if an enclave develops in west of iraq they can stage operations from there all around the world. what about other hotspots? >> you know, the -- idea that obama -- the president obama is signaling weakness in the middle east, obviously, is not contained there. everyone around the world sees it. i think that in asia, china, some of the things china has been doing in the -- with its navy and challenging the u.s. and international waters, i think that this is partly a reflection not just of his enthusiasm to retreat but also the weakness of the u.s. economy.
i mean, can you not be a world superpower with a second-rate economy. and china feels emboldened by looking at all the problems he has and the weekness he signal. >> i think in russia where have you the olympics coming up, several terrorist attacks. in general putin has seemed strong because he cracked down on the opposition and has a weakening economy. he is also trying to reassert himself in his neighborhood. you have the ongoing protests in ukraine to join europe instead of being pushed back into russia's arms. i think that the european story, forget about europe. settled. that's not settled yet. >> do you -- are you worried about terrorism at the olympics? do you think that they will be able to contain it around so muchy and the various sites? >> i think it is always a worry in russia. honestly that's a -- security state without security. pairly corrupt police force
there. putin has not shown over the last 14 years that he's got a handle on his islamist al qaeda problem. >> i'm looking at africa, paul. that's because there -- a lot of significant fight going on in africa. central african republic produced 800,000 refugees. fighting going on in the congo. as bad as that, this -- these are breeding grounds for islamic fun dalism and al qaeda. they are down there recruiting people into the movement and they trained them and then moved them around in the region. up in through northern africa, up towards the middle east. so long it is a world shakes like that, al qaeda seems to be the one frs out there that's benefit. >> the real problem it seems to me all over the world is that the president has, as i said, signaled his weakness. the world knows also that the american people are not behind any kind of intervention. that he would lead. because he hasn't convinced them. he hasn't worked at all in
talking about our interests and the rest of the world. >> i can -- from chicago, he's not able to improvise foreign policy. >> we will see. we have to take one more break. hits and misses of the week. i love to eat. i love hanging out with my friends. i have a great fit with my dentures. i love kiwis. i've always had that issue with the seeds getting under my denture. super poligrip free -- it creates a seal of the dentures in my mouth. even well-fitting dentures let in food particles. super poligrip is zinc free. with just a few dabs,
time now for hits and time now for hits and misses of the week. our panel makes some predictions for 2014. mary, first to you. >> i'm predicting that risks to human life of transporting oil by train is going to become more visible to the american public. exhibit c would be the fireball we had last week in north dakota. but we also had a similar event in alabama last year and we had 47 people killed in quebec. i think that along with the pressure from senate democrats in close races will convince the
president to approve the keystone pipeline. >> you are an optimist, mary. god bless you. >> last year was a very bad for democracy. this year is going to be a very bad year for -- turkey with irvin, putin, are in trouble for economic and commit cal reasons. i think that the young kim son in north korea seems to be troubling. i will finish off by predicting that the castros, fidel and raul will paul this year. >> a crazy -- crazy optimist. bring us down to earth, dan, please. >> you may not like this one. global warming, the phrase we are all familiar with, i think it is going to die this year. environmental movement decides given the kind of incredibleer weekend, they will wrap it into the phrase-climate clang. this means the problem is unsolvable and will be able to get grant money from now until the apocalypse. >> okay. that is a good news/bad news
thing. all right. i'm really cheerful coming out of this for 2014. that's it for this week's show. hangs to my panel and to all of you for watching. see you right here next week. police in colorado confirming emergency crews responding to a small plane crash at aspen airport. witnesses say the private aircraft burst into flames when it crashed landed just under one hour ago. we will keep you updated as we learn more information. welcome to "america's news headquarters." hello, everyone. it certainly has been a floody day in iraq as violence surges all over that country. this is the aftermath after a series