That we are in deep, deep chip. A practice that a few times. Welcome, everybody. Im neil cavuto, and that is what happens. Everything used to stand guard as right out the window, like respect. Remember when least to be a beacon for investors in our unfettered markets and economy . Tried 12 the latest Global Survey done countries like estonia, estonia. Countries that learn from us arnel mopping thefinancial flow with us. And none more so than sign a, which has learned that the fastest way to rule the world is the first control the financial spigots of the world, and although they desperaty need cash to pay their bills, by the way, that would be us, and that ould be sad because the only thing worse than channeling a record amount of our debt is our doing nothing to rein in net debt. We make ourselves weaker in china stronger. Amazing. Witho firing a shot we are already shot gun and does in this military guy no. He with me now, former deputy undersecretary of defense. My big concern is the more we know the worse t looks and for china the better it looks. What do you think . Youre absolutely right. We have gone so far, just barely a year ago we ad republican president s to get it saying that the test for whether we should go ahead ith the federal program is whether it is worth borrowing money from china to fund it. I just dont understand how the thinking goes here in wahington any more. Money, as you know far better than i, as a weapon. It is just like to shift, rifle, a tank. The basic point here is, when china decides, if they decide to take a hit on their own economy in order to sink hours, what is going to happen, were going to be i, as you said to my very deep shade 56i can say that. You re far too respected to even try. I took your risk. Neil here is my worry the mother we are not worried. We just sort of have this smug attitude an say, well, you know, it should be told china needs as if not for as much as we need them. There might be some truth to that committee would be selfdestructive for them to take punitive measures again this, that is a lot o money that they control, that is a lot of money we owe to them. Is that a good position to be in. It is a terrible position to be in. And youre looking at what china is doing, building of the military, for heavens sake a gun several years now testing entire satellite weapons. They can threaten our satellites who will be flying blind literally and figuratively. If you look at what is going on, they tested a Hypersonic Missile the other day. Montand missile inside the atmosphere which is really hard to do fifth. Theyre saying is is for scientific purposes. Well, really . We are relly in a cold war with china right now. Neil heres the thing, this is linda on the moon. Theyre spending like drunken sailors year. So we think it is not just for, you know, a technological sort of discovery. No, when you looked at what is going on with the design of their armed services, design of their armed forces these days, it is intended to prevent us from intervening in their ambitions. Theyre coming up with weapons to prevent usfrom running an Aircraft Carrier in close, from doing anything from a satellite weapons, this whole variety of things theyre doing, and theyre doing it with us in mind. It is not an accident. There is a cold war going on. I wish someone had against talk about it other than you and me. Neil well, i am going to try to take think of words that rhyme with other famous curse words. In the meantime, secretary, is a pleasure. My pleasure. Neil by the way, dont even get this former ceo started on what a financial mess with light. Former mcdonnellceo says of the spending gluttony is eating a steadily financialrave, and yet we continue to practice pouring good money after bad and actually see politicians and the ones on this very show when i dare ask them about accounting for the moneys already spent. What do you think . I thinkyour analysis and the secretaries analysis i just absolutely spot on. This is a National Defence issue in some many ways. When i look at it we are importing, importing, importing. China is coming here and buying of food supply. Th just bought smithfield foods, the largest producer. They understand exactly what is going on. I made it two week trip to china recently, the shanghai district. One of the Party Chairman said to me than the politicians in the United States have substituted fairness for good judgment. Our culture is douses of years old, and we will win. Boy, that is pretty tough, to throw down in front of us. Neil there is another side to this that maybe were making too big of a do over. China is not halwhat theyre cracked up to be. Theyre falling on their own reputation that is not warranted , and there in deep trouble, so we should all come down. The flip side is that they are in deep trouble andll this debt. We could be in deep trouble. Whether your boss . Absolutely. If you go over their like a what is goiig on, theyre building new highways, rail lines, airports, infrastructure. That is a society on the move. Theyre using our dollars to do it. You heard the secretary talk about what theyre doing with their ilitary. That is an employment per room for them. Theyre target is clearly the western United States in particular. That drain on our capital is causing small businesse to montagnards, people to give up. You cannot borrow money coming expansion of innovation what is the positive year. Arent they still saying they believe that we will pay back . Where they have no otherplace step but the money. Is in the biggest threat that they can swap out of u. S. Debt for another country . You know neil very young and very naive. Im kidding. I feel it necessary to point out, another thing that china buying a car that does which keeps our interestrate low. From a consumer standpoint theres a lot of fear that with the fed getting a of a stimulus and Bond Buying Program who will see Interest Rates spiked. China is keeping our Interest Rates low. Neil i am arguing is a very, very dangerous prop. It is extremely dangerous, and the words the two words that stuck out to me, cold war, was thinking about that as i was coming to your show, we are in a cold war with china and it is having an effect on our market, creating a lot of uncertainty. Neil you didnt see it last year in the market. Aybe the market would have been higher which is the point. If the market was up 30 percent with that china it may have been up 40 . No, i am not i dont really thin so. I think there is tremendous uncertainty. Ticket what is going on in nonmilitary. Every time you turn on the cbc secretary kerrey talking about the middle east, the meantime, china has these islands with japan. We have a peace treaty with japan, and we cannot do a thing about it. That is a mes of uncertainty. Neil you dont think if things got ugly how can we without spending a tremendous amount of more money which is where the uncertainty. Where will we get the money from . Neil we will print it. Exactly right. That is why senate could if they want to put as out business, but the other thing,let me just give you an example. If somebody found zero months of gold in your backyard and told you could money at 2,000 an ounce which you go near it . No. China is mining is much gold as they can add 2,000 an ounce. Why . They want to ompletely control the market. They want to replace our dollar. Neil something youare not seeing right now essentially. Violent we should be concerned. Longterm china and japan, what is their priority and a daily basis, to continue to devalue there currencies because they are trade can export nations. How did they do that best combine our debt. Theyre revaluing their currency. The problem with china right now is theyre probably one of the strongest currencies in the world. What theyre trying to do, im sorry, is there trying to create consumer society. Neil bottom line, you are worried. Buying a south. Right. Neil you, senator,are saying that we are making much ado about nothing. And not saying that all. It is shocking and we can get ourselves out of this. Neil yu will agree that we have to do something. Everyone says there is the big threat that china could dump all of this debt and it would be theyre not going to do it. It would hurt them more than us. That is not the problem of the issue. They have the threat to do it. That would hurt as much more than them. If w did something to try and protect japan china would say, go ahead, go for it. Were taking of as islands. That is uncertainty. Neil year in crazy land. And i love you. Neil semi crazy . Neil and no one to argue. But it is out there, it is a worry, and we do of the chinese a lot of money. Meanwhile, free weather quiz christies president ial prospects have stalled. The traffic jam, the republicans apparently interested in going over the same race. Next on the grand old party waits for 2016. Not so much for who will be running, but you will be running. We keep going. [ male announcer ] this m has an accomplish research and Analytical Group at his disposal. But even more pressive is how he puts it to work for his clients. Morning. Morning. Thanks for meeting so early. Oh, its not a big deal at all. Come on in. [ male announcer ] its how edward jones makes sense of investing. Of the dusty basement at 06 35th street the old dining table at 25th and hoffman. And the little room above the strip mall f roble avenue. This magic momt it is the story of where every great idea begins. And of those o believed they had the power to do more. Dell is honored to be part of some of the worldgreat stories. That began much the same w ours did. In a little dorm room 2713. This magic moment theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ale announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. Open to innovation. Open to ambition. Open to boldids. Thats why n york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and ows more businesses. Were open to it. Start a taxfree business at startupny. Com. [ male announcer ] wt kind of energy is so abundant, it can help provide the power for all th natural gas. More than ever before, americas electricity is generated by it. Exnmobil uses advanced visualization and Drilling Technologies to pruce natural gas. Powering our lives. While reducing emissions by up to 60 . Energy lives here neil fore get whether Chris Christie is damaged goods or n not. Dont look now, no fewer than 32 republicans, 32, could be trying t the 2016 waters that like italy. I know a guy named giuliani, ru giuliani, on whether he joins, why not . Maybe the ones in italy. Neil what the hec what is going on. Its a open seat. Right . Ooen pretty much open field, there is no on the republican side no Hillary Clinton. Clinton. Neil yeah. Not a sure bet. But it appears to be. If jeb bush were to say im running he could clear the field somewhat. He is not quite Hillary Clinton to republicans but close,. Neil do you know something i dont. Do you think he would . Do i think he is running . I dont know that would change the dynamics. Chris christie you have been very staunch in your defense. I detect a great deal of politics more than substance, considering amount of time spent on that and irs scandal, and benghazi. And report yesterday and today on benghazi is devastating to Hillary Clinton, on her watch, people died that should not have died if she was a better secretary of state, simple as that. She got the warnings, they went on for 6 months, i dont think that Senate Report comes close to giving you half the warnings she got, they took no action they had a political objective that was more important. Now under scoring facts that politics is more important to hill reahillary. In christies case, these people did something stupid. Neil you tax him at his word he did not anything about it. You have to, nobody is prove. The denial he gave, has advantage of i think of making it credible and showing a leader he is, if not true then he is in trouble. Neil what do you make of fact that a lot of folks want in on this race . Because they dont thinkt is a race, they think whether christie is in krupp else or no trouble or not that think it is fielders choice, and taking their queues from 92 when pill clinton ran, someone will win, that they figure like folks who bu lottery tickets, it might as well be them. There are too many possibilities nobody at 25 range. Neil what about you you . Are a household name. I have not said ill be a candidate. Neil would you be interested. Right now, i am not, i am thinking about a lot of other things, i like a couple of the candidates a lot, chris one of them. Neil i think mayor, that it is about who among those who attract donors, those who want to raise money, i know very early, but, any early signs that those who are financially inclined to walk to Chris Christie are at least pausing, they say, we want to see how this plays out . I think that chris probably has the biggest if jeb enters then a lot of bush organization for george. A big group to h, but put jeb aside. Of the group in the file, the guy with most fundraising prow ses Chris Christie, and he has those people begng him to run for president last time. Chris has ken lango. Absolutely. Ken is like a bromance thing going on there. Forget that, he is one hell of a fundraiser. Neil he is, Rudy Giuliani good to see see you ape new year. Thank you. Neil something they want something they areemanding, and something they are both making a lot of noise over if they dont start getting it so soon. This is the quicksilver cash back card from capital one. Its not the juggle a bunch of rotating categories card. Its not the sign up for rewards each quarter card. Its the nogames, nomessinground, noearninglimithaving, doilooklikeimjoking, turboboosting, heavyweightchampion oftheworld cash back card. Thiss the quicksilver cash back card from capital one. Unlimited 1. 5 cash back on every purchase, everywhere, every single day. Now tell me, whats in your wallet . Neil marriott has a problem, beautiful resortsut not enough people to wwrk at those resorts, unless they do something, the resort, and customers might feel the pinch, at teo is saying foreign tech troops, they are more than two of more than 200 ceos pushing for Immigration Reform. Democrats are begging for extent the uni unemployment. We want to bring in illegal aliens to take jobs from americans, if they can get 99 weeks of free money ttey will take it. This does not help the siation, this is not help the economy it is wrong, stilling well. Fascinating, i dont think that anybody has focused before on how immigrants and the ceos actually are on the same page on this. Ceos looking at bringing more people in hightech. That troubles me a bit, i wish they are more focused on trains americans to do their job. Neil that is not their it is not. Maybe government a job to do that. Other interesting marriott, they want more lower level workers, i actually kind of agree with deedee, you wonder why they cant find these people already here. And they are not looking to under pay the workers. To your point, if they dont get it, that is their Immigration Reform that looks like then what . Well, you know this and i think that the unemployment gravy train needs to go away in the beginning unemployment was shortterm, i cannot believe people cannot go out in a month or two and find a job. That is not an immigration issue. It is, people are sitting at home, they are not finding jobs it is too easy. Neil cheatos . Yes. Chea. People really need ao feed their family, get out there and do what they need to do, jobs would there be, they go to work. Neil not a crazy connection. A little bit of a crazy connection. Well. People well, you say, you take the Unemployment Benefits away. That only works if you accept l these people want to be working. Lets go 50 that would take care a lot of jobs. Neil were not getting it this year. T that the problem, all sides want it, ultra coff ultraconsere not going to allow this to happen, boe has a secret plan 92 he wanted to legalize smokers. How about vapor . I agree. Neil someroblem that keep Foreign Investors at bay, adding our problem from up north, a guy named black said our future could look so i can reach ally bank 24 7, but there are no branches . 24 7. Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . I do. Ink water. Its a long story. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Ally bank. Your money needs an ally. Of the dusty basement at 06 35th street the old dining table at 25th and hoffman. And the little room above the strip mall f roble avenue. This magic momt it is the story of where every great idea begins. And of those o believed they had the power to do more. Dell is honored to be part of some of the worldgreat stories. That began much the same w ours did. In a little dorm room 2713. This magic moment neil sure it is a list, and we look awful on that list, it is just a stupid list, ranky countries by their Economic Freedom and how easy it is to do business with their country does not make us look attractive, u. S. Has fallen to 12, many say, calm down were still the largest and most liquid market conrad black said not there, said dismissing u. S. Officials, might risk looking cocky at their own risk. Joining me now from canada. Country that is 6 on that list. Conrad, what do you make of this . Well, i have seen the list, and happy new year. I enjoyed listening to your previous guest, my view, there are a lot of problems. But i always emphasis that u. S. Is fundamentally trechusually rich country with a patriotic population of talented workforce. Neil were spending ourselves into a hole. There has been a deterioration, without doubt, serious. But not irreversibl and it is not permanent. You just need leadership, you are not getting it. But you have been i dont want too sit up here and canada an