Not to raise taxes on middle class will be nul and void on january 1st. The president in his own words confirming that tax hike, coming irrespective of the fiscal cliff outcome. Taxes are going to go up one way or the other, the key is to make taxes go up and highend individuals, i am confident that republicans would not hold middle class taxes hostage to try to protect tax cuts for high income individuals. Lou obamacare, guarantees taxes are going up. 5 new obam obamacarebased taxeo kick in next year. A 3. 8 surtax on unearned income, and call chains and dividend 18. 8 , and a new tax on hospital care, and medical device manufacturersing taxed 2. 3 of the price of their products. Americans get a Tax Deduction if their medical expenses exceed 7. 5 of their total ince that number rising to 10 for everyone under the age of 65. And government, for First Time Ever sending a limit on tax free exible spending accounts, joint committee tax, estimates those 5 new provisions amount to 2 60 billion tax hike over next 7 years, president obama, avoid anything real negotiating on fiscal cliff issue, president doubles the amount of tax hikes he campaigned on when he unveiled his initial proposal, then after weeks of negotiating with proxies in media, most recent offer cuts that number to 1. 4 trillions. House Speaker Boehner told his caucus, both sides are not close on a deal to avoid the cliff, Minority Leader Nancy Pelosi ripping Republican Leadership from house floor in what can be described as a bizarre rant that ended with a compliment of the speaker. It really getting boring. It is smacks a little bit of nero, figure it out, we did. Figure it out. Then, go forward and continue to debate the issue. I believe he is a important of good intention, maybe that gets me into trouble my saying that. Lou to surprise of many in washington boehner appears to have support of more voters than anyone thought previsly, a new fox poll shows 3 a 3 to 1 margin, voters believe by enacting mostly spending cuts is the best way to deal with the problem. President obama continue its push his ultimatum on higher taxes for wealthy, and Republican Leaders responding by warning their members to be prepared for christmas in washington because of the stalemate. And joining us now, congressman devon nunez, a member of house aways and means committee. Speaker saying they are separated by serious gaps here, what are your thoughts . I came on this show two weeks ago, i told you then that president wanted to go cliff diving, that is what he wants to do. He is not serious about getting a deal, if he was so serious, he would not have met with john boehner sunday morning then go out 24 hours later on a Campaign Stop to michigan railing about some middle class tax hike jarg onljargon he is using. He wants to go off the cliff,. Lou looking at that number. Newest fox poll released a couple hours ago, that polls poe 5 say 57 say that best way to deal with budget is with dedictions, and then, what were seeing in these numbers is, if not direct support for the speaker, certainly enough support for the speaker and position on spending cuts that has to give the president some pause dont you think . I am worried about here that American People, really have not felt what a big tax increase is like. They have not felt the cuts that have to happen. And were really living off of borrows money, and the helicopters keep flying in and dropping the money, i am from the state of california, the state of california vottd to make it is the highest tacked taxed place on the planet, meanwhile, jobs and people are leaving california. We have to cut, people are not ready for it yet. What is ever ready for a big tax hike . Well get a big tax hike on january 1st as i just reported. Here is 2 70 billion in new taxes, they will hit middle class, working men and women. This is a game in which the president has succeeded in diverting National Media from real issue. Which is he, said he would not raise taxes on middle class, he will shove them down their throat on january 1st. I mean and the republicans ar not talking about it. Congressman, why not . In were trying to. That is why im on your show. Also. Lou fire away. It is important, i want to split up the issues. So what happens on january 1st, people will feel it will be with payroll tax, and amt, alternative minimum tax, cut to medicare, and cuts to defense. That is for real, that happens. That is immediate. The rise in rates due to obamacare, and the bush tax cut expiring, those actually do not take effect, they will not owe them until 2014, i think that president thinks he has time. But, this is this is why it important i think, f us to tell the truth. And be grown ups, the president thinks in shortterm, he can just continue to go out and campaign, and maybe in shortterm republicans will take will blame. Im ready to take the blame, i am going to tell the truth to my constituents. Lou take the blame. That is an interesting eing expression. The fact is, his ultimatum is only the only decision taken that will result in this occurring, rather than a collective bargain heaed positi. I do not see where republicans should take any blame, why isnt your leadership, if you wl, say, you go ahead, you own it you eat it . Lou i believe at the end of the day that is what well say. But for right now, lou were still here, were working, were willing to meet with the president , we have yet to receive anybody other than that bogus plan that geithner came and showed us a few weeks ago. For the most part of, were here, we wanted make a deal, were ready to deal but we have to have other people want to make a deal, and they dont want to. On january 1st things will change. Lou what if Speaker Boehner did this, just to have fun inidst of the dire nonsense, call negotiating, how about just saying, you know, were going to do, president is putting, out a paltry 1 for 2 spends cuts, why not split, say well do bowles simpson. It is the one your commission recommendinged and make him eat that, i do not understand why there isnt more stuff happening, have you a president who is running scared and trying to play his game, i love the fact he said he does not bluff, i think he as bluff right up to the edge. He believes at the end of the day republicans will cave, and take an increase, well see what happens, i am not up for that i dont know many of my colleagues that are up for that. Lou how many people do you think they would get interested what do you think that political impact would be on president if you advocates s simpsonbowles. We did. Lou i said no, the speaker, puts it on the table and said were doing it it is your move. A tax has to start in the house, if we send a tax bill to senate they will amend it. And they will send some garbage back to us, and try to put the blame on us, that is a bit of proceeprocedural issues that wee dealing with. Lou i did not say put it in a bill. I said put it on the table. A different statement. If we pass anything that and i think what they would like for us to do pass something, they can amend, and then right before Christmas Eve or before new years eve they will send it back to house of representatives, and say takit or leave it weve seen that before. Lou a very simple deal. You know you can leave town too, you can say no,ou can say no. Nancy reagan made it famous for another addicted group. Just say no. Congressman, good to have you. Thank you, lou. Lou more on fiscal cliff, and fact that nobody plan achieves real deficit reduction, well take up that. Stay with us. Someone in dc is focussed on job, fed chairman ben bernanke pledging more easy money to the Unemployment Rate. What does the economy look like in the new year, wells fargo chief lou chairman ben bernanke made a historic move sitting Unemployment Rate as a target for monetary policy. Well be taking that up, talking with wells fargo chief economist john silv sylvia in moments, and announcing they will spend a month buying mortgagebacked security. What the market expected and stocks rallied a bit on the announcement, a little. Then ben bernanke talked about the fiscal cliff that ended that rally, stocks coming off their highs, index, swung 102 points over second, and s p finished where it began, nascar nazdaq down over 8 points, and trading on big board, busiest in the week, walmart a big mover, dropping retailer part of an overall weak group, best answer, profit taking with the selloff walmart up, 18 almost 19ers in on the year, 10 year, yield rising to 1. 69 , and crude market, up, joining me now, wells fargo chief economist, john silviia, 6. 5 is target for fed chairman and the fed, that is the Unemployment Rate they want to hit, i have never heard of the fed doing this before. Have you . No, this is there is a danger for fed being so specific. In a particular number, what weve seen, in the last two years, is that the Unemployment Rate has dropped, for whatever reason, by a 1 each year, that means 7. Searc 7 we could be 6. N one year, is that is far ahead of between 15 the 2015 in the marketplace. Lou terrible thing about that is and would be, it would be the result of more people leaving the labor force, rather than more jobs, and we need literally millions of those jobs to be created. So, the program, the mortgagebacked program staying in place, and 45 million of treasury ire a month, your assessment of the impact there . What will it mean to the economy and the markets . Well the basic change that we see, is in compared to operation twist, now fed is a net buyer of treasures, their Balance Sheet will increase about a trillion dollars over the next year that is very much unchartered waters, but it means more liquidity in the system, and as president lacker said, you know this threatens our inflation credibility for fed in general. This is a little trick here. Lou threatens it or throws it out the window, fed has said to hell with inflation, they are acting like it is 2009 all over. What bothered treasury market. And the commodities market and the dollar, was all of a sudden we went from 2 inflation target to 2. 5 , and like wait a minute, we just upped our inflation number . That changed market expectation. I think that fed, and chairman bernanke in his question and answer period, tried to indicate, 2 is our long run target but well tolerate. 5, but in world of pog ticks and economy in the world of politics and economics is is going to be 2. 5 . Anding inuggesting otherwise, i think getting a little ambiguous. To say the least, that is the direct of this market. Im amazed that this market is staying as high as it is. In the face of the ridiculous negotiatio, and this ridiculous ultimatum on part of the president on raising taxes and his insisting that republicans cave in and bend to his will like he is some sort of imperial president , oh, wait, maybe he is this is madness. This is interesting your lead in was good in a sense that thank you. On once bernanke talked about the possibili of a fiscal cliff, the market is selling off. I think that just discounting any probability we have a fiscal cliff, if we do, and negotiations brick down, then market i think will be way overpriced for the very difficult economy. Well see in the first half of next year. Lou we might see it before the end of the year, if it is clear, this may be part of the game, they try to keep in am pickous to whether or not there will be a dial, that would be a slick portion of this negotiation. I do not know what to make of it. I do thinkhis republicans are now incentivized to go over the cliff, and seek sequest raising sequestration in force. It gives republicans want they want, twoforone spending cuts to tax hikes it gets intresting. It is, some of the commentary ive seen, suggestions that the president i talking about more x increases than spending cuts, that is 2 to 1. Yeah contrary to the original agreement. Lou well imagine that. President turning things on its head, john silvio thank you. Thank you. Lou and straightening us out. Looking now at New York Times bestseller list, i thought this week was really, newsworthy. Topping hard cover nonfix list is a nonfiction list is a book called killing kennedy, by a guy named bill oriley, in second place, Thomas Jefferson by thoma tom meachum, and then t oreilly again, killing lincoln. Not bad. Up next, fighting intensifies in syria. Continuing to back assad, and the list of suspicious dealings at hsbc is rising, one whistle lower tells us how he was silenced and fired for reporting what was criminal activity at hsbc, by the way 1. 9 billion in finds, and nobody go gog to finds, and nobody go gog to jail, curious, twins. I didnt see them coming. I have obligations. Cute obligations, but obligatio. I need to rethink the core of my portfolio. What i really need is sleep. Introducing the ishares core, Building Blocks for the heart of your portfolio. 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[ morgan ] yup, pretty epic. Join visa nfl fan offers and make your season epic. [ male announcer ] rated e for everyone. Lou the civil war in syria escalating. Meanwhile, u. S. Is officially recognizing syrias main opposition group, as countryslyity matt representative. Fox News National contract with correspondent with the latest. Reporter as Opposition Forces advance toward diagram damascus, president obama confirmed in an interview with abc news some officials have u. S. Backing. Is now inclusive enough, is reflective and representative enough of syrian population we occur them the consider them the legitimate representative of the Syrian People in opposition to the assad regime. Reporter u. S. Officials confirm that this weeks fighting showed that the conflict is escalating. Were seeing use of another weapon, a barrel bomb, that is contains flammable materials, a napalmlike thing. Reporter the move to recognize elements of the syrian opposition, brought to a rebuke from Russian Foreign minister whose government has backed negotiation between the syrian president alassad and the opposition, given u. S. Involvement in libya and iraq to bring down their dictators, analysts predict big divisions between the white house and the russians. They are determined to preserve their ties to reporter while administration downplays the leadership role this leader shows gee add hists, jihaddists on the ground in syria, this man said he wants to establish adding that Afghanistan Taliban is an exam told follow. Opposition has to take steps to isola extremist. And those who might have a different agenda. Leader of syria opposition is pushing u. S. To reconsider this weeks decision to label a milltity islammers group u. S. Said this group, is a front for al qaeda in iraq. Recognize by the opposition. Correct and this really goes to the problem in syria, one special operation source said, that it amounts to 10,000 motion10,000 hugoadish. Gerri thank you. Thank you,. Lou growing outrage overdraft of newest Army Handbook that appears blame american troops for socalled insider attack against them in afghanistan. A portion of the draft handbook for our forces in afghanistan reads, many of the confrontations occur because of coalition ignorance of or lack of empathy for muslim and or afghan cultural norms resulting in a violent reaction from the Afghan Security force member. Handbook lists quote, taboo 1 very saying topics that our soldiers should avoid, making derogatory entertainments about the taliban, who they are trying to kill, advocating womens right, or criticism of pedo phil yeh. A spokesman did you not approve of the manuel and will not endorse it. Lou president obama stamping his foot, going all grinch, and santa is getting into the act. Coal is a lot heavier than toys. Lou the ateam to tell us if g. O. P. Will give in on obama ultimatum and biggest tax hikes in history. From Union Protesters turned thugs over michigans new pro worker law, but guess which part of the story the liberal Mainstream Television media left out . And hsbc admits to being the bank of record for drug cartels, african dictators and middle eastern terrorists, tonight you etet the former employee who tried to stop hsbcs illegal contract. Contract. For an exclusive you know how painful heartburn can be. For fast, long lasting relief, use doctor recommended gaviscon®. Only gaviscon® forms a protective barrier that helps block stomach acid from splashing up relieving the pain quickly. Try fast, long lasting gaviscon®. You know, from our 4,000 television commercials. Yep, there i am with flo. Hoohoo watch it [chuckles] anyhoo, 3 Million People switched to me last year, saving an average of 475. Yeah, im kind of a big deal. [sigh] it feels good to help people save. 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