Im dagen mcdowell. In for trish regan. Welcome, everybody, to the intelligence report. President trump in extraordinary snackdown of steve bannon, accusing the former aide losing his mind, in it for himself and trying to tear down the country. What does this mean for the president and his base, his most loyal followers . The stock market hitting alltime high, as one Prominent Bank hinted that the stocks could surge 19 this year. We have the intel. East coast bracing for a major storm, one the National Weather service is calling a bomb cyclone. We have the latest. First back to our top story. President trump blasting former white house chief strategist steve bannon. Our adam shapiro is live at the white house with everything. Adam . Reporter thats right, dagen. What a few hours it has been since the guardian First Published excerpts of the book coming out next week, fire and fury about the trump administration. Steve bannon wrote it. What ignited the president and bannon, the quote from bannon has everyone abuzz, has to do with the meeting in trump tower between President Trumps son, jared kushner, with that russian lawyer with links to the russian government. Bannon said quote, even if you thought that this was not treasonous or unpatriotic or bad fourletter word starts with s, i happen to think it is all of that, you should have called the fbi immediately. President trump was not taking that sitting down. He issued a statement at the white house, he was fired, he not only lost his job, he lost his mind. Steve doesnt represent my base. He is only in it for himself. And White House Press secretary Sarah Huckabee sanders issued a statement within the last ten minutes saying quote, this book is filled with false and misleading accounts from individuals who have no access or influence with the the white house, participating in a book that can only be described as trash sy tabloid fiction exposes their sad, desperate attempts at relevancy. So you can bet the press briefing at 3 00 p. M. Will be a showstopper. But the other show in town has to do with running the government and there is a meeting that is going to take place at 3 00 p. M. With aides to the president as well as leaders from congress, mitch mcconnell, paul ryan there, nancy pelosi, chuck schumer, they will meet with marc smart from the white house along with Mick Mulvaney from eomb theyre talking about ways to raise spending caps and fund the government past the january 19th deadline. If you listen as well to Kellyanne Conway from the white house, one of the things most likely are not on the table will be discussion, democrats are pushing for immigration reform, daca fix, amnesty for students brought here illegally. Here is what Kellyanne Conway said. We like the fact that the democrats have said they would come to the table to negotiate but just seems like anytime they talk about immigration, theyre talking about, theyre talking about daca and daca alone. This country elected donald trump in part because of his position on immigration. Reporter these will be part of the discussion that takes place when Sarah Sanders, press secretary, addresses the press at 3 00. You can bet a lot it will have to do with steve bannon, President Trump, and this latest kerfuffle between the two of them. Back to you. Dagen kerfuffle. Food use of that word, adam. Thank you so much, adam shapiro in washington for us. Joining me now, former advisor to george w. Bush, brad blakeman, along with former dnc Deputy Press Secretary jose minro. Good to see both of you. Brad, to you first. How much does this fight between bannon and trump dominate in the days to come, even, i dont know, look ahead to november, midterm elections . I dont think it has any effect. Most of the country doesnt even know who steve bannon is. The fact is if steve bannon thought all the terrible things why did he help get the president elected and why did he serve with treasonous, quote, unquote people. This is disgruntled employee. Weve seen it in every work place. Seeing it now. This is more highprofile. There is danger taking on president of the united states, most powerful guy in the world also a guy with 20 million twitter followers. I can tell you who i think the winner is going to be. Dagen jose in terms of winners, steve bannon was preparing to run challengers against virtually every gop incumbent in the midterms, particularly in the senate, except maybe for ted cruz. It is obvious now with him really getting behind roy moore and resounding defeat of moore down in alabama, that he cared more about blowing up, as, in the words of the wall street journal editorial page, blowing up the gop than pushing a conservative agenda. This really removes him from the spotlight. That is the problem. That doesnt really help the democrats. Look i think whats happening here, look, steve bannon got President Trump right where he wanted him. He wanted him to react. We cant forget steve bannon is very close to trumps base. This is not good news for the president , in terms of continuing to pick candidates, steve bannon is not very good at it. We saw it with the election in alabama. Look, today is very interesting day for political news. This political fight between trump and steve bannon is not going to end. This will not end well for the president. This is distraction for him. He should be governing. We have elections in a few months. Time will tell what happens but this is not food for the election. Dagen brad, in terms of trumps base, trumps base was there, even learned running for the nomination he knew how to communicate with individuals left out by the establishment. I should point out bannon came on to the campaign two months after this meeting between donald trump, jr. And these russians which he labels treasonous in this book. So that point, trumps base doesnt to anywhere. Those loyal to his agenda dont go anywhere. The fact that the republicans pushed through that tax reform law is a real testament to the way that the party can govern and irrelevancy of bannon. No doubt about it. Steve bannon thinks his name was on the ballot in november during the president ial election cycle. Certainly wasnt. Donald trumps name is there. Donald trump is the president. Donald trump is the one who delivered on tax reform. Donald trump is the person who is responsible for a Supreme Court justice being nominated and confirmed. He is, donald trump is the guy who sits in the oval office and gets stuff done. Steve bannon, if anything we come to know has been a distraction, nothing more, nothing less. If he continues on that path to be a obstruct tore he will be run over. He already got his first accident in alabama. That is going to continue. He is nothing more than a distraction. Hopes to be more. He cant be more. And i think donald trump is, has put the nail in his coffin. Dagen he is a moth to that light of those tv cameras. Boy, he already gave that extensive interview that was so long for 60 minutes they had to put the whole thing on online. Jose, talk about the agenda though because in terms of this giant spending bill that needs to get done, you have to get in the senate, you will have to get that filibusterproof, they dont have the 60 votes in the senate. You will have to get democrats on board. One of the major sticking points, and do you think, because again the agenda for the democrats has been resist, can this get done . Look i hope the republicans work with us. One thing that is very important to democrats here in washington across the country make sure we have a clean dream act. President trump when he first got elected he can care about the dreamers. Now he is letting them go out on their own. Every single day, dreamers, daca recipients, young kids pledge allegiance to the flag, donald trump literally says you know what . Youre on your own. I hope the dream act is part of the big spending bill. I hope we reinvest in things that Americans Care about so we create more jobs. You know what . The president has to sit down at the table to meet us halfway. That is only way well get anything done. Both the president and congress. Dagen republicans and democrats define halfway differently. Brad, i think both side are using two completely different dictionaries. Exactly. Dagen brad, for the republicans, they want daca, the dreamers, to be part of immigration, overall immigration package, not part of the spending bill. How does this play out . I would argue President Trump hasnt left the dreamers out in the cold. He just wants congress to deal with this. Right. Look, republicans and democrats believed that the dreamers should be dealt with fairly and equitiably but at the same hand, we also believe, both republicans and democrats that the border needs to be secure. If we both agree these items need to be taken care of, the only question is how are we going to do it . That is where compromise comes in. It used to be a dirty word in washington. I think it is the word people have to live by in 2018 in order to get anything done. Democrats have to understand the president will get his ball. The only question what will the wall look like . There is virtual wall. There is physical wall. There is using drones. There is a way to secure our border keeping with the president s philosophy of securing it. There is also a way to take care of dreamers fairly and equitiably, keeps in mind how they got here and necessity to stay if they want to. Dagen im glad both you gentlemen are here, representing both major parties in this country, you should be both ashamed of yourself you both want increased spending. You have the democrats during the tax reform bill pushed through worried about the deficits. Republicans have always, when the democrats were in power always worried about spending and deficit but now theyre stepping up to get this spending bill done. They both want increased spending for their own pet projection when they look, ignoring the big looming problems in this country, Social Security, medicare, medicaid. Shame on both you all. I agree with you. Entitlements must be dealt with. It will be tough medicine and shared sacrifice. That is another rao why i think donald trump can do it with leadership. Dagen jose, final word, republicans always say it, dont do anything. Mitch mcconnell said himself he will not do anything about Social Security or medicare this year. Sure. When president barack obama was in power republicans were upset with cutting spending. Now theyre going to be, i can promise you, the deficit will be even bigger when donald trump is done being president of the united states. So you know, it is hard to play with this republicans when when they wear at a different hat every single day. I agree with your guest. We ought to compromise, find Common Ground to deal with the spending bill, all the things we deal with in 2018. The only the country will be able to move forward. Dagen brad, jose, great to see both of you. Turning to our other top story. Two democrats were sworn in to the u. S. Senate today, shrinking the republican majority to 51 seats. The democrats have 49. Our own Connell Mcshane with the details. Reporter hey, dagen. It is a big day for Vice President s as Vice President of the united states, mike pence acting in his position as president of the senate as those two democrats were sworn in, 115th Congress Officially getting underway. Tina smith from minnesota taking the place of al franken, escorted to her swearingin, former Vice President of the united states, Walter Mondale and third former Vice President , current one here as well, joe biden walked down the hallway not far from the Camera Position before we came on with you. He was escort for new senator for alabama doug jones as he was sworn in as that states new senator. To your point, 5149, razor shin margin for republicans in senate. We were, talking about retirement of orrin hatch as senator and speculation that mitt romney might run for that seat. Still Nothing Official from the romney camp on that. Techally has until march to file. Plenty of speculation out there. Romney because he is a republican, thought politically to be a thorn in the side for the current president given their history. To that point his niece, the current chair of the Republican National committee was asked this morning about whether her uncle might end up being a quote, nevertrumper, were he to become senator romney. Listen. I think mitt romney would be for the tax cuts, just like jeff flake was, just like bob corker was. I think he is going to work with this administration. We want that seat to be republican. Mitt has ever interest in working with this president. Reporter so that is all the politics, dagen. Most of that for another day. The business at hand today, adam shapiro talked about this in his report from the white house at the top of the hour, that meeting with the big four in congress and the legislative leaders in the white house that happens here next hour. Dagen mitt romney right now, connell, is looking like President Trumps bff compared to steve bannon. Reporter that is really something else. Dagen that is something else. I will say knit my southern voice, he has lost his mind. Im not talking about the president. Talking about steve bannon. He done lost his mind. Thank you, connell. Connell mcshane in washington for us. Markets hit new alltime highs today. The dow nearing 25,000. The nasdaq moving well above the 7,000 mark. S p 500 nice gain as well as new bank survey says stocks could surge 19 this year. Were on it next. Ooooooh snap every truck guy has their own way of conveying powerful. Yeeaaahhh boy. Kind of looks like a monster coming to eat ya. Holy smokes. That is awesome. Strong. You got the basic, and you got the beefy. I just think it looks mean. Incredible. No way. Start your year off strong a new chevy truck. Get a total value of over 9,600 on this silverado all star when you finance with gm financial. Find new roads at your local chevy dealer. Thats it. Im calling kohler about their walkin bath. Nah. Not gonna happen. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] hmm. The kohler walkin bath features an extrawide opening and a low stepin at three inches, which is 25 to 60 lowr than some leading competitors. The bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. Kohler is an expert in bathing, so you can count on a deep soaking experience. Are you seeing this . The kohler walkin bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassag. Everything is installed in as little as a day by a kohlercertified installe. And its made by kohler americas leading plumbing brand. We need this bath. Yes. Yes you do. A kohler walkin bath provides independence with peace of min. Call for a free kohler nightlight toilet seat with consultation. Or visit kohlerwalkinbath. Com for more info. Dagen President Trump vowing the republican tax bill will help millions of americans. If youre a homeowner chances are the new tax bill might just hurt your propertys value. Toe explain our very own gerri willis. Dagen, thats right, this is annoying and going to make a lot of people mad. Tax reform is the grinch that may steal your home price appreciation, this according to moodys analytics. Home prices they say will decline across the country by 4 by the summer of 2019. The hit to home prices caused by tax reform will vary across the country, but no single county will escape some kind of price hit according to moodys. Take a look at the colorcoded map, very cool there. The red counties, mostly new york, california, handful of other states will fall as much as 6 over and above what prices would have done normally. So if prices were going up 10 , they are only going up 4 . If they go up 5 , they will decline 5 . You get the point. Looking at other categories in the blue counties, vast majority of counties prices will fall two to 4 . Mark zandi the fellow who wrote this, chief economist at moodys, he says house prices will suffer according to the tax plan. Impact on house prices much greater for higherpriced homes especially in parts of country where incomes are higher and disproportionate itemizers with big mortgages and property tax bills. Im told the Silver Lining here the pricing could help firsttime home buyers get back in the market. But i have to tell you, dagen, i dont really care about them. Dagen gerri, we have been talking about this privately because in these, in these highcost states it is going to hurt, despite the fact 750,000dollar mortgage interest deduction, i mean the total value of the home, the median home price in this country is less than 1 3 of that, for existing homes. So you have to remember that. Some of these folks will be middle class people where they live on long island, new york area, chicago. These are not folks who are millionaires but they happen to be living in the wrong place, a blue state. Dagen absolutely. What can i say. Seems unfair to me, somehow. Dagen gerri, thank you, gerri willis. Lets take a look at these markets, the dow, s p and nasdaq hitting alltime highs today. This as bank of america, Merrill Lynchs sentiment indicator predicts stocks could soar 19 this year. On top of those crazy doubledigit gains last year. Crazy good. The same indicator predicted last year markets surge, so will we see a repeat . Joining me now is chief investment strategist at Janney Montgomery scott, mark luschini. Are you that optimistic . Im optimistic, dagen but that is ambitious for our taste. Any year which you have the gains we saw last year, 19. 4 on price only basis for the s p 500 it is followed by a positive year usually in the eight to 10 range. With Corporate Tax reform we estimated outcome for the s p 500 of about 3,000, implying a low to mid doubledigit teens gain on the yearoveryear basisat at least direction alley similar to 19 if not precisely. Dagen that is all just based on the Corporate Tax cut that the republican just passed. How much of that is already factored in . So you do see from this day forward to the end of the year a potentially doubledigit gain on overall market . Some much it is fundamentally based. The economy is printing a three handle on gdp growth, similar in the fourth quarter, where we saw in the second and third quarters. That is foundation for corporate Profit Growth which is quite healthy. On top of that, the windfall from the Corporate Tax reform is added to the earnings gains. I think likely will find share prices moving aways commensurate with profit gains expected to be in the low doubledigit to midteens ranges. Dagen if you listen to anybody talk about markets, this is the bond, fixed income market, in addition to . The nights, the biggest concern is overvaluation. Where do you find bargains but where you dont see the bubblicious, real heady valuations, whether you talk about individual sectors within the stock market or individual sectors within the fixed income market . Hard to find many areas where you find bargains these days. It is more of a relative valuation game. As it relates to the bond market, there is fewer than that found in the equity market. High yield still offers some carry, by way of yield differential against government securities but total return of 7 1 2 we saw last year seems unlikely. As it relates to the equity market sectors we favor at the moment remain financials and banks which benefit from higher shortterm Interest Rates which seem likely to us. Energy and energy stocks, due for catchup phase to really bull market we see occurring in oil prices. Another area we like our industrials, which stand to benefit from capital spend ture upcycle were in the very early innings of as corporate chieftanses of Companies Big and small are outlining plans for further spending that will provide a boost to Economic Activity over and above that being produced by the consumer. Dagen would you overweight stocks compared to fixed income here . Most definitely. Dagen you said it all, thank you, sir. Mark luschini . Thank you. Dagen President Trump calling out north Korean Leader kim jongun, reminding him regardless of his threats the u. S. Has a bigger and better nuclear arsenal. Cue the media freakout that were poised for war. Were cutting through the noise, next. Dagen issuing a stern warning to north korean dictator kim jongun overnight. The president tweeting, will someone from his regime starved, i have a bigger button and and it bigger and more powerful one than his and my button works. Larry korb what do you say . What i say is, basically, President Trump overreacted to the, to the tweet from, the statement from kim jongun, and missed the most important part which is that kim wants to start negotiations with the South Koreans, because that is the way were going to get out of this. Were going to have to have these negotiations and the fact of the matter is, that once you start the negotiations, they might lead to an outcome that is acceptable to all of us. Youre quite right, he did annoy or you know, many of our allies in the region and around the world with this and basically didnt take this opportunity to move the ball forward in this area. Dagen larry, listening to ambassador john bolton on with Maria Bartiromo this morning on mornings with maria, ambassador boltons take on this, talks between north korea and south korea, that north korea is trying to buy time until it gets a Nuclear Weapon capable of being launched at united states. It is playing into the gullibility of south korea and he says the only way to send a message to both north korea and china would to beef up our forces say in guam and japan that kind of at least the threat of military action or show of force if you will would speak to north korea and that threat. Well, weve already got enough forces in the region. We have 30,000 american troops in south korea. Weve got the 7th fleet over in japan. That is not really the issue. They know that we have more than enough capability to respond to anything that they might, might do. But what this reminds me of, remember richard nixon, we had terrible relations with china. They had just gotten Nuclear Weapons and mao was making statements that would make kim jongun sound reasonable. They used pingpong diplomacy. That is how the whole thing started. They ought to use the thing with the olympics as a way to begin negotiation. Now if they dont work, then the rest of the world will be willing to put, as they just have recently even more sanctions. Dagen but, sanctions that are in place right now, larry, are not being enforced. There is a group, the institute for science in International Security reported germany, france and japan failed to stop banned trade with north korea. 13 countries, largely in africa are buying arms from north korea. Theyre nonmilitary goods are being, that are being bought from north korea. We even have the malaysian government has failed to shut down companies that do business with pongyang. The list goes on, of countries that are continuing to do business, at least, for example, the transfer ship to ship transfer of fuel for north korea. That is right in chinas wheelhouse. So there is so much more than be done with the existing sanctions to cut off that economy. Well dont, forget, all the examples youre pointing out which are very relevant that was before a week ago they put increased sanctions on them. Even President Trump in his tweet says this is one of the reasons why he willing to start talks because the sanctions are working. The South Koreans stopped the transfer of oil at sea. The International Community is the way to go. These tweets dont help us to get the countries to support us here. Dagen larry, good to see you. Thank you so much. Well see what happens. Thanks. Dagen there is a whole news media out there, everything trump tweets that is all they talk about. You wont believe what President Trump tweeted it is money that talks. The tweets ultimately can walk. Larry, thank you. The east coast already under a deep freeze brazing for what meteorologists are calling a bomb cyclone which could create major havoc. As the midwest grapples with what is called, quote, pancake ice. Well show you and explain next. And reduce symptom severity by 45 . Shorten your cold with a snap, with zicam. From godaddy in fact, 68 of people who have built their. Website using gocentral, did it in under an hour, and you can too. Build a better website in under an hour. With gocentral from godaddy. Dagen oil closing at 61. 63 a barrel, hitting a 2 1 2year high. Crude prices hitting moving up as unrest in iran continues on worries that cold wither in texas and north dakota could slow down production. Take a look at gold. You saw gold kind of take a big dip right about 2 00 this afternoon. This is when the fed minutes came out. We were alerting them, hey, the fed sees good news in the tax law, boosting consumer spending. Outlook in the economy and job market is stronger. Why is gold down . The fed thinks that weak inflation could lead to a flatter trajectory, catch those words, for the fed funds rate. Less inflation, muted inflation, gold taking a bit of a hit had afternoon. Still no winner in the megamillions lottery as the jackpot tops 400 million bucks. No tickets matched all six numbers in the last drawing, making this one of the largest jackpots in history. We expect to hear from the white house in just a short while as the political world is rocked today by President Trumps smackdown of former aide steve bannon. Bannon made critical comments about the president and his family in a new book that hits shelves next week. This was printed in the guardian. The president fired back in extraordinary response saying bannon, quote has lost his mind. Is only in it for himself and is trying to tear down the country. The last time that bannon was such a topic of conversation at the White House Briefing was back in september following bannons 60 minutes interview. A moth to the lights on those television cameras. Steve bannon, we bring you that press briefing coming up this afternoon, live. Soon as it starts. To the extreme weather, florida is seeing significant snowfall for the first time in nearly three decades. As we here in the northeast are bracing for bonechilling cold, a monster storm, called a bomb cyclone, which is expected to dump snow and ice along the east coast. This bitter blast already turning deadly in buffalo, new york. Blizzard conditions there causing a massive 75car pileup on interstate 90 killing at least one person. Fox news meteorologist adam klotz is live in the Weather Center to give us the very latest. Hey, adam. You mentioned it, bomb cyclone, a word weve been seeing on the internet a bunch today. What does that mean . A weather word is bombogenesis. That the low pressure is about to get really low, lose pressure real fast and intensifies the storm. This is what the storm looks like off the coast of the southeast. And look how large it is. It intensifies quickly and that is where we get the bomb cyclone. As it runs into new england that is where it will be a big problem for folks. Obviously has been frigid, continues to do so. Areas that dont see snow or wintry precipitation theyre seeing it here. Seeing it no portions of northern florida in overnight hours, running up into georgia. Now currently running up into the carolinas this will march its way all the way up to the coast. Pay attention for the time stamp. If you live along the coast it, moves up during the day today, overnight hours and this thursday. You see snowfall in d. C. Running up towards the new york area. That will pick up and intensify. As this moves north it, bumps closer and closer to the coast. The closer to the coast you are, the better chance you are of seeing bigger snowfall amounts and it really gets tied up along there as you get into really getting towards maine, boston areas, like that. It stays cold this entire time from todays highs, tomorrows highs. A wide area below freezing. Marching colder into friday as spots get down into Single Digits here, stretching into the ohio river valley. 14 degrees in new york city for folks on friday. Well, with all of that, no surprise here, we have got winter storm watches and warnings stretching from georgia, running all the way up the coast, perhaps blizzard conditions, when you get up into areas of new england. This means snow will be coming down. Snow we saw it as i said overnight into florida. It is running all the way up. When you get into this area, were talking about perhaps a foot to 18 inches. Some cases even more. This will be a big one were paying attention to for next 36 hours. Dagen thank you for that. Adam klotz, meteorologist here at fox. Chicago ushering in the new year with coldest temperatures more than 50 years. If this chilly record continues it could break records, the citys longest coldsnap. Jeff flock is braving elements in the windy city, to tell us more about that ice, jeff . Reporter you know, we thought we would come to the coldest spot in chicago. Some people consider it the coldest spot. This is the Michigan Avenue bridge just over the river. Because look at the river, by the way, frozen solid. Because the wind comes whipping down the river, through the canyon of buildings, everything from the tribune building there, that is the Wrigley Building over there. This one over here named after some president , i cant remember who. It just whips through here and frozes everything. That makes the windchill even worse. Weve been in this as you report, dagen, now almost a week of solid cold. Maybe you see the flags whipping, ill tell you, you get that wind in addition to the cold, and it really makes things nasty. Well be in this deep freeze they say here in the midwest at least until sunday when we may get snow ourselves. Dont forget us out here in the midwest as youre digging out in places like florida, georgia and the rest, were getting our share of it too. A lot of folks bundled against the cold as you see. There they are. Happy to be out there. Dagen. Dagen keep moving, jeff, keep moving. That is my only advice. Reporter circulation. That is correct. Jumping jacks. Jeff flock for us, in chicago. One of the biggest name in technology and Silicon Valley making a massive bet on bitcoin as the cryptocurrency make as strong start in the new year. We have the intel next. Ooooooh snap every truck guy has their own way of conveying powerful. Yeeaaahhh boy. Kind of looks like a monster coming to eat ya. Holy smokes. That is awesome. Strong. You got the basic, and you got the beefy. I just think it looks mean. Incredible. No way. Start your year off strong a new chevy truck. Get a total value of over 9,600 on this silverado all star when you finance with gm financial. Find new roads at your local chevy dealer. Dagen bitcoin already surging in price as we enter 2018. One of the biggest names in Silicon Valley might be behind it. Venture capitalist peter thiel made a giant bet on the volatile cryptocurrency. Hillary vaughn has the details. Hey, dagen, the wall street journal reports that peter thiels Venture Capital firm, founders fund, bought 15 billion worth of bitcoin currency several months ago. Neil told investors that that investments is worth hundreds of millions of dollars but it is worth even more today, because bitcoin jumped 11 on the news that up with of Silicon Valleys elite is putting his money where his mouth is. Neil in october told fox businesss Maria Bartiromo last fall that he thinks the cryptocurrency is a safe bet. This bitcoin end up being the cyber equivalent of gold and it has, it has a Great Potential left. It is a very different kind of thing from what people, people in Silicon Valley normally focus on companies not, you know, algorithms or protocols but this may be, this may be one exception thats very underestimated. But not everyone is convinced the crip cocurrency is a safe bet for investors. Some worry hackers, levying Cyber Attacks on the currency dependent on Blockchain Technology is a big risk. I talked with one early bitcoin backer who has been working with the currency half a decade. He told me there are two Things Holding the currency back. One, trying to figure out thousand to secure cryptocurrency and how to recover lost coins when you lose them. If that gets worked out he thinks bitcoin has the potential to surge to 100,000 or half a million in the future. Bitcoin shares have shot up over the last year but the stateless and bain letters currency has been volatile bankless. It started around 1,000. Spiked to nearly 20,000, but tanked to half that in december. So that volatility is something that has investors spooked. Dagen . Dagen hillary, i will point out that the Fund Peter Thiel is behind has warned investors about bitcoin. Talking about it being safe, that it does share something in common with risky Venture Capital investments. That it could be worth nothing or close to it in the end. I will add that. Thank you so much, hillary vaughn. Thanks. Dagen showdown in the golden state as california formally become as sanctuary state in the new year. But the acting director of customs and immigration says not so fast. There is no sanctuary from federal law. Were on it next. The acting director of customs and immigration warning them that federal law trumps state law. And maybe other states. Manhattan institute fellow. A lot more criminals on the street. Prison officials well not honor isis request to hold an illegal air land criminal for a mere 48 hours after releasing him so that they can pick them up for deportation. They want illegal alien criminals back on the streets these are individuals who it is a crime to be here. These are people who had committed crimes while being here illegally in the state is basically saying we will prevent any Law Enforcement officials. It is preventing the deportation of convicted criminals. Whats it gonna take to change this. There has been the funding fight from the federal government trying to withhold funds from six race cities the courts have intervened on that. However congress could act and in future funding through the congress could say put conditions on funding with the cities. Is that one way to put pressure on the cities and now the state. That would be an excellent way. Another way as is a law that is in congress now backing it to hold Public Officials accountable. The kate steinle situation one would think that it wouldve been enough to change this. She was killed thanks to the San Francisco estate policy. If we have more incidents like that we would hope there was a public result even in california and say enough is enough. What you are seeing now is politics being transformed by demographic change. There is now so many of the state is a product of unchecked low skilled illegal immigration that politicians are more sensitive to the perceived interest. Watch for people to leave the states. They dont agree with the political policies in the laws. They are actually already there. They are often Third Generation hispanics and the cost on Public Health systems something that tom cotton have wanted to change to move us to a skill based immigration system. It puts enormous cost. They are required under a Supreme Court ruling to educate all children in this country even if they are illegal. We have a lot of these kids that are now the children of single mothers and its 53 percent. Thats very high. We watch congress. Talking about the first sanctuary state. Coming up in the next hour. The White House Press briefing is always a must see. They will grill sanders on President Trumps latest comments. And also at 3 00 p. M. On a spending bill. They were just talking immigration and how to handle the dreamers in this country you better stay with foxbusiness throughout the next hour. We just got word that the White House Press conference has just been moved 14 minutes from now. Now they say it will be in about 14 to 15 minutes i dont want to personally surmise too much here but theres no doubt that press secretary Sarah Sanders is about to come before the press and it will be that cocktail President Trump just lobbed in the form of a statement against his former personal side guy. Now of breitbart news. They have lost their mind after he was fired we will take you there as soon as sanders comes out. More importantly