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Aids say in exchhnge of proposals taken place, some movement, but still major differences between the white house and speakers office. Fox news reports the speaker and president just spoke on the phone. White house folks say theres a sign of movement. A senior house aide says the white house reduced the demand for tax revenue increases from 1. 6 trillion to 1. 4 trillion, well short of the latest republican offer of 800 billion, though, there is another offer on the table from republicans that the details are unknown. Boehner Spokesman Says we acceptability the white house a counteroffer to achieve reform to solve the crisis. Were still waiting for the white house to identify which spending cuts the president is willing to make as part of the balanced approach. Fox news is reporting senior white house Officials Say the sides are making progress, but some senior Congressional Republicans say theres Little Movement on the major substantive differences. Were watching it all. Back to you. Tracy i know you are, rich edson in dc. Thank you very much. Thanks. Tracy more on the deal throughout the next hour and hear from both chambers on capitol hill, senator barasso in ten minutes. The 0 er breaking story, a devastating defeat for one of the most Important Union strongholds in the country, michigan. Michigans governor, rick snyder, moments ago, signed right to work legislation into law. Now, the new law sharply limits union power, something once unthinkable. Hundreds of protesters packed inside the Capitol Building for the vote. Trooper on hand in riot gear. Michigan, home of the most powerful union in the country, a symbol of union power and dominance for generations. Not anymore. Workers are no longer to give up part of their paycheck to union dues. Now, the unions didnt go down without a fight. Literally. Take a look at this, outside the state capitol. The moment the bill passed, things got violent. Tents belonging to americans for prosperity, who were there to support the bill, torn down. One of the groups senior staff, steve, who is actually also a Fox News Contributor was brutally assaulted as he tried to protect his staff. Nuts. Joining us now, thee most senior republican lawmaker who voted today, the House Speaker, thank you for being with us today. This is monumental on so many levels. We have a Michigan Republican controlled legislature right now. Is that why you dove into this now while you could . Tracy, thanks for joining us. This is a monumental night because its a monumental win for michigans workers. We kept the focus on the workers, their freedom to choose which organizations to join and what they dont want to join. We know there were clashes. We know people demonstrated inappropriately, but good stories as well. Cleanup happening on the lawn by the demonstrators, but the point is throughout it all, we have to keep focus on people going to work every day to literally build our state. Tracy right, because now its easier to woo companies into michigan to bring jobs; right . The states like south carolina, alabama, texas, have seen a boom in companies coming to work there because, well, its easier, and its cheaper africanamerican they dont have to and they dont have to deal with the unions. Two policy conversations that happened, and then there was the political. The democrats and union bosses focused on the political, but the two policy conversations were about granting workers the freedom to make their decision. The other is about making michigan is better place to find a job, attract new jobs and better careers for the workers. Thats why i say today is a win, a game changer for michigan because its a game changer for the workers. Tracy clearly, political. President obama, hesmtion, said it had nothing to do with economics, but with politics. Obviously, worried now about political donations when union dues no longer need to be collected. Again, the president spoke clearly about the politics, but were focused on the worker, and the president has a job to do. I wish hed get that job done. Were going to continue to get our job done here in michigan, reinventing our state, making sure we turn our state around, making great process to continue that. Tracy are you worried it ends up back in the courts . They fought it in wisconsin. It was partially overturned there. Are you worried we can see a repeat of that . Certainly, as you see the political process weigh out, when people dont win at the ballot box and democrats and unions did not, when they dont win the vote, they do, unfortunately, often turn to the courts, and we expect thats possible. Thats the right to do that, but we made sure we kept the focus on the michigan workers. Tracy unions claiming they were bamboozled; right . Theres a large imbalance of power at this time in michigan. Republicans hole the majority of it. Are you surprised how violent it got at the end of theeday . I was disappointed by that. We should have a conversation about the merits of the issue, talk about our workers. We can have passionate debate, and if you saw the floor of the house, thats what we had. We had passionate debate, but, unfortunately, people turned violent. Thats unfortunate. Its not appropriate. Keep the focus on moving the state forward. Thats where we keep focus. Tracy back to the economics, michigans Unemployment Rate 9. 1 , nationwide 7. 7 . I presume you hope this brings jobs to your people, again, companies now can be courted. Absolutely. We are continuing to make michigan the better place to find a job. To do that, continue to make michigan a better place to provide a job. Thats the focus. Thats what this is about, making sure workers have opportunities, and i have to say michigans work force is the best in the country. They get up every day and work hard to literally build, grow our state, and so they want to do that. We give them the opportunity to do that. We have are happy to have the investment and new business here in michigan. We are open for business. Please, come here. Tracy fought for the peoples First Amendment right, and if im struggling, and i get a paycheck every week, im not sure i want a it to go to union dues, but my family. Mr. Speaker, thank you, for fighting the fight, you have a long road ahead of you, though. Thanks, tracy. Tracy all right. Meanwhile, is more fed stimulus needed to boost our economy . Is the fed actually doing more harm than good . Federal reserve policymakers meeting today and tomorrow to discuss more Monetary Policy. Now, its the last time they get together this year, and some say get ready for the launch of qe4 potentially as soon as tomorrow. That news made investors happy today with the dow rising for the fifth day in the row. S p ending at the best level since election day. Joining me the Federal Reserve governor wayne engle. Governor, thank you for being with us. Doing more harm than good by putting more money in the system . Theres a law that diminishing returns that kicks in. Well, it doesnt have to be that way. It is that way somewhat because the fed is paid that 25 25 basis points for banks to hold sterile rereceivers, and the regulatory thrut is dont make loans. Make loans, criticize them, and so the hassle over regulatory restraint on lending and paying to excess reserves has left us with not a very effective Monetary Policy at this time. Tracy right because if im a bank, why lock into a 30year mortgage when the rates are so low . I wont make the money. Theres that side of the coin. On the other hand, as a person out there looking for a home, im not really sure im convincedded rates are going up soon so ill sit and wait it out. As a result, we have nothing going on. Well, thats a little bit of a problem, but the good news is Commodity Prices are not rising. The change is very, very stable. Its almost more stable, if thats what the fed was trying to do. We dont have a huge overhang of liquidity driving Commodity Prices up while weve got the price of houses. Tracy okay. Rising and moving higher, which is a good sign. Tracy so then what should they do tomorrow in what should we hear from the fed . Operation probably ending, no short term securities left to buy, buying mortgagebackedded securities. Is this necessary or should we, at some point, just step back and let the little kid try to take its first steps on its own . I am hopes the members of the fed who prefer the focus to be on the economy and economic signs that Monetary Policy is right as compared to those who promise what the rate will be in 2013 and 2014. Thats a real mistake. Tracy right. Thats difficult. Are you worried about the value of our dollar, though . Well, the value of the dollars been holding fairly well in here, just as commodity problems felt stable, also, the value offthe dollar held steadier, and it looks at this point as if u. S. Exporters are doing a little better and u. S. Producers are driving out some of our imports so that was good news, more economic growth. Tracy hard to tell, though, because everythings overshadowed by the fiscal cliff. Do you worry, like, inflation is going to come and bite us in the butt one of these days . I mean, theres a lot of money out there. Well, i watch that very, very carefully, and i dont think thats an immediate risk. In regard to the fiscal cliff, i think the right thing to do is to let the tax rates go up across the board, just like they agreed to do. I think we ought to have middle income americans as well as high income americans having a reduction of those tax rate cuts we saw. Tracy take more from my paycheck, let the fed put money into the system. Does it make sense at the end of the day . Shouldnt i keep my money, get out there and spend it and let the fed keep theirs . Well, thats, you got a good point, and i agree that instability and Monetary Policy is not very effective, and so im not looking for very much from the fed tomorrow. Tracy no, yao not alone, sir. Wayne, former fed reserve governor, thanks for taking the time. Youre welcome. Tracy all right. Well, if you are fired up about this or any of the issues on the program, drop the show an email at gerri foxbusiness. Com. Coming up on the willis report, House Speaker boehner and the republican accusing president obama of kicking the can down the road. The longer they slow down the process, the closer our economy gets to the fiscal cliff. Two g. O. P. Lawmakers here to share their reactions next. Can china take over america . Is it already happening under our noses . Why one author says absolutely, yes. Also, Ford Motor Company under fire for misleading customers. Its enough to make your blood boil. Well weigh in on the hybrids possible false advertising. Were on the case next on the willis report. Tracy Speaker Boehner warning the white house to be serious to call cliff, and the majority leader throwing in the towel saying its difficult to reach a deal by christmas. Crazy. With more, senator barrasso from wyoming. Do you have any idea whats in the counteroffer . I dont have the final details on that, tracy. We have to avert the fiscal cliff. My concern is it drives us into recession, knocks up employment up, and i agree with you, we have to ensure more people have more of their own money in the pockets to decide what to save, spend, what to invest, and anything that hurts our fragile economy, i think is bad for all americans, especially those like you talk about, trying to put food on the table and get the kids to school. Tracy anything you come to the tail on . Concessions to give into in order to get it done to avert the cliff . John boehner talked about increasing revenue. I think we need to do that through jobs and growth and getting more people back to work. Unemployment numbers continue to be very high. Our big problem is the sending. We continue to spend too much, and we have to make adjustments now to make sure we save and protect medicare and Social Security for future generation. Tracy theres no talk about that. Raise taxes six ways until tuesday, and its not covering the debt or spending habits at the end of the day. Its unfortunate. So Many American households, trimmed down, curbed spending in light of whats happened in the last couple years, and, yet, the government has not. When does that start to be part of the discussion . Youre right, tracy. I think the president is misleading the American People when he says all we need to do is raise taxes on the certain group. That would bring in the amount of revenue to fund the government in a year for only seven days. Tracy right. So what about the other 51 weeks of the year . Thats the real question. The president refuses to talk about that. He basically implies in his speeches that if we raise taxes on 1 or 2 of the country that that will solve all the problems, when, in fact, thats not true. Tracy is part of the problem the process . You know, your fellow republican senator, ran johnson of wisconsin, saying its absurd, at the end of the day its the president , boehner, and their respective staffs. Somehow or another, they make us a deal. Is that fair at the end of the day . Well, theres only one person in the United States that has the pen that can sign the law, and thats the president , and there is one person that can bring the bill to the house that has to pass that house of representatives, and thats john boehner, but, you know, Speaker Boehner has a lot of input from all the members of the house so from his party, the other party issue and hes getting plenty of input, but ultimately, something has to pass the house, signed by the president , and i think whatever that agreement is will pass the senate, tracy. Tracy you know what . We hear so much about federal tax rate increases, not a lot of talk about whats going to happen with the estate tax if we go over the cliff. I know in is a sensitive issue to you at home in wyoming. You got a lot of farmers. Where are we on the estate tax . If nothings done come january 1st, the estate tax rate, the death tax rate goes from 35 to 55 , and, you know, right now, its on the states over 5 million, and it drops down to anything over 1 million so for farmers, ranchers, Small Business owners all around the country, the dry cleaner or the flower shop or car wash, all of those people that had businesses in their family, they more likely have to sell because they are not going to be able to pass them on because they have to pay the taxes immediately. Tracy any discussion of this in the talk . Have you heard anything . Anybody conceding or bringing rates down . I continue to talk about it, put out a Republican Policy Committee paper today, going through all of that, but the democrats dont seem to want to talk about that because they view that as additional money that they would have that they could spend, and the american taxpayers know you send more money to washington for the most part, washington wastes it. Tracy no joke. Senator barrasso, thank you for taking the time to be with us, sir. Thank you, tracy. Tracy aint that the truth . All right . We have a lot more still to come this hour including a new report on the success of both the boehner and the obama fiscal cliff plan. Hint hint, neither are successful. Now, does the speaker of the house have the file behind him in the deal making progress . Are some lawmakers breaking away from the leader . Congressman tim gives us the scoop next. Well be back. I always wait until the last minute. Can i still ship a gift in time r christmas . Yeah, sure you can. Great. Wheres your gift . Uh. Whew. [ male announcer ] break from the holiday stress. Ship Fedex Express by december 22nd for christmas delivery. Tracy does Speaker Boehner have more than a fiscal cliff to worry about . Up next, will the Top Republican in the house stay that way in 2013 . Tracy Speaker Boehner 1 not the only one facing the challenge of keeping the u. S. From falling off the cliff, but hes keeping the top post in the new year, and finding that could be a challenge. Will the house see a shakeup in 2013 . Lets ask the republican congressman of kansas accusing Speaker Boehner of punishing fellow conservative members in the house. Sir, talk about that first so you have been removed from the budget committee, agriculture committee, voted against raisinn the debt ceiling, and you didnt vote party line so boehner gave you the boot . We believe conservatives were punished by a secret score card that the speaker refuses to release. Back room deals, removing folks from a committee or a deal with the president , that makes me nervous, and every one i talk to nervous as heck as to whats going on behind the closed doors. Tracy last thing the American People want to hear; right . We need to get a deal done. Everybody wants to hear a version going on right now. We dont want to hear that they are fighting among the ranks. Why do you think this is . Well, theres folks in the republican party, stating it clearly that they are looking to raise taxes, and i think the last thing republicans want to do is help the president raise taxes, but what we have to remember is the last time there was a closed door deal between the speaker and the president of the United States, we got a 2. 3 trillion dollar increase in our debt ceiling, and we had no cuts to show for it, and thats why year, the speaker and thehe president are both trying to undo the cuts they agreed to in august 20 1 1. That was a bad deal then, and right now, they are trying to undo the minimal cuts agreed to a year and a half ago. Tracy okay. You think because you did not vote to increase the debt ceiling because you are not going to vote for increases in taxes, youre thinking that john boehner is actually going to come to the center a little more, and we are, potentially, going to see some tax increases, on the wealthy at least by the end of the day . Talking 800 billion in revenue increases, we have not seen details or details of what cuts either side offers for a ranking file member like myself, but after 800 billion on the table, i dont see that without tax increases. That worries me. Tracy what worries me now is because its coming down to his reelection now, isnt it . Speaker john boehner has to be reelected. If he does sort of curve to the left and finds his way down the middle, he can almost guarantee hes reelected; right . Well, he has to earn the trust of republicans, particularly conservative republicans. If he brings it through and pushes it through, that ruins the republican brand forever. We barely convinced the American People were against tax increases, but if they pass a tax increases, were on the road to the minority. That worries members of the conference irrespective of the cliff created, again, by a bad deeing in august 20 11 that the American People said dont raise the ceiling, washington raised it, cut spending in the future. That sounds awfully familiar from the white house and out of the speaker and the majority leaders as well. Tracy do you have anied whats whatever boehner presented to the white house tonight, do you have any idea whats in the compromise . None whatsoever, no details gimp to us, again, undeclared cuts, but what i can be certain about, any cuts they talk about are cuts sometime in the future. Washington did this year after year, decade after decade. This is not a republican or democrat problem. Its a washington problem. They wont cut spending. I fear republicans are going to raise taxes to pay for president obamas spending. Thats wrong. Its not going to work. That leads us over into a debt ceiling disaster and a possible downgrade of the credit rating. Tracy all were good at is kicking the can. Keep fighting the good fight. Dont give up. We wont, thank you. Tracy good. Were like beckham, kick, kick. When we come back, is try is china trying to take over . A look of their moves inside the u. S. President obama get his way or boehner or either . Who knows. The results of a new report next. Copd makes it hard to breathe, but with advair, m breathing better. So now i can be in the scene. Advair is clinically proven to help significantly improve lung function. Unlike most copd medications, advair contains both an antiinflammatory and a longacting bronchodilator working together to help improve your lung function all day. Advair wont replace fastacting inhalers for sudden symptoms and should not be used more than twice a day. People with copd taking advair may have a higher chance of pneumonia. Advair may increase your risk of osteoporosis and some eye problems. Tell your doctor if you have a heart condition or high Blood Pressure before taking advair. If youre still having difficulty breathing, ask your doctor if including advair could help improve your lung function. Get your first full prescription free and save on refills at advaircopd. Com. Tracy the future of our country hinging on our gridlocked congress. Does that make you feel better . So far the fiscal plans put forth by the president and Speaker Boehner simply wonnt cut it. A new report out find neither proposal reduces our debt enough to solve our economic crisis putting the country at, well, further risk for another downgrade. Anybody want to talk about august last summer in what will it take to get the house in order . Ask alex, Research Fellow at the American Enterprise institute and former chief economist for the house ways and means committee. Alex, heres the thing, its tax on both plans. Well, to do go to your opening remark, youre definitely right. Theres a short term crisis where taxes are set to skyrocket on january 1st and long term challenges that can want be met with tax increases alone. Mathematically impossible. We have Health Care Spending growing faster than the overall economy. Theres no tax policy that can rectify that situation. Tracy why spending . Why hasnt anybody brought spending entitlements to the table . Well, i think we have. The speaker is talking a lot about the need to deal not only with the expiration of the bush tax cuts, but to look beyond the next few weeks and looming fiscal challenges and talk about more structural changes, and so theres a host of policy options out there. Im not sure which ones hes advocating, but with regards to Social Security or medicare, the eel jilt age, those are all policies to help bring down federal spending on health care and entitlements. Tracy agreed, but not much traction at this appointment. A debt to gdp ratio at 70 puts us at greece. They are 162 , we are not near that, but do you worry this could bring us there someday . Well, thats exactly the right metric to think about how much debt we have relative to how big we are. Thats how we think about how much house we can afford on an individual level, and thats how the government should be thinking too. How much the u. S. Government is sustain in terms of debt to gdp. Luckily, we dont know. 70, we could survive in terms of the sense we wont be spiraling out of control, but the higher that ratio is, then the more that future generations, their taxes go simply to service the debt for the services that their parents and grandparents enjoyed. Tracy right. Its the right way to think about the problem. Get the number dun as soon as we can. Tracy the answer will be continue to raise taxes to make those Interest Payments which is circular and arguably stupid at the end of the day. Talk about the tax code. How do you do it . Its a big book of favors. It is a doorstop at this point its so big. Do you throw it out and start over . Well, its interesting. You know, for a long ime, in the 1990s and the early part of the 2000s, there was a lot of chat about throwing it out and starting over, and i think that conservatives note that if we do that, we would start over with the system much more efficient than the ones we have. We start with the consumption tax system. The dialogue moved away from that frame work all together, and now were talking about reforming the system we have. Income tax reform, but theres still radical ideas within that structure. Youre right, its filled with favors and distortions, and by closing those down, were going to have a better tax code overall. Tracy good luck with that. You got lobbyists that are powerful who want their deductions all over kingdom come. Quickly, talk about the Corporate Tax, ranked 69th in the world as a good place to do business because, well, our tax code is so erroneous, and we talk the bejesus out of you. If we get the Corporate Tax down, repatriate dollars into the company, Companies Like google and starbucks bring it home again. Why isnt that being discussed . Good point. Theres a lot of interest in Corporate Tax reform. We got basically the highest rate in the industrialized world, 35 . That rate should be 25 if not lower in order to put us at just on a level Playing Field with the kinds of tax systems that european tax systems have, and thats a youre talking about downtown lobbyists and k street, a lot of interest in the Business Community for that reform. It takes energy of Political Capital to make those changes. Theres a tradeoff in dealing with the cliff and the Immediate Tax increases on individuals and the capacity to also think more fundamentally. Tracy i hear you. There shouldnt be a tradeoff. We knew it was coming. We saved it for the last minute. Its like people taking laxatives to lose the last five pounds before a wedding. It doesnt work. Alex, former ways and means committee, chief economy, it frustrates me, sir, thanks for being here. All right, thanks for having me on. Tracy you have a burger, and its back on again. We have a fox business alert now. British bank agreed to pay 2 billion to settle a Money Laundering probe. The Justice Department says they broke the law in connection with the laundering of money from narcotics traffickers in mexico, believe it or not. They say hstc intentionally allowed prohibited transactions with iran, libya, sudan, burma, and cuba. The ceo says the Bank Accepts Responsibility and is profoundly sorry. Really . That was it. Coming up, is the ford fusion all its cracked up to be . Well ask Consumer Reports. This makes me giggle. They are already the Largest International holder of our debt, but now china buying up American Company after company. What are they up to . Well have that story next. Tracy a record year for Chinese Investment in the u. S. , leaving many to fear that china is taking over. Case in point, the chinese have snatched up six and a half billion dollars in u. S. Assets just this year alone. That breaks the previous record of just over 5 billion in 2010. Our next guest says, there is a big reason to be concerned. Some of this years deals are dangerous to our country. Here to explain what china wants is the author of the coming collapse of china. Im glad your year because this sounds really scary. You worried about this . Aig, 4 billion. That is the biggest chinese takeover thus far. You worry that this is going to be a trend . Its certainly going to be. Whats happening in china is that enterprises dont have the opportunities there because their problems and the chinese economy right now its a pretty serious. These enterprises are going around the world buying assets because the returns are a lot better. So a lot of this activity does not concern me, but some of it does because you see in certain acquisitions like a one to three systems, the battery maker, the Canadian Oil Sands producer. Theyre looking for technology. And some of this technology has defense applications, like this battery maker. Theyre buying this stuff up. That is something we have to be concerned about and should stop. Tracy do you worry we had an election. There are new people leading. You worry that the new leaders will make this even worse . The leaders in china right now, the socalled conservatives, but in the chinese context that means hardline anti reformers. They want to close up opportunities for foreigners. When you have these Chinese Enterprises going around the world buying assets, the opportunities for not only Foreign Companies but also a domestic, private entrepreneurs, the private people are being narrowed. That is real problem for china because its an entire reform. Tracy the other thing is that currency manipulation and the fact that our best fishing does not place as much weight on this u. S. Law requires treasury to designate a country occurrence manipulator if it manipulates its currency and thus to get traded vantage. If were not going to enforce our own law, thats a real problem. Good policy or bad policy, we need to enforce our laws. The chinese, they realize were not serious about chinas trade violations, and this makes beijing much more intransigent. Tracy you said to me that china needs is more than we need them. For short. Last year 190 percent of chinas merchandise trade surplus related to sales to the United States meaning they run deficits with the rest of the world so they run this enormous surplus with us. That gives us leverage, but only if we carry use it. Tracy i remember when i was a kid they said japan was buying of rockefeller center. Japans by to take over the world. That never happened. No, but japan was our ally. We could deal with the japanese on a reasonable basis. The problem with china is that it sees itself as supplanting the United States. Has been very hostile and aggressive in recent years. Its trying to push the u. S. Out of asia. They are not our friend, and so we dont want to give them a foothold in our economy. Tracy that being said, how do we stop this . Do we not allow these deals to happen . In the u. S. Is basically putting a defense. The chinese put up a fence. We couldnt buy if it were a chinese enterprise. We can stop this because the committee on Foreign Investment in the u. S. Has the final say on sensitive acquisitions. And so they can stop the acquisition. Tracy that probably should have they should. Tracy thank you for being here. The coming collapse of china. It is coming. It is. Tracy we want to know what you think about all this. Here is our question tonight. Is the u. S. Still a superpower or will china be number one soon . Log onto gerriwillis. Com and vote on the right hand side of the screen command we will share the results of the end of the show. Coming up, is it the case of false advertising . Consumer reports says the ford fusion is not as green as ford says it is. Come on. Were going to have details trick from the magazines mount next. 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®. Tracy ford redesigned high reserve fund. The biggest selling factor. Fuel economy. Drivers are really getting for their buck in two minutes. Tracy so, youre looking to buy more fuelefficient car . Well, you might be shocked to find it is not as fuelefficient as you thought. Consumer reports of the road with two of the ford 2013 hybrids and found these models just not living up tonight by a long shot. Joining us now, Consumer Reports managing editor for autos. I love the year here and were doing this story because man, oh, man, they tout these cars as green is green can be. We are seeing them all over the weekend. Football games, 47, 47, 47. Its an impressive number. The cars did very good mileage and on tests, but they are not hitting that. Tracy will lead the hitting . So were seeing is about 37 and 38 mpg overall. Almost ten less than represented for the fusion. Again, these are still stellar numbers. The for fusion hybrid is the top sedan in the testing for fuel economy, bested the tenth tee but toyota camry hybrid. But in our realworld test or we drive the cars on the road and leader of the fuel that we use, we are seeing mileage that is much less than those 47mile per gallon overall numbers. Tracy still great, but its not what their advertising. I think thats really important that people understand. Youre seeing you see this and other cars as well. Toyota, honda, but that were just off the mark. We have done, 80 percent of the cars we test we hit the same tool number that the epa does or within one or 2 miles per gallon. There are some vehicles, and they tend to be hybrids that are allies that have five or six milesperhour per gallon difference. The turret of priests, even the buick lacrosse. Anywhere from three to 6 miles per gallon difference. These reviews. Tracy no real basis of comparison. Nothing out there for us to look at as well worked in the past, what difference didnt. We arent going on these tests that we are making it as we go. The epa has their see test because it is repeatable. Every manufacturer has to put their vehicles through. This select 1015 percent of the cars and verify which is what theyre doing with fort to verify the for testing. We dont know if it has been as system, we dont know if ford misstated. Thats just out there. Thats what the epa will verify. We verify our test, do a repeatable test on our track, public roads, and we are able to say confidently that is where we are, 79 mpg lower. Tracy i venture a guess that Consumer Reports has more credit than the epa. I think people are going to go with you. You guys also did a top10 most reliable american cars. Were any of these of list . Well, the new fusion does not have reliability data, so we cant put those up on the list. Actually, the american list that we have dominated by general motors. Equinox x cd, the new chevy sonic. One ford vehicle, the ford mustang. But these are too new. The path the past fusion was really reliable. With the redesign. Tracy i love that there was a mustang on the list. Do you think that based on of this we will still see more hybrids coming to market . We are going to see more hybrids because of the new epa fuel requirements, the new cafe requirements that are going for it. There is going to be a whole different variety or all variety, really, of fuel systems. Or going to see battery, gasoline hybrid, really efficient gasoline engines. Dont discount the gasoline engine with a six, seven, eight speed transmission and a smaller engine you can get some really great mileage. Tracy Consumer Reports managing editor for i know. Thank you. Thank you. Tracy dont believe the hype. All right. The fourth fusion may not get high marks, but it does have a pretty high price tag selling for an average of 27,000. That is just under the median price for vehicles in the u. S. Of just over 30 grand. Tonights top five, the cheapest cars for sale of the u. S. According to edmunds. The kiev riel. And just like saying that. The sedan as a starting price of under 14,000 which could account for the car consistently selling around 30,000 of lung each year since 2007. Number four, the ford fiesta. The 2013 sedan has gas mileage of 29 mpg. But its 13,000 price tag is not making it too popular. This year ford sold only 51,000 cars compared to about 69,000 last year. Number three, the smart 42. This car sells for just under 12,500. It has only sold 9,000 vehicles so far this year. It gets about 30 miles per gallon, but it is made of 85 percent recyclable materials. So all this paper when im done using it goes into the car. It doesnt sound reassuring to me. I have to tell you. Number two, this shabby spark, one of the bestselling cars of the year, selling over 10,000 cars in just five months. More than the smart card did in the whole year. 12,000 price tag also includes a fiveyear warranty. Bonus. And the number one cheapest car for sale in the u. S. s the nissan versa, the only 2013 car that will be cheaper than 12,000 for at least the manual transmission model. Already sold 150,000, more than a hundred thousand sold last year. There could be a reason all these cars are so cheap to buy. Not one is assembled in the good not one is assembled in the good old u. S. Of a. [ male announcer ] how do you trade . Bummer. Well be right back. And all in real time. Which makes it just like hang your own trading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start. Try our easytouse scottrader streaming quotes. Its another reason more investors are saying. [ all ] im witscottrade. Can i still ship a gift in time christmas . Yeah, suryou can. Great. Wheres your gift . Uh. Whew. [ male announcer ] break from the holiday stress. Ship fedex expre by december 22nd for christmas delivery. Tracy finally tonight, it just never seemed to amaze me what some people spend money on. Last week we told you about the starbucks steel gift cards priced at 450. Bad enough that people are spending 450 only gives you 400 with a credit. The other 50 guesstimating the actual card. Now one of those limited Edition Cards just sold on the bay for nearly 1,100. In fact another are more than 100 steal cards listed on the bank. As of this afternoon, of them are going for at least 600. Some even have the buy it now option of more than 5,000, and its not just one person. Several of the cards listed for at least 800e

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