-- it is "your world." [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- neil: welcome, everyone. i am neil cavuto. even have stocks and gold racing, -- you can have stocks and gold racing, but rarely at the same time. gold will start raising because the dollar's tumbling. this happened when washington keeps spending. g-20 leaders are looking to keep it going. bad for investors that are already pummeling their currencies. the more of this that is spent, the more that the dollar tanks. which is doing a lot. the lowest in 15 months. but people in big health-care spending not worried, my next guest, the vice president of the economic policy institute. you are not worried about this? but it is weird, is it not? >> it is a good thing, in some ways, when you have a low dollar. it makes it easier for exporters to export. making it easier for them to compete, making it easier for our manufacturers to compete. not a bad story when interest rates are so low. neil: but it has not picked up pace. the dollar is low because many in the world view of our currency as too high because we are spending too much. what do you make of that? >> i do not think that that is a problem seen around the world. neil: it must be so bad. the french are lecturing us on over doing it. >> i think that most finance ministers from around the world think that the united states needs to deal with unemployment. the only way to do that is through more federal spending. neil: if that were the case, why would the chinese lecture us on americans saving more on spending less belloc's -- spending less? when the chinese start lecturing us on things financial, should we not be a little worried? >> i take that with a grain of salt. the time -- chinese had the biggest stimulus program of any country on earth. they did exactly what the united states ought to be doing. neil: they are spending money that they have, we are spending money we do not. >> well, we are borrowing money at the cheapest interest rates you could probably borrow at. it is not free money, but it is a very favorable interest rates. neil: how long do you think it will be so low? >> a hard thing to predict, but the bond market, everyone is predicting, if you look at down term interest rates, they are low as well. neil: you are right about that. i am not saying that there is a graveyard staring at us, but you have got to pay for this at some point,>ok it cannot be kept goi. when we have debts that are soon going to a clips the gdp -- eclipse the gdp, you have got to worry that you are in a pretty big pickle. >> japan has had that's bigger than their gdp for some time. they have been a stellar example? well, their economy has not collapsed. neil: japan has not done anything for the last 13 years. you mention them as a stellar example, that would be like me being a great example for the valley fitness program. neil: -- >> what i am trying to say is that we have a problem they do not have, 15.7 million people unemployed, a problem that is going to hurt the economy for years to come if we do not deal with it. the only way to deal with it right now is through federal intervention. we need a giant federal jobs program as soon as possible. neil: i thought that we already had that. >> well, we had a republic -- recovery program that had done a lot. neil: so, we need to dig in deeper and spend more? collects it was only half the size that it should of been. neil: good to have you. in the middle of all of this, another development for gmac. they are expected to give the finance arm of general motors a third infusion of cash, working out the $5.6 billion. they will get anotgregg is the e investment firm, -- ceo of an investment firm. what do you say to our last guests comments? >> i think that his optimism is rather misguided. let's look at some basic facts. the government does not create anything. i keep hearing that the government has to intervene to create jobs. how about allowing the government to get out of the way and have private businesses with tax breaks hiring the people that they've laid off? trillions of dollars have been pledged by the g-20, of which has already been spent, a huge amount of it coming in 2010. all we are doing is weakening the dollar. we are going to add an extra $10 trillion to the national debt over the next 10 years. you cannot do this forever. it will come to a screeching halt very soon. neil: you might be right, but invariably i would hear back from proponents of the program saying that your friends at the stock market, if they are so worried about this and having panic attacks, they have a funny way of showing it. >> what is causing the stock market to go up? we have cut everything to cost, now you have got to grow the top line. what is causing these rallies? $700 billion into the banks, not letting the money out. goldman sachs is making huge trading profits, instead of view -- instead of doing what they are supposed to. neil: the head of goldman sachs is supposed to be doing the lord's work, but that is a separate story. [laughter] something has got to give? >> for sure. look at the 10-year rates, higher now than before the crisis. treasury securities are signalling to the world that inflation is on the way. look at the old. higher now than the s&p. what does that signal? >> in other words the stock market is ignoring this. >> we are 6% by an all-time low against the euro. i understand, we have a great bubble that has been created, forcing money into the stock market, but why? because you have the mother of all trades, borrowing the money at next to zero, purchasing assets that increase in value. neil: you are right. it cannot continue. i am looking for a razor blade as you are speaking. [laughter] good to see you. into the middle of this? this! the grand old party cooper's. that fellow in the middle voted for the health-care plan. she may soon follow suit in the senate. what is a republican national committee chairman to do? if only i had michael steele here. i do! our request for the democratic national committee chairman was met with no response, but that does not mean that we stop altogether. >> i was just in the neighborhood. neil: what do you make of this? >> of what? >> this miniature revolt? >> these individuals represent their communities. they have to reflect back to their backyard. it is different. louisiana is different from maine. neil: no one expected him to do this. would you recommend that anything be done by the party to him? >> that is something that the state party will take under consideration in the nominating process or however that works out. he has got to get reelected at some point. neil: this may have improved his chances. >> it may have, it may not. neil: would michael steele said the better part of valor is that republicans keep the seat? >> i know that a lot of people have taken my comments about going after people out of context. neil: that was your tony soprano. do you think that people that do not toe the party line to be done after? >> it is about helping people to understand the arguments of the principles that we would like to see followed with respect to the economy. neil: the only republican in the house that did not vote with the other republicans -- maybe a couple of senators. >> i understand. this is the challenge as a national chairman. my job is to try to get us around central principles and ideas, working with leaders chef in the house and senate. i do not know what congressmen -- what conversations the congressman had with john boehner. the reality is that my responsibility now is to work with the state party and our grassroots organization. neil: you are being politically correct. you are unequivocal restating year that there is no witch hunt and that you will not cite any of these folks? >> going back to the beginning of my chairmanship, i take my leave from local leadership. in new york, we saw what happened when people did not pay attention to the process, did not allow primaries to unfold the way they should. neil: in the backyard of the conservatives that espoused the non-ñrrepublican candidate. >> if you have a primary process where people get to express their votes in you get the nominee that reflects those values. meal cowhide -- neil cuff republicans getting together, going to canada -- neil: republicans getting together and going to canada? collects a rare occurrence, that is the point. >> my advice to the county, when the end comes, people look at it and can trust it. neil: the market is soaring, maybe the president is doing everything right? >> this is a great, good jobless recovery. the dow jones at 10,000 and you do not get to go to work? you do not get to bring home a paycheck? neil: you are not buying it? >> look, wait a minute, ask yourself this question -- 810 thousand dow jones, but you are unemployed? -- a 10 thousand the dow jones, but you are unemployed? that is not what this should be about. the government should get out and create a pathway so that you can create some wealth. the government does not create wealth, only bureaucracy. neil: good to see you. by the way, our invitation always goes out to your democratic counterpart. meanwhile, first the house, now the senate is trying to avoid being reamed. homeland security tomorrow, new terror connections involving the fort hood killer having an army colonel saying that the time to be politically correct is over. makes everything pop! ♪ hey [ male announcer ] same cost but a lot more fun. ♪ everything pops with the pringles superstack can! neil: the administration is reportedly urging the senate to wrap up the health care bill by holiday break to avoid those town hall meetings like last time. my next guest is saying -- good luck. tom, you first. the president is saying that time is a wasting, do not do the town hall experience that dragged down the debate last time? what do you say? >> what is the big hurry? where are we going? what is the big hurry? reading the bill for five days? they are pushing it through. they do not want to listen to us. neil: what do you make of that? >> it is clear that it is moving too quickly. they do not want to hear from us. when we were there thursday by took 200 people on buses. we were in hall. they were running from it. we were trying to talk to them. they work for us, but they are acting like they are the boss. we will not let them do this, quite frankly. we may hold events here in deferred. neil: i want to pass this along, indirectly, from the president. "the new york times" reported that this was said by the president in a private meeting. "does anybody think that the tea bag anti-government people are going to support them if they bring down health care? all the above is the spirit democratic -- all this will do is add dispirit democratic voters and encourage extremists ." what do you say? >> i am not an extremist. i have my own small business. i have paid my taxes and run my business. i am in my community. i go to church every sunday catholic. i am an american and i love my country. >> yes, we might anger the extremists. they want this through. it will be a battle. neil: from the democratic side the view is -- >> blue dog. neil: 52 members of the house voted against this. are you saying that you are against this because the figures do not add up? >> i think that big government is a bad thing and the figures do not add up. how canñbr you put more people n the role and it will not cost more money? that is a joke. neil: time is wasting, what do you say? >> i say that there are many other ways to fix this. 80% of america is reasonably happy with their health care. why not spend the money to help the problems of the 20%? why not just set up a working system? we need to fix for reform. we need to get thecwa insurance companies selling across state lines. neil: thank you, gentlemen. a major applicator with a 20 anniversary, coming up. >> tear down this wall. neil: 20 years ago today 20,000 people did just that, tear down a wall. tens of thousands of people broke down in below wall, our next guest is concerned -- michael reagan, ronald reagan's son, joins us now. good to have you here. >> good to be with you. neil: your concern is that if your father looked at this event, something would have change in those 20 years? >> i have been here for about one week, honoring my father, as he often is in berlin for the speech that he gave in 1987. watching the speakers tonight, they just basically for got ronald reagan. -- forgot ronald reagan. you would think that they could and least mention the part that he played by taking a strong stand against communist aggression. neil: interestingly, mr. gorbachev, the line that he said, so many of his advisers advised against him saying that. but part of a bigger story, was that not? >> at the checkpoint charlie museum we gave6tugxñ them a natl security council documents that said this -- that the death of the speech was mediocre and it was a missed opportunity. the attached pages had changes, the entire part about mr. wa, is crossed out by the then security council. there are eight more memos from different areas of the government of my father, all of them taking things out of the speech because i wanted to be politically correct. he was finally able to do the right thing on june 12 in 1987. events, no one even a passing reference to ronald reagan? >> that is what is sad. that is why my foundation is working on the honor of my father all over the world. maybe we can embarrass the people here, named the plaza after my father. john kennedy as a street named after him. he was here in 1962 and all he did was call people jelly donuts. neil: all right, many people and her that in a variety of ways, jelly donuts is a popular one. what about hillary clinton and her remarks, that we must guard freedom? what did you get from that? what message do you think this administration is sending the world? >> i do not think that this administration is talking to people over here. if it was not for america, we would not be free, that is what you hear from the people on the ground. let's face it, you will not do positive things about america, but there is applause for barack obama? in the stands that we take? america should have been applauded for the people that we lost in this war that changed the world and freed a nation. what do we hear? the old political correctness instead of calling it the way that it is. neil: thank you very much. pay more taxes, keep more jobs? the trends that may have started, do nothing steps tropical strom ida is packing a punch them of ún neil: crude oil jumped $2 today, because of hurricane ida. transocean is one of the companies that evacuate its rigs. >> we evacuate about 100 people. we are watching to see this tropical storm get behind us. neil: you are not looking for this to materialize into something huge? >> and no, we should note tonight at the storm has pushed through. in the morning, when permitting, we will go out, industrywide, looking at the rigs and checking them out. neil: when you have a situation like this, the delay in getting oil out, is a significant issue? a short-term spike? what? >> we leased ships to the oil companies. i cannot comment on that situation. i know that we will be reporting of anything sheds, which will be helpful information to look at. neil: we will watch it with everything -- everyone else. thank you. sales taxes in los angeles rising, helping to pay for a massive jobs program. the man behind the plan is joining me right now. you know, this is an interesting development. obviously people by and large agreed with what you are doing. now people in washington have been incentivized. is this a way for folks to pay for jobs in los angeles? >> it is. you should know that the state, in balancing its budget, also raised the sales tax separate and apart from what we have done in los angeles county. last year, in the middle of a recession, working with the business community, a broad cross-section of stakeholders that would generate $40 billion over 30 years for highway repair and public transit developments in los angeles county. neil: mayor, this tax hike, dang. >>bty yes, this is a tax hike specifically for the purpose of investing in traffic congestion and air quality. the deterioration of the infrastructure in los angeles county shows that we have some of the worst traffic in the county. the transportation program will focus on building 12 major traffic projects over 30 years. what we are doing is going to washington with money in our hand instead of our hand out, saying that we should reward cities and states focused on putting up their own money for job creation and infrastructure repair that we need. neil: the obvious question on my part, is there a law for these purposes? could it be used for a variety of other purposes? many state and federal, local programs, have gone far off course. >> yes, they have. one of the reason that the voters voted overwhelmingly is that there is a locked box. this money can only be used for transportation, only be used for infrastructure investments that we have been waiting for for a long time. even with some opposition, this money can only be used for transportation. we want to accelerate the projects from 30 years to 10 years, getting the federal government to partner with us. neil: here is what interests me. i get the feeling that these folks are being nickel and dime to death. it is happening federally, and had been happening in your state, but my point is that folks are looking around, saying that they are being zoomed every which way. what do you say? >> i certainly understand that. folks are feeling the pain in this economy. we have a 14% unemployment rate in los angeles. this is a jobs bill as well. it is one of the people were willing to invest in. we are asking the federal government to partner with us. we do not have our hands out for our own resources on this unprecedented infrastructure program. what we are saying is that we want the federal government to help us to put these projects, going now, accelerate them over 10 years. neil: you must be good at what you do. your the only person i know they could get out of -- seven out of 10 votes to approve a tax hike. you must be gifted. why are you not running for governor? your name keeps coming up. where are you standing? >> i do not know if i was -- i do not know if i was great at it, but with respect i do not think i will be running. it might be strange to some people, but as mayor of los angeles there are a lot of things to do. we are growing the police department, driving down crime, homicides are down. this transportation and jobs program is on our agenda. i want to finish this job. neil:ñxi so, if dianne feinstein does not run and jerry brown stays in, a former governor campaigning for his old job, meg whitman is the republican -- where you go? -- where do you go? you will support the democrats? >> i would support janet marie brown if you're the only candidate in this race. neil: what if dianne feinstein is in there? >> honestly, i would have to reconsider. she is a great friend. neil: who do you like more? who do you like more? >> i will wait until she decides to make that decision. neil: very good have you, mr. mayer. >> thank you for having me. neil: the fort hood shooting suspect, what the investigators know? neil: michael steele told me that there could be paid back for republicans that vote for the health care bill. could there be blow back against the democrats that voted against the bill? congressman, good that you back. >> nice to talk to you. neil: was there any punishment indicated from anyone? >> i will tell you that the discussions that i had from house leadership in the days leading up to the vote were all very respectful and policy oriented. filled with the things that they thought should be in the bill. no question that we need health care reform to make it so that medicare is available to americans. i said that back in june. neil: they knew that your no vote was coming? >> by consistently said that we needed cost containment to make it affordable for taxpayers and businesses. neil: you are not one of these blue dog democrats in the group of 52, largely moderate conservatives within the democratic party? you are your own guy? >> i am a member of the new dems caucus, technology and business growth for our country. i like the blue dogs, but i am not a part of that caucus. neil: what is yours call? >> new dems. we try to find ways to grow the economy like in previous decades. we will figure out ways. neil: how many are there? >> there are about 70. neil: how many in the house? >> i think about 70. neil: i do not know how many of them were blue dogs, maybe 13 under your new dems members. are you feeling a bit like custer? >> i feel like someone who votes is conscious. it is a privilege to work with congress, i make up my ownqq mid and do what i think is right for my region and for the country. neil: how much of the decision was influenced by the elections last week for chris christie in your state? >> for me there was no implication whatsoever. in june i did not think that there was cross containment at all. i have been on your program before the say this. i have been beat up on this issue. but it is what i believe. it is easy to vote your conscience, and i did it on saturday. neil: did you get any other reaction from those other news channels? #gs,>> by and large people wanto hear government people telling the truth. saying what they believed. by and large people want government officials to say what they believe and go do it. that is what i did. neil: thank you. >> a good to talk to you. neil: claims of an al qaeda connection? we are on it. neil: he is awake and talking, but what is he saying? federal officials are looking to a possible connection in the fort hood shooting suspect and al qaeda. seven victims are still in intensive care. katherine is in washington with the latest. >> an american link to al qaeda is raising the actions of nidal malik hasan, calling him a hero. >> slmar al alaki as well known within terror -- counter- terrorism circles. in addition, the fbi is now investigating a mosque, attended by nidal malik hasan in the same time frame. there was an emphasis that no conclusions had yet been reached. today there was assurance from the white house said every effort is being made to understand what happened. >> the president has been clear with everyone that no stone should be left unturned in order to figure out how and why this happened, the make sure that it never happens again. >> the imam said that they are horrified that a former member could have retreated these shootings. neil: did the shooting happened because the military is being too politically correct? ralph peters said, the war of -- the author of the war after armageddon. you think that we were being too politically correct? >> wrong, we have been much too politically incorrect. george casey, addressing this issue, would not even use the word terrorism. the army is my old service, i love the army. but i will tell you this, if this not case had been a white supremacist, he would have been gone long ago, as he should have been. but because he is a protected species, he got a pass again and again. that's always -- vets being welcomed home always argue about the injustice of wars abroad. running around, in an islamist place to, logging on to web sites reportedly, this guy is tracing suicide bombers on the web, thenñ he goes in and shoots unarmed people, 13 of them dead, and we are told not to rush to judgment? that this is not really terrorism? give me a break. neil: prior to the events that you referred to, the authorities seem to dismiss them as a guy trying to get out of another two or of duty or get an honorable discharge. you cannot blame them for that at the time, but can you see them dancing on this issue? or did they just not see the severity? >> the chain of command at fort hood needs to be called before the panel's that senator lieberman has promised to hold on the hill. they need to call the officers that sat on the promotion board. nidal malik hasan was promoted to major in may after all of his problems at walter reed. under oath and they need to ask why he was promoted. and why they let him slide. my personal view, based on my military experience, is that they were afraid of taking a month, because it would of counter-charged discrimination. those bringing up the allegations would have seen their careers ruined as well. we are sick with political correctness. let me lay it on thick into the media handling. living in a $320 for a month apartment and driving a small car? big deal. this guy has benefits, military pay, the equivalent of a six- figure income. no journalist has asked where that money was going. follow the money. neil: thank you very much. more after this. . . the sixties were all about freedom. ♪ and now in my sixties, they are again. grandpa, are we there yet? 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call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today. neil: let me ask you something, if you were just audited by the i.r.s. and faced a tax bill and your furnace and hot water heater blew up up at the same t, would you be in the mood to spend a dime soon? probably not. it is human nature to hoard cash when you know soon you will be doling out a lot of cash, not on things that you planned but things you can't avoid, thaw can't avoid not shopping and buying and going crazy this christmas. that's not to say you won't spend. you just won't spend as much, which gets me back to the rich or should i say the richer because in little more than a yeerks some sooner, they will be paying more in taxes, and the top rate will go back up to nearly 40% and if healthcare reform goes throughing another 5% on top of that to pay for the whole thing. that is the new top rate of 45%, and i am leaving out state taxes an surtaxes on top of those taxes, so knowing you will be paying at least a third more in taxes, would you buy a third more of anything or even a tenth more or a 20th more? well, of course not? you're too busy cocooning cash ahead of the tax man coming for that cash so you hunker down and you are feeling down precisely because you are hunkering down, and you just shut down, and the economy shuts down, too, because that's the thing about the rich. their numbers are small, but their cash is contagious. they spend. we spend. they feel giddy and buy and retailers feel giddy and sell until the merry-go-round stops and the ride isn't fun and washington isn't getting it and the rich they loved to bash have bashed that without saying a thing, without spending a thing. all right. i'm going to see you one hour from now on fox business network. my special guest among so many, john owe hurley, the investor and pitchman on how he would run government-run healthcare in america, only on f.b.n. at 6:00 p.m. eastern, which if you do not get -- >> demand it!