PILLSBURY.
HE WILL BE ON WITH US IN A FEW
MOMENTS.
>>> NEXT CASE, NORTH KOREA
THREATENING TO SEND, QUOTE A
CHRISTMAS GIFT TO THE UNITED
STATES AS THE DEDENUCLEARIZATION
DEADLINE FOR A DEAL, IT IS ABOUT
TO EXPIRE.
HERE IS PRESIDENT TRUMP
THREATENING, BASICALLY
RESPONDING TO THIS THREAT.
WATCH THIS.
>> WE'RE WATCHING IT.
WE'LL SEE.
I WOULD BE DISAPPOINTED IF
SOMETHING WOULD BE IN THE WORKS
AND IF IT IS, WE'LL TAKE CARE OF
IT BUT WE'LL SEE.
WE'RE WATCHING IT VERY CLOSELY.
WE'RE WATCHING NORTH KOREA.
WE'RE WATCHING MANY PLACES
ACTUALLY VERY CLOSELY BUT
NORTH KOREA WE'RE WATCHING VERY
CLOSELY.
LIZ: LET'S BRING IN MY NEXT
GUEST, RETIRED FOUR-STAR
GENERAL, FOX NEWS SENIOR
STRATEGIC ANALYST, GENERAL JACK
KEANE.
GREAT TO SEE YOU, GENERAL.
>> GOOD TO SEE YOU, LIZ.
LIZ: REPORTS ARE COMING IN WE
HAVE A TOP U.S. DIPLOMAT
REJECTING NORTH KOREA'S HOSTILE
DEADLINE TALKS.
REPORTS ARE SAYING WE'RE NOT
BOWING TO PONGYANG.
WHAT EXACTLY WOULD THAT
CHRISTMAS GIFT FROM NORTH KOREA
BE?
>> WE CAN ONLY SPECULATE BUT I
MEAN NORTH KOREA THREATENING IS
SOMETHING THAT HAS BEEN A
PATTERN OF THEIRS FOR DECADES.
CLEARLY THEY'RE VERY FRUSTRATED
BECAUSE, REMEMBER, LIZ, AT THE
HANOI SUMMIT, THEY WANTED
COMPLETE SANCTION RELIEF FROM
THE UNITED STATES ENTIRELY.
THEY WERE GOING TO GIVE US
HARDLY ANYTHING IN RETURN.
NOT A SINGLE MISSILE, NOT A
SINGLE NUCLEAR WEAPON WOULD BE
DESTROYED AND PRESIDENT TRUMP
DID EXACTLY RIGHT THING AND
WALKED OUT OF THERE.
SO THE SANCTIONS NOW, ALL THESE
MONTHS LATER, HAVE GREATER
IMPACT.
THAT, THEY'RE PLAYING THIS HAND
AS LEVERAGE TO TRY TO GET US TO
REDUCE SANCTIONS.
NOW WHAT COULD THEY DO TO GET
OUR ATTENTION?
I DON'T THINK IT WOULD BE
SHORT-RANGE OTHER MEDIUM-RANGE
ROCKETS WHICH IS WHAT THEY HAVE
BEEN FIRING FOR THE LAST SIX
MONTHS.
IF THEY REALLY WANTED TO DO
SOMETHING THAT WILL CREATE A
CRISIS, THEN THAT WILL BE
LONG-RANGE BALLISTIC MISSILES OR
A NUCLEAR TEST.
I DOUBT THE NUCLEAR TEST.
BUT NONETHELESS, ANY ONE OF
THOSE, I THINK WOULD FORFEIT THE
PEACE NEGOTIATION PROGRESS THAT
PRESIDENT TRUMP AND KIM JONG-UN
HAVE ESTABLISHED WITH THE TWO
SUMMITS AND ONE IMPROMPTU
MEETING IN JUNE.
I THINK IT WOULD PUT US BACK
LIKELY IN THE CRISIS AGAIN,
WHERE WE BEGIN TO TALK ABOUT
MILITARY OPTIONS BACK ON THE
TABLE.
WE'LL SEE WHETHER THIS IS JUST
RHETORIC OR THERE IS SOMETHING
SUBSTANTIVE HERE THAT WILL
CHANGE THE NATURE OF THE
RELATIONSHIP TO DATE.
LIZ: LET'S MOVE OVER TO EUROPE
AND NATO.
NATO CHIEF STOLTENBERG SAID NATO
IS NOW, QUOTE, FACING ITS MOST
COMPLEX SECURITY ENVIRONMENT IN
HISTORY, RISING TENSIONS BETWEEN
MEMBER COUNTRIES.
THREATS FROM RUSSIA, TERRORISM
FROM CHINA.
I WANT TO POINT OUT THAT THE
EUROZONE IS FACING ITS WORST
ECONOMIC GROWTH IN ABOUT SEVEN
YEARS.
REALLY SEVERE FLAT-LINING
PROBLEM THERE, ALMOST TIPPING
INTO RECESSION.
YOUR REACTION TO ALL OF THAT?
>> WELL, I THINK THERE IS A
POINT TO BE MADE HERE.
THE GLOBAL SECURITY SITUATION
HAS CLEARLY WORSENED WITH THE
COMPETITION WITH RUSSIA AND
CHINA AND IRAN'S REGIONAL
OBJECTIVES WHICH ACTUALLY IMPACT
ON EUROPE AS WELL IN TERMS OF
TERRORISM AND THE SPREAD OF
RADICAL ISLAM DESPITE EVERYONE'S
BEST EFFORTS TO PUSH BACK ON IT.
THOSE ARE THREATS THAT THEY ARE
FACING BUT AT THE SAME TIME THEY
HAVE SIGNIFICANTLY WEAKENED
POLITICAL LEADERSHIP IN MANY OF
THE EUROPEAN COUNTRIES.
THESE SOCIAL DEMOCRACIES, THAT
HAVE BEEN IN EXISTENCE NOW HAVE
PROVEN TO BE FAILED SYSTEMS IN
TERMS OF PROVIDING FOR THEIR
PEOPLE, STRENGTHENING THEIR
ECONOMY, YOU NOTE, THE ECONOMY
IS IN SERIOUS PROBLEMS.
THE, PROBLEMS THAT THEY HAVE
WITH UNIONS AND DEFINED WORKER
BENEFIT PROGRAMS ARE CAUSING
SIGNIFICANT PROBLEMS TO THESE
GOVERNMENTS BECAUSE THE WEIGHT
OF ALL OF THAT ON THE GOVERNMENT
DOES NOT PERMIT, THE WEIGHT OF
THAT ON THE PRIVATE SECTOR DOES
NOT PERMIT THE KIND OF GROWTH
YOU WOULD SEE THAT IS TAKING
PLACE IN THE UNITED STATES FOR
EXAMPLE.
SO, YES, I AGREE WITH HIM.
THESE ARE SERIOUS CHALLENGES,
INTERNALLY TO EUROPE AND ALSO
EXTERNALLY.
AT THE SAME TIME YOU HAVE
BRITAIN WHO WANTS OUT OF THE
EUROPEAN UNION.
AND THAT ALSO IS REVERBERATING
THROUGHOUT THE EUROPEAN UNION IN
TERMS OF OTHER COUNTRIES PAYMENT
ACTS WITH HE WILL.
LIZ: WHETHER OTHER COUNTRIES