best people, the right people are kind of coming at them from the left when democrats retook the house under the leadership of rahm emanuel. he ran people who were the right people for those districts, which were much more conservative and the kinds of candidates you're talking about. so why is he wrong and you're right? >> you're talking about 2006. >> mm-hmm. >> we're taub about 2018 now. every year there's 3 million more 18-year-olds that become eligible to vote. so we're a much younger country now, and the youth of this country don't believe in the old ways, they wanted bernie sanders, the last poll i just saw more of them support socialism than capitalism. these are the people that are going to determine the future. and i would reach out to a coalition of young people, women, and people of color and not be afraid to be real liberals, real democrats.

yes, in some of these purple districts you might have to run people that are a little more conservative. but you shouldn't lose michigan and you shouldn't lose wisconsin and i don't think we have to. >> michael moore, it's always great to have you on the show. thank you so much. take a look right there. "the terms of my surrender" in previews on broadway. great to have you. thank you so much. >> sing, dancing. >> that does it for us. chris jansing picks up the coverage right now. >> i didn't know there was tap-dancing until you said that, joe. i'm chris jansing in for stephanie ruhle. >> this morning, new day, new chief of staff. within the hour, president trump swears in one of his generals, taking on the unenviable task of calming a chaotic white house. can a new chain of command put the trump agenda back on track? >> jon kelly is one of our great stars. >> escalation, vladimir putin's aggressive apps to new

sanctions, the most aggressive move of its kind since 1917. >> if the u.s. decide to move further towards further deterioration, we will respond in kind. and maybe it's not dead yet. senator lindsey graham lead a charge to find a way on health care as the president tweets out threats to end payments to health insurers. >> i'm troubled by the uncertainty that has been created by the administration. >> con kelly being sworn in just 30 minutes from now. he's going to try to bring some military style discipline to the most undisciplined white house in history. we have a great team. i want to start with kristen welker. kristen, kelly takes over after the shortist stint of any chief of staff ever. why does he think he's a good fit? >> reporter: general kelly is broadly seen as a stabilizing

force, someone who is a 45-year marine veteran. as dhs secretary, he is seep as someone who is effective licariing out the president's agenda, tough on crime, tough on illegal immigration. the question is, though, is the president going to embolden him to be a strong chief of staff. that has a lot to do with the chain of command because under reince priebus one of the challenges was people were still reporting to the president effectively. is that going to change. will the general demand it changes. that's a key question. he becomes one of about ten high-level departures, pre s p pre reince priebus since the president took office. katie walsh, sean spicer, james comey, sally yates. one of the things that makes this so interesting and one of the points i'll highlight is

with the ouster of reince priebus it's really one of the president's last strong contacts to the rnc. so his connection to the rnc and conventional republican wisdom growing thinner by the day. the president himself trying to keep the focus on his agenda, on his achievements, tweeting just moments ago, chris, about the economy, saying that the highest stock market ever, best economic numbers in years, unemployment lowest in 17 years, wages raising, border secure, no white house chaos. he can say that, but of course the reality is you have a number of republicans expressing concern about the chaos and discord and they say it's undermining their broader agenda. so all eyes on john kelly as he's sworn in this morning. >> thank you, kristen welker. i'm going to bring in my panel. andy card was chavp for president george w. bush for five years and is currently an msnbc political analyst. eddie glaude is a princeton

university. mike lupica,"the daily new news". both contributors. when he tweets no chaos, my dad used to use a phrase they used a lot back in the '30s and '40s, i didn't steal that chicken, that chicken just followed me home. no chaos in the white house. >> when he tweeted that chaos, that moment. >> let me start with the guy who was chief of staff. andy card, you don't just have to know all the policies domestic and international but you have to manage all these egos. seeing those ten names of people who have either resigned or been fired, wasn't even a little startling. >> some of those names were people who were not part of the trump world. but still a significant number of names of people who left in the short six-month period since

donald trump took office. >> the shortest tenure of any chief of staff. what does general kelly do? how does he figure out why reince priebus was let go in the first place? >> one of the challenges of anybody in the politics is to manage expectations. and general kelly, i hope, managed expectations before he decided to take this mission. so i hope he sat down with the president and said, what are your expectations? and he would say to the president, these are my expectations. i can't do my job if i don't know your expectations, and you can't have me do the job i have to do if you don't know my expectations. will you help me live up to my expectations. >> i don't think that you have a president who says my expectation is that you rein me in, that you stop me from using all the bad things -- >> trusting general kelly said to him my expectation is that

you will have more discipline in how you tweet. you will have more discipline -- i'm not saying don't tweet. just have more discipline. allow some period of time so that there is thought to consequence before the tweet goes out. >> he didn't have thought to consequence before he wroegt wroet what he wrote about transgender members of the military. the military has put the kibosh on that. >> a laundry list, yes. >> also i think and startingly, i can't remember when we have seen two major organizations over the course of five days issuing an apology for what the president of the united states said before the organization. i just want to remind people. let's listen. >> you know, i go to washington -- in fact, today i said we ought to change it from the word swamp to the word cesspool. when you see these thugs being thrown into the back of a paddy wagon, thrown in, rough, i said

please don't be too nice. >> so when you have a situation like that, andy card, how do you go in -- even says he doesn't suffer fools. how do you go in and you bring some order when the disorder starts at the top? >> first of all, those two statements at two very different groups were completely outrageous and completely inappropriate. i'm a boy scout. i love the scouting organization. he did not reflect their values or who they are or even the appropriateness of speaking to the group that was standing in front of him. so it was wrong. my brother was a police officer. no, you don't give that instruction to police officers. it was completely inexcusable. and nobody should defend it. nobody should defend it. the chief of staff's job, however, is to understand the president and help the president do his job. >> so when you were chief of staff, would you go in and say, listen, you cannot tweet this, you cannot say this, you cannot

talk about this in an interview? >> tweets didn't exist. >> walter. >> i'm an old man but george w. bush did have to give up his digital communication with the world, hi e-mail system. he didn't want to but he knew he had to. he did understand there were consequences to words that he used and sometimes he learned that by getting slapped around because he said something wrong, and he actually ended up being quite disciplined. yes, we would shut the door and have brutally frank conversations and i would say i can tell where you're headed, don't go there, or i would say this is what you thought, take another look or talk to somebody else or you did something, what were you thinking? >> i think the problem with brutal candor with this president is that you don't say to him no, right? he has never shown -- jeff sessions being a perfect example of this. so how do you do that? >> no, no.

everybody says he has no experience in government, this president. he actually is a graduate of the george steinbrenner school of governance, who was a friend of his, and ran the yankees with this type of chaos in good times and bad. >> but they won championships. >> but then they did not. here's the thing, chris. a lot of tough guys went in there and thought i'll be the one, i beal the one to turn him around, i'll be the one to say no to him, and guess what? they got carried out just like everybody else did. >> it's interesting you mention the boy scouts and sort of their code of honor. the atlantic wrote, "you cannot work directly for trump while adhering to a code of honesty, integrity, and lawfulness." >> the idea that jep kelly is going to ride in on a white horse and establish discipline in the white house i think is beyond what's reasonable. and i think the reason why i think that's the case is the character question of the person who occupies the white house right now. everything we've seen, all the trouble that the white house has experienced in some ways hasn't

been because of the disorder of the staff. leaks not withstanding, priebus' leadership style, that hasn't been the reason. the reason has been donald trump. a 71-year-old man. so i don't know -- >> careful, i'm 70. >> but you understand that you're not going to change overnight. >> but people don't change, period, generally, particularly at the age of -- >> be careful. >> i'm sorry. >> you're slipping into the role of a cynic. and the president, the president is the president until he's no longer the president. and you don't have a president change if you don't be cynical. be skeptical and educate him. >> this is not necessarily cynicism. it's actually a conclusion from the evidence so far. that doesn't mean it's settled. >> but you want it to work. help us get to the point it works. >> we all wanted him to succeed. >> uh -- >> because if he had been a better president the country is better off. all i'm saying is how is general

kelly going to embrace a management style that seems to come from the untouchables? you send one of ours to the hospital, we'll send one of yours to the war. threatening to take balance from insurance companies and congress. can hay banger around him is telling him in the office that you once stood that's what's going on around the country's a good idea? >> i'm hoping that -- i honestly believe general kelly, who did work with some pretty remarkable washington leaders, leon panetta, bob gates, two examples, he worked on capitol hill, he was a liaison to capitol hill for the defense department. so he understands the role of an executive in creating a climate for governing, finding solutions, building compromise. i honestly believe that he can be an educator, maybe he'll have to use tough marine language to do it with the president, but i think the president may be e pre disposed to listen more to a general kelly than he has to

others. >> he does make a good point there. >> he went to the military school. it was the only time in his life he had discipline. >> he does seem to have almost a reverence -- there aren't many people he looks at generally as a category of people as having instant respect. the military and certainly general kelly among them. you see from the people he's appointed. >> a lot of generals in this administration. we can are the debate about success for the country and the well-being of the country, but a practical question, what will general kelly bring to the table with regards to dealing with congress? that the white house, that the chief of staff in so many ways is charged with ushering through, ushering the president's agenda, through the -- where is his experience? >> and that is where he doesn't have the experience. >> he does, actually. he did work with congress when he was a junior officer. >> at this level. >> but not at this level but he was -- first of all, he was representing the defense department's policies as they were trying to get things done in committees and everything

else. he's known on the hill. granted it was probably two generations ago when it comes to members of congress, but a lot of the staffers are still there, a lot of the leadership remembers him. he earned high praise for what he did with bob gates and leon panetta and that was working with the hill. more significantly, i think general kelly knows what he doesn't do well so he can find other people to help imdo it, which means a good legislative affairs director. he'll have to spend time on capitol hill smoothing the waters, accepting the blows, eating a meal of crow. >> in this hyper partisan environment you think he can do that? >> it takes hard work. it takes hard work. >> okay. >> when george w. bush became presidential it was very controversial. the supreme court elected him, okay? i had to go up and deal with the black caucus and eat meals of crow and let them beat me up and we did it. then all of a sudden we're work ong a tax bill change, change

taxes, and jim jeffreys switches party, goes from a republican to a democrat and democrats then controlled the senate. >> here's where i think the problem is for general kelly that we haven't talked about, and that is that when you hear what really happened and how this went down, it seems like the failure of health care was the absolute last straw for the president. he had promised it, said it was going to happen, even though he said he was a deal maker who was going to make it happen, it failed, reince priebus was the guy he said he taxed with it, and by a lot of reports from inside that white house, that's ultimately what made him go was the idea that health care failed and he was angry about it. i don't know how in this atmosphere general kelly for all thiz experience, all his success, and the respect that he engenders on capitol hill can get through the things that the president says he wants to cover. >> what does general kelly think about what was eventually a shakedown with lisa murkowski? if you don't go along with us, we will punish your state. what is a man of honor say about

that when it's just him and this president alone in the oval office? >> i'll go back to the point i made earlier. at the end of the day, i understand we don't want to be sip cal. we can be skeptical. i think there's a fundamental character question and no matter what general kelly brings to the table, how i kis agree with his agenda, there is a fundamental character question with the man occupying the white house. >> start from the top pft preserve, protect, and defend the constitution. that's the constitutional responsibility the president has. i think general kelly is the best person to be by his side during these extremely troubled times not in washington but in pyongyang or in -- >> moscow. >> iran. yes. we have problems. i'm glad the general is on the staff. >> general -- good luck. >> i thought you called me general. >> i was speaking --

>> i just -- she said general and looked in my direction. >> that is not a misat the same time. love you, though. up next, russian president vladimir putin orders hundreds of u.s. diplomats out in direct response to president trump agreeing to sign new sanctions. but before we go, president trump's tweets on transgender individuals in the military last week came with a nine-minute gap between tweets, and that reportedly led some folks in the pentagon to think the president was making a statement on north korea, a fact that john olver found concerning. >> declaring war on north korea with a tweet is the ten scariest word in the english language and i include on that list, a clown wait for you in your house softly whistling and sharks can fly now and they know where you live. with homeowners insurance and protect yourself from things like fire, theft, or in this case, water damage.

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the trump administration now calling on china, japan, and south korea to confront the north korean threat warning that the time for talk is over. the north raised the stakes dramatically by deploying a missile that could strike the u.s. janice, how is the trump administration responding to this? >> reporter: the u.s. mounted a show of force over the weekend sending two b1b bombers from guam to asia to meet up with fighter jets from japan and south korea. they did a low pass over the

osan air base in south korea to send a strong message to north korea that if need be allied forces will respond with, quote, overwhelming force. as well, the u.s. had a successful test of the thaad anti-missile defense system in alaska. they've been doing several tests recently to try to fortify that last line of defense against this rising threat from north korea, which the stakes went even higher on friday with this latest icbm test and experts believing that north korea could be as little as a year away from realizing its goal of having a nuclear warhead small enough to put on a missile and send to the united states. so diplomacy obviously ramping up, too. president trump calling his japanese counterpart to assure japan that the u.s. will be there to protect them. there was quite a lot of nervousness in the region over the weekend, and south korea making its own moves to bolster its defenses, saying it's

entering talks with the u.s. to get stronger missiles and also the president ordered the immediate deployment of the thaad anti-missile system, the very system that he suspended back in may. japan is also looking at building its missle defenses. there's also diplomacy with nikki haley saying pressure must increase on china and that this has to be an international effort that the u.s. cannot be applying that pressure alone. >> thank you for that. moon time, we have new reaction this morning to russian president vladimir putin retaliating for the sanctions bill the white house says president trump does intend to sign into law. in a surprise move, putin is ordering the u.s. mission in russia to slash its staff by 755 people. that includes diplomat, nondiplomat, and local russian staff. this morning vice president mike pence reacting to the decision during his meeting with baltic state leaders in estonia. >> recent diplomatic action taken by moscow will not deter

the commitment of the united states of america to our security, the security of our allies, and the security of freedom-loving nations around the world. >> join meganow is the former spokeswoman for the u.s. mission to the united nations. always good to see you. michael mcfall, the former u.s. ambassador to russia, said this is a major escalation. by some measure, we haven't seen anything like this in a hup years. what's the real-world impact and how big do you see this? >> i do think it's a significant escalation but we have to put it in context. president putin was reacting proportionally to measures that we also took in january, right? he did the same things. he seized american compounds and he expelled a number of personnel. >> but nowhere near the number that putin is -- >> that's fair, and to be fair, president obama had expelled 35 russian diplomats who were working in intelligence

operations, so it was very targeted, based on the fact they were collecting for russia, whereas what putin did was much more broad and it will make things very inconvenient and uncomfortable. i think they'll carry on with their work but they'll have to fire a lot of the russian staff, a lot of consular staff, so things will be difficult but things will carry on. >> the other thing putin did was he warned directly this essentially could be just the start. he said russia has more options. what are those options and what are the likelihood he'll do something else, escalate this? >> that's perhaps where i might disagree a bit. i think that, sure, he has more options but if he's talking about taking proportional steps, right, we impoelzed targeted financials and are about to impose more. russia doesn't really have that luxury. what targeted financial measures -- >> their economy is just starting the come back a bit, right? >> maybe, but american individuals don't have -- really don't have many assets in rubles, they're not carrying

assets in russian financial institutions. if we wanted to do the same thing and impose sanctions on american individuals as he's done before, it won't have that much of an effect. furthermo furthermore, he took in 2014, putin and medvedev imposed a food import ban on russia. they were -- sorry -- they were prohibiting u.s. and european food imports into russia. what they intentionally did was sanctions themselves by doing that because prices on food in russia ended up increasing for their own citizens. so his options in that world are limited. >> do you think in any sense he's emboldened by the president's low approval ratings here or do you think that essentially congress bypassing this legislation in the first place has said, look, whatever you think of donald trump we're on this? >> i think that congress has forced a unified message, but i do think that -- i do agree that i think putin sees maybe some opportunity there because of the weakened -- you know, the low poll numbers and the weakened

president. i think that's reflected in the fact that putin stated, you know, i had hoped, he stated somewhere in his statement yesterday, i had hoped that the u.s. and russia were on the path to becoming better friends, to having a better relationship, and as an american citizen where i e remember just as it was, i mean, it was very recent where russia interfered in our election, i'm sitting there thinking why would you think that? this just happened. there's no reason for us to be better friends. they haven't improved on their behavior regarding the minsk agreement vis-a-vis the ukraine, seib hacking is still an issue. the fact he said that, i think he believes that. >> hagar chemali, always good to see you. >> likewise. up next, moments from now, general kelly, jon kelly sworn in as the new chief of staff of the white house. is he ready to answer the call to bring order to chaos? >> you need to take that call? okay. fine. >> it might be the president. so i do want to miss the call.

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welcome back. i'm chris jansing in for stephanie ruhle. time for your "morning primer," everything you need to know to start your day. in venezuela, president

nicolas maduro is claiming victory in the country's vote for a constituent assembly that will have the power to rewrite the constitution. at least ten people were killed in violent protests in the country's capital. the u.s. blasted the vote as a step towards dictatorship and vowed a strong and swift response. australian officials say they foiled an elaborate terrorist plot to bring down an airplane, arresting four men in sydney this weekend who were allegedly planning to use an improvised device. senator john mccain begins treatments for his brain tumor in arizona today. his office says he does plan to return to washington after the august recess. the faa must now review seat sizes and leg room on commercial planes after a federal judge ordered regulators to consider setting minimum standard on all aircraft. and i thought we'd already done that. and actor george clooney vows to sue a french magazine for publishing the first photos of his newborn twins. he says the photographers quote scaled our fence, climbed our tree and illegally took pictures of our infants inside our home.

retired four-star marine general john kelly is about to be sworn in any minute now as the new white house chief of staff. president trump is participating in the ceremony in the oval office and we're getting some video back on that so we'll show it to you as soon as we get it. general kelly steps into the role left after the ever so brief stint of reince priebus, who was ousted, nbc has reported weather a big push out the door from jared and ivanka trump. i want to bring in annie shafer, also a former cia operative. robert traynham with the u.s. policy center. welcome both of you. you know general kelly. >> i do. >> he's a four-star general, somebody used to order, used to discipline. but this is a challenge arguably unlike anything he has faced before. how does he bring some sense of normalcy, of calm to what is a chaotic world around president

trump? >> right. well, chris, i heard your run-up to this and there's a great deal of discussion about the chaos. look, i think we all recognize there is chaos in the white house. but to take a quote out of "apocalypse now," you must make a friend of chaos. >> my favorite movie, by the way, so thank you for that. >> and, yeah so, i think this is one of the things about general kelly. he's a competent man, used to being successful and taking on and resolving very difficult situations. he's managed large staff, complex staff, he's led with a clarity, and by the way i was at an event in washington a few weeks ago where he called up members of congress saying just shut up, so he's someone motivated and able to act on his own convictions. now, how that will translate with the president, i don't know yet. but i do believe that he will be able to eventually bring at least direction to the chaos in some form of focus to more

appropriately lead the west wing towards achieving the president's objectives. >> one of the things that is interesting to me, robert, is what we know about the military is about chain of manhandle, right? and when you have a white house that functions well, it's because that chief of staff knows who to talk to, when to talk to, people go through him. it's just not ad hoc, it's not just somebody on the communications staff who's meeting with the reporter, saying, hey, you want to go in and talk to the president, that's not how previous white houses have operated. there's been a chain of command. jonathan swan tweeted this. source familiar tells me jared and ivanka will follow skwen kelly's lead in terms of information flow. do you see the president's staff from kellyanne conway down to anthony scaramucci saying, okay, now i know if i want to get to the president i have to go through general kelly? >> i think, chris, that's half the circle. yes, i think the staff will adhere to the protocol that

perhaps maybe general kelly will put into place. but the real question is the other half of that circle is will the president adhere to that protocol. so in order, the president will not say, just call me or just stop into the oval office, or there's no need to go through the chief of staff. i have several friends that work in the white house now and that's what the president often will say. there's no need to go lu the chief of staff. just pick up the phone and call me or send me a text. so the president needs to respect the chain of command and the authority as well and dignify the office and literally raise himself up and let the chief of staff do the job. i'm often reminded of a quote that harry truman said on the eve of general itz hour coming into the white house. he said, poor ike, you know, he's going to say do this and do that and he's going to expect the white house to snap to his command and harry truman said that's not how the white house works, that's not how the federal bureaucracy work and certain hi not how members of congress work. that the question in my mind is whether or not general kelly understands how the federal b e

bureaucracy works and does the president. >> one of the things about this president he came in maybe thinking that he could run the government the way he runs a business, that he has been in charge for all these years, he told people what to do, he didn't understand, for example, with the fbi director or the attorney general that maybe he can't tell them exactly what to do. here's what kellyanne conway said on fox about this chain of command. and by the way, she also mentioned the new communications director anthony scaramucci. let's listen. >> has scaramucci, who said he reports directly to the president, have you now been told you report to john kelly? >> i will speak with general kelly and the president about that as i'm sure anthony scaramucci will. >> so what is it, colonel, that is in general kelly's dna that makes him think he can succeed where others have failed?

this is an incredibly smart man. he has to know that, for example, someone the president pratzed repeatedly, jeff sessions, he turned on, his daughter seems to have little or no moderating effect like in the ill-considered tweet on transgender service members. and while trump has touted himself as a deal maker, apparently the last straw for reince priebus was the failure of health care. what makes general kelly, who clearly has seen all this, think i can succeed where others have failed? >> two things. i think he's coming in without a preconception of how it should be. look, i just heard andy card earlier with all due respect to him, everybody wants to manage from nostalgia. this was the way it was, this is the way it should be. it ain't. i think general kelly accepts reality and manages from that point of view. secondly, along that line, there are things he can do and some he can't and i think he'll p able to figure out quickly based on his experience what he can and cannot do. the other thing he has which i

think others have not maybe noted as much as they should, he was working as the u.s. marine corps senior officer on capitol hill from 2004 to 2007 during a very tumultuous time post 9/11 and working a number of key issues. so i think general kelly has both been able to understand how to navigate in this town and be effective in navigating this town. i think that's something reince priebus never really was able to achieve. looks, he had a great deal of political experience in dealing with republicans but i don't think he understood how to work the mechanisms of all the government. that's something general kelly's had to learn to do, not simply the marine corps but how d.o.d. work, the state department, how other things work. and i do believe where he lacks direct influence or understand, i think he'll have enough wisdom to reach out to someone to help him figure that out. i think that's where he'll succeed where others have failed. >> i just want to say, robert, because he comes from a place where the president thought he did a great job, homeland security. but that also leaves an opening. a lot of names that have been bandied about about who might

replace him. but the most intriguing as we look at this from michael mccal to crisco back is jeff sessions. do you think there is any way in trump's thinking or in trump's thinking with the chief of staff like general kelly that he would actually try to move jeff sessions over to homeland security? >> i think the answer is more nuanced. i do think the president wants to move attorney general sessions over the homeland security but it's more complicated than that. here's why. one, jeff sessions has to agree. two, the senate has to agree. in order, these two positions are senate confirmed meaning the attorney general but also the secretary of homeland security, so the senate also has to say, hmm, this is actually a good idea. from all the tea leaves i've seen so far, the senate says under no six because that could lead to an obstruction of justice because everyone knows exactly why the president wants to move the attorney general over to another slot and that is obviously to fire the special prosecutor. so it's much more complicated

than just snapping your fingers and thinking this could happen overnight. one more point quickly? >> from your personal knowledge of him that general kelly is somebody with another political savvy as well as enough self-center field to go into the oval office and say to the president, you do this, you are asking for di disaster? >> yes, i do. as a matter of fact, he's cut from the same cloth as some other great corps leaders i know, general joe dunford and others who have been more than willing to speak their mind. this is the thing. i think he'll lay out, mr. president, this is the inevitable consequences of this action, and you go four steps down. i think this is where again hi experience as a general understanding the environment -- and reince priebus never had this deem ability to think over the horizon like general kelly does, at the same time understanding the political consequences and those things which will come out of it, thinking in second and third

order effects. he'll excel where others have not. he won't change the president's mind but he'll say, mr. president, these are things you'll have to manage, the key, to manage the consequences you know are coming. that's where this white house has failed. even if they knew it was coming, i don't think they knew how to deal with it. >> we're going to be getting this tape back any second now. apparently the pool was not aloud or does not have to play back the swearing in of general kelly but there is a picture after the swearing-in ceremony. you wanted to make a point, robert. >> just quickly, i think one thing that general klly has that reince priebus does not, candidly speaking, if you look at scaramucci, at vaughn ka and jared, eve on the a certain degree steve bannon and kellyanne fitzpatrick, they have chemistry with the president, the president likes them, they finish each other's sentences and thoughts. as i understand it, general kelly has the chemistry with the president that may help him succeed. reince priebus never had that with president.

they were never friends. they were more like subordinates. reince priebus was the rnc chair for many years and kind of helped donald trump, you know, rise to the top, allowed him to be a part of the debates and so forth so it's always been this awkward dance between the two. er i think general kelly comes in with a clean slate from that standpoint. >> do you think the president will see him not as an equal as someone formidable enough that he has to do what he has not done in so many other instances, which is listen to him? >> i think so. this is where i think both he was successful in homeland security, both the perspective of understanding how to manage the president's expectations of what's going to come. last time i spoke with general kelly he was trying to figure out how to do things properly relating to moving forward. the idea here, chris, is understanding both the president's intent as well as what the reality is of what the mechanism you're affected.

again in a short time he was able to do a number of very important things at homeland security. that is probably the most dysfunctional federal bureaucracy that i know of in the national security realm. so the fact that he was able to do that at the same time, work with the president effectively, i think speaks volumes of general kelly's chemistry, i agree on the chemistry thing, but also his ability to understand and manage very complex issues in an effective way in a very short time. >> so i think that the preponderance of opinion, just listening over the weekend, robert, talking about all the different networks, was that good luck, general kelly. do you think he has a real chance to succeed, that people are underestimating the ability of the right person to go in and really change not just sort of the structure of the white house, which clearly -- and we're going to start looking at this picture now -- this just

came in from the white house. >> general kelly, he will do a spectacular job, i have no doubt, as chief of staff. what he's done in terms of homeland security is record shatter. you look at the border, at the tremendous results we've had, and you look at the spirit. and with a very controversial situation there has been little controversy, pretty amazing by itself. i want to congratulate you on having done a fantastic job, general, and we look forward to, if it's possible, an even better job as chief of staff. >> thank you, sir. >> thank you very much. we'll see you in the boardroom. [ inaudible question ] i think we've done very well. lots of records created, john. stock market's the highest it's ever been, unemployment lowest in 17 years, companies are doing

tremendously well. business spirit is the highest it's been according to polls, you look at polls, the highest it's ever been in the history of these polls. we're doing very well. we have a tremendous base. we have a tremendous group of support. the country is optimistic. and i think the general will just add to it. but the country is doing very well. strongest stock market ever. on friday we hit the highest in the history of the stock market. business is very enthusiastic. and we will proceed and we will keep going. but we have a fantastic leader, chief of staff, going to do a really great job. thank you very much. we'll see you in the boardroom. >> so with that, the president has a new chief of staff. reince priebus is out. john kelly is in. he said he did a record shattering job at the department of homeland security and will do a spectacular job as the new

chief of staff. your thoughts, robert traynham. >> very quickly. look at the optic, sitting to the president's left. that chair is often reserved either for another head of state or for the vice president. i do believe that this president looks at general kelly and says finally i have a man in charge, finally this is a map what's risen from the top, finally this is a former general. you know, he respects that. the president really loves strong leaders. and i think he sees that in general kelly, hence the reason why he placed him in the oesm office to his left. that is, again, typically used or reserved for a head of state. i think it's very telling. >> colonel, i have no training in body language but he looks to me like somebody who says i just apsalm leave the chair and get to work. we have to go through these formalities but there is stuff that has to get done. what's your final thought as we close this out? >> well, yeah, john kelly is not all bad. he went to the u.s. army's advanced officer infantry school. just joking but of course he's

ready to go. he wants to jump over the wall, hit the beach and go do something. so i think that's clearly what he wants to do and i think that's what you're going to see. he'll roll right out today and start doing his job. >> we'll be watching very closely, obviously. thank you both. appreciate it. up next, after that thumbs down from senator john mccain killed the senate republican effort to repeal obamacare, what's next? will the white house undercut insurers and senators in order to force another health care vote? but before we go, after ending last week, another record, and the president pointing that out in the oval today, the markets have just opened and so far um 33. we'll keep your eye on it. choice for him is aleve. he's agreed to give it up. ok, but i have 30 acres to cover by sundown. we'll be with him all day as he goes back to taking tylenol. yeah, i was ok, but after lunch my knee started hurting again so... more pills. yep... another pill stop. can i get my aleve back yet?

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it's happening right now right here at crabfest. red lobster. now this is seafood. this morning, more threats from the president who's been criticizing members of his own party after senate republicans failed to pass health care legislation. this morning he tweets, if obamacare is hurting people, and it is, why shouldn't it hurt the insurance companies and why shouldn't congress be paying what the public pays? this follows insalts including one senate republicans, "look like fools and just wasting time." and if a new health care bill is not approved quickly, bailouts for insurance companies and bailouts for members of congress

will end very soon. msnbc contributor and reporter "new york times" jeremy peters joins me now along with my panel eddie and mike. so, jeremy, trump strategy right now does seem to be insulting, threatening. but the very people he would need if health care legislation is going to actually get through, i mean, it's interesting. do you think that he's convinced this is the way to go? i have to say when he tweets something like why should congress not be paying what the public pays, that's the kind of olike common sense thing that help get him elected. >> that's exactly right. what's going on here, chris, trump is doing what he does best. which is finding someone else to blame. so far republican voters, conservative voters and the activist groups that have been pushing an obamacare repeal for the better part of seven years now have blamed the republican congress and not president trump. so, he's able to, so far at least, deflect some of the

criticism for failing to push through what was a promise that he and the republican party have made. you know, i don't know how long that works, but for now, he seems to be insulated from the criticism that republican leaders like mitch mcconnell and paul ryan and john mccain and others are taking. >> mcconnell said it's time to move on from health care. >> well, yeah, if i were mitch mcconnell i would want to move on from health care, too. i do trust lindsey graham's better instincts on this. but the changes he has proposed, to me, are like thinking you can put out the dumpster fire with a new coat of paint on the dumpster. they all have to move on now. >> are you painting wallets on fire? i'm trying -- >> like putting lipstick on the pig and i was told that was mildly sexist by andy card's wife. when we talked about this

before, who is telling this president? i don't know who it is to threaten insurance companies and threaten congress is a good way to get your agenda on health care moving forward. >> so, well, mcconnell says it may be time to move on and we know that's what he thinks because he's done with it. it's worth pointing out there was a point at which the president said he was done with health care and came back around. the director said pretty much the opposite, i want to play that. >> white house's view they can't move on in the senate and in the people's view they should move on in the senate. they should stay and work and figure out a way to solve this problem. >> is this what's going to happen? they're going to stay and work and figure out a way starting with the guy who's been there all along just walking the halls always answering our questions. on the line for donald trump to get a win because i don't think

trump really has a serious commitment around health care in any significant sense. the senate is playing fast and loose with millions of people's health care. people who could lose their livelihoods. third, i don't understand the animated principal behind all of this anyway. this is a heritage bill. romney care. it came out of the heritage foundation. aca was based upon it. obama took a republican idea and made it his own. i don't understand what the animating principal is otherwise a health care legislation with obama's name on it. understand this is the american health care cyst. >> eddie is so right, you can't have as an your animated the following. >> well, they also have, jeremy, i guess the animating principle

that there are people whose policies, their premiums are going up and parts of it that are broken. >> right. let's not forget that the right campaigned against this from the outset as a dramatic expansion of the entitlement state and the encroach of the government into one-fifth of the economy. the problem is once you grant that entitlement to tens of millions of americans it becomes incredibly difficult to claw that back. that's what republicans are dealing with right now. when donald trump is tweeting it's saying, we have to repeal this. i don't know if he really thinks that's possible. i think he's venting and looking for someone to blame and deflect criticism. >> thank you so much. gentlemen, good talking to all of you. in the meantime, attorney general jeff sessions will release figures this week that will show, according to axios a spike in the number of leaks investigations. but will that be enough to get on the president's good side after trump sustained attacks

against his attorney general. msnbc's mariana is in the hometown of jeff sessions. what are folks there telling you? how do they feel about all of this? >> so, chris, jeff sessions is a home town hero here in mobile. most people we spoke with continue to back donald trump. these public insults towards the attorney general are not rubbing people the right way here in alabama. >> i feel like jeff sessions is probably his greatest advocate. has done the most in his administration so far and accomplished the most. so, i wish he could get off his back. >> i wish he hadn't said a lot of things that he did. i wish he would move on. >> stay off twitter. you can't talk down about your own staffers. >>iodon i don't like at all how bashing on twitter. that should be more of a personal matter. >> personal insalts on twitter,

chris, and this infighting in the white house. most of the people we spoke here and they have high hopes. i'm chris jansing in for stephanie ruhle. coming up right now, more news with hallie jackson. over at the west wing, new era. the president just in the last few minutes swearing in john kelly as you watched here on the network. now his head of staff as the general dwegets the new mission. do the discipline thing, if you can. figure out what is next on health care. congress not really buying it. and it's not just issues here at home on kelly's plate. look at russia retaliating. some say disproportionately to the tough new sanctions bill. and, oh, by the way, there's that showdown with north korea and a show of force from the u.s. after pyongyang shot off a

second long-range missile that experts say maybe can reach chicago. welcome to your new gig, john kelly. and welcome to our team. i want to start with kristen welker at the white house. the president and his newly sworn in chief of staff, john ce kelly. i want to play for folks what went down right before this cabinet meeting started. >> i think we're all excited. we couldn't be more excited to work for general kelly. an american patriot and no one has sacrificed more for our country. no family has sacrificed more than he has and we're excited for a new day here in the white house and get started. >> that was mark short talking about the new chief of staff, kristen. and walk us through what we heard from the president and what we heard today. kelly is kind of getting shot out of the canon on this