massive waves swept over on saturday taking at least 370 lives. all right. good afternoon. i'm ali velshi. i am alone. president trump touting off tweets. lawmakers have deserted the capitol with no plans to return until thursday. domestic crisis isn't the only problem on trump's to do list. the president is removing james m m mattis from his post two months early. he's taking the offensive tweeting we are subsidizing the militaries of many very rich countries all over the world. while at the same time these countries take total advantage

of the u.s. and our taxpayers on trade. general mattis did not see this as a problem. i did, and it's being fixed. markets closed early today. the dow closing 653 points lower finishing off the worst day of christmas eve trading ever. let's get started on this. garrett, right now the president is meeting with the homeland security to discuss border security. anything else going on? >> n >> reporter: not a lot. there hasn't been a marine in front of west wing all day. that means the president isn't in the west wing. he's been in the home and tweeting. for folks hoping this might be a bit of good news on the government shutdown, the thing of it is, this is the second time the president has held a meeting like this with just folks on his nice list.

there doesn't appear to be any active conversations on a shut down that looks likely to extend later into this week. >> the president is holding fast to his decision to withdraw troops from syria. he's tweeting that saudi arabia or he said saudi a is going to help. >> reporter: this decision put a shock through capitol hill early this year and our allies around the world. the decision to pull american troops out of syria and the president has been largely alone. perhaps just with rand paul in defending this decision. he defends it today in a very interesti ining tweet. he writes saudi arabia has agreed to spend the necessary money to rebuild syria instead of united states. see. isn't it nice when immensely

wealthy countries help rebuild their neighbors rather than the great country u.s. that is 5,000 miles away. thanks to saudi a. no confirmation of saudi arabia of what their commitment to the region would be. this comes as the president has been tweeting about turkey saying turkey has promised to step up its role. there's a lot of complicated geo politics here. between two countries that aren't on great terms right now. turkey and saudi arabia over the killing of the american journalist jamal khashoggi. the president continuing to stir the pot in a very volatile region this christmas eve. sdplp let's talk about, a sdplp. >> threat's talk about any news on the shutdown. senators have gone home. they are saying the democrats

need to come to the table on the wall. the to democratic congressional leaders put out a statement within the last half hour in which they link the markets tanking today with the president talking about this chaotic week we've had many the white house and saying as long as the president continues to be taking his advice from the house freedom caucus and the most conservative elements of his own party, it's impossible to see how they will come to a deal and pointing out the different elements of the white house have been saying different things about what the president wants. i heard a lot of this on saturday. they need to hear some consistent wish list from the president. they need to hear what he wants before it's possible to strike a deal.

as we enter the new year, so too is the president's defense department and who will lead the largest government agency. days of televised praise for mattis for his bravery caught up with president trump. the president pushed up the departure of the marine general to two months earlier than mattis planned. he wanted to give a lot of time for a transition. the president tweeted patrick shanahan will assume the title january 1st, 2019. patrick has a long list of accomplishments while serving as deputy at boeing. he will be great. that gives him a one week transition. let's taub abolk about who patr shanahan is. he joined boeing in 1986. he was an engineer. he spent decades there holding senior positions and leading all

u.s. army aviation contracts. he's had no background in policy or legislative affairs. he's the first defense secretary to enter the pentagon straight from industry without government experience. during his senate confirmation hearing last year, he faced intense questioning from john mccain who had concerns about a defense contractor leading defense procurement. he said i have to have confidence that the fox will be put back into the hen house. nevertheless, he was confirmed 97 -7. he served as deputy since july 2017. let's talk about federal, the moving up of mattis departure. he said the end of february to allow for transition. i think it can't be underestimated the seriousness of -- it's a big job. a smooth transition is important

in the defense department. >> yeah. i think it's good news. shanahan is an extremely experienced technology executive. a couple of degrees from m.i.t. he knows all about u.s. military technology. very complicated field. as you point out he's not a policy or political guy. i think it's probably good news. who would want to enter this administration at this time following mattis termination? secondly, will the senate approve a white house nomination. again, i think having shanahan in that position is a good thing. he's an honest man. a smart guy. he's had well over a year of understudying mattis in the

pentagon. let's talk about the resignation letter. it's a matter you and i have talked about a lot. it's held by conservatives in america. assignments like the president disagrees with his world view. he's been tweeting that through the course of the morning. ho how important is that matter in. >> america's security is a function of our gigantic economy and more than two million men and women in the armed forces. it's also our allies. the fact the president of the united states doesn't understand that is truly an uncertain note

u.s. foreign policy. mattis was a defense intellectual. he has seen the impact on u.s. security of having allies who trust us and admire us. with him gone, i think the u.s. national security is imperilled. >> let's talk about the idea of a defense contractor. the issue that john mccain had. a defense contractor running the defense department. clearly he knows about defense contracting. the reason i ask is because we're in this moment in which there are troops deployed or continuing to be deployed to pliess where the president of the united states says we shouldn't have troops and shouldn't be involved. mattis was good for troop morale because he was one of them. does that matter? >> first of all, i think we have to have a secretary of defense that is an honest, smart man. he may be acting for a long

time. that's what we have got. i used to tell civilian policy makers, i go at breakfast with them and talk about dealing with generals and admirals. the arms forces doesn't need help running this deployed force and combat. they don't need operational help. they need somebody with vision who understands the american people the way we run or government and future threats and future technologies. i'd be pretty optimistic about shanahan certainly in an acting capacity. the senate needs to watch who gets nominated for permanent secretary. >> good to talk with you. thank you for being with us. >> what do you make of this development? >> well, i think right now with

forced ouster of jim mattis we're seeing a punctuation point where it's making america first real and america alone real. as we lose allies, as we collapse trust, which so many had in mattis and hisalliances, taking that down makes us smaller, weaker, less able to deal with problems ahead and donald trump is become a rogue actor. really undermining america security. i don't know many people who voted for trump who want to see america undermine but that's what the person they elected to the white house is doing today.

>> susan rice wrote these went against the president's top advisers and delivered early christmas presents to russia, taliban and hezbollah. >> the cost of this is unnerving. one of the last senior administration officials permitted to preserving american global leadership and alliances. that last sentence is what i'm interested in. make america great again cannot be independent of preserving global leadership and alliances. you end up with states that don't have good governance or place where is our add vversari will step in where we're gone. >> donald trump said he wouldn't

remove troops until the iranian troops left. he made the point they were there at the request of syria. he has given iran a gift. we have seen them tweet their celebration of american withdrawal pr tfrom the region. what you see is donald trump undermining. what susan rice lays out is right. the national security decision process breaking down and donald trump removing anyone who can challenge his views. the whole notion of what john bolton is supposed to be doing is laying out contending views.

they are no longer having contending views. it's only to give this ignorant president of the united states who doesn't know the complexity of these issues just what he wants in a tantrum. >> the president saying our work in syria done. isis is gone and that the saudi arabians deal with it. he seems to be having some agreement with turkey about the fact they will finish off isis. they are very much there. turkey could wipe out the best allies we had in the region. the kurds looking for independence in that region. this is sort of worse than our work being done. if the president didn't understand our work isn't done in siyrisyria, the fact he thin they are all going to do things that are in our interest is a little strange.

>> we are walking away, we're losing all of our leverage in what the syrian outcome may be. we're empowering enemies right on the border of israel. they found tunnels going right from lebanon into israel. we're walking away from the partnerships that turned a success and what has been widely reported and shocking to some of us is president trump's tweet about brett mcgur. his anti-isis. president trump says he doesn't know the guy. this is the person that every one says is a phenomenal guy who achieved unbelievable success among a variety of different allies in rolling back isis. the president of the united states doesn't know him and says good riddance. this is where we're at now. people need to walk up and understand that when america has a dark day in the future, we

will be less able to call on key allies that have to do with us because we're kocoddling up to those who want to see us undermined and weaken and we're delivering that to them. >> thank you for joining me. >> thank you. the desperate search for survivors continues in indonesia as the death toll rises. dozens are still missing and thousands were displaced when waves crashed ashore. up next, we're two days and more than 14 hours into a partial government shutdown that could last into the new year. what you need to know about who is included many the shutdown. you're watching msnbc. shutdown. you're watching msnbc. i knew about the tremors.

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the federal government has been partially shut down for three days but the white house says it could last into the new year. >> it's sunday and government is shutdown mostly on a sunday. government is shutdown tomorrow any way because it's federal holiday and tuesday is a holiday. wednesday is first day this kicks in. it's possible it will go beyond the 28th and into the new congress. >> much of the government is already funded. let's look what the is affected. nine cabinet departments including state, justice, homeland security, interior, transportation and agriculture are affected.

so are dozens of smaller agencies including the epa and nasa. more than 800,000 workers will feel the impact. 420,000 are considered essential employees. they will remain on the job. a air traffic controllers, tsa, fbi agent, boarder patrol and customs. they will be paid once the government reopens. 380,000 will be furloughed. they cannot check their work e-mail. there's no guilty or innocearan be paid when the government reopens. in the past congress has approved legislation to give them back pay. government contractors could be among the hardest hit. there's no guarantee their companies will pay them. let's look at some of the services affected. many national park will be accessible but there will be no

staff. the smithsonian plans to keep washington museums open but national archives facilities will be closed. mail and package will be delivered. social security check will be mailed. passport services which are funded by fees will be available. robert mueller's investigation will continue. many lawmakers have left washington for christmas. it could take some time to find a solution to ebnd the shutdown. whose there, mike? >> reporter: i haven't seen anybody. i saw a former senator going to the gym. walking tl ining through the hae basement about 7:30 this morning. pat robinson came and banged the gavel. they have to do that because they can't be out of session for three conservative days or they would have to permanently add adjourn. that's a regular thing around

here. it appears to be at a complete stand still. the president ensconced in the white house tweeting time and time again. he's got time on his hands and a phone in his hands and says poor me. he's alone in the white house and sort of harassing the democrats. heckling them from where ever he is. chuck schumer and nancy pelosi, when the markets closed after a bloody day in the markets put out a joint statement. it's christmas eve and president trump is plunging the country into chaos. the stock market is tanking and the president is raging a perm war on the reserve after he fired the secretary of defense. different people from the same white house are saying different things about what the president would accept or not accept to end his trump shutdown. making it impossible to know where they stand at any given

moment. the president wanted the shutdown but he seems not to know how to get himself out of it. we're still at the mud slinging stage. we're still at the talking point stage. we're still add the head fake stage. when negotiating in public talking about we take between 1.3 and 5 billion. this dancing on the head of a pin about whether it's a fence, a barrier. whether it's sage brush lined along the border. it rolooks as though we'll go io the new congress on january 3rd and take it from there. >> just to characterize this well because i've seen a lot of characterization of the president or republicans versus democrats but it's not really that. congress in a bipartisan fashion sent a continuing resolution to keep the government open to the president who just decided after listening to right wing commentators and media hosts he wasn't going to accept the deal that republicans and democrats had come together for $1.3 billion in fund.

>> it's always so easy. we reach for this base politics. it's true at this point. if president trump heard the message loud and clear on that friday or thursday, when ever it was when he pulled the rug out from congressional republicans and said he wouldn't sign the continuing resolution, he heard loud and clear from his base. if he doesn't have the biase, h doesn't have anybody behind him. that's brought us to the point where we are today. the president had pledged to paul ryan or there were indications from the white house he would sign that six-week continuing resolution to keep the government open to avert this partial shutdown. he changed his mind. the senate voted by voice vote, republicans and democrats, that's how non-controversial it was to vote for that money to keep the government running. it went over to the house. speaker ryan, kevin mccarthy,

they won that argument behind closed doors. that's where we are today. it shows no sign of changing as we head into christmas tomorrow. >> always good to talk to you. president trump is not letting up on his attack on the federal reserve or the head of the federal reserve over its latest interest rate hike. he tweeted the only problem our economy has is the fed. they don't have a feel for the market. they don't understand necessary trade wars or strong dollars or even democrat shutdowns over borders. the fed is like a powerful golfer who can't score because he has no touch. he can't putt. the tweet came after reports of the president asked aides whether he can fire jerome powell. he said powell would turn me into a hoover. it's a reference to herbert hoover. the president has criticized powell for rate hikes that have

led to turmoil on wall street. it was the subject of phone calls yesterday between treasury secretary and the heads of the nation's six largest banks. it focussed on the financial health of the banks. wall street found none of this comforting as the sell off continued during a shortened trading session. the dow dropped 653 points marking the worst christmas eve trading day ever. stan, good to see you. thank you for being with us. >> thank you. >> there aren't a lot of presidents in history who have enjoyed federal reserve increasing interest rates. h this is historic. it's the first time we have seen this demeaning of the federal reserve. >> i think that's right. it's particularly concerning

because maco economro economic conditions are quite good. inflation is around 2%. if anything the federal reserve is doing a spectacular job. they haven't inflicted a recession or hiked rates leading to higher unemployment rates. even if under these conditions the president is attacking the central bank. we should be quite concerned if the economy were to take a term for the worse what he will do. >> the fear, you tell me how legitimate you think this fear is. the economy, the global economy may be headed for a slowdown. the american economy may be headed for a slow down. there are some legitimate fears among smart people that at some point a federal reserve can love pl -- overplay its hand. that seems to be a reasonable

conversation that's worthy of discussion. >> that's right. instead the conversation we're having is one on whether the president should fire the chairman of the federal reserve because he doesn't like one specific rate hike. some of those concerns are reasonable. look, the federal reserve does not control macro economic policy. it's not crazy for the federal reserve to step in and try to counter that to some extent. to maintain its credibility it may have to air on the side of not raising rates. >> the dow and s&p after a fabulous year, if you look at september and october, this thing came apart.

invepsers ha investors have lost 11%. that's a bad year. in this particular case you can associate that last month or so to the president talking about trade wars and rate hikes. >> i think that's right. today, we saw movements respo responding very directly to the president's angry tweets. yesterday we saw the treasury secretary who told every one not to worry and the banking system has ample liquidity. that's not something the treasury secretary says because that's not something we're concerned about. you add that to the trade war, to looming future trade moves that people are rightly worried about in the car industry and with respect to china.

some of the blame worsening lies with the administration. >> good to talk with you. thank you for joining me. >> thanks. up next, congressman adam schiff threatens the democrats will subpoena robert mueller's report on russia in president trump tries to keep it private. trump tries to kp eeit private the zip code you're born into can determine your future. your school. your job. your dreams. your problems. (indistinct shouting) but at the y, we create opportunities for everyone,

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mid-february. where do we stand now? five trump aides have pleaded guilty including paul manafort, michael flynn and michael cohen. mueller has indicted 13 russian nationals and 12 russian intelligence agents and there could be more to come in the new year. joining me is former watergate prosecutor jill winebanks. thanks for being with us. >> thank you. >> what do you make of the time line, if anything? one of the things we're learning as about supreme court matter is this investigation has worked without leaks and in good secrecy. do you have any sense of whether there might be an end to this in february? >> it's really hard to predict because of the secrecy that's mandated by the law. that no one has done a better job of than the mueller team. they have absolutely had no leaks. it's wonderful. that's how it should be. it makes it very hard for us to know what country is involved in

this latest episodes for documents, the subpoena and makes it hard to know whether there will be a report in february or not. i still see a lot of potential witnesses to be called before them. i see a lot of possibility indictments still to come and there are trials on some of things that are going to be pending. we can't predict. it's possible they might do a partial report on some of the evidence to get it out there soon once the democrats have the subpoena power they could then call him before congress so that he would be able to tell the american people the information that we are so much longing to have. >> on one side of things you have adam schiff and the democrats saying we'll make sure this doesn't get shelved or secreted away into a top drawer somewhere. on the other hand you have whittaker, the acting attorney

general who may be there for a while. we don't know if william barr will be approved. you have barr who has strong views on executive privilege and whether presidents can do wrong things. what do you think the danger is of mueller submitting a report to the attorney general and us not seeing it? >> well, that's going to be a problem at any point that he submits it. the only protection we now have is that the republicans are not in control of the subpoenas for the house. we could have some public hearings where people are called forward. mueller is not divulge any of the information he's gathered when he's called because it's still secret unless it is done in a way that is something similar to what we did during watergate where we issued a road map for potential impeachment and the judiciary committee used

the evidence we provided in order to conduct their i vest gags. that made things public. i want to say it's really important for the american people to hear that evidence because it made a big difference in water gate where there was a lot of support for richard nixon until the evidence started coming out and once the final tape, what was known as the smoking gun tape, that said richard nixon saying let's use the cia to stop the fbi from following the money. that's when -- >> i think this is an important point you make. we were talking about this the other day in that republicans in congress came around to understanding how serious this was, when the american people came around because of things made public. i'm fascinating that people already and members of congress don't think what we have seen is serious enough. that's an important point. in the end, congress is going to be the tip of the spear in

dealing with whatever wrong doing president trump has been involved in. >> you are exactly correct. it is really important for the american people to be educated about this. that's what will make a difference to the congressman. it shouldn't. they already have information that should be making it clear to them right now. there are things that are in plain sight and they have secret information that we don't have. it's even worse when you think about the fact that they actually know what's going on and it's unlike richard nixon who had a land slide victory. won 49 out of 50 states. had the popular vote. that shouldn't be the case here. we should be able to see the facts and let people make the judgment and let congressman respond. it was the minority leader of the house and the senate and barry goldwater who has run for president for the republicans who went to nixon and said we have seen the evidence. you have no support many the congress. you will be convicted on the

charges that you have been i impeached on unless you resign. he issued his resignation the next day and gerald ford became president. >> thank you. great to talk with you. >> thank you. merry christmas. >> thank you for all of your help interpreting these very complicated issues. coming up, update on the little girl who became the voice of the the president's intertolerance policy. the the s intertolerance policy. sometimes we forget what is important. like baseball? like you! diagnosed with an aggressive cancer, johan came to st. jude children's research hospital. our discoveries have helped to increase the overall childhood cancer survival from 20% to 80%. and we won't stop until every child survives. how big is 80%? this big! donate now at stjude.org or shop wherever you see the st. jude logo.

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this hour president trump and dhs secretary are huddling behind closed doors the talk about border security. it's a meeting that's set against the backdrop of a partial government shutdown over that very topic. word from hhs that more than 14,000 unaccompanied migrant children are in custody here on christmas eve. not the case so for one little girl in particular whose voice you may remember. msnbc has been following the story of one family and has an update. >> reporter: 7-year-old alison might not be face you recognize. she has a voice many have not forgotten. her cries took center stage at the immigration debate over

separated families in june. nearly a month later she was reunited with her mother cindy. now she is preparing to walk across a new stage at her school's christmas show. >> reporter: she wants to be like other little girls in america, getting ready for school, doing homework and playing in english. >> one, two, three. >> what have you learned in english? >> how are you? >> very good. how are you? >> very good. thank you. >> reporter: her mother is also learning english at the local church. staying in the u.s. is no guarantee. they say they came here fleeing gang violence in el salvador.

family lawyer fears for what happens to them if they're denied asylum. >> they risk going back and meeting the fate of death. if they lose then having to be sent back to their home country. they don't deserve that because it's a horrible situation back home. >> reporter: complicating matter, cindy cannot file for a work permit at this stage of the asylum seeking process. they get by staying with family and money gifted to them by a non-profit. >> reporter: still, she has a big surprise for little alison. for now she is focused on what's waiting for her under the christmas tree. what she really wants is to stay.

>> her resilience and faith is heartwarming. it was eye opening to see how she was doing and see how fast moving these asylum cases are because of the legal challenges to immigration law and asylum law. in one week i interviewed this family on a monday and the lawyer told me they have very little chance of getting their asylum approved because it was all based on gang violence. 48 hours later you have a judge that struck down the new guidelines from the trump administration and things are looking hopeful for them an it's christmas come early. >> that's maiamazing. this is the benefit of having you cover the stories. when we first heard from her, this will be a year we won't ever forget but for a lot of families they like forget because of how difficult it's been on that front. thank you.

>> it speaks to our network's commitment and your commitment to follow up with these folks. >> thank you. coming up, five years ago amazon ceo predicted this year his company would be delivering your packages by drone. we're looking at the hurdles and the federal law slowing that idea from getting off the ground. you're watching msnbc. m getting ground you're watching msnbc. even though i live with a higher risk of stroke due to afib not caused by a heart valve problem. so if there's a better treatment than warfarin... i want that too. eliquis. eliquis is proven to reduce stroke risk better than warfarin. plus has significantly less major bleeding than warfarin. eliquis is fda-approved and has both. what's next? reeling in a nice one. don't stop taking eliquis unless your doctor tells you to, as stopping increases your risk of having a stroke. eliquis can cause serious and in rare cases fatal bleeding. don't take eliquis if you have an artificial heart valve or abnormal bleeding. while taking eliquis, you may bruise more easily and it may take longer than usual for any bleeding to stop.

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. >> amazon known for leading with innovations. he has a pretty good track record when it comes to making his dreams a reality. one of his high flying we predictions hasn't gotten off of the ground. >> this is one of those predictions that seemed way down the road when it was made five years down the road. this year the future is now. yet we still have not seen those drones delivering anything to our doorstep. it turns out because of regulatory hurdles it is a lot easier said than done. >> it is christmas 2018 and no amazon drones.

in 2013 ceo said they could be deliveri delivering packages to our doorstep. could it be four or five years? it will work. it will happen. it will be a lot of fun. >> they said they should be able to deliver packages up to 5 pounds. there are federal aviation rums to consider such as drones not able to fly out of the line of sight of their operators. generally they can fly over 400 feet over. night flights are also forbidden. in a statement amazon tells nbc news we are committed to making our geel of delivering packages in 30 minutes or less a reality. we continue to collaborate closely in other regulatory bodies to realize our vision. looking at the track record there's little reason to doubt it. the web site that initially only sold books now sells anything and everything including fresh

food. >> this is the first reusable rocket in the world. >> some argue the moes impressive getting us to pay for free things. >> you get free two-day shipping for $79 a year. >> that kind of drive and determination? maybe it is a matter of time before they beat out santa dropping gifts right down the which i chimney. >> there is still the issue of battery life. amazon is not giving us a firm date on any new predictions. they may have learned their lesson in the past. there are other companies as

well as a u.s. government trying to develop to similar types of technology especially when it comes to disaster zones. it is to get relief and aid to people that need it. there is a company that they are actually using drones to deliver things like blood transfusions. it. >> we'll be watching that closely. >> a few years. >> yes. book it. christmas eve three years from now. >> have a merry christmas. >> yes. still to come, we close in on three full days of a government shutdown with no real end in sight. you're watching msnbc. watching.

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good afternoon. president trump's nightmare before chris that tmas. it's christmas eve at 3:00 in the east. day three of a partial government shutdown. the dow fell more than 650 points in the worst christmas eve trading day