Guests:Monica Crowley & Kirsten Powers
"Massachusetts Senator Elizabeth Warren is emerging as the face of liberal America. Some in the leftist media believe Hillary Clinton is too socially moderate and too hawkish in the war on terror. So Senator Warren is receiving adoring coverage and is being encouraged to run for president. The Senator spent nearly 20 years teaching at Harvard Law School and once claimed to be of Cherokee descent. That came back to bite her, as the Boston Herald reported she has no Native American heritage. Nevertheless, she is now ensconced in the Senate. Ms. Warren despises Wall Street and big banks, saying they have rigged the capitalistic system. She believes all Americans should pay to abort fetuses no matter what you think about the destruction of potential human beings. She believes in punitive taxation on corporations and wealthy individuals to provide for those who do not have very much. She wants stringent control of firearms, robust healthcare subsidies and government mandated wages for low paid workers. In short, she is a classic liberal who believes Washington should control the lives of individuals for the collective good. On foreign policy, the Senator is largely quiet: no statement on the torture report, no stated opinion on the drone strikes ordered by President Obama. However, it is hard to imagine Senator Warren aggressively confronting the jihadists, threatening Iran, or facing down Putin. Among younger Americans, some minority voters, and the hard core baby-boomer left, Elizabeth Warren is a hero. The liberal policies of President Obama have weakened this nation abroad, created a stagnant economy and staggering national debt. But if Senator Warren gains the White House, she'd make Barack Obama look like Ronald Reagan."

Democrat Kirsten Powers and Republican Monica Crowley evaluated the left's growing infatuation with Senator Warren. "The list you described is fairly mainstream Democratic policy," Powers insisted. "You said she supports 'punitive taxation,' but I don't think that's what she calls it. And you're talking about things like health care subsidies as if that's crazy. Her main issue is the banks, she thinks they need more oversight." But Crowley portrayed Warren as being far to the left of President Obama. "She is a classic leftist, and that's why I think it's fair to extrapolate from that how she would behave as a commander-in-chief. Remember that Barack Obama, another classic Democratic socialist leftist, gutted the military and believed in apologizing for the United States." The Factor worried that Warren would be a very reluctant terror warrior: "I don't believe that her view of life from a liberal perspective includes aggressive confrontation of evil abroad. I don't believe she has the will to right wrongs."

Guests:Dr. Julien Musolino & Joshua DuBois
A new Pew poll shows that nearly two-thirds of Americans believe the Biblical version of Jesus' divine birth. The Factor examined the findings with psychology professor Julien Musolino and former White House faith adviser Joshua DuBois. "I'm not surprised by these numbers," Musolino said. "We know that the U.S. is an unusually religious country, given how wealthy we are. But there's not much evidence that this actually happened." Evidence or not, DuBois expressed his firm belief in the virgin birth. "There are a lot of people like me who believe in both science and God. I believe these Christmas stories and that there is a God who is bigger than human comprehension. I believe God sent his son to earth." The Factor concluded, "It's a good thing for people to celebrate Christmas and to celebrate Jesus."

Guest:John Stossel
Is the commercial aspect of Christmas a positive or negative? The Factor posed that question to Fox Business host John Stossel. "It's about giving, which makes people feel good," Stossel declared. "People give more to charity and commerce is good. I'm an agnostic and I hate buying gifts, but once I buy them I feel good! And I love to sing Christmas carols." The Factor added, "Christmas is all about good will toward men, women and urchins."

Guests:Pat Lynch & Ed Mullins
New York City Mayor Bill de Blasio has alienated his own police by embracing Al Sharpton, who rarely misses a chance to denounce cops. Police union officials Ed Mullins and Pat Lynch joined The Factor with their perspectives on the situation. "Rank and file cops are losing all respect for City Hall," Mullins groused, "and they feel no support at all from this administration. The ability for them to do their job is becoming more difficult because they fear making mistakes and being judged by the Al Sharptons of the world." Lynch lamented that police morale has reached an all-time low. "I have 31 years on the job and I've never seen it this bad, where there is zero support. The mayor is not supporting his own police department."

Guests:Kimberly Guilfoyle & Lis Wiehl
Eric Holder's Justice Department will not indict any CIA agents for allegedly torturing terror suspects. FNC legal experts Lis Wiehl and Kimberly Guilfoyle explained the Attorney General's decision. "Holder looked at all the CIA interrogations under Bush," Wiehl reported. "He said that the officers did nothing wrong under the directives of the Justice Department at that time, so you can't go back and punish them." Guilfoyle agreed that retroactive indictments would be unjust. "You can't go back and prosecute people for something that was sanctioned by attorneys in the Justice Department." The Factor reiterated that enhanced interrogation was warranted in the exceptional circumstances after 9/11: "Only 26 terror suspects were subjected to any of this. I'm not trying to diminish the intensity of the situation, but 26 is not a lot."

Guest:Charles Krauthammer
Many on the left consistently portray America as a fundamentally unjust nation. The Factor asked Charles Krauthammer to opine. "If our standard is divine justice," Dr. K began, "we are indeed unjust. But if our standard is human justice, we are one of the most just countries on earth. One of the reasons people say these nasty things about America is because of our judicial system, which tries to protect the accused. We have a system of grand juries that you don't have in much of the world. Being human, grand juries will sometimes come to the wrong conclusion, as they did in the Staten Island case. The irony is that we try to go the extra mile to prevent arbitrary arrests and the railroading of suspects." Krauthammer pointed out that anti-Americanism is actually nothing new. "The old phrase is 'limousine liberal,' and this goes back generations. America has always had a left and that left has always had a grievance."

Shauna Trzcinski, Loveland, CO: "Bill, I watch you every night even though you're a pinhead. Don't talk down to people!"

Ted Greene, Delray Beach, FL: "Sending tasteless dopey emails does not make you a racist. It just makes you tasteless and dopey."

Ed Parker, Houston, TX: "O'Reilly, your Talking Points memo on America was well done with one correction. The invasion of Iraq was not an overreaction."

Jesse Watters will co-host the Fox News Channel's big New Year's Eve TV show. He'll be joined by Kimberly Guilfoyle, Kennedy, Anna Koolman, and the one-and-only Bob Beckel.