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Welcome to another edition of Special Report on line I'm Bret -- if you haven't been here before welcome board.
We have made some adjustments to our.
Whole deal here and if you don't see you were typed message going in -- right away don't worry we're trying to get him in as fast as we can.
Also you'll see under here.
Occasionally a poll come up right now the poll is will a debt ceiling deal happen.
The 62 yes 38 no.
And there are a lot of messages coming in stand from Atlanta says Ed Henry is his hero.
So we're gonna talk to -- just a moment stands standby.
Our panel again David Drucker reporter for roll call Nina Easton columnist for fortune magazine syndicated columnist Charles Krauthammer.
-- we left off -- on this back and forth between you and Carl Charles on the on the debt ceiling.
And -- the short term deal is a problem for Wall Street.
And that you say this huge.
-- privately that in there is some concern and again then hearing you know 50% chance that Tom will be downgraded.
Regardless and it's largely because.
-- into things as I said before you know whether whether there's been enough done structurally on the death of secondly that there is this if you keep this whole drama alive for another.
Which works to their Republicans advantage I think in two ways one that it gives them more leverage to get more bites of the apple for more cuts.
And politically it's a great thing because it keeps the Obama White House -- -- up and tied up in knots while they.
Republican primary plays out -- they can't.
Get up and they can't mess without -- I think and some ways it it's useful for the Republican Party but I do think they risk.
It -- -- taking -- starting to take some ownership of a problem economy which is clearly right now solely owned.
In my mind by Barack Obama.
And I don't no I don't because I think if you're if you're an investor the holding American Paper.
What worries you more that there's going to be six months -- -- another episode like this which might result in more kinds probably will.
Or that you pass something like the -- plan which is all smoke and mirrors there's nothing in it.
That gets you two and a half trillion of an extension on the debt ceiling meaning nothing will be done.
For a year and a half for Gannett -- a trillion and a half a year of -- -- to -- -- the Obama trajectory which is already doubled externally held debt.
Have the in the United States I'd be worried about the second and the structural problem is that we have runaway entitlements.
And we have the former speaker of the house Nancy Pelosi saying I will not support.
Any cut -- Medicare Social Security union Harry Reid with a plan -- cuts -- trillion dollars -- of those phony war spending I you know He He got.
Down graded by the CBO by half a trillion when they re scored a star like -- a year.
He's gonna make it up by canceling -- -- an invasion of Canada that was scheduled.
For next year bicentennial.
-- re do of the war of eighteen this.
Well I think that -- you know huge savings.
In the senate.
You know we we hear a lot about current cap and balance and it was not taken up.
In the senate by senator Reid He squelched it if I passed the house it's sitting.
In limbo essentially.
Is the reason that senator Reid didn't bring it up.
It's to protect somebody like -- Claire McCaskill.
Or -- Jon Tester or these democratic senators who would have to cast a vote on something that perhaps.
They would get a lot of pressure to cast a vote for.
Well I think that's part of it although I don't think ultimately you would have had -- of democratic senators pressured into voting for him.
Took pull out to go anywhere in fact I'm pretty convinced -- that you weren't gonna find thirteen democratic senators.
To go from 4047 Republicans to sixty votes.
To get this thing over the finish line but I think read all the cynical Washington observer from the outside would say why not then just bring -- up and -- right and I'm not disputing the -- that senator Reid.
Was protecting his vulnerable members as He has done.
All cycles since January and it believe me it is a concern of democratic senators running in red states Ohio and Missouri Florida and Nebraska.
-- I can go on but I think.
Part of this.
-- Was that senator Reid eyeing sort of did the timeline.
Didn't wanna get the senate caught up in a you know three to five day legislative process because because there -- there's you know we say -- in -- -- -- -- with the clock runs so.
You file cloture.
Which means you basically call for a filibuster.
And you gotta you gotta wait thirty hours before you have a vote on that and then you move to another vote you -- allow more time.
And I don't think that legislatively given the short calendar it was wise but ultimately they're.
That's membership -- enough.
One of the other questions we have.
This is about the fourteenth amendment and Democrats today.
Jim -- from South Carolina send the president should just do it on his own and an attach an executive order and say this is based based on the fourteenth amendment.
And He can raise the debt ceiling on his -- for the answer this -- -- question we go to war.
New chief White House correspondent Ed Henry on the north lawn add.
Karen from Greensboro says I love Ed Henry why did He come on board.
He came on board Monday.
And it was yet what a week to start as well and appreciate Karen and Stan the man I'm gonna called stand the man you better call me is here I mean I have guy never got this before they hit reality -- you're on the right channel.
Okay if people actually watch here.
Get caught up front but oh well I -- it's online it's online on cigarette I'm not gonna touch that one but you know I think the fourteenth amendment you might -- the -- option because remember former President Bill Clinton.
Weeks ago said look President Obama should just do this let the lawyers fight it out after the fact but I can tell you that after -- five -- In other Democrats said today that this is the way out Jay -- immediately shot it down in the briefing and said look.
It's not on the table they do not think it's legally sound here.
And they've basically said look there's no way out here there's got to be a legislative compromise I find it dangerous -- because.
Just a few moments that we heard about another legislative proposal maybe this will be the way -- democratic congressman Jim Cooper.
Just introduced a bill that says -- the country goes in to default.
Members of congress should not get their paychecks.
And then after comes out of default they can't get paid retroactively maybe if they get hit their own.
Pocketbooks and out purses maybe maybe maybe we'll -- -- Ed what let me ask you about this first week in there have been some -- back and fourths.
Between you and Jay Carney already getting a little attention.
What's what's -- -- Well you know I think unfortunately there are people outside that room who like that turned into -- war or whatever instead of this looking at the actual questions.
That I've asked Jay -- last few days starting yesterday when there was that I started.
This job on Monday but the first briefing was Tuesday.
And I basically just said what is the president's plan that He immediately said look that's a Republican talking point.
Maybe sell Republicans have been using that as a talking point that doesn't mean it's not a valid question.
The fact of the matter is there's a bigger plan.
There's a -- plan there has not been an Obama plan on the table here we are six days out.
Everyone scurrying around what are we gonna do.
Maybe if the president leads -- more details on the table.
We know more about today -- been pushing back at me today He suggested that this was.
A fox question I was trying to make a fox moment or something yeah look at the bottom that is when -- tab press the same question does -- say it's an ABC question you know finishing yesterday when I started that line of questioning.
Chuck Todd -- NBC has something pretty similar -- -- at the Wall Street Journal we should point out -- by our parent company as well but an independent fair reporter.
Asked a similar line and Jake Tapper instead of ABC jumped -- And there was no owes us an ABC moment they look it fires up the White House's face to take on fox.
I knew that coming into this job I was fair before at the last network I'm going to be fair at this network and if people wanna come after me have they go.
With Adam and let you get ready for your fox report -- appreciated.
Thanks buddy we'll have you back on I can't wait.
Charles your thoughts -- I think this question was all the more pertinent.
Because the president had just commander asked for national airtime -- usually reserved for a national.
Calamity for a war for proposed 9/11 for the Cuban missile crisis there's -- so He asked for the air time.
And then what -- do it as as that indicate He can even offer a plan let alone some kind of you know in the invasion in order.
And He simply says if you want a fair approach a balanced approach all the adjectives are being.
Tested in the -- that works actually pretty well fair and balanced and He stole -- from far and fair balanced out what is in -- measured approach 01 that -- the corporate jet owners take their hit I mean all this stuff He puts it out there.
And then all of -- watched it and -- what exactly is his proposal and there was none that's what made his question all the more important and I think it's still stunning.
That after what eight months seven or eight months of this there's nothing on the table -- Obama's -- That would balanced has been something -- use this White House always has use that word fault going all the way back.
-- back to the campaign they're always just balance which means they're not ideological right these balance in the health care debate they kept saying where the balance went.
The other thing they like to do say.
No serious person thinks.
Fell on the blind XYZ NEA -- as a way to write off the opposition but that that come speech on Monday night.
You're right it lets it left reporters.
From other outlets not just fox it left of it you know half the country wondering.
What is going on between what what what do you using this at this moment this great moment for and you had you don't come out with a plan you're just.
-- you're just trashing Republicans and asking people to -- -- members of congress are using it as an app partisan podium.
I mean it it just it just made no sense I think that's what led to the whole Ed Henry at.
-- couple questions here what -- Wendell Goler He is still very senior White House foreign affairs correspondent so don't worry.
You'll see plenty of Wendell.
And is there -- new chief White House correspondent.
Now we have a new pull up what will happen in Libya Khaddafi stays -- goes let's change topics like -- some -- -- gets him.
-- -- gonna say I thought the speech was interest in because the president was advocating his balanced approach the same time He was endorsing Harry Reid's apparently unbalanced approach.
I think everybody's confused I think the president has done himself a disservice by diluting.
The strength of his bully pulpit.
Sounds like he's -- -- policy because there's clear.
Pentagon contradictory Charles I just say quickly this reminds me of what I saw.
-- -- close -- ten years ago with our Schwarzenegger when He first took office is California governor they were convinced that He can go on T meteor hit the road and convince people to do whatever they want and what they found a body.
In six months to a year after they -- over the fact that it's great movie star office that they really like they didn't really care what you need a policy and I'll make up my mind and I think.
The president's advisors.
-- either they're not telling him that's where they don't know that He He was a transformative candidate -- an amazing campaign or -- really likable.
But that's not enough to carry you through government.
So we turn to Libya you mentioned Libya it's ongoing it's almost one billion dollars and now there's video.
The who the Lockerbie bomber.
Rallying we have Moammar Qaddafi.
And it is video that is out there of course -- -- -- bomber.
Was let go from.
On a health.
Waiver if you will saying He was going to die of cancer.
Not great but he's alive Charles and -- -- almost.
In your face.
It's very in your face because it's beyond the fact that were there for as long as we're there conduct these live for thirty years on bravado.
And sort of a culture of shame and pride and He is now thumbing his nose as you say the most obvious way of most disgusting way.
But the guy who was at least the courts have said is to manually who killed so many Americans and others on that airplane.
Obviously Qaddafi was someone who was behind it those things don't happen independently in a country like.
-- but nonetheless.
-- a way to say I'm here you got all your bombers He had the greatest military alliance in the world.
You've you've completely -- -- and I'm holding on to have for my country.
And you aren't doing any and for the United States which decided to -- essentially launched as it was the impetus behind.
And then Obama who led from behind as his own administration officials have said.
It is I think it's a failure and it's an embarrassment and the other thing is for the other countries in the Arab spraying all those who was supposed to be.
Encouraged by you know the west finally stepping in and doing something about a dictator.
Who -- -- -- since it is deeply depressing and indeed humiliating.
Obviously people aren't talking a lot about it in -- rambled economic situation -- it's.
Over Barack Obama.
I heard him say this is gonna take days or weeks right when we've launched this this isn't gonna be of like a long war right.
This is where leading from behind gets yes.
And now we've got we've got another prospect of our our.
Allies who are are caring some -- as I'm getting squirrelly at the French and the British got this question of but -- Karen Meredith who was whether it was -- -- or the British talking to Qaddafi about.
Staying it was a British.
Staying -- leaving power but -- country countrymen and of course.
There is a -- hue and cry over that because you -- you know.
This is you know anybody who cares about.
Human rights and liberties and so forth that you can't imagine like you know setting up -- -- -- -- Situation in and Libya.
But you know it still goes on behind not behind the behind the headlines -- and of on Capitol Hill that it.
Crickets you know we were supposed to take up -- -- -- resolution finally.
-- right after actually remember we cancel the fourth of July recess in the senate because everybody was so upset we were gonna solve the crisis that we by staying here in the heat.
Nam so we canceled Perry recalls -- finally on the McCain -- -- resolution.
And everybody gets upset about that have we voted on Libya when we have to deal with -- debt ceiling.
So we got rid of that and we haven't heard one word about it since and we're gonna hear one word about it until after this thing assault nobody's talking about it.
And everybody's in politics of the debt ceiling and are so overwhelming.
And there's only so much oxygen on Capitol Hill to deal with big issues.
And and even look the American people it.
Is -- marching here is anybody complaining.
About the snow and congress is usually respond.
-- that things voters care about.
We often at this table put this question out.
If this was to happen and -- -- George W Bush Administration.
Who are you kidding me I mean.
He doing this I -- what -- think about it and you know whenever you can get I can just I can tell you.
Where we would be I mean if the president if President Bush would have gone into Libya.
By not first addressing the American people and not going for congressional authorization with -- a couple of days.
You -- police the George Bush that left office and He would have been skewered nonstop until something was done about it maybe not George Bush in the beginning but.
But -- I just think it's a fact even if even no matter what you think about it TrueCrypt.
A lot of people are still less about the economy need of they've been concerned about -- to Greece situation with now the ratings agencies moving into super junk status.
And whether they're going to default and what that means for the Euro and four.
Our economy eventually -- it's still a situation is very much in flux.
And it's just it's a lesson to us I mean we're -- -- -- -- -- but it's a lesson to us.
But that we have to get our fiscal house in order I -- I think you know you just -- -- you have to do is look at Greece found.
And you know just -- -- infected and David's point about this this whole death thing another reason to get the -- our fiscal house in order we've had opportunities to do that we have the Simpson Bowles commission.
Now -- time -- setting up yet another commissioner when we're not gonna call it a commission to to come up with cuts.
But what what's happening is it is -- although political energy out of dealing with serious economic issues.
-- lineups like jobs I wrote a -- this week at how one in five American men are not working.
They're on disability.
They are collecting you know paychecks from merit student living off their wives or girlfriends -- parents.
There in the underground economy one in 520% of American men compared to 7%.
The long term unemployment rate in this country.
Is scary we have a whole generation.
Of people of Americans.
-- not work to bitch who waited these are not people who.
-- are used to getting up and being in the work force their skills are getting rusty.
They don't know how to get a job of that the economy is it is the same -- of companies.
That are talking about the talent shortage how crazy is at this time it acute talents shortage in 20/20.
At the same time we have more people.
Who can't find a job.
Poverty is rising threat levels are rising the disparity between.
Whites and Hispanics and African Americans.
Increasing my and rich and poor is increasing.
Howard have assorted morons such report from -- John Roberts another higher.
And he's he's gonna do I get into the high unemployment numbers.
And a big reason and it -- you know big reason as is the -- education gap and He even that even with with all that education reform efforts that are going on they're still gonna be another four million high school dropouts like 20/20 like -- -- nineteen million high school dropouts.
-- -- it so age is something positive now I think we need to pick -- -- is there anything you can.
They'll prescribe the -- and stuff.
If you right to fire and so I got an ad you quickly a valiant -- you -- -- -- -- -- and the fact that we I think and I they -- that the.
Gender issue and the jobs issue -- -- on related I think they both are resolved.
Have a huge keynesian gamble by Obama He spent a trillion dollars.
On the theory that we keep unemployment level.
That if He stimulated demand -- would hold up the economy it didn't work.
The result that was suspected of one would it actually lower unemployment -- did.
Do -- -- the result I was on speculative everybody knew in advance that it would add a trillion dollars of debt.
We've added to four trillion dollars in -- into -- Matthews is historically unprecedented.
And I think these are the result of a Democratic Party that is under the impression.
That He can regulate and control an economy through spending and demand push.
And it's been shown that it doesn't work and that's why we are now in the doldrums was just.
Incredibly high chronic unemployment and I think from the dead issue was what we ought to be discussing because it will destroy our economy and it's good.
That we are having this threat even though it's artificial.
As a way to make it's actually think about this for the first time deadly seriously.
A lot of people are -- and bill from California fast and furious frank from.
Frank fourteen fast and furious being ignored by the media frank fourteen you know that we've been following it almost every day.
Here on Special Report and on Fox News Channel -- David this there's is hearing this weekend congressman I set.
-- held a hearing there -- some amazing things said.
About how far up the chain this potentially goes with these and if you haven't been following it it's this gun running operation that put.
Guns in the hands of criminals.
Didn't track the guns over to Mexico and there were many murders -- tied to those guns bought.
-- purchasers with US money.
How -- do you think this goes and obviously it would government the oxygen being sucked out -- this debt crisis.
This would be something that would get a lot of oxygen had it not been for this.
It looked and I wanna -- broken record here for people to death but nothing is gonna get attention until this thing passes.
On top of which the American people.
By and large despite the back we still cover it -- don't really care about anything other than jobs in the economy this is why something like -- you can can slip by.
Despite the fact certain other presidents -- ex presidents would have you know gotten hammered for.
People are so deadly focused on.
Whether they're gonna have a job whether they can get a job they have a job are they gonna get raise.
And -- -- this is typical in American history we go through these periods and there's just no focusing on it and less spending.
It comes from -- there's an attack of some sort or were threatened all of World War II during -- the Great Depression so He He.
-- it gets covered it doesn't get as much attention I think it's probably because if you take all of the news coverage that's coming out of Washington.
If she's so much focused on one area that people care more about that other things that it's hard harder to notice.
But thank -- yeah.
What's the and -- felt -- I was over and that is they have great values and they have spending caps that actually work.
Something from their cut -- and balances that's.
And they have tested here ask.
And He we've covered -- numerous times we have actually -- front page story in the post to -- imposed.
Few days ago the first I think sort of entry into the mainstream media I'm not sure if the times is covered or not but it I think -- it is getting some traction.
I think after this -- look after August the second we need to be.
That it is in default are functioning it's one of the others -- -- assume that -- actually here and we will be I have no doubt about it.
Last thing you return -- if we get this off the table the president to hear amend this news conference one of them last week.
I said I wanna get this behind us so we can focus on new programs.
You know when you say new programs there's just not an appetite for any kind of -- news programs -- what you don't have to have a new for example to address the mismatch between skills and and -- unemployed people.
You don't need a new program so much is unique political leadership and talking about it getting the company business community involved and I unlocked.
Sending up huge sense that this administration wants to push this dead deal over the side and then say are we had a -- another stimulus package well.
I can imagine there's an appetites were sent -- and let you know.
CN the other thing is that you know if they if they if they wanted to deal that they couldn't.
Why why weren't they on a deal two -- three months ago I mean they I think -- Bennett they think they seek political benefit.
-- and creating a crisis atmosphere out of answers I think there's no doubt about that and then too broke to and they've been very good at.
Trying to cast house Republicans is great chance to cast house Republicans as extremists -- and you know -- in the most -- come along with it.
And that's what -- it it united I think that's been there modus -- day politically.
No stimulus is getting through the house no stimulus is getting the senate.
Therefore it's not happening until the makeup of this congress changes back the democratic party's direction.
There's there's no appetite and and there's no votes mean there's simply are no votes -- -- you know mindset and one of the two major parties in America.
That was the last question in the first of the two news usually held.
And if I ordered Moody's -- S&P it would make my hair stand on end.
And nobody talked about it He essentially said look I'm not Venetian and -- I wanna get it off and leave the table.
If you're progressive as I am let's get it out of the way supposedly said we're gonna fix it for the longer term -- and we can return.
-- -- we really are people who spend money and He -- argument based any progress if you wanna spend money if you wanna expand the welfare state if you wanna do.
All the things I promise and have yet not done after Obama care you have to deal get this out of the way it's as if it's a -- six and.
I -- -- going to be spenders again it's amazing thing.
-- think there's two there are two political things I think there there is a left of the Democratic Party which thinks that the stimulus nine in the laughing a lot you know like not not -- left.
Who think this stimulus don't follow the stimulus -- Wasn't big enough.
-- There's an eight there are people like this is -- the chamber of commerce or the business roundtable who actually want to spend money on things like infrastructure.
You know roads set that sort of thing that they they actually do wanna spend -- conference yet.
So right well eight and by the way in this isn't getting behind this for saying because that's CR that we were fighting over in March.
It runs out the end of this fiscal year which -- September 30 and -- facing another government -- and don't think there's not going to be a huge fight.
Over what we do about that.
You're -- again and these are what are we can you shine again we Kansas shot again.
Okay thank you very much panel as always thanks for watching -- report on line.
Join us every.
Wednesday 7 PM for this little get together but every weeknight 6 PM on Fox News Channel for Special Report control room a little way.
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