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Sen. John McCain talks Egypt, Gaza and Libya

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    Key GOP lawmaker on 'Fox News Sunday'

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And hello again from Fox News in Washington.

On this holiday weekend we are watching several major foreign policy developments from Egypt to Gaza.

To the continuing controversy over the Ben Ghazi attack.

Here to talk about it all is Senator John McCain and senator welcome back to FOX News Sunday thank you Chris dancing with -- well -- you'll you'll have to wait till the end of the show to say.

It's -- we're doing now.

Let's start with -- where president Morrissey like this last week -- -- basically -- himself almost unchecked powers and sent thousands of protesters.

Back into the streets the people who have been helping to topple Mubarak now back on the streets against the man they are calling the new.

Egypt Egyptian -- What are the chances senator that we are headed for a new.

Islamist coup in a new Islamist state in -- I think it could be headed that way you could also be headed into -- back to a military take over if if things went in the wrong direction you could also see a scenario where there's continued chaos I'll never forget Chris after.

I was in Egypt I met with the young people who made the revolution square and one young woman said to McCain is not the first election worry about it's a -- That's what we have to worry about every repeat that -- inexperience in the seventies so.

Look.

But what should the United States America do they should be saying this is unacceptable.

We thank mr.

-- -- for his efforts in brokering a cease fire.

Which by the way is incredibly for actual.

But this is not acceptable this is not what the United States American taxpayers expect.

And our -- which will be news directly related to the progress towards.

Democracy which you promised the people of Egypt when you were -- when your.

Party and you were elected president.

Well I mean let's talk about that because -- -- took his step just hours after secretary of state Clinton praised him for helping to broker the peace deal between Hamas.

And Israel and so far at least the administration has issued the state department of very tepid criticism.

How tough should the gap with them -- -- directly site if you you've got to pull back on what what's in our demands to be and what should our leverage -- Our leverage obviously is not only they substantial billions in aid we provide plus debt forgiveness plus -- IMF deal.

But also.

The -- world public opinion is also against this kind of move by mr.

Morsi.

And we appreciate present more -- actions but you know in the past it's always been the United States that brokered peace deals.

And there is a clear perception of at least amongst Hamas.

That day one on this one.

And unfortunately the PLO has been -- -- Abbas and others have been diminished.

As result.

The negotiations in the settlement that was reached and I predict you must we'll continue to test the Israelis.

And how far that that they can go and finally.

Let's Trace some of this back to Iran where did the word of the missiles come from that -- being fired Iran where they are -- in -- -- revolutionary guard on the ground in Syria.

The -- -- shares continued to span.

In Tehran and so.

We've got to start facing up to what is when the prime.

Reasons why there is the kind of unrest we're seeing throughout the Middle East.

Let me just but not the -- thing.

What should our demand be -- -- Stop stop renounce the this -- the statement and the move that he just made.

Allow the judiciary to function if the junior judiciary is is is flawed in some way.

And that that's seen.

Illness it can be cured over time but absolutely.

To assume this kind of power is just unacceptable to the United States of America and then we can outline what actions might be taken but first condemn.

Let's talk a little bit -- already let us in that direction to the cease fire and the very fragile cease fire that was.

Worked out this week between Israel and Hamas.

How fragile as it what do you make of that -- and and you know we saw these longer range Iranian missiles.

That had been smuggled into Gaza that were being fired at Tel Aviv and fired at Jerusalem.

Which raises the question if Israel.

Takes action against Iran's nuclear program what's the -- is that the threat they face from right on their bordering Gaza.

And and and from the Lebanese border with house.

I think that they face a significant.

Challenge with Hezbollah because of that tens of thousands of missiles that are in southern Lebanon.

I also think that the Iranians will.

Continue unless they see that there is a price to pay which argues for the United States and Israel to establish red lines.

And say the -- who cannot crops that.

Now -- result the election and what -- events.

Present in their prime minister of Israel's.

Relationship I think is dramatically improve we certainly hope so.

But -- time we worked together and recognize that ran edition just nuclear weapons -- Iranians are doing that I outlined the other things are doing plus.

Orchestrating acts of terror.

Throughout the world -- attempt to assassinate the Saudi ambassador right here in Washington DC.

The Iranians pose a threat to peace and stability throughout the world and we're -- to have to develop a strategy to counter that.

The Director of National Intelligence now says that he was responsible.

For watering down -- editing the talking points that UN ambassador Susan Rice used.

When she went on those five Sunday talk shows here is the picture the famous picture -- it.

To talk about Ben Ghazi but you say that a few days before the his office said that they were responsible for editing the talking points that and a closed door hearing.

The head of intelligence James clapper.

Told you and other senators he didn't know who was responsible.

Questions to question where does this investigation stand and how to get to the bottom up.

Well it's like any other -- assumed the proportions of any other major scandal -- -- -- -- many layers of the onion there's all kinds of questions.

That have been raced through the most reasons one you mentioned.

I saw -- the Director of National Intelligence say.

Didn't know where he's talking points that were edited.

And now he's saying that he did it will be very -- how that all that transpired.

But the biggest aspect of this whole thing is it's got to be really look into.

Is why there was such a -- year on the part of the administration in light of events.

The attack cut due to attacks on our embassy the assassination attempt on.

At the on the British ambassador they closure costs all this long.

Train of events that -- that made them our consulate in been Dicey at that -- -- and during that why didn't we have military capabilities.

Close by that especially on September 11 it.

And -- enrollees -- so far and you know we're what two months out do you have any answers to those questions as to why.

We were better prepared for this possible well and I think we I don't know why as late -- September 25 two weeks later the president -- -- and states that the United Nations was talking about hateful videos.

So there's so many things that need to be resolved here.

Therefore committees in the house for committees in the senate they're all holding different hearings all her fights going on -- saying he usually does.

-- in these bodies and we need a select committee in order to sort this whole thing -- to find out what happened but off so.

We can't ever again have a tragedy such as took place in been -- and it could have been prevented in my view.

Now we've got to make sure that there are ways to make sure it doesn't happen.

You say that you will do everything in your power to block Susan -- -- nomination if the president decides to neighbor to be secretary of state.

She said this week that all she did was rely on the intelligence communities talking points and then she went on to say this about you take -- -- I do think that some of the statements he made about may have been unfounded but I look forward to having opportunity at the appropriate time to discuss all of this with him.

Is there any thing that ambassador rice can do to change your mind for her she can.

That would give everyone the benefit of explaining.

Their position and the actions that they took.

I'll be glad to have the opportunity to discuss these issues with her but why did she say that.

Why did she say that.

That al-Qaeda.

Has been decimated.

In her statement here on this program a Qaeda has been decimated there on the rise are all over Iraq there -- -- training camps are.

In Libya they're all over Syria there are on the rise everywhere in the Middle East so.

There's a lot of questions that we have for ambassador rice and that she would I'm sure that have the opportunity to discuss these with her but -- saying that.

She could conceivably get your vote for secretary is I think -- deserves the ability and the opportunity to explain herself and her position just as she said but she's not the problem.

The problem is -- present -- United States who -- who.

On and -- debate with Mitt Romney.

Said that he had said it was a terrorist attack he had in fact that night on sixty minutes.

He said they didn't know whether what kind of an attack it was and he continued to say usually that night you said in an interview with sixty minutes which we didn't -- -- didn't see until after.

The election I'm sure that it was such an inconsequential statement that it didn't deserve the attention the American people -- for -- collection.

-- pick up a one more aspect of this will move on house democratic leader James Cliburn said this week that Lindsey Graham and you have used.

Racial code words -- to go after -- -- -- take a look.

-- in -- and competent well.

But he told us that this there -- hidden with a -- competent person to be vice president states that don't say a little bit about his judgment.

Your reaction.

To you know -- -- comments like that.

I notice in this town if they can't win the argument on the merits then of course it they -- resort to those kinds of personal attacks it it goes with the territory.

Would you look way to raise taxes as part of a solid compromise to avoid a fiscal.

I would be very much opposed to raising tax rates but I do believe we can close a lot of loopholes tax code is this high.

We can do funny things to eliminate these in fact -- and and two other things one is things like.

A limit on the amount of deduction of charitable giving a limit on the amount you can take on -- home loan mortgage deduction.

And obviously we are gonna have to look at entitlement reform entitlement reform.

Is the only way we're going to really get the debt and deficit under control and we got it taken -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Once they were passed you change your view was that they've taken a fact I'm I'm been not -- oppose them.

But if you could get a solid deal with -- you call for spending cuts and entitlement reform and make a major.

Take a chunk out of the national debt.

Why is the 35%.

Top tax rate -- -- opposed.

Some -- because.

Every economist that I respect says -- if you raise tax rates at this time in fact the president even said that a couple of years ago.

That then -- -- the economy we're trying to help the economy.

And so unless I can be convinced that raising tax rates will be beneficial then obviously I think there's.

Reason and grounds for my position.

But I also believe that we can and must get an agreement otherwise I think first world markets are going to start reacting.

-- thought about that in the next segment and I think it is a real issue finally let's talk about the GOP.

Republicans.

I don't have to tell you had a really rough.

Night on election night let's look at the breakdown as some of the numbers you lost.

Unmarried women by 36 points Hispanics -- 44 point young people my 23 points.

Does your party need to change especially us operation those groups -- on social issues like it is same sex marriage on immigration.

Four I think we have to have a very -- that's no doubt about it and obviously we have to do immigration reform.

There is no doubt whatsoever that the demographics are not on our side.

And we are going to have to give me much more positive agenda.

It can't be just being against the Democrats and against Harry Reid.

And against Obama -- got to be for things and we have to give them something like that contract with America.

That we gave them some years ago we got -- can shop to -- four and as far as young women are concerned absolutely.

I don't think -- -- anybody like me I can state my position on abortion but to.

Other than that.

Leave the issue alone when we are in the kind of economic situation and frankly national security situation that we're in.

When you say leave the issue alone you'd you would allow you'd say freedom of choice -- I would would allow people to have those opinions and respect those opinions I'm proud of my pro life position and record.

But if someone it -- -- disagrees with me.

I respect your views.

Senator McCain wanna thank you as always for coming into that you're gonna have a busy for the final weeks here in 2012 we certainly are thank you sir thanks.

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