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tv   FOX and Friends  FOX News  August 5, 2011 3:00am-6:00am PDT

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>> ♪ come on get high loosen my lips faith and desire and the swing of my hips pull me down hard and drown me in love come on and get high ♪ >> people are already outside eating barbecue in all right. >> they're waiting. >> that means it's the all american summer concert series. matt nathenson will be performing live for us today plus they're cooking it up, guys. >> any time famous dave's starts firing up the barbecue, people come running. it was hard enough to keep steve and i away from it this morning. you have the sweet pulled pork, all of that. >> people are sitting out at picnic tables at 6:00 a.m. stop on by if you're heading to work today. 8:00 hour, we'll have the special performance live right here on "fox & friends." one of our friends today dropping by to fill in for the
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vacationing brian kilmeade. good morning to you. >> thank you for having me. >> good to see you from the weekend show. let's do a couple of headlines because the fear that gripped wall street traders are spreading around the world. this morning, we're seeing strong selloffs in markets in asia and europe. >> will we have a repeat today of what happened on wall street? joining us right now is dennis neil on the streets of new york city. dennis, how does it look? >> you know what? the do or die time now. we were down 4%, 5% in u.s. stocks. europe is trading down maybe 2%. will we actually see a turn back to the positive or will investors say no, you know what? it's even worse than i thought yesterday. this jobs numbers coming out at 8:30 this morning. 85,000 jobs. that's a really punk number and we think that's a terrible number but if it comes in below 85,000, you could see another slaughter today. just one thing, though, steve, remember that stocks are now cheaper one financial advisor told me last night, cheaper than
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they were in 1990. everybody is selling off their stocks and fleeing into u.s. treasuries right now. back in 1990, a 10-year treasury bond paid you 8.6% a year to lock up that money for 10 years. today, it's paying less than 2.5%. this guy says where are investors going to go? treasuries are no safe haven and double -- gold has doubled since the meltdown began two years ago. do you put money into gold? yesterday, in this worldwide panic when everyone sold out of stocks, gold should have gone up because it's this safe kind of paranoid little value and instead, gold went down elsewhere. everybody out there is very skittish. remember what warren buffet, the famous investor said. when everyone is greedy, you should get fearful. when everyone is fearful, maybe it's time to get greedy. >> all right, i don't know if that's the recommendation to buy today. >> yeah. >> but maybe so. >> maybe not. >> you'd have to have a cast iron stomach. weren't we supposed to be calm now as a result of this -- now
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that we have -- now that we have the debt ceiling increase, everything was supposed to calm the markets. >> the markets were going to sell off if we did not come up with the deal. we came up with the deal. obviously, it has a lot to do not only with the possibility of a double dip recession in this country but there's all sorts of trouble now in the euro zone where italy and spain, maybe they're going, you know, this could be a lot worse than we thought over here. >> also, a lot of people were so focused on the debt ceiling debate over the last month and we were discussing on this show was the very next morning, you wake up to still the nightmare of 9.2% unemployment, folks. i mean, the jobs situation is not going away and as i just mentioned 8:30 eastern time, we're going to get the report about how many jobs were created in july. that's going to come out today. remember in may and june, it was dismal. now, that will affect the stock market today depending on what those numbers say so where are the jobs? finally, the white house reporters are challenging the
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spokesperson for the president. >> what is the president doing? what is he -- we know that he went to -- he went to fundraisers last night. what is he doing today? what is he doing -- >> that is -- >> what is -- >> congress has -- the president is having meetings with his senior staff. the president has called on congress to move quickly on things that have bipartisan support and he is focused on -- >> calling on congress to pass things, he's been calling on congress to pass for months. >> he is working very closely with his senior economic advisors to come up with new proposals. >> robert gibbs somewhere is going man, i got out of there just in time. >> whew! am i glad i'm not a part of that anymore? >> how unusual to see that kind of questioning. >> here's the real secret and governor huckabee reminds us of this all the time. there's very little they can do to create jobs. they can foster an environment that businesses can create jobs. charles krauthammer pounding
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this home on "special report" saying dirty little secret is the president is out of options. he's tried things. he's out of options. >> the key there, though, is the fact that the president had a gigantic stimulus, remember about a year ago, close to a trillion dollars. and it was the wrong thing to do. he farmed it out to congress, he said ok, i'm going to get a stimulus. nancy pelosi, harry reid, what should we do with the money? and it became a pork project and a whole bunch of jobs wound up costing $200,000 a copy and now fast forward to today and we are in a pickle. >> he would do the same thing. if the house was not controlled by the republicans right now, he would already have been asking for stimulus, too. this has to do with ideology, the difference between how the democrats feel that the economy will be stimulated and how republicans will feel totally different. here will be my suggestion. why doesn't the president go to wisconsin, ohio and texas and ask the three governors and govern those states how they have managed to create jobs in the last six months and in rick
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perry's case in texas, longer than the last six months. maybe they have some great ideas that they could pass along to the white house. >> well, apparently, the democrats have got a great idea. remember last year they had that great idea where, ok, we've got the stimulus going. things are really turning around. let's call it recovery summer and all the democrats will get all of the -- >> how did that go last year? >> the summer -- >> recovery summer of 2010. >> we didn't recover. we're still recovering from the recovery summer. now we're learning that apparently the democrats have decided what they're going to do now is they're going to have accountability august and what that is is a campaign to hold the republicans accountable for "repeatedly choosing millionaires over seniors and medicare." well, here's the thing about that. you know, we have learned in the last couple of days that during the negotiations to fix the debt ceiling, the president of the united states actually was talking about making big cuts to medicare. he's going to jack up the retirement age and do some adjusting to the cost of living. >> that's the secret here,
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right? so congressional democrats did not support a lot of that and that was what was allegedly on the table although we never saw a written plan from the president in the debt ceiling increase. this could have been vapor. we don't know if it was actually ever on the table but it angered many people on the left so now democrats are having to go back home to their districts during this august recess and try to sell the american people on this idea. it's almost class warfare. >> do they want to have that moniker of accountability? until this year, the democrats held both houses of congress and the white house. so do you really want to be held accountable for what's going on in the economy? >> is it a smarter play to go back to the republicans and say republicans control the house of representatives. where's the jobs plan? why put it on them? >> i think the most important thing coming up by august 16th is who you're going to name to that committee. who is going to have to hash out -- >> who is the head of the accountability in august. >> exactly. those are the people who are going to be accountable.
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they're the ones that will come to together in a fast fashion and figure out what the hell to do with this country. >> what they're doing with this accountability in august is they're simply trying to change the subject. if the subject is jobs and obviously, we're all focused on the economy and jobs right now, they lose coming up in the next election. if they can turn it around to those darn republicans, they're trying to steal grandma's dog food which is all she has left to eat now, then they're in trouble. >> let's talk about defense. this is one of the big issues coming out of this debt ceiling increase that slashing of defense money and if you look at the money that would be added up over the cuts of this would be equal about $1 trillion and, of course, on the hill, we got to hear from secretary of defense panetta and admiral mike mullen on what this would do on our ability to defend ourselves. take a listen. >> as i have said many times, our growing debt remains the single biggest threat to our national security. the military exists to eliminate or mitigate security threats so
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we will do our part in this regard but we can't allow this effort to go so far and cut so deep that it jeopardizes our ability to deal with the very real and very serious threats we face around the world. >> if it did happen, it would result in a further round of very dangerous cuts across the board. defense cuts that i believe would do real damage to our security, our troops and their families and our military's ability to protect the nation. >> somewhere in there was the troops because our own jennifer griffin reporting from the pentagon saying there's a lot of smoke and mirrors in these numbers. >> a trillion dollars would be cutting it to the bone in some projects. this is a scary world we're living in. that's way too much. obviously what they're doing is trying to focus congress on do you really want to make gigantic cuts at the pentagon? no. if you don't, you'll have to make a choice. make cuts or changes to social security and medicare and medicaid.
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that's the choice. big trouble with the pentagon or work on the entitlements? >> yep. so you got to make sure that committee comes to some decisions so those triggers don't go into effect. well, let's do some other headlines because it's friday. today, the senate, guess what they're gonna do. they're going to actually pass the bipartisan bill ending the two-week partial shutdown of the f.a.a., the shutdown cost the government about $400 million in tax revenue and 74,000 workers were temporarily laid off. so the fight, what was it over? well, it's not over. congress still at odds over subsidies for small airports in rural areas and rules that let workers unionize. the casey anthony saga continues in court this morning. her defense team will try to block an order for her to return to orlando to serve probation on check fraud charges. the judge who originally ordered that probation stepped down from the case. judge belvin perry who resided over her murder trial is taking over that part of the case as well.
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the stepfather of 11-year-old celina cass has checked himself into a mental clinic. it's the second time this week he's been hospitalized. he went to the emergency room the day her body was found in a nearby river. he has schizophrenia and was committed to a mental facility for threatening an ex-girlfriend in 2003. he has not been named as a suspect in celina's death. the actress best known for her role in the movie "grease" has passed away. annette charles who played cha-cha reportedly died from cancer. her death follows that of co-star jeff conway. she was 63 years old and those are your headlines. >> that was such a good movie. take a look at this video. gunmen open fire on a city bus with automatic weapons. the terrifying moments for those passengers just ahead. can you imagine?
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man. >> and texas adding jobs while the rest of the country is losing them. what's the state's secret? the job growth, listen up, washington. >> feared that the debt crisis in europe is getting worse. in several european nations they're trying to borrow money from china. and obama got tough and he told them hey, china is our sugar daddy. you get your own! you get your own! [ female announcer ] so you think your kids are getting enough vegetables? maybe not. v8 v-fusion juice gives them a full serving of vegetables plus a full serving of fruit. but it just tastes like fruit. [ male announcer ] get five dollars in money-saving coupons at v8juice.com. you noticed! these clothes are too big, so i'm donating them. how'd you do it? eating right, whole grain. [ female announcer ] people who choose more whole grain tend to weigh less than those who don't.
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the reason that texas does so well is because of oil. not the case, though? >> not the case, our oil sector is smaller than our medical sector. the truth is we do well and people are moving here because it's a state that's economically free. we have no income tax. the unions are less of a force here in texas, for example, 6.4% of the private sector labor force is unionized compared to 27%, say, in new york and much higher rates in other states other than texas. and also here, our government is not growing as fast in terms of the size of its spending as other states. and so these are the main things driving people. our land values are about a third of what they are in california.
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a single family home in california over the time period of our study costs about $448,000. here's it's about $148,000. >> maybe washington is scratching its head this morning because i think washington's response to a lot of these problems is to spend more money. as you take us through some of your five points of why, number three on your list is low rate of local and state spending so texas isn't spending a lot of money to spur this growth. how are we this go do? >> what people need to understand is that inside america's borders now is the largest migration between the states in recorded history. and people are voting with their feet to tell us what they want at the state level. they're moving from high-tech states, high union states and so on. states with big government. to states like texas where there's self-determination and economic freedom. people are looking for the new, new world and so we know what people want. the states are a microcosm for the nation. they're telling us what people want if people in washington would pay attention and follow suit, they will cut taxes. they will cut government spending and do reagan style things that happened in the early 1980's that made this
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economy boom. >> what can washington learn from texas? we have low to no income taxes in the state of texas. taxing doesn't seem to be the answer either. >> well, you know, the problem is that we've taken this a united states and converted it to a d united states. we need to put power back to the states so at least people can make a choice of where they want to live. they can live in the state with the high tax and the benefits that come with it, be it high or low or choose to live in a state with low taxes and low benefits if they turn out to be that way. but it's very difficult to do that at the national level. you have to lead the entire country so in a sense, washington is playing this very dangerous game that what people are doing across the states, they may soon decide to do across the globe. lead the nation. and many people are, canada is the number one source right now for americans leaving this country. >> i wonder why there's so much -- so many people itching to have governor rick perry throw his hats into the presidential
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race. i just can't put my finger on it. michael cox, nice to see you this morning. thanks for joining us on "fox & friends." >> thank you. >> i said that rhetorically, of course. a mom getting fined for saving a bird? the government going wild with fines. where is uncle sam picking on the little guy? then file this under bad decisions made while drinking. a mayor has a wild night of partying and decides to sign some documents for the city. worth $1 million. whoops!
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>> got some quick friday morning headlines for you. terrifying surveillance video from a bus in philly. two guys start firing into the bus sending the passengers obviously running remarkably for cover. nobody was hurt. prosecutors say it started after a woman on the bus told the man with the gun to shoot a fellow passenger for making a comment about her. the men facing trial later this month. that's just crazy. and the mayor in new mexico testifying that he was drunk when he signed nine contracts with the california company that's now suing his city for a million dollars. martin recendez says he signed the documents after happy hour and was so smashed, his sister had to drive him home. he's a democrat and now he's running for congress. quite a record, gretch. >> at least he didn't drink and drive apparently. every now and then, it seems the
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government has gone a little wacky and wild picking on ordinary americans and fining them for even the smallest infraction. this week, we told you about a story in virginia where a girl and her mom were nearly signed $500 for rescuing a dying woodpecker. today, we have two more interesting stories. he is a beehive landlord who was fined $2,000 for not having a water dispenser nearby to water his bees even though it was two feet away and gina schaefer is a hardware store owner in d.c. fined $200 for a soda can being mixed in with her trash. i'm glad to know that you're getting a chuckle out of gina's story because i thought yours was funny. what was it? >> i got a ticket for $2,000 for not having a waterer for my bees, my bees, they're a friend's bees but on the other hand, there was a waterer two feet away. so the inspector just didn't
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notice. he didn't look. >> but ok, i'm trying to reason this and i know it's early in the morning. there is such a job as a bee inspector in new york city? >> apparently there is and the funny thing is mayor bloomberg was on the radio and he said he wasn't aware they had bee inspectors. >> all right. i'm going to get back to you in a minute as i try to analyze this ridiculous story. gina, you put a soda can in your garbage and you were fined $200. one soda can? >> as far as i know, it was one soda can. the picture that came from the inspector showed one can that had been put in the trash and we received a fine for it, yes. >> did you pay that fine? >> i have not yet paid that fine, no. i received another fine, a similar one the same week so i've decided that i need to hold off on paying them. >> now, your frustration is that you go above and beyond to try to actually make sure that you are recycling, correct? >> yeah, we do, actually. my business pays thousands of dollars a year to recycle
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batteries, light bulbs and mercury thermostats for everyday consumers and we do that because we want to be a good business so i think we deserve a little slack for that. >> no kidding. back to you for a minute. still trying to get my head around the bee story. so you did not pay the $2,000. and the city apparently said to you that you don't have to pay it and they're going to send you a warning letter but have they done that yet? >> no. they've told my councilman's office they're not going to do that. they've told various media people that they're not going to do anything but i haven't heard a word. i've written twice and called half a dozen times. >> so you may still be on the hook for the $2,000. >> well, the $2,000 is sort of a worst case but yeah, i still could be. >> gina, why do you think cities are doing this kind of stuff right now from a bee inspector that nobody ever knew was employed, maybe they got a dozen of them in the office. i don't know. but also to fine you for one can. why do you think cities are
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doing this? >> you know, i've thought long and hard about this and i think some of it is just the lack of resources that the city has. i think there's truly an effort to, perhaps, pick on the businesses that are really the best citizens in the city that do pay their bills and pay their fines on time. we pay them so let's fine us some more. i'm not sure. >> if both of you will please keep us up to date on your particular stories and maybe our viewers out there have other ones that they can share with us. you can always e-mail us, friends at foxnews.com or twitter me. thanks for sharing your stories with us this morning. >> thank you. >> you're welcome. >> if you are fed up out there with what you've heard and you want to take action, you can contact dr. thomas farley at the new york police department. and in washington, contact william howland jr. at the department of public works 202-673-6833. maybe they should do something else with their time. i don't know. as we told you at the top of the hour, wall street getting ready
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for a wild ride today. what does it mean for your money? stu varney is here with the insight. a robber steals a woman's purse and then brings it right back. first happy birthday to neil armstrong, first man to walk on the moon turns 81 today. happy birthday. ♪ [ female announcer ] erybody loves that cushiony feeling. uh oh. i gotta go. [ female announcer ] and with charmin ultra soft, you can get that same cushiony feeling you love while still using less. charmin ultra ft has extra cushions that are soft and more absorbent. so you can use four times less versus the leading value brand. ah. [ femalennouncer ] using less never felt so good. we all go...
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kinda. ♪ >> the stock market plunged today and the dow lost 512 points which is a lot. the biggest one day drop since 2008 and the ninth biggest drop ever. remember how the experts said we had to get the debt ceiling raised or the market collapsed? we got it raised so the market collapsed. they were half right. this is why i don't listen to experts. all my money is tied up in ski ball tickets. >> smart. >> stuart varney has all his money in porkbellies. >> funny you should say that. >> commodity. >> everybody wants to know. it was terrible yesterday. is today going to be bad, too. >> that all depends on what we see in the unemployment report that comes out at 8:30 a.m. eastern time this morning.
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it's likely to be a bad report. we're not creating enough new jobs to get the unemployment rate down. that's what we're likely to see. >> and those numbers, so, take like 200,000 jobs to get us at least out of or on pace to try to clear this hurdle. a lot of people pointing to signs it could be as low as 65,000. maybe upwards of 85,000. >> nobody really knows but last month, we found that only 18,000 new jobs have been created the month before. that was a disaster. that pointed straight to recession. let's see what happened today. >> yes, so anything above 70,000 would look like a great number this month because may was also bad. >> you could spin it positively. 75,000 new jobs, whoop-de-doo! >> should we not try to -- let me ask you this. everyone knows -- i'm trying to -- i'm trying to figure out if everyone knows you can spin the numbers so everyone on wall street knows you can spin the numbers. so even if it's 20,000 or 75,000 or 100,000, then why would wall
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street react one way or another if we know we're spinning the numbers? >> because wall street will react objectively to the number. they don't care about your feelings or emotions. they're looking straight down the road. am i going to make more money in the future because of this american economy expanding or amming i going to make less money in the future because this economy is going to contract. >> a lot of people are watching and say i don't have money in the stock market but a lot of people do. you're not thinking about your 401k or your ira, it's all tied together. >> anybody with a pension took a hit yesterday, ok? the worst hit was taken by people who have a 401k and they're going to retire, stop working in the next six to 12 months. they took a nasty hit. because if their money in their 401k is in stocks, that money went down. they're going to be drawing on that less money within six to 12 months. they took a hit. >> they -- they took the biggest hit.
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but look, i am determined to point out two positives here. oil tumbled. it just came way down. that means gas prices will come down shortly. second, interest rates tumbled. they came way down to historic lows. that means you're going to get a mortgage, 30-year fixed rate mortgage below 4% within the next four weeks. below 4%. >> because the housing market is still in the tank, you might be able to get a good deal. >> if you have any money from your 401k to buy. >> we'll be watching the jobs numbers at 8:30. if you want great analysis, go to stuart varney at varney & company. >> watch us at the opening bell. we'll have it. we'll ring it for you and show you what's happening. >> ding-ding. >> couple of other stories making headlines this hour, drug violence in mexico forcing an entire police department to quit. the border town near new mexico, now being protected by state and federal police. three officers were executed in that town earlier this week.
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clayton? >> the case against awol soldier abdo going to a grand jury. there's cause to believe that abdo was planning to attack a restaurant filled with soldiers near fort hood. he made headlines in 2009 because he refused to be deployed to afghanistan. >> i don't want to deploy because i believe i can't both deploy and be a muslim. >> abdo arrested last week with guns and bomb making materials in his hotel room along with radical islamic literature. steve? >> developing story overnight. the british actor better known as mr. bean surviving a fiery car crash outside of london. he reportedly lost control of his multimillion dollar mccleran sports car. the car spun into a tree and lamppost before bursting into flames. incredibly, he walked away with only a minor shoulder injury. he is lucky to be alive today. >> that's what you get for
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being the black hatter. >> just call him the remorseful robber. check out this video right there. now, the man is about to steal a woman's purse at a grocery store in new hampshire. he shows up, though, in her house days later to apologize. police believe the suspect got scared when he realized he actually had been caught on surveillance camera. little notice to all robbers out there, considering robbing stores today, there usually are cameras. he reportedly gave the woman all of her money back plus $10 for her trouble. remorse was not enough. police say they'll charge him if they catch him. wait a minute, he goes to the house and he says i'm so sorry and gives her $10 as tip money and sends an apology letter and she didn't call the cops? how does that work out? >> i guess she did but he already left. she didn't know who he was and they couldn't look up stupid in the phone book. >> yeah, too many people in there already. >> right. >> one thing we have done in the 15 years of the "fox & friends" show is we've got this great
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staff of interns who come to us every season at the conclusion of their -- of their service to us, we allow them to be on tv to put together an audition reel and today it's casy's turn. >> casy green at the university of florida and hey, great color that you got on today, too. i like that. >> copycat. so you get to do sports today. are you ready? >> yeah. >> all right. take it away, university of florida person. >> of all right. tiger woods roared back to competitive golf after being off for more than three months with an injury. woods also had a new caddie and all the changes seem to be working so far. woods shot an opening round 68 at the bridgestone invitational, his lowest opening round of the year. he is still six shots behind leader jason day going into his second round. it's official, the nfl back in business. players ratified the new 10-year collective bargaining agreement
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meaning players who sign deals with new teams can now practice. sources say the deal also allows the nfl to become the first major u.s. sports league to test for human growth hormone. details of the hgh testing are still being worked out. but is expected to be in place by the start of the season. wounded soldiers recovering at walter reed army medical center got a special visit. several nascar drivers and team owners paid a visit to the troops. many of whom recently hurt in iraq and afghanistan. nascar also bought a couple race cars -- brought a couple of race cars to the washington hospital which is officially closing next month and those are your sports headlines. >> very nice. good luck to you. what do you want to be when you grow up? >> hopefully an anchor, possibly even for fox news one day. >> fantastic. >> good marketing skills. all right, good luck. >> thank you very much.
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>> is it too hot to be outside this weekend? let's cool off a little in a movie theater. don't you love that tub of popcorn and a diet soda? i do at least. courtney friel is here with what's new in the theaters this weekend. >> there's good news at the box office. even though the revenue for 2011 is still down 6% from last year, the total growth and attendance for this summer is up slightly for 2010. so starting today on the big screen, we've got special effects battles, body switching and rock 'n' roll all competing to take over the reigning champs at the box office "the smurfs" and "cowboys & aliens." >> the drug in his system has radically boosted healthy brain function. >> it's the showdown between primates and mankind as "rise of the planet apes" swings into theaters. see who comes out on top in this summer blockbuster starring james franco and andy circus who portrays caesar in another motion capture performance. >> i was saying i envy your life, mitch. >> i envy yours. >> i wish i had your life.
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>> for jay son bateman and ryan reynolds fans, check out the bromance movie "the change-up." they their they had each other's lives. the next day, the married father of twins and the single ladies man switch bodies leading to some amazing scenarios. >> you're on your own. >> in the drama category, rachel vice stars in the whistle blower playing a nebraska cop who serves as a peacekeeper in post war bosnia out of the united nations for covering up a sex scandal. this thriller is inspired by real events. in limited release but available everywhere on demand, the perfect age of rock 'n' roll takes the stage carrying kevin as a down and out rocker and jason ritter as a middle schoolteacherment they head out on a road trip experiencing pitfalls of fame, friendship and the all too familiar 27 club.
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and now for some reviews, critics on rotteden tomatoes.com gave "the change-up" more rottens than freshes. they say it does little to change up the switched identity genre. they call apes the fantastic boot of the franchise. it's a prequel to the 1968 film. they predict it will earn $30 million and lead the weekend. >> i want to seat monkey movie. that looks great. >> getting great reviews. >> i can imagine the animation is so much better now than it was in 1968. >> good to see you guys. >> all right, straight ahead, he was the first to shed light on media matters. the group getting tax breaks from uncle sam to attack fox news. up next, c. boyden gray going one step further. find out what next. also get a free flight.
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but only until september 6th. diabetes testing? what else is new? you get the blood, hope it's enough, it's-- what's this? freestyle lite® blood glucose test strip. sure, i'll try it, but-- [beep] wow. yep, that's the patented freestyle zipwik™ design. it's like it-- [both] targets the blood. yeah, draws it right in. the test starts fast. you need just a third the blood of one touch.® okay. freestyle test strips. i'll take 'em. sure. call or click-- we'll send you strips and a meter, free. can't i just have these? freestyle lite test strips. call or click today. >> we have been telling you how your federal tax dollars are
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subsidizing media matters war against the fox newschannel. despite your complaints, the irs has still not done anything about it. well, former white house counsel for the george herbert walker bush administration c. boyden gray first shed light on the story by writing an op ed in the washington times. well, now he's gone one step further and joins us today from new hampshire. good morning to you. >> good morning. >> i understand you now have filed a complaint with the irs. alleging what? >> that media matters does not qualify for tax exempt status and that the irs should revoke that status. >> uh-huh. and one of the things you are -- you're saying in the petition that you've written is that media matters is involved in unlawful conduct. they're trying to disrupt the commercial interests of an american corporation. >> well, it's not unlawful. it's just not charitable. they're free to do what they want to do with nontax free
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money but i don't think they can have the government subsidize what they're doing and that's what the letter challenges. >> that's right. also, you talk about how they have executed a partisan strategy. they're not in the business of educating. if they were, they would be obligateded to get this tax exempt status. but instead, they just obviously declared war -- they've declared that they have declared war on fox news. >> they have declared war on fox news and its commercial interests, trying to get lawsuits against fox, trying to interrupt advertising and shareholder activity. which has nothing to do with education. and they're also attacking fox as an organization of the republican party or as the republican party which is highly partisan in itself. >> and you are concerned that this has gray first amendment problems because the government essentially is subsidizing media matters' attack on fox news.
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>> that's correct. nothing wrong with an individual attacking any news organization but not with government money and not with government quasi approval. that's what's happening here and it's not right. >> mr. gray, why are you doing this? >> well, because i think that the first amendment has a pretty important set of values and shonlt be abused and i admire fox news. i've never been paid by this network but i admire what it does. of course, a lot of people disagree with it but that doesn't justify using taxpayer funds to attack it and try to destroy its advertising base or gin up lawsuits so i think this is a matter of principle. now, whether i will take the time and effort to go into court if the irs doesn't respond positively to my letter, that i
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don't know. that's a big, big step. >> keep us posted. we'd like to know what the irs says to you. c. boyden gray joining us today from new hampshire. thank you, sir. >> my pleasure. >> all right. exactly 11 minutes before the top of the hour on this friday. they're leaving in droves. millions of people packing their bags and leaving new york because the taxes are just too damn high. it says on the teleprompter. our next guest says washington needs to pay attention to what is happening and she was one of the president's biggest allies in 2008 and oprah ready for round two but president obama is not interested in her support. what's that about? getting grime from deep inside grout takes the right tools, but also a caring touch.
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>> get out your abekus because the numbers don't lie. high taxes hurting states. it's bad for business and it's causing folks to flee. in new york state alone, it's been a mass exodus since the 1960's, more than seven million people have left this state. >> wow, where are all those people going? and why are they leaving? joining us, steve melenga, senior fellow at the manhattan institute. good to see you. >> hi. >> seven million people have taken off in the last 50 years. >> that's a net loss actually. >> so it's worse. >> yeah. >> why are they leaving? >> well, you know, first of all, people follow jobs. and they follow economic opportunities. if you look at the places that they're leaving and the places they're going, they're leaving the places that economic opportunity is dying and they're
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going where there's economic opportunity. taxes have a lot to do with that. >> let's look at some of the places people are leaving. california, new york, a lot of people leaving illinois, of course, michigan, we know the troubles detroit is having. new jersey, surprised by. ohio. >> you're surprised by new jersey? >> you think people moving out of new york may be moving into new jersey. >> they do. they move from new york to new jersey and then they move out the back door from new jersey elsewhere. >> they keep on going. >> keep on going. >> ohio and massachusetts. is it all the same reasons why they are leaving those seven states? >> i mean, there's, you know, people leave for different reasons but here's the thing. those states are consistently rated the worst states in the country to do business in. if you survey business executives, they say essentially, these are the least likely states where we're going to expand. so if there's not an opportunity there, people follow jobs. >> wait a second, governor kasich of ohio has been touting ohio. >> governor kasich has been in office six or seven months.
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the problems these states have are not just about the last budget. the problems these states have, they have a regulatory environment. they have a tax environment that's very complex. you don't fix new jersey in 1 1/2 years. >> and some of these pension plans are in the state constitution so talk about trying to change things. >> and their long term debt including their bond, absolutely. you don't fix things like that. that's part of the problem. >> where are the people going, then? over the last 10 years, let's take a look at the states who are earning people. florida, north carolina, arizona, south carolina, virginia, tennessee and i'm surprised to not see texas on there. >> texas is actually number two. i was going to say that's missing from there. texas is actually number two next to florida and texas, i would say is the hot state. now, first of all, the first two states, florida and texas, no income tax. secondly, texas is consistently rated by executives in the country as the most friendly or one of the two or three most friendly business states in the country so it's not surprising that people are going there. if you also look, we did another study of the jobs migration. there's a data base just for
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jobs. that's where the jobs are going. for instance, the number one place where jobs leaving california are going is texas. >> so can maine replicate what texas is doing? is it apples to apples or is every state different and needs to do it on their own? >> i do think -- >> secret to my success. >> i think the states are somewhat different. you have different weather. you're in different areas of the country. but here's the thing, you know, you say can states learn? new york state knows what's going on but the political class in a place like new york state doesn't want to change because the big government, high tax model benefits the politicians who are in control right now. it's a simple fact. >> very interesting discussion with you and you have a new book out as well. so thank you so much for joining us today. >> thanks, steve. >> coming up, the new buzz words for liberals. could it be the word hostage? >> the issue of hostage taking. >> we will not have a situation where people will hold the american economy hostage. >> is this just a big old distraction from the real issue. >> would you rather give up your
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>> tgif, everyone. it's friday, august 5th. hope you're going to have a great friday and great weekend. we could be in for another stock market meltdown. don't look at your 401k. asian markets tumbled today. fears of a double dip recession is on the horizon. >> she was one of the biggest allies in 2008 and oprah winfrey getting ready for round number two. president obama is not interested in her support? huh? say it ain't so. >> hoping for dr. phil or what? meanwhile, a university forced to take mints off the shelves because they criticize the president. see that right there? disappointment.
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more disappointments but what happened to freedom of speech and does it apply to candy? we'll talk about that and so much more. hour two starts right now. >> ♪ come on and get high loosen my lips faith and desire and the swing of your hips pull me down hard and drown me in love ♪ ♪ come on get high and loosen my lips faith and desire ♪ >> how many times have you heard that song on the radio? it's by matt nathanson, the all american summer concert series that we have had for a couple of years now and it is great and that's why people were actually lined up in front of our building this morning at 6:00 a.m. hoping to get one of the really close picnic tables. >> that and all the barbecue that famous dave's is cooking up this morning. you can smell it through the walls here. >> wish we had smell-a-vision,
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folks. >> pretty soon, it will be right here in the studio like last week. i hope, that's a little subliminal message. >> fantastic. >> there's lots to talk about today before we get out to the concert because i'm sure you've heard that wall street did not do so well yesterday, dropped 512 points, worst drop since right after that tarp vote to bail out the banks in 2008. i believe dennis neil earlier from the fox business network told us it's on the list of the top 10 worst days on wall street. >> you know what's so fascinating about this, we heard all this talk about getting the debt ceiling raised because we wanted to make sure that we calmed wall street. we hear the same thing after tarp, we want to calm wall street and then we have one of the biggest selloffs in recent memories so democrats now this morning, of course, the white house hoping for on the 50th birthday of president barack obama this week hoping for a positive jobs report but it doesn't look like it will be all that favorable. >> because the stock market has sold off in the last nine of the
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last 10 days. you know what started it, actually? i'm sure it's a coincidence but it started the day the smurfs rang the bell at the new york stock exchange. >> if only it were that simple. we could bring them back to take away their curse. unfortunately, it's not that simple and now the president's spokesperson is really getting the fire power from some of the reporters there, where is president obama on jobs creation? >> what is the president doing? we know he went to fundraisers last night. what is he doing today? to help this economy? >> congress has -- the president is having meetings with his senior staff. the president has called on congress to move to quickly on things that have bipartisan support. >> you've been calling on congress to pass things, you've been calling on congress to pass for months. >> he is working very closely with his senior economic advisors to come up with some new proposals.
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>> oh, man! >> words this morning of a double dip recession, too. "new york times" calling it a double dip recession possible. >> and i don't know if we can -- i don't know if congress can go on vacation in august as well as the president going on vacation. what if this continues to go down? i mean, this -- august may suddenly become a work month, folks. because we got to get some answers here and we've got to get them fast because this is not a good thing. if the jobs numbers come up today at 8:30 eastern and the stock market goes down again, i'm scared to see what's going to happen on monday. >> well, listen, gretch, the democrats need to take august off because they've launched what they're calling accountability august. remember last year they had the wildly successful recovery summer. that didn't really work out for us. what they're going to do is they're going to do their best to talk about how the republicans have really not done anything for the economy. it's interesting, you know, when they're talking about accountability and over the last couple of years we have had a terrible economy, let's talk
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about accountability and let's just go in the way back machine to 2009 and here's the president talking about his own accountability. >> and, you know, a year from now, i think people are going to see that we're starting to make some progress but there's still going to be some pain out there. if i don't have this done in three years, then there's going to be a one term proposition. >> well, he hasn't done it in 2 1/2 years. >> we heard from debbie wasserman-schultz back then saying we own the economy, we own the beginning of the turn around and we want to make sure we continue that pace of recovery, not go back to the policies of the past of the bush administration that put us in the ditch in the first place. >> she said that in june. that's a much more recent comment. here's the thing, folks. democrats and republicans have totally different viewpoints as to how to fix this problem. so for the most part and i'm simplifying, democrats believe in more regulation and more stimulus money. put more money into the situation. republicans agree for the most
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part businesses should be able to operate without so many regulations. many people are saying what could the president actually do? he could get rid of some of the regulations that he put in place and a lot of people are saying that obama care is what's causing the uncertainty in the marketplace. >> that's why jay caffer has got lot of air play. we know he goes to fundraisers but what's he doing? jay, come on. >> don't ask me that. >> what's he doing? >> just relax a little bit and charles krauthammer said look, the president doesn't have many things left to try on his clipboard, so to speak. he's already tried to do a payroll tax extension. unemployment insurance extension. we already have that. trade deals? those have been in place since 2 1/2 years. we already have those things. those are things that the president checked off his list to help. they haven't. >> for the democrat to launch this accountability august, it's curious. there's a democratic strategist who says ultimately any democrat not spending 2/3 of their time
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talking about jobs and blaming the republicans for not drumming up jobs will probably lose their job next time we have an election. >> i'd say that would be true for every politician at this point. let's do other stories making headlines at this hour. today the senate will pass a bipartisan bill. imagine that. ending the two-week partial shutdown of the f.a.a. they're coming down for this. 74,000 workers were temporarily laid off but the fight is not over. congress still at odds over subsidies for the small rural airports and rules that let workers unionize. battle that out when they come back, i guess. the casey anthony saga continues in court this morning. her defense team will try to block an order for her to return to orlando, florida, to serve probation on check fraud charges. the judge who originally ordered the probation stepped down from the case after being accused of bias. so judge belvin perry who presided over anthony's murder trial, he will take over this part of the case as well.
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the stepfather of 11-year-old celina cass has check himself into a mental clinic now. it's the second time this week that he has been hospitalized. he went to the e.r. the day her body was found in the river. he has schizophrenia and was committed to a mental facility for threatening an ex-girlfriend in 2003. he has not been named a suspect in celina's death. are oprah winfrey and president obama falling out of love? back in may, oprah did not endorse him when they sat down for an interview on her final shows. she announced she will back him in 2012. the president's re-election team said while they appreciate her support, they're focusing on other things right now. those are your headlines. you want the endorsement of oprah winfrey, i think, if you're the president's team, you do. >> maybe they want it closer to the election. >> push them off. >> keep it off for a little bit. let's head down to the state of
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texas, shall we? >> tennessee. >> sorry, my fault. >> you can go to texas, if you want. i want to go to tennessee. >> if you go to the university of tennessee, you go into the bookstore down there at the university of tennessee since 2009, you would have seen these mints on the store shelves right there inside the bookstore. since 2009, the disappoint-mint. they have other mint, they have some that poke fun at sarah palin, george bush and president barack obama. >> exactly. this particular mint caught the eye of the student and he went over and he complained to a democratic state representative who then in turn went to the director of the bookstore and they have now taken these mints off the shelves. here's the thing about this company. like clayton said, in addition to the kind of little dig there at the president of the united states, this company unemployed philosophers guild also sells pro obama mints called "yes, we candy." >> this is pretty funny. if you're listening on the radio or from afar and you don't see
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the screen. it says this is change. disappoint-mints. so my question is if they're going to now ban these mints from the store, does that mean they're banning the positive spin ones for the president, too? and are they banning the other ones about president bush and sarah palin? >> they were there during president bush's presidency. jill armstrong says if you're using -- put it this way, when you operate on state and federal dollars, you ought to be sensitive to those kind of political sensitive products, he says. >> thaurz a constitutional law professor there at that university who says this kind of smells like censorship. he says "there is no candy exception to the first amendment." >> can't we all support fresh breath? >> so true. >> i ask you? >> exactly right. >> who cares what it says on the cover? get a mint. especially for the weekend. >> we all support good breath.
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>> let us know what you think about it. coming up on the show, the new buzz word for liberals appears to be this one -- hostage. >> it's the issue of hostage taking. >> we will not have a situation where people will hold the american economy hostage. >> is the new talking point a big distraction from real issue which is a bad economy. >> and the state is so broke it's sending its prison guards to vegas, baby. guess who is paying them while they party. taxpayers, of course. >> shocking! [ male announcer ] heard this one?
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in washington seems to be at an all time high. it's so heated that liberals are now resorting to a scary new coordinated catch phrase to get their point acrosses. >> it's not even the labor issue. it's issue of hostage taking. it's as if someone puts a gun to your head and says give me your money and then you say, why wouldn't you give them your money? >> we will not have a situation where people will hold the american economy hostage in order to achieve a specific agenda. >> we need to get this done and we should get it done today. >> unfortunately, republicans continue to practice the politics of confrontation and hostage taking. >> all right. let's take a look at the people who are on my hostage panel today. democratic strategist julie ridinski and conservative radio host and editorial writer for "the new york post," robert george. good morning to all of you. >> good morning. >> julie, this is, you know,
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people on both sides have used the word hostage. this is the best you can do? >> can i quote mitch mcconnell? the hostage worth shooting. most of us didn't think that. what we did learn is this -- >> right. that's what i just said. there are people on both sides who have done it. this is obviously coordinated. >> but mitch mcconnell is acknowledging something that he's holding the american people hostage. when you get to that point, why shouldn't you point out that this party has done more than holding the american people hostage. >> if you look at these effort, let's be honest, who is the president? i think it's still barack obama. can the president of the united states of america be held hostage by anyone? no, and i think the american people know that. >> mitch mcconnell conceded that he can. >> because you send a talking point memo out that says, hey, guys, tell the american people that we have the senate and we
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have the white house but we're held hostage. i don't think works for the average american with 9.2% unemployment. >> you saw the tea party holding this whole economy hostage. >> no, they didn't. they have barely any members in congress. >> i feel like i've been held hostage here. >> but the fact is the one major power that congress has is the power -- is the power of the purse. and if the house is saying we're not going to spend anymore money, that's the job that -- that's the job that they will spend there. >> they want. >> and that's -- that forces negotiations. it's not a hostage -- it's not a hostage taking. >> great. >> but let's go back to health care for a second. let's talk about -- >> no, no, you want to talk about hostage is my point. he said i won. you lost. i won. we're going to do this. i don't care if there's cameras in here from c span. i don't care if you know what's going on. i don't care what the polls of the american people say on
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health care. that was holding american hostage and he says i'm in charge, i win. you can't have it both ways. >> hold on. >> we're bringing back debate to the tea party, i understand that. i will say to you, when you have mitch mcconnell, the highest ranking republican conceding that his own members wanted to hold this economy hostage. >> julie, what about the vice president calling the members of the tea party terrorists? >> what about it? that's what terrorists do, they hold people hostage. >> he didn't -- >> clearly offensive. utterly offensive. >> didn't go far enough. >> when you're barely a month from the 10th anniversary of 9/11, to actually use the word terrorist to be politically engaged. >> oh, please. >> this is the reason why the economy is bad right now. this white house spends more time figuring out memos to the american people about being held hostage than they do actually fixing the economy. >> that was peppy. >> so we can get -- >> all right. we're going to continue with the
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panel straight ahead. president obama can't blame president bush anymore for his problems. that's kind of worn out. so now who will he point his finger at? we'll tell you in a minute. plus would you rather give up your cell phone or give up what goes on in the bedroom? we're going to study straight ahead. talking about sleeping? [ male announcer ] to the 5:00 a.m. scholar.
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>> still thinking if i give up my time in the bedroom or the cell phone? have to wait for that study coming up. in the meantime, some news by the numbers. first, $4800. that's how much of a tax credit companies will now get for
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hiring wounded warriors. the president announcing the government's hero tax incentives program today. next 82%, that's the new congressional disapproval rating. the poll taken right after the debt deal was reached, actually. it's congress' highest disapproval rating since polling started 34 years ago. finally, 33%. that's how many people would rather go a week -- here's the story. they'd rather go a week without sex than seven days without their cell phone. >> what? >> 70% of americans would rather go without booze for a week than go that long without their phone. now, i draw the line on that one. >> it's always something. thanks. meanwhile, president obama blaming everything from natural disasters to republicans in congress for our lousy economy. mr. president? >> in the last few months, the economy has already had to absorb an earthquake in japan, the economic head winds coming from europe, the arab spring and
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oil prices all of which have been very challenging for the recovery. >> he has also blamed bush. he's blamed the tsunami. he's blamed the weather. don't be surprised if later today, he blames ground turkey. joining us once again is our political panel. we have julie riginski, ben ferguson and robert george. ok, i mean, the economy is not doing well so why not say it's not my fault. it's that other guy, julie? >> i blame them all. listen, the president, i think, has been amenable going back to a previous point of being taken hostage and not leading and not talking about the bully pulpit and what he wants to do. the congress has been completely absent and only worries about their re-election and he's ready -- and he's right to the extent there has been external forces. >> i have one question. >> how can you possibly not say that congress, an equal branch of government has responsibility? >> wait a minute, you're the leader of the free world! you're the leader of the free world!
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my question is this, when does barack obama actually become president? at what point, does he be held accountable for what he does. let robert get in here. >> my question is wasn't it just 2 1/2 years ago when debbie wasserman-schultz the head of the democratic party said we on the economy and when she said we, she meant the democrats and the president -- >> are you listening to the same thing? are you listening to what i'm saying? i'm saying they're all culpable. the economy stinks including the president. >> here's the thing, when you're the president of the united states of america, your job is to lead. and that's not to blame others but to actually fix the problem. the issue is this president has proven that he does not know how to fix the economy. he knows how to fund raise. he knows how to have a 50th birthday party that brings in millions of dollars that doesn't bring in any money for taxpayers. >> any time you talk clinton presidency --
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>> i didn't say that. >> equal branches of government and the president deserves the blame. >> for the first two years, it was an entirely -- it was all about -- >> blame bush. blame bush. >> but for the first two years, it was a democratic president and a democratic congress and -- auto awe got out of a recession. now, because of our austerity budget, we're on our second double dip recession. >> who got elected president? barack obama. who had the house, the senate and the presidency, barack obama. who had literally a trillion dollar check he could write a couple of times over which he did. my point is this. he does not know how to fix the economy. he walks out there. he tries to blame everyone else. i just want to know when democrats are actually going to say he really is in charge. >> i'm saying it right now. the president deserves responsibility. listen to my point. the president deserves some responsibility as does congress. you cannot apportion this purely on the fact that the republicans have held this economy hostage. i'll say it again. and it's absolutely true. >> he's a leader and he didn't have any of that --
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>> all right. very nicely done. you had me at hello. >> always have you at hello. julie, ben, robert, great discussion. >> thank you. >> who needs a venti latte today? very good. straight ahead, we could see more trouble on wall street today. foreign markets already tanked. is this another step towards recession? a live report in a couple of minutes. and a state so broke, it's sending its prison guards to vegas, baby! guess who is paying them while they're away. taxpayers, of course. plus we're getting ready for this week's all american summer concert series. matt nathanson coming up on this friday of "fox & friends."
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vrrooom...vrrroooomm vroom vrrooom vrrroooomm vrrroooomm vrroom vrrrooomm vrrroooooooommmmmm mmmm mm.
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♪ let me make you smile ♪ let me do a few tricks
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♪ some old and then some new tricks ♪ ♪ i'm very verstile ♪ so let me entertain you ♪ and we'll have a real good time ♪ [ male announcer ] the new hp touchpad. get it now for $100 off, starting at $399.99. ♪ not only kills fleas and tick it repels most ticks before they can attach and snk on us.
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frontline plus kills but doesn't repel. any tick that isn't repelled or killed may attach and make a meal of us. [ male announcer ] ask your veterinarian about k9 advantix ii. [ male announcer ] ask your veterinarian at exxon and mobil, our smart gasoline works at the molecular level to help remove deposits and clean up intake valves. so when you fill up at an exxon or mobil station, our gasolines help your engine run more smoothly. it's how we make gasoline work harder for you. >> i want you to know that obama may have turned 50 today. his approval rating turned 40%. lowest approval rating yet. it's a concern with the election coming up, they need it get those numbers up and it looks like they've come up with a pretty full proof plan to do it. >> on may 2nd, on the
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president's command, navy seals shot usama bin laden and buried his body at sea. >> the united states has conducted an operation that killed usama bin laden. the leader of al-qaida. >> now, obama is back! watch as he flies to the middle east, captains of a one man submersible vehicle, voyages to the bottom of the ocean and shoots him again! obama shoots usama 2. this time it's submersible. >> test that commercial and see if it would work. >> if he could do that, that could be one thing that would raise his poll numbers. >> anyway, the july jobs report speaking of why the poll numbers may be where they are is due out in one hour. and it has wall street on edge. that's because it comes just one day after the dow had its worst day since 2008. >> and of course, the big question is how will the markets react today? joining us with the preview and
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a look at what has happened overseas is dennis neil on the streets of new york. of course, he's with the fox business network. good morning to you. >> good morning, steve. you know we had this big selloff in the u.s. and then, of course, when we catch a little cold, it turns into, i don't know, something even worse in china and asia where stocks fell a good 4%, 3% and now europe is down as it starts trading. so what's going to happen today with that jobs number? let me just give you a couple of quick little signs of hope that investors are utterly ignoring. oil is now below $85 a barrel instead of over $100 and when gasoline prices fall a buck a gallon at the pump, $100 billion in spending power. inflation is low. stocks are now cheaper pound for pound than they were in 1990. yet, people are selling stocks to get into 10-year treasury bills, right? in 1990, those 10-year treasuries were paying almost 9% a year in interest. today, they're paying less than 2 1/2% interest because everybody wants to flood into them.
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there's a lot of fear. right now, fear is winning. but steve, if we come in north of that 85,000 jobs number that people are expecting, that's a very bad number. but if you come in at over 100, one wonders whether some investors will decide to flood back in and to buy stocks. this is a game for the pros. your viewers who have long term retirement accounts, i really think they should look away and just pray. >> that's right. >> it did bounce back, you're right after 2008 when we know it happened to our 401k's back then, most of the people recovered that stayed in it and didn't panic. >> is it true on some of the very short term treasury bills, the t-bills, you will actually lose money on them because people are so fearful about what's going to happen next. they're paying a small premium to the government to actually park it there. >> exactly. the bank of new york is this big huge bank for big institutions to park their money and yesterday, the stunning fact was bank of new york began charging these big fat cats and these big institutions.
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charging them to put money inside their bank instead of paying them to rent their money and loan it out at a higher rate. that's a sign of how much fear is out there. they're putting money now in these u.s. treasuries at a time when a week ago, we're afraid that the u.s. government couldn't pay off the u.s. treasuries. >> that was then. this is now. >> all right. sounds like no one knows exactly what's going on or what to do. you can thankfully try to break it down for us. thank you very much. >> thanks, guys. >> let's talk about who is going to actually become president in 2012. there's interesting poll results coming out of florida today talking about rick perry, the governor of texas who hasn't officially announced that he's running and former governor of massachusetts mitt romney who has so when they go up against president obama, what happens? >> pretty surprising there. that he was up over -- president obama was up over 50% following the usama bin laden tilling killing. now, he's down to 44% up against rick perry. when you put up against mitt romney, another story.
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statistically a dead heat right now at 44%. >> you know, it's interesting, we just saw that thing about bin laden. he did have a bounce from bin laden. but since -- when you look at this quinnipiac poll that's just come out where the president has really lost support and we're talking about florida. this is a big swing state and this is a state that the president did win. he has now a 2-1 disapproval rating with independents. if that stays through the election day, he would be in some very big trouble. >> you're right. i mean, it was typically a red state. did vote for him in 2008 and that i-4 corridor, when you have to go through orlando and that whole neck of the woods down there, if he can keep some of those independents and the people who gave him the election last time, which went for president bush the previous time. those are the people who really drive that state down there so it will be interesting to watch. >> and for rick perry to be doing so well, he's not even declared. that's something that's off. >> meantime, we have some headlines for you. the drug violence in mexico forcing an entire police department to call it quits.
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in the border town near new mexico now being protected by state and federal police officers. three officers were executed in that town earlier this week. >> he joined the military but refused to fight for our country. >> i don't want to deploy because i believe i can't both deploy and be a muslim. >> now, a federal judge ruling there is enough evidence to send the case against abdo to a grand jury, the awol soldier accuse of planning to attack a restaurant filled with soldiers near fort hood, texas. it was filled with guns as long as radical muslim literature. he promised he'd be back. >> i'll be back! >> arnold schwarzenegger back in the spotlight giving his first speech in california since it was revealed that he has a
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secret son with his housekeeper. the former governor honored by the american chamber of commerce executives in los angeles. >> well, you've seen him doing ju judo, cradling tiger cubs and riding a horse shirtless, now you can be like vladimir putin. a russian company put out a video game called "like putin" including fighting terrorists and driving a sports car. the games maker agency one denies the prime minister put them up to it. the real story comes out. remember, he's a former member of the kgb, maybe he did but them up to it. >> and remember what former president george bush used to call him. i wonder if he golfs. i wonder if they do putt-putt with putty put. >> let's talk about what's going on with the weather.
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it's raining -- we have widely scattered showers, the heaviest stuff currently in portions of the unicameral state of nebraska, down through kansas, widely scattered stuff through the central mississippi valley and a little action in the piedmont mountain area. >> as you head out to this getaway friday, we have some 50's in new england if you're lucky enough to be in caribou right now, almost 60. beautiful morning up there. we've got 68 in cleveland and much of the ohio valley currently in the 60's and then 70's in the big northeastern corridor cities down through the -- you can see the mid atlantic. gets a little warmer once again in portions of the central plain states and it's going to be downright hot once again today. i think dallas is going to be -- i think today will be the -- let's see, the 36th day in a row they have had a temperature over 100. today it will be 108. >> thank you, steve. let's turn our attention to california where hundreds of prison guards have decided to
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take a little bit of a break for a convention and head off to vegas which under normal circumstances would be fine. except there's a little bit of a problem with footing the bill for all of this. >> they're attending a union convention in las vegas. california completely broke, ok. it's going to cost the state $350,000 to send these correction officers to this particular convention. now, why do they get to go and still get paid? because apparently, a long time ago, maybe about a decade ago, instead of taking a 1% pay increase, they voted instead to get activists relief time. activist relief time. >> what does that mean? >> going to the convention. >> going to the convention and taxpayers foot the bill instead of that 1% increase. >> had they gotten an increase, it would have cost the state $150 million and instead it's costing the state $350,000 to send them to this union convention in vegas. they're not paying for the travel or the expenses, just the
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actual regular pay. what do you think about that? is that fair? send us an e-mail at friends at foxnews.com. the state is flat broke. >> don't they spend $350,000 in their own state? let's say that they're horn swaggled by having to do this? >> we had a corrections problem. we had to release inmates in california because we didn't have enough money to take care of the problem there? so that's another side of the whole story. >> all right, what do you think? friends at foxnews.com. in the meantime, the administration has a new plan to fight terrorism home grown style. one problem, they don't seem to like to use that word "terror." they refuse to use the word muslim or jihad to describe the attack on fort hood. is our government a little too p.c. to keep the u.s. safe? >> his latest is climbing up the charts. we're getting ready for this week's summer concert series with matt nathanson and some famous dave's barbecue. it made it into the studio.
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>> ♪ come on get high faith love and desire ♪ >> his breakout platinum selling song "come on and get high" put him on the mainstream map and now he hopes to ride that wave on the new album "modern love." matt nathanson is here with us. good to see you, matt. >> good to see you. >> matt, i'm just looking around here, i see a lot more women out here than i do men. >> that's fantastic. >> it is fantastic. i'm into that. >> thanks for coming in this morning. we appreciate it and so do all our men that work here. we appreciate that as well. you've got vinyl that i'm surprised by.
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"modern love" has anyone seen this before? this is a record. you know what this is? >> i'm a nerd. i'm a music nerd so for me to have it on vinyl was a selfish thing. i need my record on vinyl. >> does it sound better to you? >> it sounds cooler and feels better to drop the needle on it. >> and get a little scratch. >> you just finished up a big tour with sugarland, how was that? >> a blast. i do a duet with christian and jennifer on this record. it's a sugarland and myself and i love those guys. >> you're about to start another big tour. no rest for the weary. maroon 5, right? >> maroon 5, train, we'll go out and do the rest. u.s. and some canada and then come back in the fall and do the u.s. again. >> when do you have time to sit down and write music? >> it usually happens -- >> on a tour bus? >> no, i wish. that's -- you know, that's where i sit with my tiger dressed in my fur. >> like vladimir putin. >> shirtless, just in
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underpants and so that -- i don't have time. >> usually, it's like post tour, i get home and i sort of focus on the record. so this record took about a year and a half. i got off tour in australia in 2009 and started right in. >> i'm fascinated by that process. do you get up, you know, writers, stephen king will get up in the morning. he writes every day. do you sit down with a cup of coffee and say i'm going to write a love song today? >> i wish it was that organized. it's usually i get up in the morning and listen to my record of the day. i'll sort of grab a record off the shelf. and kind of put it on, listen to it all the way through. get inspired and sort of it hit from there. it's all about you sort of get swept up in the inspiration of other people's music and then you sort of want to get in there. >> you're about to headline, too, you're actually about to get out in the road and headline your own tour. how is that going to be? >> it's going to be great. we don't have any pyrotechnics. >> that's a lot of pressure. headlining your own show. >> it's good stuff. we get to play longer sets, you know, and get to sort of dig in and then i get to, you know, my
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teeth -- i can sort of like cirque du soleil. i can sort of like dangle above the crowd. >> did you get some famous dave's barbecue this morning? >> i ate a lot. i ate me some ribs. >> you're going to need it. matt will be playing live for us all next hour. you ready for that? >> pressure is on. you're headlining right here in times square. matt is headlining the summer concert series today. thanks so much for being here. toss it back inside. gretchen, steve, you want some famous dave's? >> they brought it in. >> thank you very much. and matt, thank you very much. that's quite an image, tour bus, underpants, tiger. never heard that before. >> wow! >> that's why so many ladies are out there right now and coming up on the show, the administration refused to use the word muslim to describe major nidal hassan. if they can't do that, is there any hope a new plan will actually work? that's next. >> first, this day in history back in 2006, number one country song hit "the world" by brad paisley.
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>> welcome back, everyone. the global war on terror is going local. after two years of meetings, the white house released its strategy now to counter terrorism here at home. the plan puts cities and local communities at the head of the effort but will the local focus put the country in any danger or is that the right move? joining me from d.c., retired lieutenant colonel bob
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mcguiness. good to see you. >> thank you. >> what do you make of this strategy? do you agree with this? >> not really. i think it's too politically correct. it really, you know, removes a lot of the references, i think, to the obvious and that's islamic community. that does not mean the islamic community by and large should be painted with a clean brush but when we see a high correlation between those that are attacking us today and the islamic community, we ought to recognize that. but the administration did the same thing in the military by removing references to islam and the definition for terrorism in the modern war. this just doesn't make sense. >> then we're -- it seems to be sort of a trickle down effect because we've had these episodes within our own military where we have members of our own
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military. >> i think to a certain degree, it's by design. we've changed the culture. even joe lieberman, the senator from connecticut indicated in a report in the senate that we need to recognize what the enemy is. islamic extremism and we need to recognize how it's formed and how it's radicalized even within the ranks of the military. look at the cases as you mentioned of the major who here at walter reed was radicalized to a variety of mechanisms one of which happens to be the leader of al-qaida and the arabian peninsula. he was radicalized through the internet and yet, over the last couple of years, we've seen a rocket change in the number of home grown terrorists that were radicalized through the internet. we've got to monitor that. we've got to monitor this particular community especially, you know, don't paint the whole community the same way but recognize they're coming from a particular very strong and safe community that gets radicalized through associations with the
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cyber terrorists that's very dangerous to this nation. >> i want to read an excerpt for you from the white house strategy, this report that came out. here's part of it. group and individuals supporting al-qaida's vision are attempting to lure americans to terrorism. this also has potential to create a backlash against muslim-americans. it's for this reason that our security preventing radicalization that leads to violence is inextricably linked to our values. the protection of civil rights and civil liberties. you make any sense of that? help me out. >> not really. except for the fact that representative peter king had a hearing this week or so ago on the somali patriots, that went back to somalia, were radicalized by the group and then, of course, the threat is they're going to come back and, you know, do terrorism here. keep in mind, it's from the horn of africa, from yemen, where we have the problem of the underwear bomber, the times square bomber and assortment of others so the statement doesn't
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make sense. we need to focus on the community that is putting -- >> and the interesting thing is, colonel, when you look at the polls in the arab world about whether or not they like america anymore since we became more p.c., they like us worse now that we're p.c. let's tell it like it is. >> we ought to. recognize the leader of libya is now talking to islamists. they think that's the way to defeat the rebels. you know, go figure. >> i know. lieutenant colonel, have a good weekend. thanks so much for your time. >> democrats, they're just like ronald reagan, right? >> ronald reagan, ronald reagan was a strong conservative. >> we agree with ronald reagan. and many others that we cannot default. >> democrats keep comparing themselves to ronald reagan. but the facts show they barely have anything in common. we'll break down the facts with ronald reagan's son, michael reagan. then the defense department
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facing major cuts thanks to the debt deal. should we really be cutting from the guys that protect us? and the gals? general michael hayden who was the c.i.a. director under george w. bush weighs in coming up. the angels start second guessing where they tread. ♪ call 1-800-steemer energy is being produced to power our lives. while energy developement comes with some risk, north america's natural gas producers are committed to safely and responsibly providing decades of cleaner burning energy for our country, drilling thousands of feet below fresh water sources within self contained well systems and using state of the art monitoring technologies,
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>> gretchen: tgif. it's friday, august 5. i'm gretchen carlson. i hope you're having a great friday and weekend. but, don't look at the stock market because we could be in for another stock market meltdown. asian markets plummeting one day after the dow took a nose day. now fear has double dip recession is on our horizon. >> steve: what's the president's plan to rescue the economy from a double dip recession? his congressional colleagues have a plan. it's called accountability august. is that really a good idea based on how well summer of recovery worked out last year? >> dave: they didn't have the alliteration. democrats keep comparing themselves to president reagan. but the facts show they barely have anything at all in common. we'll break down the facts with
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michael ray coming up on "fox & friends." "fox & friends" hour three starts right now. ♪ i miss the sound of your voice ♪ ♪ i hate to remember ♪ if i could walk on water ♪ i'd make you believe ♪ i'd make you forget ♪ ♪
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>> gretchen: it's friday. that's matt nathanson performing his hit. you see how he moves his upper body? he's like got a special talent. >> dave: i haven't noticed that. thank you for pointing that out. >> gretchen: i was listening, but also watching. >> steve: like back in the days with elvis. for fcc purposes, we can't show him shaking his booty. >> dave: that's why there are so many ladies in the audience. >> steve: how many times have you heard that guy on the radio? he is live with us for a special concert this hour. if you're in the neighborhood, stop on by. 48th and 6th avenue. you go to 48th and 7th, we won't be there. not only will you wind up with a
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free concert, buffet husband dave's as well. >> dave: and not terribly far from wall street. probably a place you want to avoid today. >> steve: no kidding! >> gretchen: maybe that's why i got the numbers wrong because i was hopeful the numbers were better yesterday. >> dave: we are seeing some of the asian markets and not good signs there. some of the u.s. futures markets being sold. stuart varney was telling us. in a half hour, 27 minutes from now, we're waiting for the jobs numbers, which economists say might not be as robust as they had once hoped. >> steve: you know who is worried about it, the white house ask democrats. they've been in charge for a while and fast forward to the next election, if the jobs situation will not be much better than it is now, and the experts say it really can't get down to 5% between here and there, the president's goose and many members of the democrats in congress, the goose could be cooked for those guys. so that's why there is a democratic strategist and
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pollster says any democrats not spending two-thirds of their time talking about jobs will risk having their -- what they're doing during this accountability august is saying look at all the stuff we're trying to do to create jobs and the republicans, nothing. >> gretchen: if you thought the stock market was going to suddenly go up because we had a debt ceiling deal, exactly the opposite happened. mainly because we had to wake up and still face the reality that feels like a nightmare of 9.2% unemployment. now the president's spokesperson is actually being challenged pretty harshly on what the president plans to do next. watch this. >> what is the president doing? we know he went to a fund-raisers last night. what is he doing to -- >> the president is having meetings with his senior staff. he called on congress to move quickly on things that have bipartisan support.
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>> what is he -- >> he is focused on congress to passing, he's been calling on congress to pass for months. he is working very closely with his senior economic advisors to come up with new proposals. >> steve: new proposals. like what? >> dave: what, are you going to turn them over to congress? they're on vacation. he's at fund-raisers. and i think a lot of people are wondering what can the white house do? what can washington do, if anything? we talked to governor huckabee who says, look, the problem is that the presidency is limited and the president really can't create jobs. the federal government can't create jobs, but they can create an environment where jobs with created. >> gretchen: then do that! a lot of people are saying, then get rid of some of the regulations that have been imposed and maybe let's take a second look at obamacare because i got to tell you, with all the business people we talk to on the show, one of the main themes you hear over and over again is that they feel like there is uncertainty and that is why, even though they're making piles of cash overseas, they're not hiring here at home because they don't know if anything is
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certain with regard to healthcare costs specifically and many other things. >> steve: sure. you look at the corporate tax structure. it punishes businesses for being here in the united states. you think offshore and you can do much better. we mentioned at the top of the program, the democrats decided they're going to launch this new campaign called accountability august where they hold republicans accountable for repeatedly choosing millionaires over seniors and their medicare as well. now, here is the thing that if they're going to use that word, accountability, the president himself, about two years ago is on the record saying, hold me accountable if the economy is bad. this tape could come back to haunt him. >> i will be held accountable. i've got four years. >> you'll know quickly how people feel about that. >> that's exactly right. i think a year from now, people are going to see that we're starting to make some progress, but there is still going to be
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some pain out there. if i don't have this done in three years, then there will be a one-term proposition. >> steve: almost to three years. >> dave: 16 months 'til the election. debbie wasserman schultz said we own the economy, we own the beginning of the turn around and we want to make sure we continue that pace of recovery. not go back to the policies of the past of the bush administration that put us in the ditch in the first place. it's going to be really interesting at 8:30 because the white house has touted that when they had three months of positive job growth, when the jobs numbers started to trend upward, they were saying this was the sign of a trend. we've had two months of it being bad now. >> gretchen: that was a blip. >> dave: right. it was a blip. today month number three, will it be a trend and be what the "new york times" describes as entering possibly a double dip recession. >> gretchen: they're all sitting around for the next 23 minutes going like this. let's hope these numbers -- >> dave: we all are. >> steve: you got to figure
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somebody at the white house already knows. are we headed toward a double dip recession? it's two quarters of back to back negative growth. first we would need one quarter of negative growth. but we're on the verge of that right now. we've got extensive coverage about that number, one big number comes out in 22 minutes. we'll be talking about it live. >> gretchen: the other stories making headlines for fridays. the shut down of the faa cost $400 million in tax revenue. and 74,000 workers were temporarily lost. but the fight not over because congress is still at odds over the subsidies for small rural airports and rules that let workers unionize. the casey anthony saga continues in court this morning. her defense team will try to block an order for her to return to orlando to serve probation on check fraud charges. the judge who originally ordered that probation now stepped down
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from the case after being accused of bias. judge perry, who presided over the murder trial, will take over on this part of the case, too. stepfather of 11-year-old celina cass has reportedly checked himself into a mental clinic. it's the second time this week that he has been hospitalized. he went to the e.r. the day her body was found in a river. he has schizophrenia and committed to a mental facility for threatening an ex-girlfriend in 2003, but he has not been named as a suspect in celina's death. hollywood honoring a television legend days before what would have been her 100th birthday. >> you can spoon your way to health. all you day is take a tablespoonful after every meal. >> now you take some. >> oh it's so tasty, too! >> gretchen: oh, my gosh. i used to watch those on reruns when i lived by myself. that was lucille ball in the my face commercial scene from her classic show "i love lucy."
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last night some of the biggest names in tinseltown gathered at the hollywood museum for a special exhibit honoring ball. tomorrow would not only have been her 100th birthday, but the 60th anniversary -- can you believe that -- of her classic tv show. >> steve: do you love breath mints? >> dave: who doesn't? >> steve: at the university of tennessee, somebody was complaining about let's go ahead and put it up on screen. there is a candy product that says this is changed disappoint mints. one kid was offended and he contacted a democratic state lawmakers. law maker contacted the book store, they jerked them off of the shelfs. clearly candy censorship. >> the congressman said when you operate on state and federal dollars, you ought to be sensitive to those type of politically specific products. so we asked you is this free speech? can the book store put it up? we had all sorts of satire
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things over the years. one says i have sent an e-mail to representative armstrong letting him know he should have better things to do with his time. >> gretchen: it's embarrassing that we don't have lawmakers like this. if you take away the ones that are satirecal, then take away others. >> steve: the mints are sweet and here is a tweet. it's refreshing to see truth in advertising. let them stay. i'd like to say lib thin mints to match their skin. ouch. >> let us know how you feel about it. find us at the e-mail you type. and twitter. >> gretchen: democrats love to talk. recent time, have you noticed a new strategy talking about president ronald reagan.
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>> right hand reagan, ronald reagan was a strong conservative. >> we agree with ronald reagan and many others that we can not default. >> gretchen: but instead of quoting him, should they be following his lead? michael reagan, his son, here next. >> steve: facing major cuts thanks to the debt deal, should we cut things to those protecting all of us. general michael hayden weighs in on this friday's "fox & friends." [ charles ] when you can make a person smile
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when they taste the food that you cooked, it does something to your heart. i think what people like most about the grilled food is the taste. the flavor comes from that oak wood. the shmp, the fresh fish, the steaks. it locks in the flavor, it seals in the juices so that when you put the fork in it, it just goes through it like butter. it's beautiful. [ laughs ] i'm proud to be a grill master. i love food. my name is charles himple. i'm a red lobst grill master, and i sea food differently.
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took some crazy risks as a kid. but i was still over the edge with my cholesterol. anyone with high cholesterol may be at increased risk of heart attack. diet and exercise weren't enough for me. i stopped kidding myself. i've been eating healthier, exercising more, and now i'm also taking lipitor. if you've been kidding yourself about high cholesterol...stop. 80% of people who have had heart attacks have high cholesterol. lipitor is a cholesterol lowering medication, fda approved to reduce the risk of heart attack and stroke in patients who have heart disease
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or risk factors for heart disease. [ female announcer ] lipitor is not for everyone, including people with liver problems and women who are nursing, pregnant or may become pregnant. you need simple blood tests to check for liver problems. tell your doctor if you are taking other medications or if you have any muscle pain or weakness. this may be a sign of a rare but serious side effect. great ride down. if you have high cholesterol, you may be at increased risk of heart attack and stroke. don't kid yourself. talk to your doctor about your risk and about lipitor. >> steve: he is one of america's favorite presidents. now ronald reagan is making a comeback, president obama and democrats invoking the gipper during the debt debate. >> ronald reagan.
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ronald reagan was a strong conservative, but ronald reagan said that there were important times for compromise for the good of the country. >> we agree with ronald reagan and many others that we can not default. >> would you rather reduce deficits and interest rates by raising revenue from those who are not now paying their fair share or would you rather accept larger budget deficits, higher interest rates and higher unemployment? i think i know your answer. those words were spoken by ronald reagan. >> steve: okay. we've heard his name a lot. how did the two presidents really compare? ronald reagan's son, radio guy, michael reagan, joins us from los angeles. good morning to you, sir. >> good morning to you. i listen to that and it's interesting. people need to remember, when you go back, they're talking about my dad and what he said about fair share and what have you. bob dole went to my father and said, democrats promised $3 in spending cuts for every dollar
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in new taxes. my father said, bob, you know, you're the leader of the senate. okay. i'm in with it. so my father signed on to tefra. my father died in 2004, still waiting for the $3 in spending cuts that just never seemed to get there. >> steve: they promised and that darn congress. we've got graphics to compare reaganomica with obamanomica. when your father became president, he inherited a national debt adjusted for inflation of 908 billion, versus president obama, he inherited a national debt of $10.1 trillion. and then you fast forward and how are they doing so far? there it is right there. 2 1/2 years later, $390 billion added to the national debt under your father's administration, versus 2 1/2 years later during
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obama's presidency, 4.4 trillion added to the national debt. so there seems to be a small difference there. >> there is a small difference there, but also at the same time, remember, ronald reagan at the time was creating jobs by lowering taxes, lowering regulation, letting the private sector, in fact, get involved in solving the problems that we had in america at that time under jimmy carter. this administration is disallowing the private sector from getting involved by high taxation, high corporate tax rates, high regulation. look at the regulation we added in the last month or two. this does not help create jobs. ronald reagan if you're going to create jobs, it's within the private sector. >> steve: we've been talking about gdp, when your dad inherited, he inherited a negative 3.2 gdp. this president inherit add rate of about negative 5%. 2 1/2 years after president reagan took office, gdp was
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5.1%. and then 9.3 the next quarter, versus under this administration and this president, 1.3 as well. >> but also jimmy carter saying about jimmy ford, the misery index was 13 1/2%. the inflation rate and jobless rate added together and he said nobody should be elected president of the united states with the misery index over 13. 13 1/2%. so we elected jimmy carter. it went to 21% under jimmy carter! if you look today, the misery index in america is the highest it has been in 28 years. it sits at about 12.6%, the misery index, and it's going up. it is not going down. you can ask that same question my father did. are you better off today than you were four years ago? and the answer across america is an absolute no. >> steve: absolutely. and we're waiting for a big scary, perhaps unemployment number coming up in 11 minutes as well. michael, we thank you very much.
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i understand you've got a column coming out later today if people want to look at it, go to reagan.com. >> thank you. >> steve: straight ahead, the defense department is taking one for the team facing big cuts because of the budget deal. but is it a good idea to cut money from the people protecting us? the former head of the c.i.a., general michael hayden, is in the studio and he's next. and don't go anywhere. matt nathanson live on today's summer concert series. we've got a big crowd today. hey, matt! ♪ [ male announcer ] heard this one? listen to this. three out of four americans don't get enough vegetables. so here's five bucks to help you buy v8 juice. five bucks. that's a lot of green. go to v8juice.com for coupons. you can count on us.
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>> dave: welcome back. the new debt deal between congress and the president cuts $350 billion from the defense department over the next ten years. and even more could be cut from defense if congress can't agree to further cuts in other areas. that's that trigger we've been hearing about. defense secretary leon panetta warned that may jeopardize national security. >> if it did happen, it would result in a further round of very dangerous cuts across the board. defense cuts that i believe would do real damage to our security, our troops and their families, and our military's ability to protect the nation. >> dave: referring to it as a doomsday. joining me is former c.i.a. director under president bush and the current director of the shirtoff group. doomsday? >> yeah. it could get really bad. i think they planned how to absorb that first wave between
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350 and 400 billion. but if that automatic trigger kicks in, it kicks in without a strategy. it just kicks in as a bill. that's going to require some significant restructuring and really will cut into muscle. >> dave: a lot of critics and american citizens, we're having to cut all over the place right now. we're having to tighten our belts. $14 trillion in the hole. can't the pentagon tighten its belt a little bit? >> it can and it already has. under secretary gates, it went into itself to find savings. it found over $100 billion worth of savings there. we've got the next 350 to 400 billion. it can do that. >> dave: the concern is the trigger? >> exactly. >> dave: what happens if congress doesn't get itself together and that's that trigger that goes into effect, could be some saying catastrophic? >> i would agree because it's not strategy driven. it's budget driven. it's just a number that's delivered. look, i'd be the first to admit as the director of the c.i.a., i had $2 under my control for every one dollar george tenet had on september 10.
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the american people have been very generous with its security establishment over the last ten years. but we in turn have been very effective. we've had great success. bitter fighting in iraq, but success. we had the potential for victory in afghanistan. we've certainly put al-qaeda in a different position. we've been very effective. we also recognize we have this other problem and we're going to have to give as well. we just want it to be done prudently. >> dave: prudently and the american people wondering can we fight the war on terrorism effectively? can we take care of the threats that we're going to talk about in a second, home grown terrorism and otherwise, with these cuts? >> well, you have to look and you have to make good judgments. i see three things we have to be able to do. continue the war on terrorists. this is not a peace dissident. we're at war now. we'll be at war in a year. second, make sure our force is capable of handle emerging threats, read north korea and iran. then, you've got this kind of
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long-term arc to be prepared for to deal with what i'll call a near peer which everyone understands as a growing china. not that they need to be an enemy, but growing chinese power means we've got to do some things as well. >> dave: the administration on wednesday released a plan to stop desk extremism by encouraging facilitating sort of group-run project, encouraging the muslim community, but not identifying one community. what was yours response to what the administration did to tackle home-grown terrorism here? >> there is nothing in that document with which i would take issue. i think it's all goodness. now, fair to say there is a possibility there should be more things in there. who is responsible for pulling this all together? i'm looking in there in the face of what we've just talked about, how much money? what kind of funds? >> dave: you think they're being too politically correct by not identifying anyone? >> no. they mentioned al-qaeda as the primary threat. that's good. i'm talking about who in our government is the go-to person? i saw senator lieberman and
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senator collin say, who do we talk to to testify to tell us if we're doing well or not? but the overall approach is solid. it's talking about different communities who are targets. not vulnerableability. nothing wrong with the communities, but they're targets of extremists. we need to help those communities. >> dave: great to have you here this morning and great thoughts on all this and making sense of it for us. >> thank you. >> dave: coming up here on the show, we're minutes away from that labor department releasing the unemployment report for july. we'll have those numbers for you straight ahead. plus chris wallace and eric bolling with what those numbers mean for our economic recovery. then put the blame on me, ma'am. a robber steals a woman's purse and brings it back to her a few days later with a note. plus, matt nathanson performing live on the summer concert series, rolls on in two minutes.
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>> gretchen: fox news alert right now. why? because the july unemployment rate has just come out and look at it on your screen. it has gone down by one tenth of a percent. 9.1% is the new unemployment right now, down from 9.2%. as for jobs, this is good news right now. the economy has added 117,000 jobs in july. that is great news because in may, i believe it was 23,000 and june was even worse at 18,000. now we've gone significantly up. what does that mean for the to go market today? let's bring in chris wallace to react to that. what do you make of it? >> let me talk, first of all, about the political impact. it's obviously no cause for celebration in the sense that you need about 200, 250,000 jobs to make a real dent in
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unemployment and get americans back to work. on the other hand, exactly as you say, it is a whole lot better than the 18,000 in june and better than the estimates which had been about 85,000, 87,000 jobs created. i don't know the impact that it's going to have on wall street. it's obviously better news than it could have been. on the other hand, i've talked to some top financial experts in the last 24 hours who say most of the selloff yesterday had nothing to do with the united states. it had to do with europe. some people say 90% of the selloff had to do with europe and the fact that big economies there, like spain and especially like italy are now in trouble under the european central bank was indicating it wasn't going to bail them out. so i'm not sure this is the cure for all of our problems. but it is not great news. it's okay news. certainly better than expected. that's okay. >> steve: chris, there is one other component to figure in and according to apparently the department of labor, the
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unemployment rate fell because so many people simply stopped looking for work. they got discouraged and said, i give up. and because they're not looking for work, technically they are not counted as unemployed. >> it will be interesting to see what the underemployment rate is, which takes in people who have given up or want full time work and have only gotten part-time work. and i suspect that's in the high teens. look, we're still at a mess. it's a very, very weak recovery. and that gets us to what is going to be one of the key topics of our show on sunday, which is in this new age of austerity, and with this very weak recovery, what can and what should washington do to try to help the economy? some people will say just get out of the way. let the economy and let the private sector do what it should. others, like the president and some democrats, are saying, we need to see payroll tax cuts. we need to see stimulus, like infrastructure, obviously not $800 billion of stimulus.
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we'll be talking to mr. budget for the republicans, paul ryan. we'll talk to bill miller, the head of leg mason capital management. so if there is anybody who knows about the markets, it's bill miller. >> dave: representative ryan, of course, hammering the president on exactly what sort of jobs plan do you have? we saw that yesterday. it will be curious what you think about this. we're going to start to see more of that in the press room when we saw a number of reporters asking the white house spokesman about that. what is the president's plan for jobs? >> absolutely. here is the president of the united states, 2 1/2 years in, and he's talking about going to the midwest to have a listening tour the week after next and i think a lot of people would say, mr. president, you don't need to listen to us. it's your government. you know the numbers. you've been in it 2 1/2 years. how are you going to get us out? the president talked a lot in the 2010 campaign about the car was driven into the ditch. it seems to be back in the ditch. how are you going to get us out?
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>> gretchen: interestingly enough, we're going to have eric bolling coming up, talking about these numbers as well to get his analysis. when you have paul ryan on your show, will you ask him whether or not he thinks he'll be nominated to that subcommittee, or that big steering committee -- >> steve: super committee. >> gretchen: one of those. >> absolutely. absolutely. and we want to talk to him about that 'cause he would seem to be a very logical choice for that. and one of the questions, because one of the things i worry about is is this committee being set up for failure? we know about the stalemate that we had leading up to the debt ceiling where all the republicans were against any revenue increases, all the democrats, or the vast majority, were against any changes in entitlements. are the republicans going to appoint only people who toe that line and the democrats do the same? in which case by next thanksgiving, we'll have another deadlock and another perils of pauline situation as we head for the cliff. >> dave: we have another simpson
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bowles commission that everyone ignores. we'll watch your show on sunday. >> thank you, clayton. >> steve: we've got more headlines for you on this this friday. the drug violence in mexico forcing an entire police department to call it quits. the border town near new mexico now being protected by state and federal police. three officers were executed in that town earlier this week and now everybody else has quit. >> he joined the military, but refused to fight for our country. >> because i believe i can't deploy and be a muslim. >> there is enough evidence to send the case to a grand jury. he was accused of planning an attack at a restaurant. he was arrested with guns and bomb making material in his hotel room, along with radical
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islamic material. >> gretchen: update on the georgia woman convicted in the death of her four-year-old son. you may remember raquel nelson's little boy died after he was struck by a car while the two of them, the mother and son, were j walking across the street. >> it was scary. it was quite scary, to say the least. >> the trial takes place, you go through it and you're convicted. >> scarier. >> gretchen: well, that was nelson on our show last month. she ended up getting a worse sentence than the drunk who was behind the wheel and killed her son! now the case is reportedly being retried and a local lawyer agreed to defend her pro bono so hopefully a better outcome this time around. the judge gave her the option of going to retrial or not and she decided on the retrial. >> steve: meanwhile, call him the remorseful robber. guy seen stealing a lady's purse at a grocery store in new hampshire, shows up at her house a couple of days later to
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apologize. police believe the suspect got scared when he realized he had been caught on surveillance camera. that's the guy. he reportedly gave the woman all of her money back, plus $10 for her trouble. he also wrote her an apology note and signed it stupid, but remorse not enough. police say they will charge him if they can catch him. and we know what he looks like. >> gretchen: somebody knows who that is. coming up next on the rundown, we just told you the unemployment rate dipped now to 9.1%. eric bolling is going to break down what that means for your money next. >> outside to dave. i thought it was famous dave's. what's coming up on the weekend show? >> are you saying i'm not famous dave? coming up on "fox & friends," biggest series of cyber attacks ever. it's hit the u.s., the u.n., how did our government miss this? was someone sleeping on the job?
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then one state considering adding a fifth year of high school so kids get a diploma and an associate's degree. is this a good idea? we report, you decide. now more of our all american summer concert series. here is matt nathanson with "the bottom of the sea." ♪ come on down ♪ ♪ to the bottom of the sea ♪ come on down ♪ there is room right next to me ♪ ♪ tired of getting eaten ♪ let's live life at the bottom of the sea ♪ ♪ so many cars drinking too much gasoline ♪ ♪ there is no good news on my tv
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screen ♪ ♪ there is a hole up in the sky ♪ ♪ come on baby die and live at the bottom of the sea ♪ ♪ trying my best ♪ and more pills. afternoon art starts and so does her knee pain, that's two more pills. almost ne, but hang on... her doctor recommended aleve cause it can relieve pain all day with just two pills. this is lisa... who switched to aleve and fewer pills for a day free of pain. and get the all day pain relief oaleve in liquid gels.
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the two trains and a bus rider. the "i'll sleep when it's done" academic. for 80 years, we've been inspired by you. and we've been honored to walk with you to help you get where you want to be ♪ because your moment is now. let nothing stand in your way. learn more at keller.edu. you have arrived. sweet belt. e-reader for textbooks. gps. video camera for lectures.
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game pad. have you considered this ? it's got all tha and more than 200,000 apps. technology to learn and play on-the-go. only at verizon. android powered. playstation certified. the xperia play by sony ericsson. only $99.99. >> gretchen: breaking news, the numbers just came in, the new jobs report for july showing unemployment down to 9.1% now from 9.2%. 117,000 jobs created in july. that's up. the news is better than expected, but the news coming a day after the dow jones plummeted more than 500 points. its worse single day drop since 2008. eric bolling is the co-host of "the five" and economic analyst and he's my guest right now.
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immediate reaction to those two job numbers? >> right. first of all, isn't it sad that we're saying, good news, we're only down to 9.1%? unemployment. it's way elevated and shouldn't be here. the stock market took a massive hit yesterday, 500 points, because a lot of things were going on. first and foremost, the debt ceiling -- remember it was going to save the economy, it was going to save the global markets if we raise that debt ceiling. you got to give credit to the tea party, they said don't do it because that's not the answer to this. we were saying, it's not the answer. turns out it wasn't. the markets started to roll over and it was one thing after the other. some european news, absolutely. but not 90% of it because of the european news. a bank in america said if you have a big account with us, we're going to charge you to keep your money in our bank, which is unheard of. people freaked out and said what's going on? people were running to cash. okay. this number, the stock market ticked up right after that number came out. i will tell you i've been
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through 1987 crash, i've been through many crashes. i went through 2007. we haven't fixed the underlying problem in the economy. so 100,000 jobs ain't going to solve it. mr. obama is out of answers. jay carney, you've been running to the side, he has no more answers. you can't meet with your people and say, what are we going to do? do something. >> gretchen: let's seven to what jay carney said because he basically said it's not really their fault. listen to this. >> there is no silverbullet and i have not heard one proposed by anyone in washington or beyond that there is a silverbullet to help our economy grow faster or create jobs. >> gretchen: is that true? is there a silverbullet? 'cause i understand you have some. >> i have a plan. i put it out there. at least one presidential candidate has said, i agree with boling's plan. here is the plan: there are about $2 trillion sitting in bank accounts, u.s. corporations have bank accounts overseas 'cause they do business overseas, in foreign countries.
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$2 trillion of our dollars sitting in those accounts. they'll never bring it back because it would cost them 35% to bring those profits back. it's our corporate tax structure. if you drop that 35% to a whopping 0, allow them to bring the money back for no tax at all, but a quarter of it has to go towards job creation. in other words, you have to hire people or buy u.s. equipment with that money, you'll create at least a million jobs. by the way, there is no risk in doing it 'cause the money is not coming back anyway. >> gretchen: will the stock market go up? >> it may, but i guarantee you within a couple of weeks, i'lling sitting on this couch saying, this thing, no, it's not onion upward trajectory. one number like that is not going to change it. >> gretchen: eric bolling, we'll see you on "the five" today. >> sorry, i wish i had better news. >> gretchen: i still like you. next on the rundown, matt nathanson is ready to rock your world live on the all american
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concert series. let's check in with alisyn for what's on at the top of the hour. >> we'll be talking about the same thing you just were. the stock market saw the biggest drop since 2008. so what will happen today? we have neil cavuto, art laffer and others here to tell us. also the nra says the obama administration is using a back door method to reduce gun sales. we'll talk to the head of the nra. american couple just told that the daughter they adopted three years ago was actually kidnapped. do they have to give her back? all that and more when bill and i see you in ten minutes. o this. three out of four americans don't get enough vegetables. so here's five bucks to help you buy v8 juice. five bucks. that's a lot of green. go to v8juice.com for coupons. you can count on us. check out the bass pro shops fall hunting classic with huge savings on great gear. like and under $60.
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>> steve: are you ready for some music, new york? [ cheers and applause ]
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>> gretchen: we have matt nathanson and he's going to sing off his new album. >> clayton: i heard somebody say when they were warming up, are they going to play the song "faster"? i think they are. off of the brand-new album. take it away, matt! ♪ you're so delicious ♪ ♪ you're so soft ♪ sweet on the tip of my tongue ♪ ♪ you taste like sunlight ♪ with strawberry bubble gum ♪ you bite my lip ♪ you spike my blood ♪ you make my heartbeat faster
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♪ you rattle my bones ♪ you put me over ♪ make me alive ♪ she make my heart sing ♪ it's the way you swell, slow ♪ ♪ pushing right out of your seams ♪ ♪ it's the way you smile baby ♪ when you've got me on my knees ♪ ♪ you're all night noise ♪ you're siren howell ♪ you make my heart beat faster ♪ ♪ own me ♪ you own
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♪ you rattle my bones ♪ you turn me over and over ♪ 'til i can't control myself ♪ make me a liar ♪ one big disaster ♪ 'cause you make my heart beat faster ♪ ♪ 'cause i jump back, crash, i crawl ♪ ♪ i beg and steal ♪ i follow you ♪ yeah, you own me ♪ and you make my heart beat faster ♪ ♪ yeah, faster, faster ♪ i can't get enough ♪ i guess it's gone ♪ guess the world is over ♪ you own me ♪ and rattle my bones ♪ you turn me over and over
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♪ 'til i can't control myself ♪ make me a liar ♪ one big disaster ♪ 'cause you make my heart beat faster ♪ ♪ you rattle my bones ♪ and turn me over and over ♪ 'til i can't control myself ♪ make me a liar ♪ one big disaster ♪ 'cause you make my heart beat beat ♪ ♪ faster ♪ you make my heart beat faster faster ♪ ♪ ♪ [ cheers and applause ] turn left. you have arrived. sweet belt.
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>> gretchen: welcome back. more the

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