the national debt will be about $16 trillion when we return from the labor day weekend. your share is nearly $51,000. the beat goes on, people. don't forget to record the show if you can't catch us live. have a great night and we will see you back here on monday. lou: good evening, everybody. it will soon be the democratic party's turn to re-dominate president obama at the democratic convention in charlotte. but unlike the democratic extravaganza four years ago, this year's event expected to be a much more toned down affair. in 2008, hundreds of thousands watched than senator obama accept his party's nomination. enormous greek columns flanked the stage.

polling shows that democratic voters are not as fired up at this time around. a recent gallup poll showing 39% of democrats more enthusiastic about voting than usual, compared to 51% who say that they are. that is not the only problem plaguing the defense the convention. high-profile democrats encouraging members of congress to skip the three-day convention to stay home and campaign in their district. there is also the question of whether former president clinton will upstage president obama. bill clinton setting up a primetime speaking this spot, one night before president obama on wednesday. having the former president could backfire. reminding the sharp contrast between the two presidencies. clinton oversaw a boom economy in the 1990s. this president is overseeing 42 straight months of unemployment above 8%. the worst economic recovery since the great depression. as a result, president obama is

in a dead heat with governor romney with just over two monthy tsfore election day.s docra my next guest says thatdg democrats have long had an edge on the issue of medicare, andre, their republicans cowered injoiu fear. but it is stiff this year. joining us now is karl rove.er i senior advisor to president. george w. bush, fox news contributor. it is great to have you with us. i want to turn to this pressfirs conference, first. imp a drop in and a pop in, impromptu press conference,hnoly karl.the is this the president acknowledging the reality that he is rea getting hammered, as e famously said, not tough enough to take on the questions of the press corps? te >> i've been criticized for not showing up, spent 22 minutes and go out of there. hou p look from the white house pressm corps seems to be suffering.e fu

many of them from a stockholm syndrome. the first question on the boxes, would you like to denounce theun republican candidate in missouri for being an extremist?to u t tsoha, wally your attic, use ts to turn against your opponents? how is that for an openingw question?e fl t coming months did he go into the question in the white house press corps? flo the reporter from cbs was tough, but nobody followed up.omne feln the president said we have never called mitt romney a felon. despite the fact that it was not only stephanie cutter, as was noted by ed henry, but bobrmer e bauer, who is the white houseo e counsel to the obama reelection campaign repeated the charges less than five weeksless ago.mei does the president have a shorty memory, or is he just saying that if he says that come we are going to believe it. who will be going to believe? lou: i have to say that the was preamble to the first question was also, i thought, i enjoyed it i tremendously. ts ourning to this race, we areo p

tooking again to this.shif this thing is as tight as we can be. are we seeing a shift inaul ryan momentum? paul ryan seems to have goneis e energy to the campaign. is there an impact, and if you will, a clearer path to the white house for governorve romn? s have engaged on this issue of medicare early rather than late, normally what happens is in the closing moments of the campaign the democrats send mailers to seniors in a late-night phone calls to scare them over medicare, and now we're having an honest debate about it. the american people understand programs are going bankrupt. we need to do something to save them. the republicans are laying out a concrete plan engaging. an element that the democrats can use at the end, but this has been going on for a while other republicans have been gaining a

better pass in a tough election to victory in the democrats. president obama's problems are that people don't believe that what he has done, you know, is helping the economy. a recent poll said 46 percent said his policies will never approve the economy. that is pretty harsh when nearly one other every to say that he will never improve the economy. two-thirds say his policies have today either not helped or have actually hurt the economy. that is pretty tough if you're the incumbent to be dealing with those kind of numbers. whereas romney's problems are basically people don't know as much about him as then up the president's. lou: you are this age. i would love to hear your explanation. his approval numbers, his head to head numbers year whatever romney don't seem to but said much despite to match what as you say, are calamitous numbers and the other context. >> well, remember two things. first of all, at this time the

middle of august of 1980 jimmy carter was ahead of ronald reagan. second of all, remember the process. people basically have chosen this side are willing to choose a side. everyone else is floating out there. eight, ten, 12, 40 percent of the vote is either undecided or upper grabs. a weekly link. what they're doing is observing information and at some time, the need to make a decision and are ready. maybe after the conventions, maybe during the debate, but at some point they're going to make a decision and fall into the camp. you know, there is one of the number that came out today that is really astonishing, and it is a sign of the momentum that you referred to earlier. the republicans announced last week that they had $186 million cash on hand at the end of july. the democrats waited until today, the legal deadline, to announce they have $124 million cash on hand it to the dnc and obama which means the republicans have as $62 million cash on hand advantage. remember this. at the end of april the

democrats were up by 95 million. end of may, up by 61 commanded the indigent, a budget a million. obama won in 2008 in large measure because he spent far more money than john mccain did. they hope to take debt spending advantage in terms of their advantage in the fall this time around. , but there has been too much and raced to the vote despite 205 presidential fund-raisers. after the end of july they fell decisively behind ryan -- the romney ran ticket in raising money. lou: thank you very much. those are fascinating reaction of paul ryan as the vice presidential candidate and how it the campaign may have just change. our next guest says the president wants a smaller, poorer america in the name of global fairness. "the new york times" best-selling author, dinesh d'souza, whose brand-new book, "obama's america", on making the

american dream -- it was released yesterday and is already on the amazon top 10 bestsellers list. he is being busy, productive and successful. he is also the executive producer and cowriter and director of the newly released movie, "2016: obama's america." lou: conveniently in your new book coming to examine prospectively what the reelected president obama would do, what america would look like, you talk about the founding fathers, talking about the harvard law professor roberta ungerer. explain the impact. >> obama was obsessed with his father, his own father. but barack obama senior was an interesting father.

he looked for surrogate fathers and he learned of what he took to be his father's ideology from those ideas. we know about some of those guys, there was a communist, frank marshall davis in hawaii. we know about jeremiah wright, we know about others. roberto unger was a professor at harvard. he is a brazilian socialist. and he is a guide that has written that he would like to see brazil and china, india and russia getting up on the united states. he says it's a bad idea for america to be number one. he calls that american hegemony. he says it's time to end it. he wants them to come tonight and pull america together. lou: what does he bring to the students of harvard university. what kind of madness is that. >> it's like the fools who thought that the euro who would replace the dollar.

these wonderfully sophisticated transit winning genie says the top of the dollar's days were gone. >> at harvard this guy is not only tolerated but celebrated. obama took a bunch of his courses and the two of them maintained a close relationship so that when the 2008 campaign came around, this guy skipped town and he declined all interview is when he says i'm a leftist and revolutionary. if anybody can ask me what barack obama, it will hurt obama. lou: he is represented as some kind of insight into the future. >> you are right. the problem is when the problem is taken by a guy who's sitting in the oval office who has a position to use these ideas to shrink america's role in the world. lou: you talk about the united states of islam. tell everybody what you mean

when those chilling words are expressed? >> there are three important countries in the middle east. three significant countries, there is egypt and iran and saudi arabia. since 1979, iran has been in the hands of the radical muslims. egypt is on the way to the radical muslim or, the muslim brotherhood coming to power there. what is left? saudi arabia. can you imagine if obama were to demand that the saudi royal family put itself up for free elections against the muslim brotherhood. it would when? i think the muslim brotherhood would win. then what would happen? you would have the three most important tripod, if you will, of islam, all in the hands of the radical movements. that is the dream that they have always wanted to bring the whole middle east into a single orbit. a single caliphate, if you will. one guy calls up united states of islam. lou: it applies to both sunni and shia.

>> here in the united states we have a civil war. we worked things out. we had to fight her way through it. but islam as a global power, that's a big dream. lou: dinesh d'souza, it is a big book and we are delighted you have written it. as i have said already, you have been on the top 10 on amazon. surely to the very top of "the new york times" bestseller. the book is question. that is tonight chopped off. in deferred deportation. up to 2 millioyoung ilgal immioong t lou: up to 2 million young illegal immigrants looking toward deportation. kansas secretary of state kris kobach has a few objections to the president's immigration be out. he joins us next. want to try to crack it? yeah, that's the way to do it!

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met in birmingham. he argued that the states are not discriminatory. and it has helped reduce crime and unemployment in the state. joining us is kns lou: sir. how would you characterize both

the accomplishment and conclusion of today's meeting? >> well, there were a lot of facts from on the table and that it is a pretty dramatic and pretty positive outlook for the state of alabama. for example, moments after nine months after the bill was signed into the law, it went down two full points. meanwhile on the whole u.s. economy, only dropped to 0.7%. alabama is now one of the state that has lower than average unemployment. and people credited to the law. the law encourages illegal aliens to leave the state. u.s. citizens can forward. crime in certain categories is down. it has been a real success story, interestingly, some of the opponents of immigration enforcement tide tide of protest. they didn't want these facts on the table. but the facts are powerful.

>> when you lycée protest, how could they possibly change -- the testimony before the commission in a well, they were trying to shut down some of the speakers. >> especially when you deal with issues as controversial as illegal immigration. let's turn to a couple of things. we have also seen a commensurate decline in welfare. the state level, the federal level, jobless claims, what has been the impact their? >> we have seen the decline in jobless claims and states like arizona and alabama and other states that have very vigorously try to reinforce the rule of law. in terms of other welfare programs, we should be saying oe

decrease in welfare outflow is due to fewer illegal aliens. lou: the justice department making clear the state of alabama was concerned about illegal immigrants. the children of illegal immigrants. in public schools there. what has been impact there as well? >> well, contrary to the claims of some of the people in the open borders crowd, that somehow this was, you know, this would shut down the school systems or would be denying people their rights and education, it hasn't. alabama has been collecting statistics and giving the better job of seeing how taxpayer dollars are being spent. lou: and the texture court of appeals on hazleton trying to resurrect the hazleton -- 2006 laws. when will we have a ruling, do you expect, on our?

>> is hard to predict when a court of appeals will predict a room. i expect in the next 12 months soon can i ask -- you are an excellent steward of the law. why should we put up with courts taking that long to want anything? i mean, this is not. >> i have to be careful as an attorney. lou: you know what, it's about time the legal profession gets on it. do you know? it is discussing what we are watching. [talking over each other] i'm talking about whether it is a criminal trial or a civil trial, in this country is walking along as the nation's sheep. the criminal trial, two to three

years for the madness of it all is overwhelming. business, the economy, our society. it is destructive and no one has the guts in your profession to talk about it. >> i think that some do. to be fair, some of our courts are really overloadeoverloade d. some of the circuits don't have enough. >> i don't want to be fair. i want to be right. and i would like to know where that word is that is efficient. i want to hold it up as a model for the country. currently, i couldn't pointed out. you know, there are a few circuits like this. the fourth circuit. >> it sounds to me like you might do a lot of practice of the fourth circuit. >> their nickname is the rocketw perverse it gets in the weeks ahead. up next, government workers and union bosses. living high on taxpayer money. the private sector are struggling, of course.hat this

administration want to do something about it. something about it. meanwhile, you see us, at the start of the day. on the company phone list that's a few names longer. you see us bank on busier highways. on once empty fields. everyday you see all the ways all of us at us bank are helping grow our economy. lending more so companies and communities can expand, grow stronger and get back to work. everyday you see all of us serving you, around the country, around the corner. us bank.

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lou: a new book has shot to the top of the bestseller list. democratic party leaders are not too thrilled about this book. that is because there are 8.3 million government workers in the country. 8.3 million of them. that is a lot of folks. and they make more money and work less than the private sector workers. a plain statement of fact. you and die, taxpayers, all of

us are paying for the time that they spend. we are paying for the time that they spend working on union related matters. that is called release time. release time. it amounts to, amazingly, 23 million man-hours and it is effectively a taxpayer union to the tune of $1 billion. $1 billion a year. really? released a taxpayer money. it is incredible. this will please you, too. nearly half a million, half a million federal employees. that is one in five employees are also compensated.

let's make that one in five. one in five federal workers. that makes in excess of $100,000 each year. they reived up to 2.5 months time off. each year. being a public employee union boss is really -- well, it is really the pinnacle of it all. the union bosses make on average 10 times what their members make.

the president of the american federation of state, county and municipal employees union -- the union union makes just $535,000 per year. $555,000 per year. president of the national education association, the nea, the american federation of teachers, we will call it that, they are in for 400 grand per year. and the teachers unions, by the way, teachers unions overall collect more than -- i'm just going to use this, teachers unions collect $2 billion in

dues each year. think about that. $2 billion in dues. that money is going to liberal politicians, for example, president obama, his signature health care law designed to unionize says that this new book, 21 million health care workers. 21 million health care workers. is it starting to come together for everybody? are we starting to see this web of interesting direction and why? because for every million of these workers, unionized in the 27 non-right to work states, the unions stand to earn a billion dollars in dues.

do you get the feeling that there is little at stake here when we talk about obamacare, health care health care workers, and unionizing as many as 21 million health care workers? well, if you are trying to catch her breath after taking a look at these numbers, get ready to meet the author of the new book "shadowbosses: how government empoyee unions control america." mallory factor is the author. but first, we want to explain the numbers at the bottom of the chalkboard. 28% is the percentage of latinos, 28% of latinos who say that they will back governor romney in the new wall street journal nbc poll. 28%. the republicans, by the way, are looking for 38%. voters. our liberal teachers unions and

indoctrinating our youth? guess who really runs our public schools? f will be talking about public

lou: low with the "chalk talk" we laid out howtaxpers taxpayers finance union's therei and health care law was and to the effort to unionize ismiion c health care workers. packe with these packets of thetogethr information's shuttle buses, buses, control america to rob taxpayers blind.

>> what a "chalk talk."overnmt l lou: we have more to cover. this is a significant part of the true agenda. the government employee unions list united healthcare. and government starts paying more and more to health care services they will unionize.dent you'll see nurses, doctors, every 1 million members islou: >> sing.on in dues. lou: that is standing. what about the obama agenda?>> i >> the president was anan

organizer. obama's is the first union labor president. lou: i did not think of that although the newt gingrich was a food stamp president but there is a lot of history coming into int collision one is the right to work when most people arebega relegated to the dustbin ofdust history with union organizedte s labor in the private sector. the 37% are organized.. >> and even more and undermocr

control because of a collective bargaining. the democratic party figure may out if they give money to the politicians, they give money back to them. >> this goes back to the fifties. how many right to work states? we have 23.er it is not the whole story. itsn >> no. is right to work you don'tr the have near the unionism but only seven states you areg not forced into a collective bargaining.fights ove

they cannot force you to pay them but they are the solet representative. lou: so your rights are overwhelmed in the workplace. how strong is the right to work movement with rising eight union power a and riches and to move ahead to theth private sector? >> they have $14 billion perthin year to push politicians two wha feather their nest. they have no idea who theirthe a supporting a what they do with their money. it is shocking. this lou: how much of a role willt

they play? >> you would not have that to that we have today without the treasure trove of money. they are the engine of socialism. the money they supply is the gasoline to that engine. lou: good luck with the bookmu government unions control america. >> the booming chinese economy is slowed. how do they do that? we will take it up next.

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lou: is joining me to talk about the effect theo slowdown could have on us

the business days for moster two business school ine china, the e economy sounds robust. but even they they are happy with that right now. list of affairs always the statistics issue but we areidenn confident it is between seven and 8%. it does represent more of ath slowdown but robust. lou: now beented and well-documented attacksre with against united states and secretary of state clinton for comments to africa that. they are contesting for natural resources, seems to

be a strong response on the part of the chinese. >> first of all, this is the most important bilateral relationship in the world. there will be sniping that occurs periodically we nas leadership transition era . we are and the rhetoric will be erasable sides. of last several years contact between u.s.d chines government in chinese government officials has never been higher. lou: the chinese frome various quarters directly from the leadership.

but the fact is there is an at -- and ed to their. you are satisfied that is it? >> there is an edge in have chinese companies going out of chinaie to have outright ut ownership of companies in europe. lou: that $15 million deal buying it all right. do think that is smart notcnt to counter aergainst that th takeover of resources? >> i do say it will go through.

there are certain well-documented cases? chinese tried to acquire american firms and there are issues raised of national security. lou: why not? >> we are principallyy concerned with technology we have developed that is highly sensitive.ey are >> onthe chinese roastint lank interested in technology andts a above all other assets.urces is and it is manifest. that we would not object or insist on adjustment

responsiveness because they would never permit united states or canada to buy a chinese company period. to patronize that attitude that cannostaint on our parta it cannot sustain itself. many u.s. have acquired or take joint venturelo partnerships. lou: did i say that? by meant to say they buy it outright. >> i and stand. lou: don't respond th joint-venture when they area taking ownership of thet, company. can day or can they not?no in >> coca-cola made an effort

and pepsi andas dm brands. lou: you are great but you are saying i made the incorrect assertion. if the they can go buy it outright then say so. we agree. >> china hasab 30 or 40% of toay erecting capacity over the next four years for years. investment worldwide. deny the they are strong enough to t deny the investment but to largest potential growth export market, it is not why is to make strong statements

to allow chinese companies. >> is important to understand who will not operating with parity because they hold our dollars to run over us and our interests.i i have a hard break. much. naon, we will continue there dependena conversation.n th count americans are more dependent than ever how can this country return to lder her prosperity? here to talk about his new book, wealth and poverty.

seems they haven't been moving much lately. but things are starting to turn around because of business people like you. and regions is here to help. with the experience and service to keep things rolling. from business loans to cash management, we want to be your partner moving forward. so switch to regions. and let's get going. together.

lou: my next guest influence economic policies of reagan and paul ryan threw his best-selling book wealth and poverty from a legendary economist and social critic co-founder of the discovery institute written on >> technology, economics, it is great to have you. of >> delighted to be here. supply-side economics. and if lou: it is astonishing. i have a secret.riedman, b with the books of milton friedman the most importantic

written on capitalism over the last 50 years 60 years. it is great year brought back and congressmen ryan steadied at your knee with the books back is exciting it really represents a poli turning point* with the on recognition to spur demandentrel is the product of entrepreneurial creativity. those that destroyed demand. >> but they aren't surprised to hear you say that. that there is resources and g

finite it should be predictable many believe. >> the original zero sum game resources and famine sweeping the worldi. >> i will mention freed men. [laughter] everything is compartmentalized so we futu should prepare ourselves for the future rather than embrace it instead of azing looking at our potential.ps >> government props up the th past in the name of government. the land of wind will and no

solar cells and to deliver no significant energy all our benefit that is the key thing and if this ispt ridiculous but to catch sure with this green stuff. [laughter] it is corrupting american terpri veterprise. perti fendour philosophy is so compelling. you you don't defend capitalismyoeme or free enterprise youabout th create a great enthusiasm create and people forget to there

is so much wealth for the entire world. how important is it that everybody read the book? >> there is a generation that doesn't grasp the principles of supply-side economics of what they enjoy. it began with ronald reagan assuming office after the la carter administration.rowth. and 30 years of expanding growth.d now we are encrusted with regulation, litigation, wee supp ress st. co2. i we we are the life force and itthe is crucial.hat you don't do that by putting of

a cap t on the economy. their businesses that succeeded. lou: wealth and poverty is the name of his book. be sure you buy it. embrace who you are for all it is worth. >> we have your comments. take t next.he s the us bank wealth management advisor can help you. every step of the way. from big steps, to little steps. since 1863 we've helped guide our clients, so they can take the steps to help grow, preserve, and pass along their wealth. so their footsteps can help the next generation find their own path. all of us serving you. us bank these are sandra's "homemade" yummy, scrumptious bars. hmm? i just wanted you to eat more fiber.

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