special investigion into personal medical investigaon. it all startsonday. that is it for tonight's will report. we will see you monday. ♪ lou: good ening, everybody. thank you for being with us. the obama administration broadening investigaons into bengha, the justice deptment and the internal revenue service. stepn ehlert appeared before the house committee today to answer for his agencies targeting of conservative groups and those who have been vovocaln their opposition to the federal government. the hearing turneinto a public sham. miller took a page out of the

obama administrations general playbook. he claimed ignorance time and time again. >> i do not remember. i do not know. i do not have names for you. i do not believe so. i am not saying no, i just do not know. >> i do not believe so. i do not know. lou: miller was not only stonewalling the congressional committee, but refusing to answer. the ongoing commission or downplayed his significance. >> horrible customer service here. i will admit that. we did. horrible customer service. lou: customer service j russell george confirmed that

obama administration officials were awarehat he w auditing the screenings of politically active organizations well before the election. he informed the general counsel of his audit on june 40 / dear. deputy treasury secretary quotes shortly thereafter. a memorandum released shortly after th day's testimony to the republicans of the house. "whether or not the administration is sincere in its condemnaon in those actions will quickly be revled with its willingness to cooperate with conessnd mak officials available for interviews.

a failure to swiftly and fully comply with congressional requests will speak louder than any words or apology pam condemnation could." the memo promised that the investigation would continue until the american people knew the full truth. s commissioner stephen miller took responsibility for his failings and abusive acts of his department despite his inability to answer principal questions. a noble gesture from a man who was scheduled to leave this position prior to the president demanding his resignation. we have more on what was a volatile sessionon on capitol hill. >> i resigne because, as the acting commissioner, what happens in the irs, whether i was personally involved or not,

stopped at my desk. i should be held accountable for what happens. >> washe irs using inappropriate right area in its review? >> yes. >> did the irs asknaropriate questions? againn yes. >> i alerted the general counsel on june 4 and i do not have the date, alerted the deputy secretary.

>> they were aware ocomplaints ahead of the presidential election. one file for nonprofit status and the fbi domestic terrorism got involved and her business and personal returns or audited. >> the irsever told the american people or their representatives about this simple truth. in fact, we were repeatedly told no such targeting was happeng. that inot being misled, that is lying. >> regardless of whether democrats and republicans did something like this, the orage should still be there. is that not correct? >> if the outrage -- >> the abuse. >> yes. >> somebody could go to jail for this activity at the irs. miller said hh did not think that extra scrutiny broke the law.

>> do you think that it is illegal for employees of the irs to target individual groups of this country? >> others will be able to tell that. >> what do you believe? >> i do not believehat it is. >> this is very chilling for the american people. this is absolutely an overreach. >> the president met with the next acting chairman. he also met with jack lew. lou: thank very much. new developments tonight in the benghazi scandal. the chairman of the house oversight committee, he issued a subpoena to the coal board that issued the attack.

the white house also wants us to know it isetting serious about catching the perpetrators of those deadly attacks. the military haseen ordered to capture or kill benghazi suspects. meanwhile, cbs news is reporting anonymous white house officials now express regret that the decision not to send i counterterrorism response team on the night of the attack was taken. that decision, hower, was reportedly ruled out from the very beginning. they are now in nursing the call of the house republicans for a select committee to be established to investigate the benghazi scandal.

despite requests from the obama administration to not support president assad. joint chiefs of staff chairman cricized the russian move saying it was "ill-timed and very unfortunate." turning back to benghazi and the modified limited hangout by this administration. more than two thirds of republican house lawmakers now favor that committee to examine the benghazi attacks. our first guest tonight is one of those lawmakers. joining us now is congressman randy forbe o virgini congressman, good to have you with us. >> thank you, lou. i want to get your reaction to the hearing, the performance of the inspector general who sat aside of the now outgoing acting

commissioner, stephen miller. >> i think that we see across this admintration there is justice culturof of arrogance and absolute disdain for anyone who would dare try to hold them accountable. i think that is what you saw constantly coming through the testimony today. this adminisation loves to respond with i do not know. i do not know. they even started now with this thing of setting up investigations so they do not have to answer saying you cannot comment because of an investigation. this testimony today ought to put every american on guard and be very concerned about the internal revenue service. lou: a the chairman said, his

obvious arrogance and indiffence to the respect to a committee of the united states congress was worth taking. the american people, it seems, at least to me, should be extraordinarily outraged and deeply concerned about where this government, how this governments functioning. >> lou, they should. theyre terrible at governing they are terrible act governing. the other thing, it not just the disdain and arrogance at they have for the congressional committee. it ialso for american citizens. what you have heard is the tip of the iceberg. we have heard story after story. we are getting ready to hire new agents. we began: two years ago, trying

to draft the piece of legislatiothat would stop that from taking place. lou: a, we have learned today that the woman who is in charge of implementinthe affordable care law, obamacare, is the same person who is in charge of the tax exempt division that was targeting these conservative groups. this is an outrageous omission and failure to act on the part of president, it seems to me who said he was sincerely condemning the acts of the irs here and he was holding people accountable and he does not go to the very person who was inharge for part of that period. >> if you and i were to tell the american people everything that you just read in t list of all the scandals that are now factual, if we would have told them this a year or two ago,

they would have sworn we were conspiracy theorists. we are becoming more and more like a third world country inside of the greatest democracy on the earth. lou: first, the union representing the state department security office, some 26,000 people has endorsed the house republicans call for the establishment of a select committee to investigate and ozzy. is this going to be significant in impelling the formation now? do you believe? >> lou, i hope that it is. i supported it. these are real people. i have a picture of tiger woods on my desk that his father gave me. his father is entitled to answers as to who ordered those stand downs.

the american peoe need and deserve answersecause if we do not get those answers, we will have this repeated again. lou: where was the president the night that all of this occurred. did he order the stand down? it was a decision that they took at the very beginning of the terrorist attack. >> we need to know who ordered that. >> absolutely. congressman, we thank you for ing here. we will have much re here on the irs, benghazi and otr scandals. stay with us. we are coming right back. an alarming trend of sexual assats in our military. more than a decade of ongoing combat to blame?

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♪ lou: let's take a quick look at the markets. the dow of 100 points. not bad. the s&p up 17. the nasdaq up 34 points. just a 52 wk high. volume on the big board today, 3.5 million shares. the s&p and nasdaq both gaining just about 2%, four straight weeks of gains.

consumer confidence rising at the highest level in almost six years. a gauge of future economic activity rising to a nearly five-year high. bloomberg applying former ibm ceo to independently review the bloomberg company's privacy policies. this after bloomberg had to admit its journalists had access to private client data. goal today down on the week 5%. closing at $1365 an ounce. in the bond market, the yield on the ten year rising to 1.5%. it is clear. investors want the risk is asset which is equities. joining us now is clifford davis. good to have you here.

>> thank you for having me. what a time to be in your business. the market just keep going up. that is all i can tell you. the markets have no sign of easing. the only thing i would cauti investors is let's just think about the downsid something catches us off guard. keep that in your back pocket. lou: first of all, i want everyone very worried about this market. that usually ensures that we will have a significant amount of bears to give us some sort of equilibrium. one thing i am a little curious about is how someone gets bearish here. when you are looking at the bank of japan, you have a europe now the party in its own, while conservative fashion. the fed topping $85 billion a month into the system.

who will get in front of that freight tra? >> i do not think anyone will get in front of that freight train. that is why you see these huge rallies. the nikkei index is up a ton this year. frankly, what we are seeing is huge foreiin flows coming into the market. the average will go up about 1000 points over the next year. you will see insurance companies and retail putting their savings into those mkets. lou: right now, there has to be a premium of u.s. equities. the agencies are being gobbled up. we are not seeing it at the level of ipos that would inundate the market with new opportunities, i will put it that way this is, it looks like a paradigm for assured

acceleration. >> as an options trader, we are always focus on volatility. the ar index is what most people call it is really one of the bestndicators we have beuse it is a forward looking indicator. there is few people who have any fear within these markets. lou: look at gold. this has been an unbelievable reversal. is it likely to continue? give us your outlook. >> i think gold could go down another fiv10%. as warren buffett says, what are you going to do? eat gold if there is nothing left? lou: my lord. you are an optimist for the rest of the year? absolutely. lou: all right.

mr. davis, we thank you for being here. come back soon. coming up in the days and weeks ahead, some great authors will be joining us here. best-selling author colonel ralph pete will join us to talk about his latest novel. five generals throughout history and presidential historian mr. cook will be with us. all of that coming up in the next week. up next, the joint chief summoned to the white house by the commander in chief over the observing at academic of assault in the military. the government seems to know nothing about these scandals,

but they do knowhey want more money to operate what is highly effective government. that is in the "chalk talk. mowing your lawn isn't always easy. but maybe the problem isn't your lawn. introducing the all-wheel-drive mower from husqvarna.

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lou: defense secretary hagel today ordered the military to retraianyone involved in programs designed to prevent sexual assault. this after two military officials in charge of eventing sexual assaults were arrested for precisely that. joining us now is a retired marine captain, executive director of e servicewomen's action network. anna, good to have you with us. this has become a damn epidemic. it is an embarrassment, it is an outrage, and the president says he wants it fixed. what took so long, and why is this in a command organization like a branch of the military, why is it so tough to stop it?

>> you know, i actually think we have very simple solutions to fix this problem, and i hesitate to use the word epidemic because epidemics suggest we can't fix it, it's out of control. we just needhe political will to implement the solutions we have on the table. rit now the military criminal justice system is, it's 250 years old. it's completely out of touch with the realitys of today's military. lou: which part? >> the issue of commanding officers being in charge of criminal cases does not need to be in place. in other words, in a civilian system we've got the most qualified people determining what ces go forward to trial, and those are attorneys and judges, right? lou: i ha to do this, worst people involved in this justice departmt. the cases take forever. i'm a great respecter of good mitary order. it's served the nation very well. i also understand the problem when we have a commander, just

throw a court-martial decision aside -- >> right. lou: it's outrageous. >> can the civilian criminal stice system is far from perfect, don't get me wrong. lou: good. >> the military is even further behind because we don't have lawyers and judges in charge of this process, and victims continue to tell us every single day there's bias in the system. we found 26,000 service members say they'd been sexually assaulted last year. at's according to the department of defense -- lou: those are projections. we know the cases amount to just under 3800 -- >> that's been consistent for several years. but regardless, the vast majority of service members underreport. lou: so how do you get to it? let's set aside jurpruden. let's leave aside the military code of justice right now. how do youet to the command structure itself and say this, by god, is not going to continue? criminal justice system.

lou: well, actually i'm not -- yes, we can, because what i'm really talking about here is the way in which whether it be the marine corps or the air force, whoever it may be, if our defense leadership cannot lead, if our general officers cannot lead, at are we left with? >> well, they're doing a phenomenal job in several other areas. lou: not according according to- >> not when it comes to sex crimes. lou: wl, that's what we're talking about. look, nobody supports the military more than i do. no one's more embarrassed that this is the kind of thing that is happening in our military. it's disgusting, andit has to be fixed. so what do we do,irst of all, with command? >> right. well, one thing is the commander in chief and the joint chiefs have to lead the way, and they have to insure that everyone who becomes an officer, everyone who is promoted at any level of leadership has done the right thing by their troops in terms of these cases. d right now there's no incentive to make sure that for promotions you're doing the right thing and that you're

sending perpettors to jail, you're sending perpetrators to court-martial. the system is just filled with disincentive right now, and a lot of these serial predators get away with rape, quite simply. and we can fix this problem, but it's not a system that can be fixed just with training. we have to reform -- lou: i wasn't suggesting it. but to engage the predators and those who are committing these crimes, it has to be taken car of at the, at a unit level to begin with. i would expect that the marine corps would be very proud to have its noncommissioned officers leading that fight. we can talk about the general officers. but these noncommissioned officers have got to be leading the way as well, right? >> well, everyone has to be leading the way. but when you're ingrained in a culture that does not understand rape culture, and that's the case right now. i mean, we had the air force -- lou: you were hesitating to use my word, epidemic, and now you're talking about a rape

culture? >> no. what i'm saying is when they don't understand rape or sexual violence aa phenomenon. rape is a crime, right? but the language which a lot of military leaders are using to deribe the problem kind of falls into another category. you saw the air force chief of staff using the phrase hook-up culture to describe sexual violence. sexual violence is a crime, right? the congressional leaders on both sides of the aisle are saying sexual violence is a crime, it should be treated like a crime. lou: but the routes -- roots of all this, frankly, i'm indifferent to. that may be important to those outside the structure and certainly outside of the line of command and to the men and women serving in the uniform, some of whom are obviously being victimized. they've got to know before we go into this not what's going to haen after; but how it's going to be stopped so that youre bringing the best and the brightest in our military. and protecting them. >> the military had a huge problem with duis, with

driving while drunk, right? and in the '70s, '80s, '9 a lid on thatroblem by taking it seriously. i mean, your career would be over if you were caught drinking while driving, and that really was built into the ethos of the military. -@we can do that with rape a sexual assault if we send out messaging, don't rape, don't sexual aassault, period, or you will go to jail. and right now we don't have that within the military. we can fix this. u: that's ahame that it's not alreadyixed. and we thank you for all of your efforts to make it so. >> thank you. lou: thanks so much. the pinocchios keep cominfor the obama administration officials. the washington post fact checker, just two pinocchios today for mr. obama aaarded to attorney geral eric holder that a single u.s. attorney in the justice department made his own decision not to prosecute him for contempt of congress la year. in fact, holder's deputy had written that attorney to tell him t justice department

determined holder's wis holding of fast and furious documents did not cotitute a crime before the attorney made his decision. just two pinocchios for that. you would have thought maybe a few mo, huh? we'll be right back the outgoing head of the internal revenue service mired in scandal says it's a misunderstanding. it wasust poor customer service. at's what he said. we'll find out what the a-team has to say. it's getting worse nearly every day. the obama administration now blames its scandals on budget cuts. we'll take a hard look at those numbers in tonight's "chal talk." are you still sleeping? just wanted to check and make sure that we were on schedule.

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we do whatever it takes to make your business our business. od. helping the world keep promises. lou: the know-nothing administration on full display again today. outgoing irs commissioner mill claims he doesn't know who ordered the targeting of conservative group withs. miller says the word "targeting"

is a pejorative word for him. he's very sensitive. and secondl he says more money would fix all of the irs problems. >> it would be good to haveve a little budget that would allow us to get more than the number of people we have to do 70,000 applications and to do our job in the looking at whether an organization is tax-exempt or not. lou: money isn't the problem at the irs. that's as much bunk as the rest of the stuff he was spewing today. the irs budget has exploded from $33 billion in the late '90s to proposed $106 billion this ar. and it's not admistrative costs going up, it's government handouts in the form of tax credits administered by the irs like the earned income tax credit for l income families. ose, those benefits absorbed from $4 billion in the 1990s to an estimated $91 billion that'll be spent this year. it's not just the president's henchmen and women who want

cash,, it' the president himself. >> we're not going to be able to do this alone. we're going to need congress as a partner, and i'm calling on congress to work with us to support and fully fund our budget request to improve the security of our embassies around the world. lou: he just blamed congress for benghazi, and he just did what he always does. his only answer to anything including scandals erupting all around his administration and @is white house is to ask for more money. i mean, that's chutzpah. the truth is state departme officials repeatedly stated a lack of money wasn't an issue in benghazi. in fact, funding for embassy security has increased by 27% since 2007. and the problem was allocation of money, not the total amount. and finally, we have the presidt's closest ally on capitol hill, senate majority leader harry reid, who earlier this month saidid he agrees with democratic colleague senator max baucus who said he's worried

obamacare is going to be atrain wreck if it's not implemented properly. senator reid insisted it could all be fixed, you ready? with more money. like it or not, obama's going to cost us a lot more money. thebo is now estimating the new net cost of obamacare over the next ten years will amount to $1.76 trillion. that is nearly double the original a white house estimate of $940 billion. in the midst of all these scandals, obamacare still manages to attract attention, because it's fair to say its costs and its burdens are, what would be the word? scandalous. coming up here next week, house judiciary members congressmenim jordan and trey gouty. up next, the president has finally given the go ahead to bring the nghazi suspects to justice dead or alive. what was the order eight months ago? the a-team takes that up and more.

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stay in the grve with align. lou:ere's how white house press secretary jay carney feels about this week's three scanda. carney last night said, quote: you're concocting scandals here that don't exist, especially with regard to the benghi affair. end quote. a new gallup poll shows you ju how far afield and out of touch carney is. a majority of americans feel quite differtly and stronglgly so. 74% of voters want the irs scandal investigated further. 69% feel the same way about benghazi. congressman mike kelly spoke on behalf of a lot of americans at today's hou ways and means committee on the irs scandal. he gave the outgoing acting irs commissioner a piecece of his mind, and the result was a standing ovation. >> if anybody to sit here today and listen to what you have to

say, i am more concerned today than i was before, andhe fact that you all can do just about anything you want to anybody, you know, you can put anybody out of business that you want anytime you want. and i've got to te you, you talked about y're a horribly-run organization? you're on the other side of the fence. you're not giving that excuse. and when the irs comes in, you're not allowed to be shoddy, you're not allowed make mistakes, you're not allowed to do one damn thing that doesn't come in compliance. if you do, you're held responsible right then. i just think the american people have seen what's going on right now in their government. this is absolutely an overreach, and this is an outrage for all americans. [cheers and applause] >> mr. griffin is recognized for five minutes. >> thank you, mr.-- lou: author, lumnist jed -- ted die ya -- jedediah.

let's start first first with mike kelly. the congressman, i have to tell you, i haven't seen a spontaneous response like that, applause, a standing ovatn, in my career. >> yeah, because people were watching miller have absolutely no answers to anythi. it was stunning to me. i was watching from home, and he couldn't remember dates, he couldn't remember names, he couldn't remember why he didn't disclose certain information to the committee that he had in his hands about specifically which kinds of conservative groups were going to be targeted. so he went to this hearing, had no information, had complete disrespect for the people that were reasons answering these questions. and i think this gentleman had had engh and said, you know what? i am going to behe one tonight whs going to speak for the american people who are watching this and are outraged and disgusted, and good for him for doing that. lou: stephen hayes, dave camp, the chairman of the committee, saying the arrogance was breathtaking on the part of particularly steven miller. and i have to say it was

palpable. i have never seen such obviou% disdain for a committee, for the congress of the united states. he talked as man who, i don't know, it was embarrassing to watch. it was an inst to the american people and our sysm of government. what are your thoughts? >> yeah, it was. i mean, look, i can't fault the guy for disdain for congress. i mean, i share th disdain r congress, broadly understood. [laughter] but, but, i mean, you cod see on his facial expressions he didn't want to answer their very basic questions, and when it was pointed out to him -- i'd say very inconveniently -- that he had this information, he was asked about it, he chose not to provide the details of what the irs was doing, what the irs knew about what it was doing. when he was asked these questions and when hewas pressed on this, he sort of smirked and said, well, look, i answered the questions you asked. he certainly withheld a lot of the truth in a way that i think is not going to look good for

him going forward. lou: and he may well be prosecuted here, because the issue of legality will not be determined by the inspector general who replied that it, in his judgment, what had transpired was legal even though it was inappropriate and offense bive. offensive. it's going to be interesting to see which way that goes, because if there is legal course of action after that performance by miller, my guess is he's going to be vigorously prosecuted. doug schoen,his -- at one point miller was apparently informed last year of the inspector general report. there's a lot to come out here. what are your thoughts about where it leads now? >> well, i agree with the congssman, congressman kelly, who said there are more questions today than there were before. i thought acting director miller was worried more about perjury than anything else, and i think

we need to find out particularly, lou, the answer to the questionf when precisely was the department of the treasury informed, what were they informed of and what did they do with the information? lou: we're going to find, i hope, a lot of things out. i want the take up now benghazi. we're going the take a quick break before we turn to benghazi, and i'm going to, i'm going to turn first, if i may, to stephenayes who's done an outstanding job of reporting the story to us. more with the a-team many moments. if you will, take a moment to go to our social media sites, loudobbs.com, links to our facebook page, e-mail me at lou@loudobbs.com. up next, one of the natn's poorest cities not letting financial woes get in the way of a government-funded hawaiian weekend. you'veot to love detroit.

lou: we're back with the a-team. steve, iant to turn to you. benghazi is widening. we now are eing leaks come out of the white house, intentional or otherwise but it's clear that much more will be on the president's back for all the mistakes that have been made in benghazi. >> yeah. i think that's right. there was a very inresting story today by be cheryl atkinson at cbs ns who's been doing a first rate job covering -- lou: absoluty. >> -- it from the very beginning. and she has a number of administration officials expressing regret about certain aspects of what happened in benghazi and after benghazi. and it's an interesting sort of change of tone from the administration on this, and i think it's not insignificant that they went to h to try to do this. i think they're trying to take a different tack in the hopes that peopleill kind of move past in

the if they express regret. the problem is there's so much that we still need to know. we still even after going through these e-mails which left tatters some ofthe claims of the white house that the white house wasn't involved, the state department wasn't involved, we still don't know who pushed the movie i. how did that become the central part of the administration's story after the attack? it's an important question. there are lots of questions about what happened during the attack too. lou: and if i may, i'm going to use this language, jedediah, the lies about the amateur movie. that was a campaign of lies directed at the american people. indeed, thewod because the president carried it to the general assembly on september 25th. >> ye. lou: this is, these e-mails, as stephen has documented in his reporting, they're not contradicting my judgment this white house proves them to be liars, abjectly so. >> that's true. and i think for most of the public it was when the talking pot manipulation was exposed

that everyone sort of sat back and said, hold on a second. what jay carney has been telling us for a very long time isn't true. these were significant to missions, these were significant changes. the state department was involved, the white house was involved. where was the president that night, how involved was he, was he communicating with secretary clton? because hicks gave testimony that he had communicated with secretary clinton. did she th communicate with obama? why are we in the dark? i think that made the american people wake up and say there's been a lot of deceit here. >> there is one guy we've got to hear from, tom donilon, the national security adviser. >> yeah. >> his name has been ab sent. there's a good reason. he was the point person, jedediah, on september 11th, and he is a leaker par excellence, and he's kept his name out by leaking. lou: and the modified limited hangout estabshed so importantly, if you will, and regrettablby the nixon administration and watergate is

being practid here by this administration. and in my judgment, you're the professional, it's rather umsy, the way they're doing it. >> yeah. lou, there is not a direct nexus between what they're saying and what's coming out. it's almost, to me, like just the big lie technique. it's old news, he spo of it, it's a side show, it's all politics. that dsn't answer the very real questions you're talking about. lou: let me ask you all this. this president looks as if he's at sea speaking to the press here in the last couple -- in the last two appearances. it's as if he doesn't know how to behave without a compliant and even complicit media. your thoughts. >> yeah. he's not used to being challenged. he not used to tough questions. he figured that he would be able to say, well, this is the right politicizing this whole benghazi thing, and it would just end there. he didn't realize the press was going to step up particularly with this ap issue that came up, and we're going to say, hold on, we have some serious questions.

so i think he feels challenged and uncomfortable. lou: stephen? >> there was a big break with benghazi. as you inted out, the things that jay carney was saying were just not true. and, you know, i think reporters were inclined to give the president and the white house the benef of the doubt for these past many months, but and took, sort of took stock of where they were and thought, jeez, you know, i i was reporting this because jay carney told me this, and now it turns out that it's not true, and not true in an obvious and demonstrable way. it wasn't the case that the white house and thetate department made a singular ajustment. they rewrote the whole thing. lou: doug, y get the last word here. 30 seconds. >> the obama agenda, efctively, is dead. meaning the presint may be adrift, as i've written this week. the buck does stop with him. buthere' no focus on guns, immigration, economic policy, nothing no matter how hard they try. at this point -- lou: at this point his cribility so severely damaged,

his character so assailed here. should anyone -- well, be following that agenda? we'll save that answer for next week. the answers will be coming fast alec, for this mission i upgraded your smart phone. ♪ right. but the most important feature of all is... the capital one purchase eraser. i can redeem the double miles i earned with my venture card to erase recent travel purchases. d with a few clicks, this mission never happened. uh, what's this button do? [ electricity zaps ] ♪ you requested backup? yes. yes i did. what'sn your wallet? yes i did. at od, whatever business you're in, that's the business we're in with premium service like one of the best on-time delivery records and a low claims ratio,

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