♪ ♪ >> l: good evening and thank you for being with us. breaking neww this hour, reporting that the national security agency and f.b.i. are mining the servers of nine leading internet programs. it's called prism and revealed by an unnamed source and extracting audio and photographs and email to track a person's movement the "ington post" reports. the technology companies participating knowingly, microsoft, google, facebook, pal talk, skype, youtube and apple.

meanwhile, washington today a buzz regarding a eparately and known nsa effort to mine meta data from more than a hundred million verizon wireless customers and the president today trying to change the subject from the number of scandals engulfing his administration by change his location and his message. president obama hopes he can pivot the media and talking jobs in north carolina before he heads to california for two more private fund-raisers. wile the president was avoidin the scandals or at least trying to without success, capitol hill was not. two more hearings, one involving attorney general eric holder and the other investigating the plate and the misuse of taxpayer dollars by the internal revenue service. we begin with the attorney genal. holder appearing before the

senate appropriations subcommittee where he acknowledged mistakes have been made. he claimed the justice department will not prosecute reporters for doing theirobs so long as he is t top law enforcement official in the nation. he did not mention the constitutn. house chairman bob goodlock is trying t decide whether he lied to the committee. calling to testimony once again and that appearance is now slated for june 18. meanwhile, lawakers from both parties are blags tinge the irs for wt ovsight committee chrman calls maliciously indid you live jentd overspending. inw the irs blew $50 million of taxpayer money on lavish conferences

between 2010 and 2012. one california based conference priced at $4 million by itself. the head of the irs division that staged the conference offed nothing more than a nervous apology for the gross misuse of taxpayer money including his role in the creation of the ridiculous star trek video on your scrn. that i also mr. ferris at the moment. >> it's embarrassing. i apologize. those videos, i know, inspector general's report there is not a clear delineation cost of both videos, they are embarrassing and i regret the fact they were made. >> lou: joining us more on the nsa prism program and

collection of records by verizon customers. chris, steven hayes, fox news contributor, steven. let me begin with you. this report, explosive report from the "washington post." to be clear we all knew what was breaking acrs the news. we knew seven years ago. u.s.a. today among other news organizatio reporting the collection of so-called meta data. this "washington post" story is quite dierent dealing with service providers? >> i think you are exactly right. the pror distinction to ma. in some ways, my first two reads of the story about the prism program that has been in existence seems to be magnitudes of order, more significant than the verizon story as you say we've been talking about all the time. it appears, if you read the piece closely, it appears to be getting into content

rather than just collecting and analyzing meta data. meta data tt is cold and numeral, if you go through it and only analyze, it's requiring eyes on analysis of actual connt of actual communications which we were not seeing. we were not listening into these conversations in the case of verizon an tse other providers. >>ou: chris? >> it's remarkable. all i can say about politics is this -- it's always true when it rains it pours. i've never seen six months this heinous too start second term. i can't imagine how it could get worse for the president. iaid that yesterday. when the verizon story came out. now even before the day is done, the next thing comes out, a president who owes his election and reelection in large part to his stature as civil

libertarian. a guy that was able to rally the democratic base that prompd the "new york times" today to say the administration has lost all credibility. this is a disaster. >>ou: repeating, with a chris just said, that is the "new york times" saying this is president hasost all credibility. the irony withhn irony, google and facebook that were principal allies in his reelection campaign, s originalampaign to take the office. they have been political partners and becoming increasingly intertwined in their political connectity if you will. let's turn to the irs. steve, this is a just tawdry performance by the intern revenue service.

official after official whether they are talking about lavish spending the uttee corruption and the corruption of the organization and cowardi of the manager of the internal revenue service blaming 90 people, steven miller said the two had gone rogue in cincinnati. it's monstrous lies and disturbing relation one after another. >> weught to be clear about one thing. if there were really two rogue individuals continuing out of the cincinnati office who were responsible for this, we would know their names and they would be in deep trouble. they could be in jail. we knowt wasn't that. i think mr. fink in his testimony in the mike emanuel package may have gotten himlf in real hot water. he seems to me he didn't kno how expensive the

expenditure was and he had in fact found an estimate of the cost that was4.3 million. either he did know about it or didn't know about it and this is one of the cascading sers of misrepresentations and lies we've gotten from irs officials and members of the obama admistration about this particular scandal. >> lou: now we have the president, if you will, closing ranks. samantha power to the united nations post now held by susan rice. susan rice national security advisor, not requiring confirmation. this if i've ever seen a more radical national security team, i certainly can't imagine who it would be. well, i do know that the chances of us bbing

stuff in syria h gone way up. aestern intervention in syria is much more likely. this this is a signal that the approach that was taken in libya is now to be p put forward in syria. there has been a genocide already. that is samantha powers, that is her portfolio, how the west should intervene. she wants it. susan rice is very much that way. she is a very hawkish on th stuff. yeah, i think we can see important of tt from this administration. >> lou: high colleague chrisid not want to use that word, radical, but i did. when y have things written and said by samantha powers, it is

stupidfied there is not more than a an outcry to talk the point in united nations. would you agree with that? >> she has wanted a policy of mea culpa and we saw that in the president's earliest months. i'm not sure we'll see a turn that my colleague will suggest. very good grounds to suspect we might. but president obama is strained and you'll hear arguments from rice and power that we should tes a more intervention-i role. he has made it clear that he wants to reduce the u.s. foorint. >> lou: we will not have to refer to chris, we'll just refer to him as our colleague. [ laughter ] >> lou: thank you gentlemen.

much more on white house scandals throughout the broadcast. >> the white house is engulfed in scandal and the president is insulated. where is the smoking gun or guns and how soon does it lead to the oval office? ann coulter with her bet next.

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♪ >> lou: my next guest says the san rice appointment is a slap in the face. she believes it's done to distct in the various scandals that is boiling around. joining us is best sling author conservative columnist ann coulter. you say there is politics

in the appointment of rice and power? >> yes, it remenus me of the clinton era when he distracts one scandal by starting a new one. and what are republicans supposed to do with this. susan rice was all over tv about the video being the caus of the attack on the ambassador and death of four amerans. over and over again. she is promoting now wh we know now is an absolute lie. of course republicans are going explain about this. it's dangling a sardine in front of the ka cat. you have wasted 60 seconds n this, rather than amnesty and rather than the irs scandal. >> lou: let's turn first to the internal renue service. that scandal and the prosecution is going after the irs to find relief to

his clients which ve been victims of egregious u of power. when we lo up all the scandals, i think the republicans hav to give considerable credit. they have maintained focus here. i think they are doing very well to this point, don't you? > i absolutely agree. if you watch some of the oba network, they keep complaining, republins say obama is behind the scandal. many republins and say they want you to investigate that. there are some facts we do know. they are pretty devastating facts. beyond the line, the hearing yesterday i think it was very powerful for them and the least directly to their political opponents wi the irs internal stamp on it, then

tt gets published and. we have a pro-life group indeed all the members have to pledge under palty of perjury they will not pray outside of planned parenthood facility. >> lou: including the fact the attorney general reses to meet with the chairman of the house judiciary comtteeho demanded answers on the holder scandals, they are plural, by the way -- he and his committee will attorney general has committed perjury. as i listen to the statement, i couldn't imagine that you would doubt it ttat it contradicted himself? >> it seems like it.

i don't have a strong opinion on that. my main point with the older and the tappingf journalist phone lines, fox news, james rsen and his parents is that the national surity justification is a fraud. that seemso be the linchpin of the whole story. if james rosen or any other journalist were trying to ressure a member the state department to release serious, sensitive security information, how aboutt. listen to their phones. >> lou: i truly believe, holder the judge that signed off to the subpoena, f.b.i. agent that attested to probable cause, i think they could face significant consequences because it was preposterous what they accepted as fact. we have5 secondsere. i know you've been very concerned about the gang of

eight and what you call the amnesty that is being proposed, do you think it will pass? >> right now it is on the and all these statements in the media, rubio saying we might not vote for it. this is fool the american people the way amnesty was stopped is when americans called and complned. that is not happening because talk radio hosts and all the media, dot worry it's not going pass. right now it's going to pass. >> lou: ann, always good to have you with us. >> the last recsion called a man session because it hit men in the work force particularly hard. feminists a liberal media are celebrating a pew research study.

>>. >> lou: in t last days i'v been criticized by

some folksncludingome in my own tent including with a troubles about me about this country. a few of my detractors deced was a hallmark and sisterhood towardend equality since moms are the primary breadwinners in 40% of their homes. here is what they are focusing on the new pew survey. there is a lot to celebrate. it is in some small percentage they suggest. both at pew in which i've had a word or two, there is some good and there is also some submerged material that a lot of people didn't look at. we are now looking at 5.1 million married mhers, we have a higher income that have higher income than their husbands.

49% of them have at least a college degree. 65% of them are white. 67% are between the ages of a 30 and 50. their median family income is nearly $80,000. i think that is pretty much what most people would expect. all tt isn't what impressed me in thi study or concerned me. believe it or not, there are few folks that i shouldn't be concerned or i shouldn't be troubled by what we're seeing. don't know why they felt thatay. frankly, ion't care. it was more ideological. itas more reflexive and had something todo wi in some abstract way with some sort of gender politics. here is what my detractors refused to acknowledge. in some cases ty didn't even want to talk about it. the single mom. the are 8.6 million of

them. versus the 5.1 million with the $80,000 and that is going pretty good. these single mothers who are working, 49% of them have a high school degree. they are working because they have to. this isn't about the sisterhood. this isn't about progress. this is about the consequence of choices that we're making as a society and it's not working out great for these folks. to deny that, i consider to be outrageous. 40% of them are black. nearly a quarter. 24% hispanic and nearly a third are white. almost half, 46%re 30 years or young. if they've ever been married or whether divorced or widowed they make on an average $29,000 a year.

if they've never been maied,hey make on average, $17,400 a year. the poverty line for a family with one adult, one child, just over15,000. so that tells you where these women and their children live in our ececonomy. their children live in poverty and the moms are the sole provider by default, not becauue of gender equality or progress. many of these children of the single mo are at risk and in so being they perpetuate a cycle of poverty or illegal behavior. all of us, men and women have got to break the cycle of pass ist and difference and break the cycle of irresponsibility responsible political correctness to delude some men in denying the pain in society and consequences of

poor pubc policy decisions. we've got to address and fix this for these people's sake. we're going to take all of that up with fox news national security analyst k.t. mcfarland. she has had a career of home and family and career and also one other that says the traditional ways is not for her. the boys used double miles from their capit one venture card to y home for the big family reunion. you must be garth's father? hello. other. mother! traveling is easy with the venture card beuse you can fly airline anytime. two words. double miles! this guy can act. wanna play dodge rock? oh, you guys! and with double miles you can ay use, you never miss the fun. beard growing conte and go! ♪ win! what's in your wallet?

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announcer: the next 30 second can save you a lot of money. just do your laundry in cold and stick to ll loads. auto-sleep your computers. plug your gadgets in a powerstrip and switch it off when you're done. headed out? turn back your thermostat by 10 degrees. and drive sensibly. the more energy you save, the more money you save. find other great tips at energysaver.g. >>. >> lou: as i imagined in chalk talk on the breadwinner moms has create a debate in the nationl media. my next guests have two different outlooks and issues confronting women in this country. joining us is jeda, wife, mother and accomplished

k.t. mcfland. >> we are tied as a andparent of five. let's get to, obviously you pre dealing with somewhat traditional personalities en we srted talkin about grandchildren. >> she is my daughter. [ laughter ] >> lou: how can it be that we can bamlyhoo and we talk about this progress, more th $8.5 million, $17,400 average on year. lacking education the children will be goingnto the same cycle. we are perpetuating such a waste in our society. >> the unfortunate part there are very few people that are willing to talk about this. this is a very sensitive

subject. you ha to be able to talk about single mothers and the proble that ensue. you are not talking about not being able to give them educational opportunities. what ultimately leads to the entitlement society where people become dependent on government programs and government systems because they don't have a two parent household where they have two figures that can contribute to their financial well-being. so its conversation that needs to happen. i'm all for strong empowered women in the work force. i'm all for female breadwinners and i don't want to equate them to the animal kingdom as others have done. i support -- if you are a single woman out there and you want to have a child and you can handle that and you have a supportive family around you and you are financily able to take that on, i tip my hat to you. you need to be sure that you can financially provide

for that child or you are doing a disservice not only to your child but to society at large. >> lou: there is a lot more at work than money here? >> yes. the chalk talk you did you painted two societies. there a book you an i talked by charles murray called "coming apart." he studied white american families, we have an elite tribe that is well educted. >> lou: and ry smart. he kept his entire analysis and conclusions only to white america so there would not be any racialism. >> he found an elite group they have a low divorce rate only 4% have children out of wedlock. they are very intact and doing very well.

but a whole other group that you talked about it. they are single parent filies. women are breadwinners out of neceity and children are far more likely to use drugs to be poorly educated and not have high school diplomas. >> lou: you want to have children or get married? >> whether i get married in the future i don't know. hopefully i have a husband when i do. i intend to have a long prosperous career. i'm one ofhose people doesn't feel like it matters who wears the financial pants in the family. that needs to be decided on an individual basis, per couple per family. >> lou: we've got to be able to accommodate a lot of choices and reflex

shouldn't be a neanderthal or bizarre. it's your life. it's america, you live it. i don't see why that isn't the case. there is a sort of a feminist about it all, don't know way to say it. primitive outlook of something -- i don't know what the dev on. >> i thinkou can also talk about the importance of family and talk about the importance of two-people that love and support a childithout being outdated. you say i want women to be empowered. i want men to be empered. >> i want chiren to be empowered and children of 8.6 million are at risk are not empowered. >> thell never catch up. they'll never catch up to

the elite group that is going to gradue school and stays married. >> lou: it challenges a lot of the assumption made across society by the traditional and different views. >> talk about the cultural components in society abou how people feel about men, how people feel about women. what that has to do with this. i think it puts an interesting mix. i know there was on college campuses if men don't feel welcome. [ laughter ] ] >> lou: get out tre and go to work at something you enjoy. it's not going to be an education but that is why we have 57% of college graduates are womomen and ensures their women forthe next couple of decadess breadwinners. thank you both.

>> bill clinton first urged his wife to run against an incompetent incumbent president. then he wanted to negotiate r an endorsement. ed cline best-selling book

>>. >> lou: my next guest has been saying for months on this broadcast that tte relationship between the obamas and the clintons has vereen warm and cozy. sources now say president bill clinton agreed to give that incredible speech at the democratic national convention because there as deal in pce. in return president obama would endorse hillary in 2016. the president, however, has been dodging in and out of that deal ever since. joining us with the details of thisascinating relationship and deal, author of the best-selling

book, "the amateur," brand-new details we will be discussing here tonight. ed cline, great to have you here. this deal, as we all watch bill clinton perform the democratic national convention we knew somethg was going on because his animation, his enthusiasm had never been so ebullient? >> he thought he nailed down a deal to get hillary endorsed in 2016 but he had the right to name the chairman of the democratic committee thereby getting control over the democratic party apparatus. i stuck right through the election until obama won and then he started backing off the deal.

>> lou: backi off the deal and i have to tell you it's hard to follow because as you report, bill clint gets furious because the president decides, i don't need h anymore. next thing we see is hillary clinton and barack obama in a darting secretary of state, secd term president all love have i dovy on the cameras of 60 minutes. >> that was the payoff that obama had to do when he found out tha clinton was so upset. that clinton was so apoplectic. when obama's people discovered how upset clinto was they got scared. >> lou: this is not a potential adversary even if

you are president of the united states? >> exactly. i think obama realized that. 60 minutes was one payoff, the big kiss on television and the secretary payoff s the obamas invit the cntons to the white house for the very first time to have dinner in the family quarters. guess who was there at the dinner? valerie jarret. they wouldn't have dinner with him a. theyad to have valerie jarret. >> lou: president obamaas never been close, but president clinton talking about the george w. bush askg more for advice who are has president obama. whattis e current state of relationship. what is thecurrent state of the deal? >> curnt state of the deal i've been told by

sources i've been talking to for several months is that the cntons have more oress given up any hope of getting obamas endorsement in 2016. >> lou: despite the deal? >> the deal has been tsed over the side of the boat. it appears from what i've been told that joe biden has decided to run for president in 2016. and obama is saying he is my vice president. he is the guy been very loyal to me. i can't turn my back on joe. i can't really endor hillary because of at it's excuse to get out of endorsing hillary. >> lou: parameters changing quite frequently. i guess john boehner would be reminded h effecte a

deal is with this president. this can't be helpful to the president. it doesn't is seem,t least to me, to be a deal breaker for hillary and her aspirations for 2016, is it? >> i don't think so at all. i think you have a president who breaks his word with almost every one whom he gives it. i have been reporting on barack obama for several years. i can'tell you how many people have told me, i thought i had a deal wit him. i thought i had an agreement with him. i did my side and then he didn't follow through. this happens again and again. i think this is wt has happened in coness. >> lou: ed cline, thanks very much. the paperback edition is now on sale and online or go to lou dobbs for a link. >> prosperity headed to the heartland says the author of a new book, meredith

whitney joins us nt.

♪ >> lou: our next guest created qte a name for herselfy making the toughest calls on wall street. her latest edition that economic strongholds are shiftin to california and new jersey to texas and indiana. joining us is prominent and author, new gee geograp? >> it's such an honor to be here. >> lou: congratulaons on your new book. it's out and online and in book stores. we've got a connection to

it on lou dobbs dotcom. the idea that we're seeing a nation along our east and west coast, becoming so heavily regulated and such massive taxes that it's actually be a disincentive for folks for prosperity fothe middle of the country. how sn? >> well, i'll tell you that businesses that are moving now, the businesses have% been in the process of moving. people are starting to follow. all people want in this country and pretty much everywhere is an opportunity to earn a better life. so when people talk about why is there no th job creation? there is a job creation. half a million jobs have% been created in the ctral corridor. the old school economic theory the coasts are going to lead the economy forward

isn't working anymore. >>ou: it's not working and taxes are rising and democratic shiftt as well that are going to be very important. you predi the smart money, the wealthy folks will be relocating. i think of se interior states like illinois that has to give folks smart money a lot of pause. >> no one is going to illinois because they just aised their taxes by two-thirds. it's difficult to get anything done. if you are smart, you derstand tha the liabilities that are taking on as a taxpayer, meaning they are going to lean on you important more tax dollars is pretty threatening. what happens not only do your taxes go up but when the states are in bad shape, money for other things like education, ads, public safety, that ges away. so people pay more a getting less for their money. there is month money to retrain people.

unemployment stays high. >> lou: unemployment has become chronic. it is without question structural without policy response, without a learship response. >> all talk and no action. >> u: and we are depended upon growth and no discussion of when prosperity returns tohis countr whn do we start to see the return of prosperity? is it dependen on a new set of leaders? >> here is the cool thing. you are seeing it in these states, 2008 and 2011, last data available, states like texas grew over 8%. states like louisiana grew 16% and states like north dakota gre 2. states like california grew

3% and florida and nevada grew even less thanhat. it's really happening here. the states are not doing the right thing, california, new jersey, illinois don't wake up and pay attention, they are going to be way behind the game. it's sad that the states that need the change the most are the most distance from the change. >> lou: are banks back? >> i think banks are also in structural transition. >> lou: i like that strucral transition. meredith, we like i very much. we recommend her book "fate of the states," on sale and online or go to our website for a link. >> lou: up next, new book and author's words telling the inside story of the shadowy international bank

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>>. >> lou: my next guest new book "tower of babel the bank of international settlements b.i.s.and how ty operate out of law and oversight. joining me is the author of "tower of babel," the bank itsf is not secret but not sure the operations are. great to have you adam lebor. this is fasnating book. this is fasciiating subject and one most people even in business and banking don't understand this bank and it's role as the

b.i.s. what drew to you so to the conspiracies and world of financial management? >> it started in the late 1990s. i wrote a book called the secret bankers that investigates switzerland and connections with nazi germany. there was a chapter i wrote on the b.i.s., and it's a strange situation. >> lou: who really once the bank? >> the bank runs itself. it's composed of 15 governors from around the world. for example the governo of feral reserve. bank ofngland, bankf italy and central bank. >> lou: you've been a correspondent through your career. do y believe it to be a benign force or a force that is somewhat significantly sinister?

>> i don't think it's sister in itself. what we know, we want more information what goes on there. this isn't a bank that is out to ruin the world or be malevolent. but it's very secret because it was set up in 1930. 's an average of deference to authority and did what they were told. nowadays that doesn't work any more. >> lou: perhaps we are becomiig more submissive and passive, certainly in this country. we accept it.t. there are those that resist theederal reserve, an important part. i compensat the book to you. adam lebor, the book is "tower of babel," adam

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