at nothin all day♪ ♪and we've been taking care of business♪ ♪it's all right whew! ♪taking care of business, saved the day! his second term agda seems to off t the rails. the ainistration is mired in scandal. it's gun-control campaign failed, immigration reform is a mess, and topping it all off, the president may be in need of a new speechwriter. an eagerly awaited foreign policy speech berlin just two weeks ago was widely panned, even his teleprompter let him down. it was sweltering hot. he spoke by 6 inches a bulletproof glass. and not so eagerly awaited speech on climate change last week served as a huge disconnect

between what the white house is focusing on and what the american people want this president to say. the heat was a problem there as well, although it allowed the president to use himself as of prop. one declaring, mixed -- climate change is happening now. we're taking a pilafs of the president's political capitol both domestically and overseas the pulitzer prize-winning columnist micel goodwin. also, the hunt for in as a leaker edwards will -- snowdon. fox news national security ambassador john bolton weighing in on the ongoing discussions over edward snowden and what it means for our relationship with both russia and china. and things that the embattled intern revenue service going from bad to worse, a second irs official refusing to answer the questions by congress, and this time over allegations that he awarded half a billion dollars

of contracts to a body. house oversight committee member congressman joins us to tell us what is going to be done next to fix the irs. the obama administration today urging russia to expel edward snowden, returning to this country to face espionage charges. our next guest says the russian prime minister is essentially coming his nose at us. joining us now, former pentagon official, fox business a security analyst, former ambassador to the united nations. fox news contributor. let me for start with you. i mean,e he is having a lot of fun right now with president obama. >> si is thumbing his nose the president obama. the same time he is taking that super bowl ring from the new england patriots. you know, it is actually quite tragic because it is not to the point where the president of the united states carries no credibility. and china and russia are making

fun of him today and thumbing their noses at him, tomorrow it is venezuela and the next day it is other countries. once this starts weather countries and other leaders have no respect for the president of the united states it is a cascading effect. lou: jay carney, wte house press spokesman said that they may a deliberate decision, a delibera decision to let him leave hong kong for russia. we presume that is where he is added unquestionably has a negative impact on u.s.-china relations focusing on the chinese side of this trilogy, if you will. what are your thoughts? >> well, i think it is a demonstration that the chinese could not care less what the white house says. did we really do all that we could to persuade them not to let him go? did the president call the chinese president? did the secretaryall his counterpart, have they called

their counterparts inussia? you know, when you don't convey the seriousness of your message and you don't make it clear that there will be consequences or if the other country does not believe that there are consequences, it will be doomed to failure which is what has happened. i think we have not just a lack of respect for the president the diplomatic incompetence on display here. >> and it has a real national security implications. i was in china. you know, the biggest issue right now is as cyber issue. cyber hacking, cyber espionage. he said, you are the ones who are hacking yes. you're the ones are spying on us. we have no proof of that. we certainly have proved that the chinese are doing a test. we had no proof that we were doing to the chinese, except he has now said, well, the united states, an essay is reading chinese text messages of a cell phones. what does that say? we have now given the chinese a

major concession in our bilateral relationship. lou:oth you and the ambassador talk about all we have done but this demonstration hasone are not done. putting the responsibility of the ited states. i want to ask you. this seems to me and has from the outset, and i said from the very assets, that this looks to me like a very carefully conceived and exeted for espionage plan carried out by the chinese. i now think maybe chinese and russians. the reason i say tt is the coincidence data points. this smit that ends in the eighth of june. the guardian is publishing on the fifth. laying out court records. they a also on june 9th identifying and weird as the culprit here. it looks like a concerted and well executed effort,

ambassador, to destroy the summit, to blow back against whht were the administration's number one point of contention on their agenda, that is chinese cyber attacks against the united states. it was blown away in this one act. >> whether it was preplanned are not, several things are clear. i think that everything that he has on the four in s a laptop computers he took with him is now when chinese hands. very hard to believe that they did not extract everything that they could, and thathink that the russians are doing exactly the same thing. so for all those who say that he waa truth teller and a whistle blower, you know, he has given our advsaries critical formation. people who have reason to fear what might be on those computers say that the damage that is going to be caused to our intelligence gathering capabilities is just

incalculable. nothing to do with the programs. llu: the head of nsa said exactly that directed to the congress of the united states, talking about the lasting damage , the significant damage. at this point what does this administration have available to it to seek out, find, and return him to justice for her -- wherever he may be? >> they should go to the russian spirit the part of the problem is this is a pattern. no one feels they will be tough enough to do anything, but they could go to the russians as to the missile seld, a goodwill gesture, we are rethinking that policy. we can also get to them and say, you want american health and technology. the eastern siberian. you know, we won't do any of this because of the way you're treating yes. it's a slap in t face. lou: my hope, if i may add this to the brew here. my hope would be that we hav intelligence assets such thate

would not need to go through diplomatic channels but we would exact, if you will, a certain amount o justi on the behalf of the united states t that is appropriate. i will leave it in those terms. thank you very much. scandals erupt in the obama administration. the irs under fire. another irs official takes the fifth. one congressman joins us to analyze the fireworks. today's house oversight today's house oversight committe

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♪ lou: my next guest was in the house oversight committee hearing today and says the irs is now an institution that in his judgment is terminally ill. joining us now, member of the

house oversight in judiciary committee. good to have you with us, congressman. >> thank you for having me. lou: i have to say, when he looked at congressman duckworth, i mean, one of the most infuriating images i have seen a long time. how could you stan it? >> this is a guy who injured his foot when he was in military prep school. never served active duty at all. ye27 years later he claims a service connected disability to be able to get preferential treatment and to qualify for programs. obviously a fleecing of the taxpayers and an abuse of his service disability. after tell you, i am a former prosecutor, and i see more people with the irs tkehe fifth than i did when i was prosecuting cases. this is the sond person in about six weeks that has done it the problem that i see with this

is, the american people are not getting the answers but when these individuals take the fifth amendment, we know that ere was misconduct because that is plain to s. nothing happened. this is implemented there was placed on administrative leave. each steered $500 million worth of contracts to his buddy, a company that had about $250,000 in total revenue before the irs data ivolved. lou: did he break the law, congressman? >> i think, certainly there were laws that were broken. if you look at the relationship that they had. if you get the amount of money at stake and if you look at the fact that this was a company that did not do very much business and then all the sudden -- lou: a year-old. >> well, it had been for two yearsrior to this it did about 250,000 in revenue. all the sudden in 2012 and the individual lets you mentioned to plan disability purchase the

company, they start getting millions and millions of dollars where the virus work. so is not above board, but the problem is, we only see these things happen. people say, oh, we are identifying problems. we need more this or that. it goes much deeper. is a culture of arrogance. lou: what do you guys do? ammine kamal we're watching here -- the irs cannot even apparently find, nor can this president, a person to serve as a commissioner of the internal revenue service, acting commissioner, and term commissioner. and this is an organization. you say they're terminally ill. when are you going to -- web you going to get this thing fixed and bring in somebody with the integrity to lead the organization, to get it straightened out? this is no longer -- we have 16,000 new agents being hired. just for obamaccre.

>> well, obviously, in the house who would like to do a major overhaul. like all this people accountable we will bring her back. the problem is that the executive branch is not really interested in investigating and holding people accountable. we have the director of the f in front of the judiary committee. he did not even know who was leing the irs investigation. lou: this is going to have to be, it seems to me, if you feel that there is a lot of popular will around the outrage tha is obviously being built in washington and other parts of the country. you have to do something in a different way, perhaps faster, perhaps deeper in the investigation. more staff and more facts to put in front of the american people. >> absolutely. i think we also need to understand that from a policy perspective the irs is really passed its point of usefulness. we need to move to a flat tax and give the government less

power over the individual a allow people to be able to make decisions for themselves so that this way you would not have to worry about some of these officials must be having. lou: congressman, i would love to have a fair t to my flat tax, a set percentage just like i think most americans, but one of the surest ways to damage the investigation right now is for you all get caught up in tax-cut reform when what you have to do is get rid of a bunch of snas and a really lousy, lousyorrupt management at the irs. >> amen. lou: thank you for being with us. good to talk to you. good luck. up next, a gain of eight member senate to lindsay gramm taking some wild claims about t senate immigration legislation in the "chalk talk". we will examine those claims by ♪ [ villain ] well mr. baldwin...

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♪ >> we militarize the border. i have been hearing for years, let's secure the border, regains sovereignty, zero border security an immense.

the most ggressive attempt t control the southern border and regain our sovereignty. lou: militarizing our border. that is gang of eight members senator lindsay gramm urging support for the immigration legislation because according to the nator it militarizes the border. despite the gain of eight very best efforts to drive through the legislation, not everyone is buying at. the bill is simply too long. no one seems to have read it, and it has been negotiated behind closed doors and is not come close to doing what has been promised. just a few of these samples and contentions. one, border security itself. anmendment that hopes to add 20,000 bordermendments. the path the citizenship and th. sunday thousand extras, they cannot start hiring before 2017.

i mean, that is quite a twist. homeland security secretary janet napolitano given jus five years to raise the total number of fires to 20,000. experts say the hiring of some many agents could take up to 20 years. this equilibrium, and the cost issue. according to congressional budget office, the immigration bill would cut the deficit by nearly $200 billion over the next decade. critics say that conclusion is based on washington accounting tricks. using social security and medicare payroll contributions fromewly legalized workers to find spending elshere. eventually all the money would have to be used to pay for the benefits that the workers would draw during their retirement. kid is amazing. according to the heritage foundation once the amnesty recipients reach retirent age

the annual net cost to taxpayers will reach $160 billion per year now, if those numbers are correct this is not a great idea remember, it was the congressional budget office that initially projected obamacare would cost 900 billion over ten years. now as they revise a further they double their estimate. these are very early estimates. i think even the congressional budget office would agree. and then there is the little matter of loopholes dollars a big deal in washington. the word whenever aears in the gang of a legislation 94 times. given the power to grant waivers . a national security secretary, already declared the borders more secure than ever.

crossing our borders. and what powers does he have? ll, among other things you will be able to make the construction of a border security fence if she does not find it to be inappropriate use of resources. the senator says he sees trouble if immigration legislation does not pass. maybe he should be thinking about the trouble for this country if it does in its current form. up next, the florida jury hearing a lot more about george zimmerman's passed. why is the martin family in the courtroom but n? dom's law next. ♪

lou: and joining us now

today with the historic supreme court ruling, two victories for equal rights criminal defense attorney jonathan andvangeline. thank you for being here. quickly the dome of decision is it correctly concluded? >> yes. and a long time coming so it was a b one. >> a think is a medium-sized. lou: you will fight over the decree is civic they were hoping the supre court with legalized it across the board and that did that happen but if it is a separate direction. lou: is a decision by the supre court the stas' rights are asserted they are affected by the vitality?

>> yes looking yellowthroat the division constantly referring to the case saying marriage, a domestic issue should be decided by the state. lou: proposition viii in california opening gay marriage as a right to through this decision back. >> california i am curious when august rolls around begin have those that will allow gay marriage. lou: 37 states right now. e voting rights act with the president and the attorney general claim they were disappointed and upset and attorneys general in ose affected by the voting rights act, a good decision? [laughter] >> i will not follow suit but the issue that justice

robert wrote this is data from 1975 but the issue that i haven't is we had made strides but under the voting rights a we kind of wonder will we go back course stay where we are or move forward? that issue was not touched. lou: i talked to the attorney general about that to win the vot discrimination lawsuit. they have incredible statisticasupport for their procedures and their wall. why would the hang on to something in material >> the federal government says we will not babysit but if you misbehave we will step back is how we

interpret it. lou: wilson from south carolina those are to attorney-general said -- with the electoral laws in their state they will pursue them to put th in jail. >> sometimes it is beyond what is lel. lou: i don't thank you want a politicized justice department that is the other part of the issue. says zimmerman trial. you are the lawyers but that was the peculiar to me was cross-examination today? >> i thought they closed on a wonderful note and by the way i thought it was weak

and shaky they got her to say that she did not know now the jurors are left with that comment as they goome toght and deliberate and she will be back on the stand. i thought she showed a lot of restraint there were comments made in facial gestures. lou: she gave me a question and they were too slow. >> the star witness does not have to be mother teresa but she has be blievable or you could discount everything that he said but if they think she is lying about one thing they all have to believe anytng. >> there has been information she has not been truthful. she was not honest by her age and she also lied about the hospital. lou: i will write that down. aughter]

you can tell when you are lking to attorneys. [laughteour thank you very much. google's facebook microsoft and more. do they deserve ourrust or our fear?d cybersecurity expert joins us tonight.@í;ñt

lou: apple, the google microsoft and yahoo! occleve they knew nothing about the prism surveillance programlled that our next guest says we have given up control of data using platforms for the veryto companies under discussion. okay trading desk if we have any control at all with privacy of the web is a security expertw in the

bleeding the trust that society needs to use drive. s great have you with us. as a security expert you probably have the best opportunity to explain while it anyone shouldot laugh out loud playing kugel and apple and facebook say they deserve more respect from us because they had just a few thousand request from an estate and other agencies budet actually they are taking our personal and private information to disseminates across the web?s th >> ian reed given to them. the end is a scandal there ticket surreitiously but we give it to these companies. that is way it works. they need us to trust them with our data, friends

data, friends, photos but the realusiness is to bebu trade that trustt to advertisers that is the business model. they tried to hide it but they rely on as under th same but the fact they had a sideline is just one more thing.yi lou: i am curious. i did not say they succeed formation but they disseminated it across the web. is the business model and facebook in particular it doesn't matter your privacy preferences theyce will ds o what they do but at the same time to relate to wh the nsa or with other agencies have donet i find that under the maddening almo the question.ti t is a conflict of interest the very same types

of correlations uc with prism that facebook and kugel do. but if google's makes asi mistake to show you the ad for a car you do not want to yo see but if the nsa makes a mistake you ar arrested the withrimber them advertising doesn't work the same way when the governmenthe doesn't. lou: there should be a sho higher standard but we talk about a virtual world versus the real world and there are accommodations that have to be made for the virtual world that we do not live but some of the most private concerns do. you make a wonderful observatio to talk about the feudal era with thew boards and serfs and the way

wee treated as consumers and users. youare exact with that. will this persist for some time? >> for a while. that is the way the world works. if you have apple, you have the iphone and apple computer aided you are inp the eye cloud you are effectively testing they will protect you but you hope their interest online with your ears but with kugel you're t better customer.thei they sell to their customers. it does notm aly in the same way the fact we arethe debating the product makeshe p us to produce data that they used to sell to advertisers and to the governmen.

lou: you make a fascinating point. but we have to persistand extend it out as far as we can. you talk about the trade-off of privacy and the alignmentd th of interest.ld b what could be gater than that and sayacting in ouri interest to protect us?c buck be of greater convennce to be alive at the end of the day thanks to the broad surveillance program?ere there is a political if you will, group easily identifiable but the nsa is doing precisely what facebook can google are doing. but in each instance they are analogousith the

trade-off that is not undersod by consumers. >> this is what we need to understand.hat the question is what is is being done and how effective is it?isit we pay for this to make the t trade-off. we need to be told howwe n feive the programs are.e they mightha have been efctive, we don't know if they do any good. , it's a cost, i know about data mining so it is unlikely to be effective bute. this is why secrecy is bad you talk about the ira's but it is the same thi we cannot be judged in secret. this is our government. we need to know what they're doing and understand if they do a good job great if they are lousy we need to fix it but this is what snowden did

he give us some information what the goverent is doing in our name with our many. we have never seen a case to be cost-fective. lou: so why are people challenging the business models of the highlyo concentrated and powerful companies that could be called the oligarchy oligarchy, facebook, oligarchy, facebook, apple, microsoft, did i mention facebook? let me do so again. these intellectual disturbing contradictns when we start to look at those and everybody oulds be aware of the politics of those who were with the nsa or those corporatist who are

driving the virtual world that we nd great convenience and value. >> there are two reasons for go one is the harm is less great to being shown there wrong ad is different from being investigated. lou: way to. we know just about everybodytha is almost ubiquitous but there is a very narrow and small numberer there being the investigated by the government they are not analogous by size or scale or incident. we could talk. , back and we will continue the conversation. i think it is a fascinating perspective. we appreciate you sharing your insights. up next the bernanke raled

the eed of cogitative easing? the obama economy. steve "forbes" shares her is perspective on though wall street's summer of ♪ take me into your darkest hour ♪ ♪ and i'll never desert you ♪ ♪ i'll stand by you yeaaaah! yeah. so that's our loyalty program. you're automaticly enrolled,

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the sooner the lou: and the sooner the fed faces out the bond buying the better for all of us as my next guest. it is hurting the country more than it has helped we have editor in chief steve "forbes". >> good to be with you. lou: it appears to be at an end this sort of rates are moving higher so that will

be problematic. your thoughts on the timing of all of this from the fed chairman? >> three years is better latehan never but what he has done it differently is make it easy for theier government to do deficit spending and the bond buyers to issue new bonds with theut rest of the economy like small business health cared in is free but you cannot get any. so they have a hard time to get pripet -- credit they have been hurt. not many left over for the small banks. lou: the government free marketeer andy anti-fed says he cannot lose that 85 billion per month i do not like bernanke but please don't let him reverse course. there is hypocrisy for more

punch bowl? >> did is hahard to give up but i think he will not use this precipitously i think the markets grossly overreted because they finallrealized this may come to an end. they thought it would go through 2016 the 22nd centur who knows but the punch bowl is taken away but as you know the market has gone nowhere. that is one the reasons of the recovery. lou: but if we have this adjustment away from accommodation to what uld be appropriate in your view is the reality of

considerable transparency and greater efficiency. what do you expect to be the result to be withdrawn hofully positively returns to a margin of prosperity? >> you will start to see a credit market starting to work on a relile basis and that is a good day like rent-controlled housing but it does not create more housing. but by not easing up you'll have more credit available for people who produce jobs and less for the government who ould not have that many in the first place. lou: you are not if they and of bernanke policies of your reaction the way he is

treated by president obama on negative a bomb a? >> i am appalled he has appointed m but then trashes him and says he has stayed too long. you do that behind the scenesnd in publicou say he is denigrate job that he wants to step down. i don't think it ever went through his head what he was doing. lou: i take it you don't think it will be a part of his lasting legacy? [laughter] u: thank you very much. steve "forbes." up next the dollar and reminding cold war tensions. with the spark miles card from capital one, bjorn earns unlimited rewas for his small business

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lou: our next guest slams the president performance at the teeeight meeting summit last week and he wrote in a showdown my many is on putin and negotiating over syria or arerestling to know the national interest and is prepared but we have a president who is increasingly over the rainbow. a prize-winning columnist for the "new york post" post", said good to have you with us. over the rainbow, not the common i think he expected. does he believe that vladimir putin is that some curia -- supeor. >> yes. becausebama is not

pursuing are our national interest and he has an ideology how the world should be so it goes against people like putin who does not mess around with theories but go to the jugular every ti. it is not about affection or liking it is the level of fear but you will stand up for yourself in they do not stand up fo america. lou: national interest issue that is a ministration has prevailed through russia. secretary kerry says these a strong words.

buthe secretary of state said it would be deeply troubling if they defied the united state but russian officials say that moscow had -- moscow has no obligation to cooperate. deeply troubling. >> but the pattern here going back to the first trip abroad but it is all about reset with the implied undertow we will change our behavior. the idea eerything is george bush's fault then russia will agree so wat you have is an american retreat growing to what use

to be our backyard and our president is focused on cap-n-trade to cut carbon emissions it to cutur military. >> so to move forward with a unilateral idea without preconditions, i have to believe putin could not believe his ears. >> he did not have to fire a shot but not unilaterally but its people and washington who say they did it without a treaty to bypass the senate with executive power. lou:s president is

becoming the ways of the imperial presidency. but to ask on affirmative action to say that's is that affirmative action but it did not throw out the text is program -- texas program but they differ too much latitude to the university to say is one tng it is necessary. lou: i found through the whole process with the end of days for affirmative action and the values are not presented it and that

springs from the legal system. a the question of equal rights and these are not equal rights. lou: thk you for joining us. >> announcer: the following is a paid presentation for the nutribullet, brought to you by nutribullet, l.l.c. [♪...] >> my muscle aches, my back aches really started to decrease significantly in one week. >> the first night that i actually used the nutribullet, i actually slept really well. that was exciting. that was phenomenal. >> the bad cholesterol, which was 290, went down to 190. >> the changes that i saw in myself and my family were just amazing. >> announcer: join these people and thousands just like them and discover a machine that finally has the power to take years off the way you look and feel. learn from nutrition expert and best-selling author david wolfe, around the world, why he callses this the most signifan