♪ ♪ ♪ stuart: charles: so much for the phony irs scandal. a new video services that some call a smoking gun. i am charles payne. here is the big story. of video sales laws lerner in 2010 talking about political

pressure on the irs to stop the flood of money pouring into that year's the election. we have it and we will play it for you. eddie is a government run oil in mexico thatafter is a governmenn mexico that country sees the light. and hard work and american value in a rebuttal of the president's middle-class only american utopia. "varney and company" is about to begin and stocks about the balance. ♪ make it happen with the all-new fidelity active trader pro. it's one more innovave reason serious investors are choosing fidelity. get 200 free trades when you start using active trader pro today.

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charles: news alert, another hit for the president. the new york times reporting the obama administration delayed another provision of obamacare dealing with consumer protection that would be out of pocket costs people have to spend on health care. and:00 a.m. jim demint will join us pushing for a vote on obamacare and we will get his reaction at the top of the hour.

explosive new video of lois lerner may be the smoking gun that plant's the irs skip kendall squarely in washington. she is talking about political pressure to put the irs to stop the flood of money pouring into the 2010 election. listen to this. >> overturning 100-year-old precedent that says appropriations for the whole thing and they don't like it -- charles: democrats maintaining the party line. and op-ed in the washington post democratic congressman steven and eli's the cummingsssaid there's no evidence political motivation or white house involvement. this video looks like a smoking

gun. >> thought that the senator is saying this when he sent a letter on homeland security letter head, senatorial letter head to irs commissioner doug schoen saying was where's response is, quote, and satisfactory, responding too slow. halt long will it take to look into groups like americans for prosperity and patriot majority? charles: amazing. as big as huge, we will be all over during this show. the first losing week in a month and a sloppy trading session fuelling chatter about big-time court action coming. the opening bell is next. a quarter million tweeters are tweeting.

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here's your wake up call. [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button? >> we saw apple with steve jobs. we saw apple without stevv jobs. now we're going to see apple without steve jobs. >> so you're shorting apple. i'm not shorting apple. i like tim cook. tell the people over there -- >> you just said -- apple is going down without steve jobs. that is, that is exactly what you said. apple is going without steve jobs. >> okay. i will say it publicly. he is irreplaceable. charles: that was oracle ceo larry ellison predicting doom for apple in an interview with charlie rose this morning. we'll check with apple's stock

when it opens this morning. we're a few minutes away from the opening bell with scott shellady. i want to talk to you about oil. mexico opening up that vast amount of oil. they have oil and natural gas shale there to public companies, private companies. what does it mean for the markets? [opening bell rings] >> i think competition will be good it will keep the oil price down. we can't afford to pay higher oil prices especially with 1 1/2% gdp looks as though politicians in mexico are getting rid of a single-payer oil industry and opening borders to competition which will be a good thing for the price of oil and the consumer. charles: only took them 75 years to have a epiphany, you know what? maybe open to the private sector and ingenuity and innovation could actually help them. >> they have been growing so slow over the last 10 years they're looking for anything. i think this is the right way to go. i think it will help the bottom

line sooner rather than later. charles: i think it will be good for american companies. as you heard that was the opening bell, we start, listen, up 13 points. it was a big struggle yesterday. a lot of sea sawing back and forth. i want to get back to larry ellison. he told charlie rose that apple was not doing so good without steve jobs. how is it doing this morning. >> apple is 8% of the nasdaq of the that is one of the reasons the nasdaq was up a little bit yesterday when the dow and s&p were down. apple is down 1% to 471 this morning. this is a stock when everything is up big-time, apple is down 12% in 2013, charles. charles: although mounting a pretty nice stealth rally in last couple of months. >> it certainly has. everyone is expecting september 10th, new iphone, it will have fingerprint security. what else we're getting excited about it. there is competition out there and apple is a different company without steve jobs. charles: i think we all agree to

that thanks a lot. we have two big names that you know right now. look at them. tesla shares, getting a bump from ceo elon musk. his plans for mass transit of the future. every time musk is in the news all his stocks roushly go up. activist investor bill ackman is not having a great year. he resigned from the board of jcpenney and told us, this is what they talked about. that there is now a large shareholder, one of the outside observers digging at him, this outside of outside observe irof jcpenney. he is a shareholder but no longer on the board. kfc parent yum brands last month, in fact a big slide. lauren, what are those shares doing? >> yum! brands is having a rough day. the shares are down, charles, about 3%. look the local media in china saying it is hottest july in 140 years. kfc, 6,000 of them, owned by yum! brands in china? where is their cold drinks and ice cream? they're not advertising the

right way. couple that with the avian flu scarce and poultry supply they have a big issue. this company has not normalized yet. yum! brands is a loser today. charles: yum! brands depends on china more than any other country. they have some pr work to do there for sure. by the way, one more stock, lauren. eli lilly, good news on one of the lung cancer drugs? >> experimental lung cancer drug, eli lilly up 3 and 3/4%. a big winner. charles: thank you very much. to the war of words between kris jenner and president obama. here is what the president said to get yeper so fired up. quote, kids were not monitoring every day what kim kardashian was wearing or kanye west going on vacation thinking somehow that was the mark of success. kardashian is jenner es daughter. here is how jenner fired back. >> i wasn't aware you could only set the bar so high and that we could only dream so big.

i was taught dream big, work hard, and you could have whatever you wanted. [cheers and applause] charles: everybody's fired up. see if it fires up my man keith fitz-gerald because he joins the company. keith, want too get your thought on that, that whole back and forth there. >> i tell you what, i think the president screwed up because it is not presidential whether you agree with them or not to go after something personally or someone personally. would i like to think american children have something better to do than watch those two. jenner is right, you work hard and watch the fruits of labor. whether or not that is in the public eye, who am i to say. charles: the president always talks about expanding middle class. moving it outside ways and bringing people from the bottom into the middle class. he never talks about shooting for the moon, shooting for the stars. in my mind a country that has limits will be a limited country. we used to be the land where milk and honey. we thought that the sky was the

target. that, you know, the idea that the president has his utopia that we're all in some sort of crunched up middle class. >> that is the real issue here. you can come to america for several hundred years and make whatever you want. you can build your destiny, build your future and you can shoot for the moon because that is what the american dream is all about. for him as a sitting president of the united states, hey, you can only set the bar this high i think is a tremendous slap in the face and removes hope from every young person in this country frankly. charles: you know what? i'm inclined to agree with you as well. real quick on the market correcting, a lot of scuttlebutt about it last week. mark farber and other articles in the social media. what do you think, what do you feel? >> look, the markets come up to, flirting near record levels. these are natural adjust points the markets have a little give-and-take. tread carefully. do you want big knee-jerk decisions? absolutely not. we're long overdue on a

correction. that depends on uncle ben bernanke what he does or doesn't do. that is where the market tenor is right now. be prepared. charles: there is distinction between a correction and a massive crash a lot of doomsayers are saying. keith, i need you to stay right there. new rumblings about a possible ipo for twitter. want to find out if you're buying it? >> no, i don't and i'll tell you why. investment bankers make money. early investors make money. angel investors make money. guys come to the table and buy on an ipo, lately they haven't made money. i would be staying clear of that one. >> if it is done right, facebook was not done right. facebook was a brilliant company and they squeezed every single kernel and nickel they could from the public. some people say they were smart in this respect but they were dumb in that respect that a lot of americans might have been more earn thousand as i can about the stock market in general if that was a smoother ride. how should twitter go about it? should they try to squeeze every

nickel and let the stock trade up to 45 the same day and get a trading range and everybody one feels like you know what, there is money to be made for all? >> that is a very valid question, charles. frankly i don't know the answer. the question of an ipo, is it a quick rich scheme or is it value investing? when we look at companies historically, microsoft, intel there, was a lot value. social media i don't know that you can make the same argument. why i generally steer clear on those things. charles: why they squeeze every nickel they can on the first dave things. keith, talk to you soon. guys, look at this, this is a 3-d printed dress. the new technology is exploding getting cheaper by day. at 10:00 a.m. the designer that made the dress. of 3-d printed clothing he says for everyone could be just around the corner. time for your seven early movers. we're up a little bit. maybe i have seven. look at x-1. this is 3-d play.

stock is reporting earnings after the bell. these stocks were up huge after the bell. we'll keep a close eye. street reported after the bell, loved the number b was higher in premarket. q mobile, beat the street by three cents. guided the third quarter higher. including cloud stuff. the i'm not a fan of cute stock symbols. retail me not, symbol, sell. got upgraded from jeffries. morgan stanley equal. it was a little flat to higher. in the premarket. want to share that with you. lilly of course, lauren mentioned that. big news. that was a phase three trial. so the next move of course for a new drug application. given images. this is a fun one. fda clearance for the next pill cam. a little pill you take and has a camera inside of the pill. this one will help detect and monitor small bowel abnormalities. say that three times, liz.

anyway, nice move on this stock. finally digital generation. selling their tv business, over 500 million. that stock is up 35% this morn. we know there is divide in the republican party. rand paul versus chris christie. setting up the gop platform for 2016 or could the libertarian vote moving to the left? that is interesting. we have more next. ♪ (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to.

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as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erectn lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. charles: all right. you know what? we were up 30 points but we're not now. not anything necessarily scary but certainly the bias is to the downside. time for the morning gold

report. gold had a pretty good day yesterday. let's see what kind of follow-up. not a real follow-up, down seven bucks, 1327. let's say 1300 is key support. we know the battle lines for 2016, they're already being drawn. we have rand paul on one side. apparently chris christie on the other side. they're trading barbs with the republicans. rand paul was on "hannity" and talking about the election. >> we need to grow. we need to be more inclusive. black people, brown people, white people, with tattoos, with ties, without ties. we need a range of people in order to get the republican party bigger. we need working-class people. not just business class. charles: tp news. com director with us. she will tell us if young libertarians, up for grabs? will they swing to the left? you wrote a piece in down hall, could today's libertarian be tomorrow's liberal? >> exactly.

i think that is the question we need to be asking. what is the true definition of the parties whether republican, democrat or libertarian. thanks to the recent scandals we have on and on people are very disenfran chase choiced. instead of i give up, take the government out. those people are very, very much falling for this libertarian line. charles: so you're saying young people are falling for it? in other words, they're being duped somehow. >> i don't know about duped. i think they're becoming very much single issue voters. whether you want to talk about legalization of drugs. legalization of alcohol. issues specific to them, they're going, that will cause me to vote. when you look at it, a true, honest libertarian is very socially progressive. they're fiscally conservative but when it comes to most social issues think want the government hands off. which makes them right in line with the progressives. >> do you think the gop can be a big tent party then? >> that's the issue. the problem we have to educate folks, are you voting with your mind or vote with your heart? what is important to you when

you go to the election booth? those libertarians, we remember in 2010, the big issue was independent, everybody needs to go after independent voters. well now, it is cool to say you're libertarian. i'm trying to caution people, you need to understand, there is a consequence to saying you're libertarian. if we put in total libertarian actions there would be almost anarchy, mob rule. charles: hold on. you know the judge is on vacation. >> that's why i can say this. charles: anarchy? if we elect ad-lib tearian, america would go up in anarchy? >> the key there are great things about libertarians. charles: i want to he no the anarchy. >> here's the deal. libertarians believe government should be hands offer. no restrictions on my personal life, my family life, my business. sounds good. when you're dealing with issues like alcohol, drugs, prostitution, pornography. abortion. charles: victimless crimes. >> victimless crimes. it is not your decision that hurt yourself.decision that will your decision that will hurt me.

>> some people abortion is not a victimless crime. charles: some people wouldn't. >> i agree. that is social issue. who is defending the baby in this case? who is defending person killed bit drunk driver or guy in philadelphia that was doing wrecking ball and tore down the building? liz: the thing is, the libertarians have been there for a long, long time and they haven't really been embraced by the gop. do they come out to vote in primaries as conservative part of the party does? >> i think we're living in a different time right now than we ever have politically. people are now, after these scandals have happened, after the irs targeting, verizon cell phones, this is starting to encourage people to get involved. really libertarian numbers are growing. liz: also borrowing from so people in egypt can burn the american flag. >> that's right. charles: here is where we are. good thing young people are obviously aware of politics. they're more interested. you're thinking if they go down the libertarian line their vote could be up for grabs. they may equate the believe

system with democrats rather than republicans is that the danger? >> completely. mtv like pop culture and card dash shuns, everybody else could be easily swayed. charles: what about internal feud with republicans how is that playing out? when you hear rand paul dissing chris christie and vice versa, if i'm on the outside, 23 years old, i i want a less intrusive government, what is the issue. >> as gop, we'll have to literally encourage the folks look not as social issues. look to the economy, look to your future. look where you have a chance to survive. charles: all right. and, maybe social issues too but not saying as important. >> unfortunately we need a growing economy, number one. charles: thank you very much. really appreciate it. another example of government spending running rampant, how is this for some outrage? more than a million of your tax dollars spent on, get this, a study about smoking in brazil. that's next. ♪

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charles: guys, got two quick stocks for you. don't tell stuart. good thing he is on the found.

stiffle downgraded microsoft to hold from buy. my subscribers are still long the stock so we'll take the hit. liz: i think stuart is watching. he drove the tractor into a ditch. charles: i hope he doesn't have the flip-flops on. unquell sam, apparently he is not unique. he loves brazilian women. so much so, 653,000 american taxpayer dollars were granted to a brazilian researcher to fund her international tobacco project which ultimately aims to help brazilian women to quit smoking. can't make this stuff up, liz. liz: what are they talking about? brazil has aggressive anti-smoking policy this research, poor brazil, they need the money. send the money to detroit and places that need it here in the united states. they raised tobacco prices. they have done media and marketing campaign. they cut smoking in half in brazil in the last 20 years. charles: my thing i think is more egregious, how do people get the grants?

if willie sutton was alive. forget the banks, draw up grant requests. how do you get them? it's a i amazing! liz: $31 billion in grant money available. charles: 31 billion? liz: 31 billion. i tell you i know for a fact at love these researchers actually use the money, i'm not joking to buy houses on lakes in places that they want to travel to. charles: talking earlier in the week, about the restaurant organization, union organization, pushing antibusiness agenda. getting taxpayer dollars. how do they go about it? it is amazing. should look into it. 31 billion. you can imagine, waste, fraud @nd abuse in that thing. liz: use the money here in the united states to help it our people, our poor people. charles: brazilians can figure out how to stop smoking. >> they already have. they're doing it. charles: absolutely amazing. thanks a lot, emac a judge shoots down new york city's controversial "stop-and-frisk" law. new at 10:00, a former nypd detective will weigh in. you know this guy.

we'll talk to the man that printed this dress from a 3d printer. is that part of fashion future? we'll find out. smoking gun from lois lerner, the reporter who first broke the irs scandal. stay here. all new hour of "varney & company" straight ahead.e eening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritra, and etrade. i'm monica santiago of fidelity investments, and low fees and cmissions are another reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

a quarter million tweeters is beare tweeting. and 900 million dollars are changing hands online. that's why hp built a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's callehp moonshot. and it's giving the internet the room it needs to grow. this&is gonna be big. hp moonshot. it's time to build a better enterprise. together. we have in a new our of "varney and company". jim demint saying take a stand,

get the lawmakers on record. and bo dietl on new york's lot getting shot down. mayor bloomberg's outrage over the decision and the man who first supported the irs campbell's story is here. do we finally have a smoking gun? look at this address. is this the future of fashion? 3d printing. here we go. it was not an invisible but rest. we are checking the big board up 30 points and we are down a slow drift. maybe we thought we would bounce back a little bit. liz: we are in a directionless market and listen, and i will take this market right now. we have been down 10%. every summer the last three years. sort of disappointing, not so great retail sales number came

in. it is still coming in positive. stuart: charles: the economy is still pumping along. that is the view could describe it. the new york times reporting the obama administration is delaying another provision of obamacare dealing with consumer protection part of it that limited your out-of-pocket costs, feeling a push to defund the health-care law. senator jim demint telling lawmakers to take a stand, quote, politicians who oppose obamacare should not vote to funded. those who wanted socialized health-care system should vote to fund it. there's no middle ground and no place to hide. senator jim demint joining us now. strong words on the eve of a monumental showdown. before we talk about that, republicans themselves are a little split. a lot say the fund and others say the way. there is the problem delaying it? >> we are talking about the same thing. if we don't fund it on an annual

appropriation bill it will be delayed a year but the bill is clearly unfair, and affordable, and popular, and increasingly unpopular as people find out what is in it and the president is giving congress a waiver, unions waiver, and big corporations but the individual americans are stuck with this thing starting oct. first. charles: to your point the latest gift, this is amazing and you must have read about it but there was going to be a limit on out-of-pocket expenses, individual would be $6,350 for family, $12,700. because computer systems aren't ready to go insurance companies i going to be allowed in some cases to lift those limits and sometimes they won't have a limit. back to your point, insurance companies get a pass. big labor gets a pass, unions are getting a pass. everyone getting a pass exit the

average person sitting at home watching the show. >> you are right. either we should all live hundred or no one should. this bill is not good for america. it is going to hurt our health-care system, hurt millions of americans. 0 you have to do is look at britain to see how this evolves. the strategy i have heard from some republicans is let's fund it, that americans will see what a mess it is and we can repeal it later became can't repeal it wants the private insurance market dries up, once employers drop their plans. there is nowhere to go but a single payer system and harry reid has already said that. they know this bill is going to collapse and we will end up with totally government health care. that is not what americans want. charles: let's talk about more realities, back to the republican side. if the plan is to go after the continuing resolution and stop this government in its tracks, stop paying bills in its tracks,

the president would say hold the economy hostage do you think we have enough members who can stand that kind of p r he's? >> that is the question. republicans have the courage of their convictions. just about every republican in the house and senate has run their campaign on stopping the obamacare, pledging to fight to stop it. of republicans in the house of representatives passed a bill that funds the government in its entirety except for funding obamacare than the president has to decide whether to accept that funding or shut the government down. americans aren't stupid. if republicans take a clear message to the american people they are going to figure out the president is setting the government down in order to protect this law that he has given waivers to people who supported it. it is not fair and i think americans need to have this debate and if republicans want to introduce a bill that would delay it for a year that would

be two good choices for us to debate. do we defund it or delay it? i think legislatively, the only way we are going to bring this to a head is for republicans to fund the government but not obamacare. charles: it will be a heck of a showdown and about your fellow former colleagues are saying lo former colleagues are saying you are not for reelection and they would rather be reelected first and then make their stand, get reelected and then get more betsy if you will. >> that is not the way it has worked recently. they told us after 2010 when republicans won the house let's not have the fight now, let's win the presidency and americans were not inspired by that lack of fully. now let's not do anything now but wait until 2014. republicans win a majority they will say let's not do anything now but wait until 2016. october first is when people are

enrolled in this program, less than two months ago now is the time to bring this to the attention of the american people and that is what we will do on our nationwide tour. of folks that heritageaction.com, theyif folk heritageaction.com, they will join us. charles: one more hit like this you might have everyone thinking of pitchforks and horses. is working your way so far. we appreciate your time. back to the stock exchange talking about this eli lilly, the leading stock from the s&p. >> the no. one performer, stocks down 1% and up 13% this year. it is a winner, they had the experimental drug showing success and increasing survival rates, definitely a positive sign. charles: there were a lot of

skeptics but stocks are pretty good. >> after a 10% up 3% today for blackberry so once again a winner. the big question is what is going to happen? we are seeing microsoft, possible buying the company but maybe it will be taken private. they definitely are exploring different options in wall street the past two days have been optimistic i guess. charles: the stock is up. remembers list? stuart varney confronting elliot spitzer on his choice to run fo? stuart varney confronting elliot spitzer on his choice to run for new york city comptroller. polk said the national intention given to the spitzer and wiener is embarrassing and looks far worse for anthony wiener in his race for new york city mayor according to the

college 80% of voters view him as unfavorable, a record high for any mayoral candidate in the city fell only 11% see him a favorable light and voters are not hooked on elliot spitzer either at 59% view the former governor as unfavorable. liz: this polk is on friends with what voters are feeling in n.y. city, they feel they can do better than these two time a candidate. running for city comptroller he will oversee the city pensions, highly political and has a lot of union pressure and other pressure on how to invest those pensions and for him to be, for anthony wiener to be hitting a record 80% disapproval is a big deal. charles: anthony wiener is a caricature. he is like a walking caricature. you can't take him seriously. the dominican day parade holding

up a banana. liz: the etna where to go in the private sector so they are trying to get a job and the public sector. charles: the point about no viable option is probably the reason spitzer might make in. no one knows who he is. federal judge will in new york city's so-called soccer fist voluntarily targets minorities. mayor michael bloomberg vowing to appeal the decision, the policy made the city a favorite place. bo dietl joins the company. >> beginning in thes we have 2,000 murders in new york city every year, hundreds of thousands of robberies, violent crimes and i was a person that used to take guns off the street, stop and frisk and taken hundreds of guns off the street, the point is the guns are

killing people. 97% of the people killed in this city are black and hispanic. when you have a judge that comes out with this ridiculous answer, stop and frisk her neighborhood in a nice area of brooklyn different from the 75, i retired at 7-5, we still have murder, they call that the killing field, everyone was walking around with a gun. got to get the guns off the street but the gun the going to kill blacks and hispanics.s areo kill blacks and hispanics. they should be outraged. illegal guns are killing children, and i am outraged about this. my city and your city. charles: that is where the conundrum comes in for a black person. on the one hand i don't want my son ever to be viewed as a potential criminal. it would hurt me if he was stopped and frisked but i understand where you are coming

from. is there any way to address that? is there a happy medium? >> the great part about the new york city police department is the influx of the new police officers, a predominantly hispanic and black and dealing with -- you could do it a certain way. i could walk up to you or your son and say excuse me, i will pad you down, we had a couple shootings, it is so offensive but as you had them down, my name is bo dietl and if you have a problem, it is a way of doing it. charles: that is old school. >> forget community relations. charles: community police. >> the guy was a decent gentleman, a young man, you respect him but if the guy is going to start mouthing off and tell you get your hands off me and cursing at you and you treat him differently. liz: she is saying he essentially this is over 80% of the people stop and frisk for

black hispanics but mayor michael bloomberg when you hear his reaction is an ideological decision. never cited the 30% drop in violent crime. >> i don't want to scare people but equal right to murders and more robberies on the street. i talked to these officers all the time. they are frustrated. they want to retire, they want to get out. now camera on me and you judge me like i was in -- shooting and taking guns on the street, the next day the d.a. told me what i did wrong and you could judge somebody the next day. when that happens then your life isn't funny, got to get the illegal guns. i am talking illegal guns killing our kids. charles: i'm with you an illegal guns and the training powered

and society because there's a larger issue because we have run out of time. >> i don't look that you as a black man or hispanic. we are all the same. we got to get kids off the street and a carrying guns and killing our children. end story. charles: i told you about this company linkedin. today hit a new all-time high. where are your shares? >> shares of linkedin, $344 at last check. 239 right now. august is typically a slow month on wall street, lot -- not for linkedin, 17% in august, this is a huge winner. charles: they had a phenomenal earnings report and keep it going. they had an upgrade yesterday. back to you in a moment. if you want the smoking gun in this irs and we have one for you. up next the reporter who first broke this story to the nation,

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watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more saly. our commitment has never been stronger. charles: try to make some money. i have got to admit i have been in this, played it for a long time and hasn't done much and a lot of these nutrients stocks got hit. i think they will go together. take a look at this chart, risk reward is phenomenal and significantly overisolde, 62% of the business, potlatch 30%. either way this is the stock due for a big-time move to the upside and if you like to suggest $40. we have new video of irs official lois lerner that might be the smoking gun connecting president obama to the irs targeting scandal. she is talking about the

political pressure put on the irs to stop the flood of money pouring into the 2010 elections. take a listen. >> and overturning the sickly appropriations. and everyone because they don't like it and anything about it, they want the irs. charles: democrats the maintaining of a party line. in washington post op-ed democrat congressman the elijah cummings says there's no evidence of political motivation or white house involvement. kerri jeffrey joins the company. you were not the reported that broke the story. >> the video right there.

editor susan james a year ago to some material lot of the american center for law and justice showing how the irs was treating conservative nonprofit groups. she did a story about that and marc levin of the landmark foundation put in a request to the treasury inspector general tax administration to audit this and whether they responded to his request or not the oversight committee asked they did do the audit and the audit broke this open and that is the story we're following. charles: listening to the lowest lerner peace itself like there was a mad scramble to -- reaction to the landmark supreme court decision that they thought of the different agencies that probably could handle that and felt like maybe the irs could figure out a way to intervene.

>> that is a possible hypothesis but she mischaracterized citizens united. it says corporations have free-speech, did not say they can contribute publicly to political campaigns. john roberts rose the opinion and president obama went up in the state of the union address that year and mischaracterized it the same way and sam all the no sitting in front of him said the words not true. this points possibly to a reason or incentive the irs had to do what it did but the most important thing we found out since congress started investigating this is not just that the irs is dragging its feet in hand over records requested by the investigative committees and house of representatives but specifically have not yet given those committees the records they requested which would reflect communications between the irs and playhouse. liz: you could see why lois lerner pled the fifth. we talk about how democratic

high-profile democratic senators are writing letters to the irs pressuring them to act but most of those came in 2012. senator max baucus read the letter to the irs in september 2010, lerner speaking in the video in october of 2010. we need to get special prosecutor to find out who was pressuring the irs in 2010. >> what we need is we need to have the administration respond to the subpoena the oversight committee issued. on july 30th, darrell issa and the committee looking into this and a letter to the acting irs commissioner and said not only are you obstructing our investigation by not responding to our request that you specifically did not give documents out of the blight house, the irs chief counsel. by statute certainly to political appointees in the irs, the commissioner and chief helpful. at the time this was going on the commissioner was a george

bush appointee, the chief counsel is william wilkins, the only obama political appointee in the irs. the people who were overseeing the tea party applications told the committee they directed the east to the office of chief counsel. charles: the obama appointee. >> the committee requested communication from that office to the white house and other communications relevant to that. the irs failed to turn them over. the committee -- charles: the saga will continue as you will stay on top of the. this is a damning video and you can no longer call the scandals phony. not that you ever could but the more you call in phone the more stuff like this comes out. i could listen to you talk about this all day because it is fascinating and important but we have run out of time and we will have you back real soon. i want you to check this out. this is made of 3,000 different pieces. after the break the designer

says 3d printing clothing isn't too far away from ending up in your closet. that is your size. >> i wouldn't be wearing that. this man is about to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fiy thousand dollars. congratulations you are our one millionth customer. nobody lik to miss out. that's why ally treats all their customers the same. whether you're the first or the millionth. if your bank doesn't think you're special anymore, you need an ally. ally bank. your money needs an ally. if you've got it, you know how hard it can be to breathe and man, you know how that feels.

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charles: time to check the markets, we opened higher but going down ever since, almost 70 points. 3d stocks taking off this year, two and mention the lot on this show, first time talked about 3d systems march 8th, stock was trading at $37, almost 50 right now and stratus is another one, it hit $100 a day but this is absolutely on fire. speaking of 3d printing would you be interested in wearing a full length gown made from the 3d printer? how about a belt? the next guest says this is not a trend but a game changer for the fashion industry. nice vellum we see shown. what is it made of? >> a laser centered nylon. charles: laser centered not on

and apparently made from you print out several small pieces and you so them together. >> they are fused together, this could all be printed in one piece if the machine were large enough. the hold down is printed from the assembled, articulated mesh, putting textile in the machine and they are joined together afterward, we 3d printed something together. charles: you didn't use a small printer, you use something strong, an industrial strength printer. >> it is and industrial 3d printer. >> lighting out taylors, people at the machines if this took off. >> yes eventually. >> easier to make a dress of of it? >> it opens, not a question of easier or difficult but opens a lot of possibilities we didn't have before. you don't have to ship a product, things can be made locally on demand.

if it were a song or a movie it breaks down into something a lot more flexible and also the complexity of that address is 3,000 unique articulated connections, each one slightly different by mm so could never have made the pattern of charles: it was made ature. specifically for this model. it might put out the taylor of -- taylor's out of business but the bulk of the guys like you, fashion designers out of business as well? if i like a dress and put it into the machine willets it out at some point? >> you need material -- the have to be an artist and there's a way of controlling the material. you're still dealing with material. charles: how did you get inspired to do this? what want to make address using the 3d printer? >> something i wanted to do for a long time because when you can

print the address traditionally it was ridge and material, it is flexible, breathable, you are showing of a full kind of capacity you can do and you can make anything. charles: couple things on the desk as well. also made through 3d printing. >> 3d printed directing metal. that is the belt. charles: and this is made of metal and this goes to show you with the 3d printing you could use any base material, silk, look at this, this is -- liz: i you wearing that? >> doing this weekend. charles: only have to take off. the point is you can use any material, you can use paper, metal.

>> people of printing would now. this is the same machine finished a little differently, electro pleaded chrome. liz: i want to see make the tie for charles payne. charles: that will be easy for you. realistically, a lot of people are not thinking about the ultimate implications. what does this do in the long run to manufacturing? realistically. i have read it won't be unreasonable to build a 747 with 3d printing. where does that put manufacturing, manufacturing jobs? >> in the cloud. will do for manufacture what the internet did for social life. if you know we have a centraaized factory you -- liz: my father worked selling pattern co. and that was a failing industry. do we want to lose the craftsmanship of people who console and the address on their own? charles: this is revolutionary

stuff, the kind of thing not to go on a tangent but you are creative. we have a real important breaking news item, congratulations, look forward to more items from you. we do have some breaking news concerning the merger of american airlines and usair ways. the u.s. filed an antitrust lawsuit to block that deal and u.s. air wis stock way down on that down almost 8%. president obama continues his fight to raise the minimum wage, two workers facing lockouts all over the country. the for autos zone at office depot chief to react to this "after the bell". >> all these full time hours, not enough to take care of our basic needs. we need a livable wage, not a minimum wage, and we feel we deserve it.

charles: a lot of energy news. 200 gathered in front of the state department to protest the keystone pipeline. mexico taking its oil industry private after 75 years of state control. take a look at oil. what do you think of this? mexico say and we made a huge mistake. since 1938 nationalize. lot of countries passed them. their production is down.

i want to show you the audience for this screen, how much their production has gone down even in recent years. liz: buy 25%. charles: it is crazy. in the meantime we have this amazing technology, innovation and abundance of natural resources and we getting pushed back. liz: important report about the keystone pipeline that said that if you stop the keystone pipeline you still have proved, heavy crude being refined in the gulf coast from venezuela so it will do nothing to stop green outguess emissions, the canadian companies are building pipelines going east and west bringing the oil to market and the president's energy department put out a report saying not 50 jobs would be created as the president said but 162,000 jobs have been created in oil and natural gas since -- charles: high-paying jobs where

they don't need food stamps or freed cellphone, americans proud of what they're doing, absolutely not, like ships crossing in the night, absolutely amazing. know what else is amazing? twenty-eight million part-time workers and the minimum wage war that is not letting the. retail and factory workers demanding a minimum-wage be waged to $15 an hour. for receipt of office depot and autos zone joins us now. thanks for your time and expertise. from an economic point of view fifteen hours minimum wage what does that have on every one? >> the american dream has always been about entering the workforce and moving your way up progressively making more and more money so the idea of setting a higher minimum wage seems like the great thing to do and an appropriate thing to do if you want people to live the american dream. the problem is doing so can hurt the very people you are trying to help. when you raise the minimum wage

companies can't afford it and cut back the number of hours, cut back the number of jobs that are created. disproportionately hurts the people who are entering the work force. is proportionately herds certain industries over other industries because if you can move the jobs to lower wage area you will doing so the people in can't move the jobs end up cutting back the hours or automating so if you have people working on a packaging line minimum-wage goes up to $15 an hour maybe that is the economic justification for adding automation and kills jobs. charles: here is the other side of the argument and what we are talking about here. it is fair, second of all it is part of the middle class bargain which hints at some sort of birthright the federal government -- thirdly is in corporate america just greedy? wall street at an all-time high companies lot of money, why

don't they share of a wealth? >> the objectives are great to move people. the problem is you don't want to raise the wage and destroy the jobs they don't have jobs and. if you look at this recovery it is a jobless recovery. we added 162,000 jobs last month, very few years today barely keeping up with a population entering the workforce, 77% of the jobs that have been added this year have been part-time, and if you make it too expensive to add those jobs you will kill the recovery. it will go away entirely and raised unemployment even higher. i think the region deals with the. we are talking the federal minimum wage increase and you have the -- let them deal with the role that the company's deal with it and if you want to watch for $6.50 an hour --

charles: you are talking freemarket solution. that might be too complicated. >> pretty radical. >> how long do minimum wage workers stay in that position, how quickly do they move up the rates. >> the minimum wage folks are people coming out of high school organized for working their way through education or college or your first job out and you tend to move up so what happens is the largest amount of unemployment today is in that group so if you raise minimum wage and take away or destroyed those jobs or cut back the number of hours so there part time when you're doing is raising the unemployment or forcing people to get two part-time jobs to cover what would have been one full-time job. charles: you articulated this in a way that makes sense and is on a standstill being rejected. we need to come back and explain it more than once. appreciate your time this

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charles: the justice department blocked u.s. airways, shares are down how much. >> not 7 per cent. and usairways, and the airline sector getting hit because of the doj filing a lawsuit presented by the attorney general in six days and the district of columbia to block the this merger, less complication would be higher fees. and these stocks. charles: children's clothing company finding a whole new way to connect with customers,

facebook. they're using facebook to sell their product and connect with -- and daniel revenues attracting big-name investors including a 0 l and steve case, the founder it joins the company now. and there was a while when everyone was making money on demand people selling things trying to do things, and take advantage of facebook. >> that is the first thing have to say it wasn't planned this will happen to be an facebook making that connection with customers and starting that dialogue. and had some things i wanted to move, i have been selling on ebay only and paypal voice if everyone is interested. and everything sold and the first moments of what just

happened here. charles: what happens to the ebay business. did you stop doing that? and should ebay be watching this? >> we did. within two weeks we moved off of ebay completely and never went back. it was such an easy way to be exactly where they were. and different things like that we were able to go discussing where they were where they wanted it, and very frictional this purchase. charles: and also the built-in sales force, see it on facebook and they buy it and coast powerful messages. >> they love to share their

children's pictures. and escalated from day one, or children meeting faubus for the first time worldwide one family went to china to adopt her daughter and wore nothing else and it posted the journey. and bond was so tight, and close the afterthought. charles: now you are starting to grow, you have grown beyond facebook and attracting big names. where do you go from here and are you intimidated by the next step and will this be a big one? >> will be a big one but it is very exciting and not intimidating in any way. we are so excited to be on the forefront of this social media and shopping and understanding how much those two tie together

and i don't think anyone has gotten that that point. to be able to join forces with revolution, steve brought americaaonline, what a great person hasn't seen and he has done this kind of thing and we have done so many platforms we are able to expand into, we are starting to test sales there which have taken off from the beginning and really taking this -- and other real-time manufacturing that we do which is absolutely our secret salt and be able to expand the. charles: i am impressed and it is interesting, not necessarily of fluke but you saw an opportunity, went for it, that is what the american dream is about, congratulations, i am going to check out the clothes may run. we appreciate it. >> thank you. charles: some big news for the airlines, key merger blocked. we have more for you on that next. [ male announcer ] imagine this cute blob is metamucil.

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neil: on lou dobbs tonight the obama administration and bound by law, a member of the house judiciary and oversight committee, reacts to the ad -- the administration's continuing assault on law and order tonight

at 7:00 eastern. charles: big news in the airline industry, the justice department blocking the merger between american airlines and usair ways. you have been looking into this court filing. liz: they are concerned about ticket prices going up as consolidation moves through the airline industry. 85% of seats are held by four of the major airlines and what they are worried about is american airlines and usair ways dropping hubs. you could drop philadelphia which is 90 miles or so from new york city, drop charlotte in favor of miami so that has political connotations because there are jobs at those airports and the states are weighing in on this decision too. charles: you think they would do that? consolidation and paring down the work force redundant jobs, to get rid of hubs particularly in large cities. liz: usairways told congress we

are not cutting back, we will be expanding so that would mean cheap prices and competition and the discounters are helping to bring airline prices down, cheap airlines that are out there. before southwest, the spirits of the world. what about this? are you getting any indication what the justice department would want to let this go through? what would the compromise be? liz: all we can get from the airlines is a promise we won't cutback, that we will continue to expand so you take them at their word. doesn't seem that was enough for the justice department in blocking this merger. liz: charles: the stock is taking a big hit, thanks a lot. more and more people are saying goodbye to the good old u.s.a. renouncing their citizenship and giving up on america. the reason, you guessed it, taxes. that is next. any last requests mr. baldwin?

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>> more and more americans are renouncing citizenship, and, in fact, many record numbers to avoid u.s. high taxes on investments held oversaws, and u.s. citizens renouncing citizenship first half of this year than all of last year. >> they are saying see you later, and even though, what, it's 1,000, 500 or so and 600 million people living abroad, the fact we dramatically tax income at the federal, state, and local level is refuel bad, you can see that drain happening even at the local level, cincinnati, kansas city, st. louis, pittsburgh, chicago, detroit. when you tax people''s income, they pick up and leave. >> that's the argument made a lot in this. i guess the left, and i hear president obama say this or hint

at it, if taxes are everywhere, it's only a trickle of people that leave. it's one thing to leave california and move to texas, if we tax them all the same, it doesn't matter. >> the left doesn't acknowledge the fact that people move and take their homes and their families away from high tax situations. >> is there a tax level you renounced your u.s. citizenship? >> up to, i think, 60% is ridiculous. >> 50 now? new york city, i mean, just about everyone. >> in the chamber of dc, facts don't get in about the debate. >> i like to believe i would stand and fight, but we talk about 80%, i would stand and fight. thank you, we had fun. dagen, over to you now. >> thank you so much, charles. no way, says the doj. justice department filawsuit tof u.s. airways and america.

the stocks selling off. bill off the board, and at jcp erks nney, the fight, what it means for the future of the retailer, the retailers not a fan of google saying the tech giant stole oracle's stuff calling the ceo an evil doer. musk unvailing the hyperloop. will people use the multibillion dollar idea to travel? it's like a big vacuum tube. all that, and so much more coming up on this hour of "markets now. ♪ dagen: reunited and it feels so awkward. connell: sending you on a hyperloop to cover the story. dagen: big story. connell: the justice department filing the antitrust lawsuit to block the big merger. american airlines and let