thank you for joining us, have a good night. we will see you right back here tomorrow. lou: good evening, everybody. president obama not the only one in washington, d.c., leading from behind. conservative republicans in the house are also doing so but arguably more effectively. those republicans have succeeded and leading house speaker john boehner to declare a renewed effort to defund obamacare. those same conservatives reminding their caucus of their commitment to fiscal responsibility and lited government while infusing the republican leadership with backbone and energy. john boehner's abrupt reversal coming just days after his initial effort to compromise with senate democrats by

decoupling the continued resolution and the defunding of obamacare. also here tonight president obama's two former defense secretary's criticizing their former bosses handling's of syria. robert gates, leon panetta hitting the president hard for choosing to put the decision in congress hands. take a listen. >> truth is i foolishly, naïvely had hoped the congress would have acted by now. and this would be more academic than it is. it is obvious that the administration has struggled with syria and it is a problem. >> when the president of the united states draws a redline, the credibility of this country is dependent on him packing up his word he had to. lou: much more on that.

and the rally began after the federal reserve announced they would be no tapering of their bond buying program. the policies will remain in place, investors loved it, the dow jones and the s&p closing all-time record highs. the nasdaq posting is highest close in 13 years. we will have a lot more on how the fed fold the street. evacuation than colorado continue at this hour as flood waters claimed lives of six people begin to recede 600 people still unaccounted for, and as you see on the screen, the massive damage and destruction widespread, damage estimated to be in the aliens of dollars. the latest for you on the flooding in colorado. and in mexico flooding in and around the resort town claiming the lives of 57 people nearly 3000 evacuated from the area so far as hundreds of americans

remain stranded waiting for the first opportunity to return home. 40,000 tourists in all still trapped at this hour. move over, government, promise two private spaceflight is here. it has now doubled and as you watch your screen, a rocket from orbital sciences successfully blasting off after the second private condo craft on a supply mission to the international space station. we begin tonight with those house conservatives taking the fight over obamacare to the president. house speaker john boehner announced his intention to put the defunding of obamacare directly into the language of the continuing resolution to fund government and to not adjourn the house until that legislation passes. president obama appeared incredulous the g.o.p. house leaders could be so brazen and

bold in their unprecedented assault on obamacare. >> you have never seen in the history of the united states the debt ceiling or a threat of not raising the debt ceiling being used to extort a president or a governing party, and trying to force issues that have nothing to do with the budget and nothing to do with the debt. lou: at the battle over the budget and obamacare began, another scandal that dogs obama administration reemerged on capitol hill today. the house foreign affairs committee holding a hearing of the deadly attacks in benghazi that killed four americans more than a year ago including the ambassador to libya. more than a year after that scandal, to trey petter can faced tough questions about why the conflict was not secured, why no one was punished for

failing to secure it. catherine herridge with our report. >> -underscore the disconnect between the state department and most americans definitions of accountability. >> in the real world this would never happen. this would never, ever happen. they would be terminated because they failed. >> he has so far escaped blame for the terrorist attack. for managers plays on teorary leave after the assault were reassigned in august with no financial penalty. >> i respectfully mr. chairman that accountability includes being relieved from your job and assigned to other positions. >> no one missed a paycheck. >> they question the managers receiving their bonus.

>> i don't think it was either of us, but i have to go back and find out. >> while kennedy said it was hard-hitting, republicans center of state hillary clinton whose said policy was never questioned. >> the people who should be held accountable are not even interviewed, that is appalling. >> investor chris stevens to be testified that mrs. clinton wants a permanent mission established, kennedy tried to dismiss the idea. >> the secretary of state never said to me establish a permanent post in benghazi. >> but admitted he did not meet security requirements. he did not volunteer he was evicted that signed the memo. >> i did not have time to build a new building or to take the months it takes to retrofit, which of the overseas security board standards as our goal. report by women to breakfast the end murdered investor for washington's failure to respond to classify cable that warned the conflict cannot sustain a coordinated assault.

>> as additional security provided that day? >> whenever received that additional request. there was no way i could respond to a request that had not yet been submitted. >> many democrats were highly critical of their colleagues claiming republicans are hung up on the past and determined to pin the blame on president obama and mrs. clinton's policies democrats say should focus on preventing another benghazi. lou: thank you. the house oversight committee set to hold his own hearing on the benghazi attack tomorrow. with that, mike mullen and investor bickering. my next guest will be attending the hearing. joining us to discuss the investigation, the latest republican bush to defund obamacare, member of the house oversight and judiciary committees, chair of the immigration and border security subcommittee. congressman, good to have you

with us. this is a bold stroke by the leadership in about 180 degrees away from the initial offering of the speaker last week to the senate democrats in which he decoupled the continuing resolution, the budget, defunding obamacare. what happened? >> i think if the speaker were here talking to you, he would tell you his preference was always to have this ideological battle over the debt ceiling as opposed to the continuing resolution. for most of your viewers, that is a pretty boring point but appears matters but he wants a fight fight over the debt ceiling or to the speaker's credit when people went to him and persuaded him we would rather fight now than later, he agreed. i think that is what you look for. wherever your leader is, an open mind and willingness to change strategy and the speaker did that. i give him credit for being

persuaded. lou: it is a flexibility, a high mark of intelligence and leadership. but at the same time, it is interesting the caucus itself seems to be really behind the fight as you put it, and the defunding of obamacare. now how realistic is it as a political stratagem, is it possible to actually accomplish the stated goal of defunding obamacare? >> i think so. it is certainly the discretionary spending. portis mandatory, as you know, but having just come back from south carolina in a recess, my folks are ready for me to it me to identify something worth fighting over. whether it is benghazi or the irs or the nsa or affordable care act, but we believe in this enough to fight for it.

when democrats fight the mainstream media calls that principle. when we fight, they call it politics. i cannot help notice in your intro the president lamenting anybody who possibly would play politics over the debt ceiling. guess who voted against raising the debt ceiling when he was an obscure senator from illinois. barack obama. lou: i remember when he was a senator but don't remember him being obscure. >> initially the first 20 or 30 minutes into his term he wasn't scared. before began running for president but he votedgainst the debt ceiling singer to be a failure of leadership to raise the debt ceiling without dealing with the real drivers of our debt. we will not raise if the 83rd time without extracting a commitment that this will be the last time or put us on a path toward bending the spending art toward balance. lou: the president makes an

interesting point. he said not in the history of the united states the debt ceiling or the threat of not raising the debt ceiling has been used to extort a president or a governing body. how could you have the ability to do so? it seems as if you are questioning the president. >> i am a simpleminded guy as you know, so i take facts simply. not a single republican voted for obamacare. it is wildly unpopular in most of our districts the president himself is determining which portions of that law to turn on and which portions to turnff, and you can argue unions and others are extorting him in what he turns on and turns off to use his words. he may not like the fact we are doing this strategically, but he

has done the exact same thing, he just does not like it. lou: it seems he is used to some of his party following him rather blindly. >> this isn't a law school class. he is integrating our papers. the sooner he figures that out, the better off the republican will be. lou: changing the subject before the committee tomorrow, we have seen this play out before. we are now over a year since the scandal began with the death of four americans, the attacks, the terrorist attacks on our conflictconsulate, what is to cn these being delivered tomorrow and the likely predictable responses of these two who led the accountability review board >> what i hope happens is this. your viewers probably not that

much. for your viewers that are curious, why am i still hearing about benghazi after a year, thought there was an accountability review board. the president told me they would look that every element of benghazi. senator clinton saying we will look at everything about benghazi and what we will find out tomorrow is they didn't look at every element, they didn't look at everything, they didn't interview susan rice, they didn't interview hillary clinton and her decision to ignore the escalating violence in benghazi and keep that facility open and did not interview the commander-in-chief to ask did you call any of our allies and say we're in trouble, can you help us. how can you call something independent accountability review board when there is no independence, no accountability and precious little review? i think that is what the viewers will see tomorrow. lou: new proof embattled

internal revenue service management was whether the motivated and is targeting of conservative groups for special scrutiny. "usa today" obtained internal agency documents that showed they find the groups for anti-obama rhetoric. and what they called "propaganda." nearly 200 groups on the irs so-called political advocacy case list back in 2011. and more than 80% of those were affiliated with the tea party or other conservative causes w. they both worked for president obama, two different opinions on syria, but they agree they don't like the commander-in-chief's policies on syria. to settle it all, four-star general next.

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lou: new details emerging about the mentally disturbed washington navy yard gunmen. washington officials say he carved to bizarre phrases on the stock of the shotgun he used in the massacre. one of them, "better off this way." authoritauthority still not sure significance of the word, but generally stands for extremely low frequency and it could well have been a reference to what he himself described as vibrations that he said were being directed at him by three people who followed him everywhere. an intense battle today on a small syrian town. but no assad regime forces were

involved. it was a fight between rebel forces. rebel fighters stormed the town located just 2 miles from the syrian turkish border and killed at least five members of the free syrian army. the al qaeda related rumbles now in charge of the town. the most severe since tensions mounted among the rebels earlier this year. my next guest says the united states has lost a tremendous opportunity in syria to change the strategic balance in the region. joining us now is retired four-star army general, former army vice chair of staff. general, what opportunities in our judgment first to get to your point of what we have lost. >> syria has always mattered to us in terms of national interest in achieving stability in that country, assad gone and the government aligned with our

interest as a buffer against the iranians. clearly they see syria as an anchor point for their movement in the region as a beginning to expand into iraq and already have influence in lebanon. likely now that i think assad will stay in power for the foreseeable future, we helped in mice that as a result of the chemical weapons disarmament program. his unlikely opposition forces will be able to get the robot's arms equipment they need to change that momentum. this is a lost opportunity to achieve the kind of strategic balance we need to buffer the iranians. lou: the strategic advantage that could have been gained if it is lost. is there an opportunity here for the united states, for this president, and vladimir putin to

come together to find at least some common ground in their mutual interest, that is interest of the two states, russia and the united states in the middle east? >> reality is he would not give up even half of his weapons to include the manufacturing capability, and i believe much of this is a facade to lifetime and consolidate his power and the russians are playing that big-time. secondly we have worked with the russians in cooperation in afghanistan, they permit us to use in northern route out of europe to bring in supplies and ammunition and et cetera for our troops and also for the naval forces. whether we can achieve any cooperation with them as it pertains to the iranians certainly remains to be seen.

i don't think because of this issue over syria that we left that interfere with cooperation and potential cooperation in other areas. we diplomatically should pursue those initiatives. if using this disarmament as leverage to do that, certainly the state department would seize that initiative. lou: your reaction to be skeptical of two former century of defense criticizing the howlings of syria. a surprise, what are your thoughts? >> both are preeminent government officials in washington, d.c., certainly working in multiple positions, some very influential for multiple presidents and they sort of know the rules, very rarely do you see a former government official criticizing

a serving president that they work for and the bulk of them did it at the same time. it just provides our viewers with the animus that deals with syria and the frustration that people have as it pertains to it. lou: general, thanks as always. >> good talking to you. lou: thank you. up next a record-setting day in wall street, another bernanke bound. it was the easing money from the fed. easy money the hard way. we are joined right here next. please stay with ♪ nascar is about excitement. but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center.

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in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. ♪ lou: stock prices jumping higher after the fed knows it will keep its easing money policies in place. the dow soaring 147 points. s&p up 21, the nasdaq gained 38. volume on the big board picking up. the heaviest trade volume suspect in june. the treasury department said its stake in general motors to just

over 7% after taking a 60% stake during the 2008 bailout. that is a lot of progress. joining us now, bridge bank chief economist, managing director. good to have you with us. >> good to be here. the consensus was dead wrong. how could you guys have missed that? >> it was a surprise. lou: you get to speak for all economists. >> the consensus was that there would be a modest tapir, 10 billion are so common in the fed did not do it and knew that that was the expectation, keenly aware. is important to keep in mind, monetary policy is about more than just a prank. i thought that they would do the tapir. at that there would be very strong in their language of monetary policy is likely going to stay accommodative for longtime, and they were. lou: you got that one. >> to put an exclamation point on it. lou: and moving out.

and that is a significant stuff. and, frankly, i am one of those people never thought that there would taper and all. and the reason that it not think that there would tapirs because the numbers are not here. today is that here. at least not sufficient inflation in this economy. i have heard all of the madness about how inflation -- we have been watching this extraordinary expensive federal reserve talking over almost $4 trillion some on the sheet. there won't even admit. >> absolutely right. the alarmists have been dead wrong. if they remember one thing, it is inflation. by the lack of demand in the

economy. expectation, allows lot. denny's to be full. lou: to afford. @%r a right to have it. that element certainly. >> and we're not even close. the forget about the deficits for economic growth. the growing population hose every bit of preeminent and relevant a position in that formula as an the other. we have done such a deep hole that it is just going to take a long time to climb out of it. lou: and you're exactly right.

this will be 05 to ten year event. i said, bowl. this is the most powerful, resurgence, resilient economy in the face of the planet. >> is the most powerful and resilient economy. you underestimate, the ferocity of the head winds. be. lou: and we will have to come to terms with the fiscal policy that is utterly destructive. we have to come to terms with the monetary policy that some point we're going to have to say this tested -- we have to have sufficient material growth in this private economy.

lou: i have between now and then they come up with another word besides steeper. lou: real quickly, economic growth and the markets for the remainder of the year. >> the economy is improving and it will likely to continue to improve gradually. some of that headwinds from the crisis are the mentioning. we have the fiscal policy, the looming crisis with the debt ceiling and a government shut down. the fed mentioned that as one of the reasons that they were cautious here about starting to taper. lou: peter barnes asking a question to the validity of that thank you so much. appreciate it. more on the obama economy. up later, we will be taking it up with, oh, yes, the "a-team" coming right up. house speaker said ted defund obamacare in the upcoming budget battle.

heritage foundation president jim demint happy that the speaker is following his counsel. we talk with him next. ♪ [ female announcer ] who are we? we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!" ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're here to help start yours.

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♪ how did he not see that coming? what's in your wallet? lou: announcing plans to tie government funding to funding obamacare. a victory for the heritage foundation, and its president, jim demint. as we discussed, the political sk involved, well, mr. demint said he wanted to go in exactly that direction. >> the republicans have every reason to say we are funding the government, but we should not fund this law that the president is not implementing in a fair way. if republicans do that quickly and take a message to the american p think they have a better than even shot at convincing americans that if obama's says the government down is because the president said it down.

it. lou: and republicans right now looking ahead to 2014, conservatives and republicans go together quite often. they want to preserve their majority in the house. they want to take back the senate. for them this is a huge risk. a huge political risk. what will be persuasive, do you believe, to particularly the speaker of the house and the leaders? >> when they see the polls, the american people less and less persuaded that this bill should go into law and what someone in congress to stand up against it which is why we have been trying to do the last month, travel the country, dozens of rallies, thousands of people of come out. and just to get them informed of a what is in the bill, how is going to affect them, we have been doing that on the foundation side, heritage action, our sister foundation which has been organizing grass-roots the call in the mail congressman and senators.

lou: id badges to use a grass-roots? you sound like an obama democrat talking about actually turning out the vote at grassroots campaign. i thought conservatives and republicans just threw a few dollars in a pack and said advertise away. >> keeping congress more accountable to do the right thing and let them know when they don't. lou: one of the issues that you alluded to when talking about the double fencing, will w go here with immigration? and personally believe that the house of representatives under the of house judiciary committee chairman bob gridlock has come up with an extraordinarily intelligent, rational, humane, and the national interest approach. what is your view? >> they're following what we talked about.

let's don't do this big comprehensive bill. a step-by-step approach to up prove that we can control our borders and get a workable id system and get a guest worker program that works for farmers in the high-tech visa for the industries that need those. our immigration system needs to help americans. it is to increase their pay, not reduce there pay and replace -- lou: out of we do that? >> just a step-by-step reform process, not one that is as comprehensive politically driven amnesty bill. you do not start immigration reform by rewarding 11 million people came here illegally. it appears. lou: the republican leaders in the house have actually taken a leading point on immigration reforms in the country. the you think that they have the well, the energy, and the principal and the staying power

to sustain the positions that is, for right now, at least, there. >> we need for the house to continue to lead on the right program and then let republicans run on that in 2014, but unless we get a new senate and a different bailout of the senate it would not make sense for the house to pass anything, even if it was the right thing. >> you are one of the few folks talking about actually energizing the electorate around conservative ideas and building an army of voters who can actually get something done in 2014. to the tea party did that. the energy was palpable in 2010, as you recall. you were very much a leader of that movement and very much a beneficiary of that movement. >> we certainly did not sense that energy in 2012. not in the presidential

election, not in most senate races, not in most house races. >> 2010's was a ground-up effort, the way politics should happen, grass roots pushing good can it is to the forefront. 2012 republican party took it back over and get what they have always done, a top-down approach centralized. it did not work and did not inspire. we have to do outside of the political framework in is what we intend to do at heritage is to call -- cultivate the environment so can it's can win. as milton friedman said, we have to create an army or even the wrong people will do the right thing. lou: your views on this economy. we have just about $3 trillion in overseas bank accounts. we have an immigration plan that is suited and geared to accommodate course, businesses,

and not the country. we are following business practices like of shoring up production, and outsourcing of jobs to cheap labor markets. we meet -- we may soon become one ourselves, but nothing that is the way we want to resolve the matter. 20 million folks out of work. and you talked about grass-roots bottom-up. >> one of my priorities that heritage is to learn how to communicate and connect with the american people. help them see how the eddy is that we talk about will make their life better, and not just policies but things that people care about, what they hope, with a dream for and make sure that they understand that when we talk about cutting taxes, made is not for any reason except we want the life to be better and then to be more prosperous. we have not done a good job of connecting conservative policies with what people really want. as my challenge.

lou: i know that you are on a journey and campaigned to write that. if we appreciate their virginity to sit down and talk with you. jim demint, president of the heritage foundation. and up next, president obama pleading for help from his first term political advisers. that's right to my said the first term. the "a-team" joins us next. it will be talking about mr. obama's "a-team." ♪ thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.

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lou: jenny me know, the "a-team" republican strategist and a former clinton adviser, former hillary clinton adviser, co-founder of define american. all fox news contributors. great to have you with us. and the republicans have decided , the speaker has decided to take it to the president of obamacare.

see ted defunded through the continuing resolution. >> in 2010 that the party did help the republicans when the majority, but think this is the wrong way. i no you're hding me out here. yes. i agree that this is the wrong way to actually talk about the debt ceiling in the budget by holding obamacare hostage. we have debated it, even voted to repeal and refunded. lou: holding it hostage. price leaders need to go into a room with the president's political advisers the to come together and work out a solution. now they have this kabuki theater that is going to backfire. lou: what do you think? >> we need to bottle up an islamic palin and make every single republican leader on the l trade some of that juice because she is absolutely right. we cannot put our economy in this time again.

but we saw a couple of years ago when he was out and handed the keys over to the tea party. he damaged our economy. lou: by taking three runs that it answering yet peacetime. one can, we can help, past performance as it indicates to my future performance. but the reality is that is going to be up to the democrats, the senate democrats. i mean, if they resisted, if they strip the language, if they have the votes for that, and then they will have, that is their decision. and if they're is a shutdown of government to ensue, that will not be the republicans' fault but the democrats' fault. >> the polls now show by 54 to 25 that the electors says that any such shut down monday by about the republicans. we have serious fiscal problems with the reports now showing that the entitlement crisis will

balloon the deficit in the next five to ten years in ways that is unpalatable and intolerable and we need to do exactly what she said. lou: it is not an palatable and they're not intolerable. just gone through five years of this administration but out in advancing a single idea about how to reduce that burden. >> i apologize. you're absolutely right. the fact that obama is wrong and republicans are wrong does not mean that we should defund government or ignore serious problems. >> it does mean we're not discussing was at hand. the opportunity to defund obamacare, latest fox news poll says 50 percent of americans oppose it. we can once the president and self defund obamacare. he has done so through the business -- lou: he defang did. he partially defunded obamacare.

there can be no resistance for the idea of defunding says the president's self surely was going to be intellectually honest. >> several polls that point. now that it has passed congress, the supreme court has given it to check of approval. the mandate of this. they don't want politics to be recaptured. they're ready to move on. lou: you are not accepting reality. the polls, all of them, show opposition to obamacare. there is -- that is a fact. it is a disaster, an economic disaster. would you be willing to give it a year or two before being implemented to fix it? rigid be willing to do that? >> it is an economic disaster if

you ask the americans have no health issues, there will be allowed to get health insurance for hundred dollars. >> the american people don't want to see obamacare implemented. they want to see their health care system fixed. that is what we need to do. if republicans realize this as a political tool, where going to lose because of the mainstream media. we are. lou: you have not had the mainstream media in recent memory. that does not mean republicans to or don't. indeed, thank you. up next, well documented. why he should be concerned about his base, his rough. that is next.

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lou: the president is limping a little bit. today he came up with some choice words for congressional republicans talking to the business roundtable. here he i >> you never seen in the history of the estate's the debt ceiling where the threat of not raising the debt ceiling being used to extort a president or a governing party and trying to force issues that have nothing to do with the budget and have nothing to do with the debt.

lou: and you have never seen, i promise you, and the history of the united states can a president to play the role of victim using full throated hyperbole to win the favor and approval of the 46 and a half% to the electorate who he has ignored of the past five years. the president all excited because the speaker announced that the house of representatives would take up the continuing resolution that would include language to defund obamacare. what is really troubling, i think, for this president is that newfound independence among many of his own party who was followed him. think of this. of 111 house democrats, a majority of them, a majority voted to curb a as a surveillance. 111. dismissing white house objections to their vote. and the vote on an attack against syria.

it had to be scrapped partly because a quarter of the democrats in the house would have voted no. and larry summers, summers with juries bid to head the federal reserve to try to democrats sent a letter to the president in july urging him to pick instead vice-chairman, fed jack -- fed vice chairman janet yellen of -- they would defy the president. think about this. 90 percent of house democrats consistently voted for the president. last yearhat fell to 77% voting with the president. this year the percentage is expected to be significantly lower again. 2014 approaches. and these democratic defections and defiance make it clear mr. obama is, indeed, a very lame-duck. the only question now is just how lame will the stock it? well, that is it for us.

we thank you for being with us. we're joined with the latest on the benghazi hearings. the publisher of the ♪ nascar is about excitement. but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technology helps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans. at od, whatever business you're in, that's the business we're in. with premium service like one of the best on-time delivery records and a low claims ratio,

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in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. >> that came out of nowhere. >> we are against bailing out gm. >> you cannot vilify wall street. >> there are a lot of small businesses out there as well. >> build contractors, there's a lot that can go wrong. >> too much government is never good. >> the government always has an influence. >> using the recovery has occurred? >> no. >> people are still marketing jobs. >> the financial crisis has made everyone redefine who they are. there is no middle class.