lou: good evening, everybody. thank you for being with us. house speaker and the house republican caucus voting to keep government open and to shut down obamacare. the house passed a continuing resolution today that funds the government and the funds obamacare. and that puts senate democrats in a difficult political position. majority leader reid and senate democrats are now staring at two choices. go along with either ted defund obamacare and the government or reject the house gop legislation and risk being at fault for a full-scale government shut down.

here is speaker boehner earlier today imploring his senate colleagues to go to work. >> while we had a victory today for the american people. and also a victory for common sense. and so our message to the united states senate is simple. the american people do not want government shut down, and they don't want obamacare. [applause] the house has listened to the american people. now what is time for the united states senate to listen to them as well. lou: and we will be reporting fully on today's developments from washington d.c. also another terrific drive-by shooting in the murder capital of america. shooters sitting 13 people, including a 3-year-old just when it began to look as the chicago violence was declining at least moderately.

and more volatile i'll weather. the earth's strata storm of the year is bearing down now on one of the planet's most densely populated areas. taiwan is bracingonight for a typhoon land fall, a typhoon that meteorologist say is the equivalent in destructive power of a category five atlantic hurricane. that storm is forecast to hit hong kong, a city of almost 8 million people this sunday. and no relief for the flood soapberry is in and around of acapulco, mexico. 40,000 troops remain stranded because of massive flooding in devastating landslides now reeling from the landfall of hurricane and well in a category one storm that hit the already battered region. flooding has claimed already almost 100 lives. emergency officials have now confirmed seven deaths caused by

the historic flooding in that flooding -- in the rocky mountains. billions of dollars in damages, millions of gallons of raw sewage spilling into the streets and cities and towns overrun by the floodwaters. and a frightening discovery in one small town, e. coli detected in the drinking water. the latest for you from colorado later in the broadcast. we begin tonight with a newly unified, energized house republican caucus. the members pushing speaker boehner to stand up for their commitment to fiscal responsibility. antedate the speaker did. all republicans but one and two democrats combined to pass a continuing resolution that funds the government through december 15th and d funds the unpopular obamacare law. this excess in winning passage of the defunding measure put senate democrats in a difficult,

political, and parliamentary position. either join with the house, a defined obamacare and fund the government, or fund obamacare and risk being responsible for the defund of the government by not exceeding to the government legislation. the senate is now up. republican senator ted crews has vowed to use a procedural means, as he put it could to stop majority leader reid from stripping the obamacare defund language out of the continuing resolution bill. cruz the target as well of interparty attacks of the past two days for suggesting that senator reid had the votes to kill whatever came out of the house. some house republicans referring to the so-called bedwetters of the senate. we have compiled a list tonight. some of the party brethren that house republicans may have been referring to for their opposition to the idea to defund obamacare. senators richard burt, john

mccain, and bob corker. they were echoed by congressman scott ridge l. and karl rove. and former florida governor jeb bush to offered one of the more -- thoughts offered by either one. he called the move to be politically dicey. strong stuff. president obama somewhat predictably on a day of republican legislative accomplishment jumping back out on the campaign trail trying to attract media attention and deflected as the house voted to defund his signature legislative achievement. a president all revved up, hurling insults and hyperbole and republicans who have unexpectedly shown that they have the guts to defy him on obamacare. he did not like it. fox news chief white house correspondent ed henry with our report. >> just do your job. >> reporter: as the budget

battles start to rates, instead of negotiating, president obama was ripping them in kansas city claiming gop leaders are obsessed. >> the focus on trying to mess with me -- [laughter] there are not focused on you. >> reporter: after a few brutal weeks playing defense on everything from syria to a move by the federal reserve that suggests the economy still needs stimulus, the president is anxious to try to get on the offense, warning if congress does not raise the debt ceiling -- >> the united states will defaults on its obligations. that has never happened in american history. basically america becomes a dead be. >> reporter: never mind as a senator he voted against raising the debt ceiling as a mere protest vote. now as president he is heading into the debt ceiling and government shut down fights with a weekend party with many fellow democrats define him on syria

and that a handful of senate democrats were the ones to stop the president from nominating larry summers as the next fed chairman. while some of his supporters and organized labor have been grumbling for changes to his health care law, he should better off today firing up a union to out at a ford motor plant by counting the benefits of health care. he went out of his way to show that the gop has deep divisions with some senate republicans are urging their house colleagues not to spark a government shut down that could let the president off the hook. >> they are holding the whole country hostage. one republican senator called shutting down the government of the affordable care act the dumbest idea i have ever heard. i agree with him. >> reporter: a reference to republican richard burr, though bob corker also underlined the president's point. added not go to harvard or princeton, i can count that it is a tactic that will fail and weaken our position. white house officials a previously downplay the effectiveness of the president sitting down for direct

negotiations with republican leaders, they are now indicating we can expect those ratings to happen at some point next week. as we in step closer and closer to these looming deadlines. lou: thank you very much. we could be ten days from a possible government shut down if the senate cannot figure out how to exceed this house legislation. here is what to expect if lawmakers did not pass a spending bill. >> we have been here before, to government shutdowns in the mid-1990s that benefited president bill clinton. acosta speaker newt gingrich dearly. republicans lost control then. ellis like the daily news palace. so did president clinton. >> i challenge all of you to never ever shut the federal government down. [applause] lou: those cost the government

over $1 billion. what is let it happen this time. critical employees like air traffic controllers, law enforcement all continue to work. about one-third of our 2 million strong federal work force just might be furloughed. but don't worry, they will be paid anyway, even if retroactively. the idea to defund obamacare is that the only problem that the obama administration is struggling with. the "wall street journal" reported today a computer glitch in the online insurance exchanges of obamacare could affect as many as 32 million potential health consumers in 36 states. users could have trouble determining exactly how much they have to pay. this is one of the country's preeminent hospitals annound it is slashing its budget by hundreds of millions of dollars. cutting its workforce by 3,000 people. all because of obamacare.

fox news correspondent mike tobin has our report. >> reporter: a prestigious hospital and for treating world leaders and celebrities in the cleveland clinic is the largest employer in northeast ohio. however, the house will announce layoffs are imminent -- imminent. >> this is tough. probably the hardest thing you can imagine is telling people, i'm sorry. you know, we don't have a job for you here anymore. >> reporter: a clinic at the president while selling his health care reforms in 2009 held up as an example for how medicine should work. >> and part of the reason it works well is because they have set up a system where patient care is the number one concern, not bureaucracy, what forms have to be filled out, we get reimbursed for. those are changes that the american people want to see. >> reporter: with the reforms limiting the cleveland clinic determined that reimbursements will be reduced, private insure will also pay less. the cost of treating the patient and running a hospital remains

unchanged by the affordable care act. so the clinic needs to find a way to / $330 million from the budget. >> this was something that was going on all across the country. they're talking about doing is setting the same thing. >> reporter: from coast to coast 21 hospitals are announcing layoffs. many contributing factors, but impending changes with health care are significant. that is an assertion with which whiteouse spokesman jay carney disagree on thursday. >> there is no data that bears fd assertion that the economy is losing jobs because of the intimation of the affordable care act. >> the ceo says reform was inevitable in the health care industry. the law going into effect will need to be amended many times before it is effective in terms of dealing with the problem and providing treatment to patients. lou. lou: thank you very much. to be clear and straightforward

year, the cleveland clinic says it has been because of the changes created by obamacare. >> well, there are a number of contributing factors. but the changes created by health care reform are very significant, specifically because the reimbursements from medicaid, medicare, and private insurance on go down. what obamacare does not do is address the cost in terms of providing that health care and running a hospital. lou: thank you very much. mike tobin. a new report to underline what might just said shows the total spending on health care in our country hit a record just shy of 3 trillion last year. that is nearly $9,000 per person in this country. and the figure is expected to rise again this year. the united states, by the way, spends nearly 18 percent of our gross domestic product a on health care according to the

most recent research. the next closest to the united states in the developed world is the netherlands with expenditures on health care. 12 percent of their gdp. the netherlands, by the way, has a very small gdp in relationship to the united states. 7,702,000,000,000 compared to 16 trillion in this country. doctors are also in short supply, and that shortages worsening. we face a shortage of 90,000 doctors by the end of this decade. a shortage of 130,000 doctors by 2025. and 30% of large employers are already considering moving their employees to the obama exchanges by 2015. trader joe's, home depot, walgreens, just the latest to make that move. so much for the president's promise the you can keep your health care plan if you like it,

your doctor, and the premiums and health care costs will decline. we continue in one minute. the president is ignoring a deal with republicans on the budget, but he is still pushing his agreement with president -- the russian president on syria. pulitzer prize-winning journalist judith miller live next. ♪

♪ lou: i want to take a look at the video that is coming in from the foothills of the colorado rockies. cleanup efforts continued. look at this. i mean, everywhere you turn it seems across the 15, 17 counties their massive flooding. the death toll has risen. three other people are missing,

presumed dead. the number of people and accounted for has improved from about 600 to 140. slowly being restored. residents a will to check in now most of them with their loved one. state officials and a principal pyrethroid a lifeline to isolated towns. cut off by the flooding. some 200 miles of colorado's highways. at least 50 bridges were damaged or destroyed in one small town e. coli has been detected in the drinking water. vice president biden is now scheduled to a survey recovery efforts in the state monday. and mexican officials continue their search for victims after strong storms have triggered mudslides in towns and villages. nearly 100 people have been killed. hurricane andrew hit on the gulf coast. hurricane memo struck the pacific coast. officials in acapulco have made

little progress in evacuating the estimated 40,000 stranded tourists to remain there. bracing for ms super typhoon known as the world's strongest storm of the year. that's-which is expected to reach the equivalent of a category five hurricane that has sustained winds in excess of 150 miles-per-hour and is expected to skirt the philippines and, perhaps, a touch only the southern part of a taiwan before slamming into the chinese coast near hong kong this sunday. syria today turning over an initial declaration of its chemical weapons stockpile. the move marks a key step in the plan agreed to by the united states and russia to destroy the assad regime chemical weapons. joining us live, a pulitzer prize-winning columnist of fox news contributor judith miller. good to have you with us. give us the latest the latest on

what has transpired the move made today specifically by the russians. >> well, the russians are absolutely adamant that this country, the ukraine, 46 million people will not sign an association agreement with the european union. the russians consider the ukraine part of russia. they do not want them to become part of the european union. they have made life extremely difficult for the people here. a month ago they ban chocolate from the ukraine. and it is very popular in russia . but basically the russians discovered that ukrainian chocolate with a filled with carcinogens. they have slowed down all kinds of trade. as a result hillary clinton, bill clinton, tony blair have

all come for the tenth annual meeting to discuss the future of the ukraine in europe. they are all giving their strong support for integration lou: their support is symbolic. president obama's could be. >> reporter: -- pragmatic. what is transpiring? already, of course, at odds with one another. >> exactly. clearly any move toward euro would be seen as a move toward america. and he is determined not to have that happen. last week russian pressure was responsible for our media so withdraw from its place ted sign an association agreement with the european union's.

now being subjected to the same kind of pressure. lou: the obama administration had made it perfectly clear. >> they want the ukraine to be able to choose. hillary clinton and tony blair delivered. lou: i am sure that mr. assad was mightily impressed. judy miller, we thank you very much. reporting live tonight for us. comebacks and. the residence and most cities and states seeing an income decline in this country. although one very special part of the country is soaring, prosperous, wealthy. we will tell you where and why and down next. stay with us. 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 hisry. 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'rmaking it.

♪ lou: and other fed-inspired short-applauded sell-off on wall street today. the dow plunging 185 points, s&p

down 12, nasdaq down 15. volume, over four and half billion shares. despite losses stocks posting gains on the week, the third straight week of doing so. the dow back half a percent. thousands lining up for apple's latest iphone to its stores today. strong demand and short supply, particularly in gold. analysts expect between five and 6 million. we will have to and some point produce and deliver them to consumers. meanwhile blackberry announcing it will slash 4500 jobs. 40 percent of its work force. the struggling smart phone maker what respect another loss. shares of blackberry halted before closing down more than 17%. residents and misstates not for one special city.

the one city. it's very different. washington d.c. the largest increase in median household income, the rest of the country lost about 9%. that is household income average. but in washington d.c. the, -- a shot of 22%. incredible. we are joined now b john lonski, the man on the economy. good to have you here. lou: first of all, washington d.c. sending all that money and they're having a party. what is the deal? >> it is a ball of confusion. we cannot figure out what they intend to do. on the one hand you have the fed tried to stimulate the economy by a standing quantitative easing. on the other hand you have all of these regulators have tried to curb economic activity. lou: and all the taxes that

"chalk talk" and january 1st. a lot of folks are about to sweat. capital gains are going up by 33 1/3%. >> and what is making matters worse, we have had a pronounced slowdown my income. the incredible. we now have real disposable income growing by just over 1 percent annualized. during the past prior to this, real disposable personal income usually drew between three and three and a half% annualized. lou: this administration, they don't even know what country they are in. they don't know. they don't understand the basic precepts of of free enterprise capitalist economy. either that or it is a column that they want to crush for some purpose. >> well, that is a great point. i think it is sad to consider

that under the current administration, maybe it is not entirely their fault, but the middle-class, the poor people of this country seem to be getting worse off over time. you know, the good old days were the board did better under a president like reagan are long gone. lou: i am turning to the federal reserve. i can't believe this. i am begging been bernanke. george and all of these others. they look like they're working for the shorts for crying out loud. >> what we have here is the failure to communicate as far as the fed is concerned. this is ridiculous. the market overwhelmingly expected the fed to begin a tapering of monetary prowess of quantitative easing on september 18th. that was not the case. and in a policy statement the fed gave no indication that it had strongly consider doing so. in the past and the market had a

very strongly held view that the fed was about to do something and the market was wrong, there would be high-ranking federal officials. strongly tell the market. that is not. lou: what did you think it was? , on. >> in my response when i saw this story / up, i laughed. i cannot believe that there are people out there that are going to take statements by high-ranking fed officials seriously unless it is, perhaps, ben bernanke himself. lou: one last serious question. do you think president obama understands what his administration is not doing for this country right now? do you believe that he really thinks his policies are directed , as he suggeed today, at the middle class of this country after looking at those numbers on median and average household income of the last 12 years? >> if he does believe it there

is progress being made. the sense of improving the long-term standing of americans. he is entirely wrong. he is getting advice from the wrong people. lou: i hope that it can be -- well, corrected. thank you very much. appreciated. john lonski, always good to talk with you. much more straight ahead. stay with us. burke and right back. the house votes to defund obamacare and find the government. what will the senate do? the heritage foundation's genevieve wood and james toronto of the "wall street journal" tells us what those bedwetter caucus in the senate does now. ♪

lou: joining us now is the vice president of the heritage foundation, genevieve wood, and james toronto. making both for being here

today. i need to congratulate the heritage foundation for obamacare being defended by the house of representatives. >> you're absolutely right. at midsummer, people are saying that there is no way that this will happen. the heritage foundation and a lot of other conservatives got the word out. we did about a nine city tour across the country. what is interesting is that what is bipartisan of the growing outrage among the public abut this law. the more they know come the more they don't like that. lou: the polls are substantiated on the most recent fox news poll. >> they cast what would be what one hopes is a symbolic vote. one hopes the senate will not do a really destructive thing here. it is terrible as a matter of

strategy. lou: the republicans will be forced to either come up with enough votes to overcome the filibuster, which ted cruz is threatening to institute i worked at the heritage foundation in 1989. i read this press release. i was reading the study. i thought that this is a terrible idea. >> let's be fair. heritage has looked at a lot of ideas over the years. the national take on the health

care system farb for barack obama. >> i'm very happy that heritage could mount my point of view. lou: as genovese said, they changed that position from 23 years ago. the republicans, and the fact of the matter is, you are suggesting the symbolic vote. is it a destructive statement by the senate? can ted cruz on the other conservativesand the republican party prevail in the senate? if so, how is that?

>> we prevail just two days ago. especially when the house voted. lou: old news, let's go to the news. >> we will see next week what happens in the senate. we don't know how to vote is going to go. but we we do know that they are ving this debate, which they did not want to have. harry reid did want to have it president obama didn't want to have it. so how do we get we get rid of the fatherless past what most people do in the first place we got more and more folks don't nt to. how we go about getting rid of it. that is what the elected officials are doing. lou: you sound like you have lined up with jeb bush, karl rove, establishment republicans. i am a little shocked that you. >> i agree entirely.

lou: did you think that after dinner and read were in favor of the president's plan to strike syria, that they would be turned on their heads by a congress that said that there is no way it will happen? >> no, it didn't shock me. lou: that the wiser course than i could've seen. i was shocked then i'm prepared to be shocked again. i've got my fingers crossed. james toronto, genevieve wood, thank you so much for being here. again, congratulations to genevieve and the heritage foundation. >> congratulations to the american people who made the call happen. lou: they have the phones still going.

republicans passing the bill to defund obamacare. democrats are somewhat hysterical. we will take you through the worst of it in the "chalk talk

lou: the house voted two defund obamacare. it's not surprising that republicans would vote to kill obamacare. forty-one times they voted to change or repeal that law. this is number 42. the reaction was reliably hysterical. shall we call it 50 shades of politics. the language was bizarre from the democrats. listen to some of these

remarkable statements, absurdly so throughout the week. nancy pelosi says either you don't know what you're doing with this is one of the most intentional acts of brutality. senator chuck schumer. he said that they banded together and handcuffed republican leadership. i believe the word you were looking for was figuratively and literally. the assistant press secretary said republicans in congress are being held hostage. earlier this week president obama said that the debt ceiling is being used to extort a president. i wonder which president was referring to. and we save the democrats deepest dive into sad rhetoric for last. this from congressman eric swallow of california. listen to this. >> i invite my colleagues on the other side to wake up from this radical and ideological wet dream and come back to reality.

lou: congressman cummings you have made a little history of your own. history that you might one day regret. democrats are going to give us some nightmares if we have to keep listening to them. the republicans are listening to their constituents. a fox poll out this week finds that 68% of all voters in this country are concerned about health care. 60% are opposed to obamacare. breaking down the opposition by party, still 56% of democrats are also concerned. that suggests to some that to democrats, more than two democrats, certainly should've voted to defund obamacare. they have the ability now and the opportunity in the senate to write that little oversight. they just might do it.

and remember that senate majority leader harry reid, speaker boehner, president obama, as i said, they were all recently united in their judgment that president obama should use our military to strike syria. the american people convinced them otherwise. it just may be that the american people are about to surprise president obama and senator read one more time. this time however speaker boehner is certainly on the right side of history. up next, record setting video game grand theft auto v. outgunning to hollywood worldwide films in one day. batman producer peter gruber is with us

lou: an incredible 31 your mission coming to an end for inspirational army veteran mark bowen. the 65-year-old visited the war memorial in washington back in 1982. he was inspired to run 1 mile for all of those killed and missing in action and the devastating conflict. 1 mile for each one of those casualties. born and listed in the army with a group of his high school classmates of 1966, he is the only one of his guy friends return home. he began his training after surviving cancer and he finished his 58,282-mile journey carrying the pow mia flag that has been with them for the past 31 years. turning to hollywood and extraordinary business of entertainment, hbo and producer jerry weintraub announced that they are making a movie about

laster's terrorist attack and then got it. the cable network auctioning the rights of under fire from the untold story an attack of benghazi. a great read as we told you last tuesday. fred burton, samuel katz, right here on the show doing a trick a job with the reporting. we hope you will buy the book. as well as see the movie. grand theft auto v, opening-day bigger than anyone expected. retail sales of the controversial game is expected to be a billion dollars in one month. clearly that was a lowball number. outperforming all but two of hollywood's movies this year. the box office isn't doing badly though. the summer movie season, highest grossing by far. a record 4.7 billion. ining us now is the legendary producer, mandalay entertainment chairman and ceo david gruber. great to have you with us. the money just seems to be

flowing and in this country video gaming is rising above the revenues of hollywood. what implications does that have, if any, for the movie industry? >> there are two different businesses, the cost of making a movie and the cost of making a big hit videogame are enormous. grand theft, it's the fifth one. certainty and franchise, both of them are going that way because they are spending a ton of money. again business has a long tail and if i can now call it at a liquor tasting they go all out. the reality is that they live on as well. the idea of that, it makes it very seductive. the box office, compared to

gates, 2.5 times bigger than the domestic market. why is that so? because the world has gone interactive. games are truly interactive. games are more passive for their audience. lou: you're talking about the box office. those numbers are for real because the money is for real with every set of eyeballs. not so much with television. a lot is being made with some of the new producers, netflix or whomever, to do as good a job as they might in reporting just exactly the audience that they are projecting. your reactions? >> this is similar to what happened in the 70s and 80s. new media came along then. but the trick was the collective bargaining agreemes did not

realize what a tsunami was going to be and how important it was going to be in the food chain of revenue for the studios. the same thing is happening with digital downloads. if you look at digital download streaming, it has become a rebuff necessity for these films to perform in that area. but what happens if the data has not been transparent. it has not been collected across all platforms. so what happens is it's hard to negotiate deals. it's hard to collect the money. and it's even hard to predict that because big data allows you to predict analytics. if you keep all those analytics, they keep a lot of the gold for themselves and don't share it, the products that make the big data. it will be a real battle in the next argument and the writers guild and the producers guild and these big studios.

transparency. lou: transparency, the audience, metadata, big data. but within each of those distributions of the media, you are looking at a convergence of technology. something has happened now and it smells a lot like what was predicted 20 years ago. it doesn't matter whether it is a smart phones were a big screen television for a home theater or a theater in the mall. we are seeing some revolutionary change here, we? >> most especially. what people view and consume as far as content is a set of technology. the result is in the movie business we are not capturing the analytics of that. especially, most especially the digital downloads.

we are not getting that information. so why's it so important, it is because what is going to happen is going to negotiate agreements on what the revenue splits are. the people that don't have the information, not just the box office, will make a better deal, like they did back in the 70s for the split between videocassettes and the studio and participants. lou: one of the things i want to turn to you about as we wrap up, john singleton asking a bizarre question, whether a white director can do a quote unquote lack movie. or vice versa. it seems silly on the face of it. what is your reaction? sumac asking that question is interesting. we made it boys in the hood and poetic justice, and i was also the producer of the color

purple. i was white and nonwhite now. steven spielberg is white then and why now. many black filmmakers that have made great films as well. 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.

report." >> hello everybody i and gerri willis. tonight on "the willis report." glitches hit obamacare right before the deadline how impact you? >> is a time to fire your financial advisor? we would give you the right way to give them the boot you had your degree now how do land the gene -- the dream job? we are watching out for you tonight. the "willis report." of. gerri: we have