frankly, i can't think of much. my advice is buckle your seatbelt. it is going to be a bumpy ride. that is my "two cents ". that's it for tonight's "willis report", thank you for joining us, do not forget to tape the show if you can't catch a fly. have a great night. ♪ ♪ lou: good evening, everyone thank you for being with us. the obama administration reaching out and the iranian regime rushed them aside. no handshake, no photo opportunity between the united nations, no one official meetings on the margin. the idea is brought to you by the very same president who gave syria numerous redlines of ultimatums before finally putting the decision in whether to attack syria up to a vote in congess. mr. obama has wags his finger, more than just a few ultimatums as well. he refuses to meet with republicans and doesn't reach redlines for republicans.

but he is eager to have even a photo op with the iranians. the president today at the u.n. general assembly declared that he is ready to negotiate with iran. the country that has been state-sponsored with terrism for 30 years and a call for the destruction of israel. >> i do believe that if we can resolve the issue around nuclear programs, the backend server is a major step down a long road towards different relationships. one based on mutual interests and mutual respect. and i have made it clear and more recently to president mohammed, that america prefers to resolve his concerns over iran's nuclear program is peaceful way. lou: the iranians rebuffed this effort, seeking at least a handshake or a few friendly words, apparently. something his administration was prepared to call in opening

trade we will explore how far the obama administration has gone in regards to some progress or any progress with the iranians and why mr. obama continues to disappoint world leaders. also tonight, the kenyan governments four-day standoff at a nairobi will finally ended. kenya's president saying that he has been ashamed and defeated the al qaeda linked terrorists were believed to be responsible for more than 70 murders and take a look at this. >> as you can see behind me, you can hear the firing and some of these rounds. lou: we will be bringing you much more from nairobi and

washington. turning to pakistan, a massive earthquake there at the countries northwestern region. forty-five people were killed, the u.s. geological survey measured the earthquake as a 7.8 magnitude. tremors can be felt hundreds of miles away inthe indian capital of new delhi. so powerful that it caused the seabed to rise up to create a small mountain like wave in the arabian sea. we'll have much more tonight on the powerful earthquake and the latest in the aftermath after the devastation of the typhoon in rebuilding their lives. the death toll rising to 25. thirty-six fatalities reported in vietnam. twenty dead in the philippines.

thousands are missing at this hour. >> despite the warnings of israeli prime minister benjamin netanyahu. president obama directed his secretary of state sit down with his iranian counterpart in the highest level talks held between united the united states and iran in more than 30 years. mr. obama stated his desire to cht a more moderate path and to talk about relations between iran and the united states and the iranian nuclear program. but so far, no progress has been made. just two hours after the statements, the iranian regime declined to offer to have an encounter tween president obama and president mohammad. on the sidelines of the united nations general assembly.

a senior obama official said that it is too complicated for the iranians to do at this point. president obama left no stone unturned in today's speech to the united nations from syria to israel to egypt, iraq and afghanistan and the arab spring. the president press for peace, but warned of u.s. power. he countered american exceptionalism and claim that america is a safer place since he became president. but outside the president's wide-ranging focus, it remains on iran. chief correspondent and henry has our report. >> after days of vague statements, white house officials made clear that president obama was willing to ve a handshake or informal meeting with new iranian president on the sidelines of the u.n. general assembly. >> robots could proved to be too

great. but i do believe that it deserves to be tested he continued >> ju a piece, no to war. reporter: secretary of state john kerry will meet later this week with the iranian foreign minister. >> i don't believe at this history can be overcome overnight. the suspicions run too deep. but i do believe that if we can resolve the issue of iran's nuclear program, that can serve as a major step down a long road towards a different

relationships. >> it could be an extremely long road of drawnout talks that allow iran to will meet with mr. obama at the white house next monday. >> they think that soothing words and actions will enable them to continue. >> even though he is not speaking of you in until next tuesday, he made se that his voice was heard today frm israel. >> we will not be proved by half measures that merely provide a smokescreen. reporter: he sent conflicting signals by declaring his goal is not regime change. while also insisting that he is willing to take military action in the mideast. >> we are taking military force to secure our interests in the region. >> it was the president's initial well but reluctance to follow through on it tat put them on defense ahead of these

meetings, though administration officials insist it was the stick of potential force that got bashar al-assad to the negotiating table to admit that he had chemical weapons. >> now there must be a strong security resolution to verify thattheassad regime is keeping its commitments. and there must be consequences if they fail to do so. >> that there are already indications that russia will block any attempt of the u.s. to add have the threat of military force to any u.n. security resolution, raising questions about whether there would really be any heat to make sure that bashar al-assad turns over his weapons. lou: ed henry. thank you very much. for more on the speech of the at the united nations, i am joined by ambassador john negroponte, the frst director of national intelligence serving under george w. bush than five times in ambassador. great to have you with us. >> thank you. >> your reaction to president's speech today, first at the

general assembly. >> well, i thought it was a complete statement but this policy towards the middle east, one thing that caught my attention was that there was specific in regards to the immediate diplomatic objectives, namely the iranian nuclear program and then also the middle east is process between israel and the palestinians. lou: the president spoke of the iranian nuclear program for whatever relationship might result in this exploiting of the two nations. that seems on another level to be the most difficult. what are your thoughts? >> it's kind of a double edged double-edged sword because i see on the one hand if you negotiate about the nuclear issue and he reached some kind of resolution, maybe the price the president is willing to pay for that is

placing less emphasis on the other objectives that we had. on the other hand, there is no doubt about it that it could be a meaningful discussion about the nuclear issue and especially when the talks take place between secretary john kerry and his iranian counterpart later this week. if we could get that moving in the right direction, this would be a significant development indeed. lou: benjamin netanyahu urging realism and insisting that there be ratiality here with the u.s. or european thoughts between the two nations, as they seem to be struggling towards one another, at least in the short term. >> i thought the president's speech was rather complete. secondly, i thought that in talking about our core interests and our willingness to keep the use of force on the table i an

element of national inference in the region, i thought that those were strong doses of realism. lou: would u say that that is the most rational of u.s. interests by the president in the region? >> well, i certainly thought it was complete and comprehensible. he didn't make it very complicated. these are the two things we really want, here are the four or 5 inches and anyone into a more general discussion and so forth. democracy was sort of third place with the promotion, which i thought was a realist approach. lou: certainly in the region and the case of iran and certainly syria as well. going forward, you served amongst the five ambassadors, one to the united nations and how realistic is it to expect that the russians will not walk and after in the security council for meaningful resolution?

>> well, if you're talking about the syrian situation, it will be a problem. my view is that we always start out under estimating the amount of time that it it will take to work out these resolutions. even if it's moderately successful, it will be painstaking and time-consuming. >> the president's folks all started using this word opening as they try to garner some support amongst the iranians for a sideline meeting at the margin as i would like to instruct it. >> i'm glad it didn't happen, i don't think the ground is sufficiently well prepared. i can't imagine one benefit that has come out of that other than this sensational photographs and high her speculation about the significance of a chance encounter of the u.n. premise. lou: going forward, will the united states be able to work together constructively in the

region? >> i think it could be an effort that is made to do that. the russians have to stick with it, we can't do that with others. we have had experience and we have had to work hard and subsequently when you could do serious negotiations. >> this appears to be one of those times. >> it's an opportunity. >> i was being very careful. >> ambassador john negroponte. much more on the president's address to the united nations and his efforts at an opening with the iranians. we will continue our coverage throughout tonight's broadcast. much more straight ahead. we're coming right back remap democrats and republicans, conservatives and liberals. is our country ready for a third party.

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lou: president obama turninto his unofficial secretary of explaining stuff, president bill clinton to tread to cell obamacare. their appearance at the global initiative comes exactly one week before the launch of new health insurance exchanges that have been plagued by software glitches and the withdrawal of some of the countries largest health care insurance companies. in fact, according to a new report in usa today, one so-called family glitch could price out families that cannot

afford the coverage. including half a million children without health care coverage. well, what you are looking at now is obviously senator ted cruz, live pictures of senator cruz on his fifth hour of speaking against obamacare on the senate floor. his speech is an effort to stall senate democrats that would defend obamacare from a government funding bill. he is facing opposition from his own party over his speech and over his planned filibuster, over the very idea of contending on the issue of defunding obamacare. but he vows to continue until he could no longer stand it. my next guest supports his speech and says real conservatives need to take back the republican party. joining in now is "the new york

times" best-selling author, brad thor. he is also, in addition to a brilliant fiction writer, a conservative. it is good to have you here. you have to say that senator cruz is giving it one heck of a try. at d'estaing of the bridge alone. >> yes, he is. as a conservative, it's nice to see people in the republican party doing this. instead of saying, let this fall where they may. this is a really important moment for us. as conservatives have someone along with rand paul and a handful of others are willing to stick it to the establishment in washington dc and i'm happy to see this. lou: rand paul also be coming back speak to give the senators some reprieve. some respite from it all. at the end of the day, they are

absolutely overmatched by the hour of establishment and the leadership in the esblishment of the republican party and the leadership in the senate. are they? >> well, they are. we're talking aboutthe funding of bamacare and i would like to see conservatives defund the gop. i don't think any conservative should spenda dime on them. we ought to target people that contribute directly to their campaign. the we have this big thing, is it worth it, and are they really going to shut down the goverent. let's be clear that the gop are terrible storytellers. no storytellers in the republican party. not good enough. they can make this case not only within the party, but with the american people. we ar a lot about the shutdown in 1996, a lot of revisionist history. we picked up two seats in the senate in 1996, in them mannerly control 56% of the class and 62%

of the senate. if that happened today the the day the democrats have 60% of the senate. we got that kind of increase, we would have eight seats. so let's go, let's shut it down, let's vote our principles instead of smart politics to continually move it. we have bob dole, john mccain, mitt romn. they can't win. so when we listen to the gop? lou: that's a great question. the issue becomes how we can see that the construction of a third party and are you prepared for that. >> you and i have chatted about this before. if you buy a new house and you don't like the countertops, you don't take a wrecking ball to the whole house. we can take over the party if we control the precinct and that means that the local level. they need to get involvedst in their neighborhood, poitics

at a base level. because if we control the precinct, we will control the parties. and we will send people with their values and principles up through the system, that is where we will end up and we won't have to worry about mitch mcconnell and john mccain and stuff like that bring up the country press. lou: where is the leadership right now? senator rand paul, and outstanding senator and an unlikely candidate for his party's nomination. but who is there to guide this party and these interests that are so divergent. john mccain, lindsey graham, i don't even know what planet they are from. >> jeff lord had about how everything that happened to ted cruz happened to him as well. he was working against him as well on the initiatives he wanted to achieve.

it's like what happened to reagan, do something right, keep it up,. >> the world is, according to the president, more stable than it was five years ago. i just want o tell you is we wrap up the president's speech. >> eventually people are going to wake up here and say enough with this. they make this stuff up. the world is not a better place. rawness clips to a bomb. he with the ambassador, before the segment. where was obama in 2009 with the green revolution? wean help those young people overthrow this. he was mia. all he cared about wasn't ousted dictator. it took a moment's two weeks before he responded to a green revolution and we lost a great

opportunity. lou: brad, thank you for being here. up next, no talk to guide the markets. we will be talking about that next great and ater, america's welfare state. the shocking numbers in tonight's "chalk talk." the numbers that no one seems to want to talk about that will define our my customers can shop around-- see who does good work and compare costs. it doesn't usually work that way with health care. but with unitedhealthcare, i get information on quality rated doctors, treatment optis and estimates for how much i'll pay. that helps me, and my guys, make better decisions. i don't like guesses with my business, and definitely not with our health. innovations that work for you. that's health in numbers. unitedhealthcare. at od, whatever business you're in, that's the business we're in

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lou: on wall street stocks finishing mixed dow down 67 points s&p down 4, nazdaq up 3, volume picng up. shares trade today. up from 3.1 yesterday, joining me now s&p capital iq chief equity strategist sam stovall. 4 sessions in a row losers. >> what a difference a week makes after fed decided to sit on their hands market took off. but i think, really what happened. you had a lot of investors said i want to lighten up before the more as of second half of september, lighten up they did.

very light volume, markets drifting lower. lou: we're hearing from the fed bank presidents in my career i first heard fed bank presidents s holding -- like oracle and these folks, i have not heard anyone say something compelling original at all, what is going on? >> i am not sure if this increases tran person see is less confusing than greenspan speak, at end of the day you do not really know what they are thinking from st. louis, saying a possibility we could start tapering program in october but william dudley from new york fed said they could keep the bond buying if for some time. lou: if they don't read minutes of fed meeting they have no concept of the vote at that said meeting for policy direction from their chairman.

agreed upon by concern suss by all of us -- consensus, this is bizarre behavior, market itself we have good numbers, where are we headed from here? >> i think market will drift lower a bit more. as we move toward the end of the month, real question is, from a political perspective, maybe we en up shutting down the government, similar to mid 1990s it could help jockey for position in midterm election year in 2014. i think investors are worried right now, we had a good run in the star stock market up to levs that are pretty close t long-term averages. lou: john boehner said not going to happen, the republican leadership, that is the government shut down. you think it is a viable possibility? >> i think it is a possibility, that is a concern that is growing on wall street, at this poiit it is less than 50%. but it is higher than a week

ago. lou: all right, sam stovall, thanks we appreciate it. >> my pleasure. lou: we'll have more on state of country fiscal policy, later in the broadcast, we take up america's welfare state with author william vogley, stay with , you will love what he has to say. we're coming right back. >> bubba to the rescue, this time secretary of explaining stuff, tasked by president obama with bailing out obamacare. >> monica crowley, elise stay with us.

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$114 billion in second quarter of this year alone. a 7% increase from the previous all-time record set in second quarter of 2008. also reaching record levels number of us who think that federal government has far too much power. a new gallup poll shows 6 in 10 americans believe that government is too powerful, 32% say that government has right amount of power, 7% say too little. 7%? a beginning. joining ni now a team, fox news correspondent or -- monta controly. what do you make of a country that right now, finds record levels of tax ache not only at this state level but local level, we're talking $100

billion a quarter. >> this is bipartisan-nonpartisan upset, country upset. it has a lot to do with how people view the government, people feel out of control, and set upon by the people they elected office. >> where is that 7%? >> who are they? >> do you call them faisascists. >> they live under rocks i think. >> it is striking to find that the so many people say they have too much power. lou: why don't the republicans talk about that very issue? >> they should be, this is their topic, they are supposedly the party of limited government, fiscal responsibility, we've seen very little languaging on that. lou: let's show senator cruz still talking to the floor of

u.s. senate about issues with obamacare. 1.8 trillion dollars they will spend not covering 30 million americans. that means you spend 1.8 trillion solving 40% of a problem, destroying the health care system as they do it. we're going to have a shortage of doctors, hank, by 2025, 130,000 physicians, that is madness! >> call it obamacare. this is not a solution for anything, what it will do, what is wrong with this, this, this idea, is that it is empowering one stor of the economy, insurance industry, at the expense of the health care system that is wrong. >> example after example of regular people getting hurt by this, right now. >> this is about wrong. lou: this is wrong. but there is instead of talking about procedural issues, which

is about what -- which is what we're leftith here on this fight, the establishment, republican party, is bailing on these guys. >> finalist -- spineless weasels, ted cruz is having traction now. the reasons he is gaining traction here, american people are paying attention, is obamacare, healthy care reform was never about health care, you could talk about hemorrhaging of doctors until you are blue in the face, for the left, for obama, reid, pelosi and left, obama care was always about power of the government and control. good for cruz. >> a large moral issue involve no one wants to talk about, by

there legislation, controlled by one industry, okay? we're going to see the determination finally once and for all who will live a who will die based upon cost, 40% of every health care dollar is used in last 30 days of life, people will not be allowed to have care, this is wrong. lou: you are a democrat. >> i know. lou: sarah palin said, death panels and was hooted down by the left. by the national. liberal media, and -- >> this is before you read the legislation? >> before i said, we have this discussion on this program, you are kind enough to allow it some time ago, this is wrong morally, one nation under god does not do such things. >> reason that obama, police's pelosi and

reid and the left pushed because control of the health care system is the crown jewel of the welfare state. lou: why can't the republicans come up with a core here an, compelling argument is express reality that is, it is devastating. >> devastating, absolutely. economically. lou: why can't the republicans they are facing a supreme court decision, they have. >> it is the law of the land, it is validated, law of the land by u.s. supreme court. >> right. but we have the constitution, that is what ted cruz it talks about. about. lou: will republicans be able to turn out the vote? >> i don't know about the elections. lou: if they don't win them they are through. we'll have a lot of people standing in a whether -- in a

well somewhere, it will be to no effect. >> strategic argument here, practical politics for democrats to permit as much confusion to occur as possible so republicans will appear to do what they are doing, such the government down. >> if the republicans come out with their one-trick poniy, talking about deficit. talking about debt, talking about just limited government. without appealing to middle class and fundamental values of this country, which the vast majority of americans share, if they can't find that message they are going to get, what i think democrats deserve, but without that voice -- it is amazing. >> it is or not just for the republicans but the country. lou: why can't republicans know you need voters to support your

political agenda. >> to your point, republicans have always talked about cold nuers, deficit, unemployment rate, true. but for what democrats have done so long is the emotional appeal. lou: they are sitting there, handingut money by the bucket-full, unless, and republicans saying we can't give that much money out. they have to come out with a more persuasive response. >> republicans have not, in my opinion, come out with an emotional appeal. lou: yes. >> and part of overall message, that is why when you see on lift side ofcreen. lou: tea party was a containious eruption of the popular will. it was extinguished by obama

administration and irs targeting. and they found themselves threatened. tea party right now is not in reand yougence -- resurgence. >> feature story today, offering a revealing look of twitter's plan to go public. >> american rapidly turning into a welfare state, in chalk talk how democratic party never ending 30 for pow -- thirs for power for government. 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...

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lou: america has been fighting a war on poverty since 1965. a war we're still losing,

federal and state governments spend over a trillionollars a year. that does not include entitlement programs like social security and medicare, federal government's sharef that trillion, is just about 750 billion, more than we spend here on our nation av defense, justice department, transportation, education, combined. what are we doing? why doesn't somebody ask. what are we doing? its increased 32%, up almost a third since president obama took office. what is all of that spending got? according to the census bureau. nation's poverty rate remains at 15%. 46 1/2 million people live in

poverty under the definition of the federal government, that is about 22,000 per person in poverty relief. by the way $22,000. here is a radical idea, if we just wrote a check for $22,000 to each person, each year, we would be well on the way to eliminating technical poverty in the united states and several times over. so what are the proven weapons? what have we learned since 1965? we actual have learned something. about work. it is about marriage. last year more than 26 million, 18 to 64-year-olds were living below the poverty line, 57% of them did not have a job. according to heritage foundation,ston% of poor fam -- 71% of poor families with

children are headed by single parents. but we don't have a culture discussion do we? we don't want to be politically incorrect, we can't talk about the impact of families that break up, we don't want to talk about the consequences, which is devastating, and in large measure we spend tremendous sums of money. to what effect? as for families with children, but not living in poverty, 73% of them are headed by married couples. coming up we'll talk with scholar and author william vogley he has written a tremendous new book, said that liberals believe there should be no limits to well ths to welfare creates serious consequences. he wrote the book, never enough.

america's limitless welfare state, i guarantee you, you top hear what he has to say. he is here next. stay with us. with fidelity's options platform, we've completely integrated evy step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. see who does good work and compare costs. it doesn't ually work that way with health care. but with unitedhealthcare, i get information on quality rated doctors, treatment options and estimates for how much i'll pay.

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lou: my next guest ising with ing with vogely, senior editor of claremont review of books, author of the book, never enough, america's limitless welfare state. william, good to have you with us, the battle right now in washington de fundiig obamacare, the continuing resolution, your book addresses these issues, we have a government that has grown without seemingly without end,

there is no articulated vion that i'm aware of by the left, as you say. that says what is the size of government, limit of government, why do we tolerate such a vision? >> well, think we tolerate is because people if asked if abstract do you want big government or not, they say no, but when is sold to them in lite bitty slices do you want a government to address this problem, that needy group or this cause, then political equation changes, and people are more amenable to what democrats, and limb rally are selling -- liberals are selling. lou: why can't conservatives seemingly come up with a intelligence respond to the left's insisting on new programs, every greater spending, and limitless

government? >> it is a little bit like those cute commercials with the guy talking to four kids for at&t, asks a question like, is more better than list, they say no more is better, this is the built in advantage that the liberal case sort of has. conservatives hav a longer argument they flied to make, that more -- they need to make, more sounds better but if you pay for if badly or wrongly, you wine up with troubles down the road. lou: we have got troubles, we got the i think we can see the shape in form of some of those troubles we have. as a result of a irresponsible fiscal policy, and so much else. but, well fair -- welfare entitlements. the achievements, the accomplishments there is never a

discussion what has all that money bought? what has it achieved? what are the accomplishments of government in social policy? don't you agree? >> i do. i think one reason we never seem to win the war on poverty is that the definition of what it would mean to win the war on -- poverty keeping changes, goal line keeps moving. any time you have a government program that is designed to help people who make up to a certain amount of money, wherever that cut off point is, people who have just slightly better economic situation, they are going to have a good case to say, you know, we're not that much better off than the people getting money, why republica are getting help. overtime there is a long-term

expansion industry. a program like tax credit started in 1975. and ajumped cut off for inflation twice as high as it was then it grew that way. lou: we have just a little bit of time remaining, your judgment about the pa panacea a way forw? >>ell, i think the to get away from gloom, good news for conservatives is that democrats, unlike european social democrats have not been able to sell a package deal that convinces americans that high taxes and joanerrous welfare -- generous welfare benefits are a good package. i think that resistance to taxes will put a constrange to spending that will start to make a difference. lou: william, i beneficiary, that we can -- i appreciate that, we can end on a happy note, the book, never eugh, i

urge you to read it. on bookstore shelves on-line now. william thank you. >> that is it for us, we'll see you um... where's mrs. davis? she took an early spring break thanks to her double miles from the capital one venture card. now what was mrs. davis teaching? spelling. that's not a subject, right? i mean, spell check. that's a program. algebra. okay. persons a and b are flying to the bahamas. how fast will they get there? don't you need distance, rate and... no, all it takes is double miles. [ all ] whoa. yeah. [ male announcer ] get away fast with unlimited double miles from the capital one venture card. you're the world's best teacher. this is so uneected. what's in your wallet?

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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. neil: day two we're back, still all about having your back, forget about the battle over spending this is shaping up to be a battle for the republican soul. why rick santorum said this the debate that party should be having. speaking of kicking buns, see that lloyd-mayweather fight. something -- help floyd becoming another mike tyson and losing that dough something telling me floyd was