thanks for watching "strange inheritance". and remember you can't take it with you. because lou dobbs is next, keep it on fox business. >> good evening i am lou dobbs we now seen what we hardly expected in national debate subjects of the leg illegal immigration in sanctuary cities now at forefronts of our national conversation, today in san francisco suburb of pleasanton family of kate quietly gather in a ceremony to remember the woman who is the center of that conversation, she had a thriving career was ready to settle down down. an illegal immigrant with a lengthy felony rap sheet and 5

deportations to mexico, instead shot her dead. francisco sanchez should never have been in u.s. to begin with, let alone on streets of so-calledso callsanctuary city, san francisco's mayor blames the sheriff for not warning federal government to release sanchez but the shiver said he was following the law. >> nothing in that law says to notify the officials too need to educate somebody about how to pick up a phone. >> very clear that stipulates to

law enforcement that that a notification detainer request should not be returned up less i.c.e. also provides a court order or a warrant. lou: steinly case has drown attention of president at candidates some of home are now uncomfort abily running from past defense of sanctuary cities and wide open borders this week hillary clinton said san francisco should not have released sanchez from jail. >> city made a mistaking not to deport someone that federal government strongly felt should be deported. lou: that was hardly her position in 2,000 7, she supported sanctuary cities then. >> if local law enforcement begins to alike immigration enforcement officers, what that means is that you will have people not reporting crime you

will have people hiding from the police and i think that is a real direct threat to the personal safety and security of all citizens, this is a result of failure of federal government that is where it needs to be fixed. >> critic say that obama administration practiced form of defacto sanctuary across the queunry. youqueunry. country, with relaxing enforcement of immigration laws and i.c.e. released more than 66,000 criminal illegal immigrants in past two years into u.s. society. we take up the policies and sanctuary cities talking with congresscongresswoman marcia blackburn. lou: breaking news, federal against targeted by suspected chinese hackers moments ago releasing a long awaited respect on damage done -- report on the damage done.

in total fore than 22 million people inside and outside federal government had their personal information including social security numbers stole than number is more than 5 types larger that what offers of personnel management first reported a month ago when it acknowledged that major cyberattacks had occurred. that 20 plus million does not include original 4.95 million whose data had been stolen by chinese's hackers in a separate attack. >> we're just hours from the obama administration's latest deadline for reaching a nuclear deal with iran. a deadline that may be missed for what would be a 6th time, president obama has reportedly said that odds of world power reaching a nuclear deal with iran are less than 50/50 and secretary of state john kerry said he will walk away unless tough decisions are made.

fox news white house correspondent kevin court has our report. >> reporter: another day of talks still no deal in the iran nuclear negotiation and the stakes are not light hearted why john kerry said he is in no hurry to walk away. >> we will not rush, we will not be rushed. >> reporter: rushing hardly seems to be a problem considering the deadlines that have passed. the window of opportunity is closing. >> if the tough decisions don't get made we're prepared to call an end to the process.

>> reporter: iranian president met with russian president, a sign of strengthening strengthening ties between tehran and moscow. on twitter rieux -- note the them with a message we're working hard but not rushed to get the job done. you can't change horses in the middle of the stream, that coulding is that p5 plus one u.s. britain france, russia, china and germany are increasing pressure on iran. many while on capitol hill lawmakers express skepticism. >> death to america is not domestics in iran it is regime rallying cry. >> reporter: strong wores on capitol hill.

late tonight white house released a photo of president in the situation room alongside bulk of his security team taking part in a video conference. as they continue their talks with iran in austria. another deadline is friday. lou. lou: thank you. we may be in midst of a conflict against the is lamic state and tealing with russia's aggression, but army today officially announced it is cutting 40,000 troops from the ranks, those cuts that will be completed by end of fiscal year 2018 will result in smaller ground force since september 11. >> the cuts will impact nearly

every army installations. lou: another 17,000 army civilian employeesing laid off lawmakers are criticizing those as risky and short-sighted but obama administration and pentagon officials say they have no choices. >> these are cuts required by the budget environment in which we operate. >> army is tasked with going from 49,000 active to 450. in next two years they have to come from someplace. lou: we'll take this up with fox news military analyst general jack keane. >> turning to debate over the confederate flag, south carolina governorric signing a bill into law, that takes flag from the grounds of the state capital. south carolina house approved bill by 2/3 margin last night

some say this fiery speech had a lot to do with the result. >> i have heard enough. about heritage, i have a heritage, i am a life long south carolinaian, i am a descendent of jefferson davis that does not matter it is not about jennie horn, it is about the people of south carolina who have demanded that this symbol of hate come off of the state house grounds. lou: the confederate flag removed, from a ceremony tomorrow morning. we're coming right back with more. >> laid to rest, effort across country to make certain criminal illegal aliens can no longer hide from the law in so call san carry cities. >> rain and more rain, folks in this state have not seen rain and flooding like this in more

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lou: hillary clinton has been caught in a lie congressman tray gowd i blastingtray -- blasting.

>> i chose to turnover 55,000 pages because i wanted to go above and beyond what was expected of me. lou: congressman gaudi was so outraged high released -- he released one of several soup opennassubpoenas that were are issued, hillary clinton now dealing with acquisitions of flipflopping on sanctuary cities. writing -- hillary clinton believes sanctuary cities can help further public safety she has defended those policies going back year. >> our next guest said that hillary clinton would be a sanctuary president martha

blackburn has written -- will eye member of the budget committee vice chair of house energy and commerce committee. can you believe that hillary clinton would say such a thing. tray gaudi was beseed himself. >> this is one of reason that people don't like hillary clinton, and they don't trust her, she seems to have situational awareness. will come back and forth with what she believes or not believe, she was for the sanctuary city, she was against the sanctuary city, whatever suits the moment, we. but the fact is we have 200 sanctuary cities, what they are doing is choosing to operate in violation of federal law. that is why since 2007 i had the clear act.

and why we require the feds to come in and do their job and work with local law enforcement. lou: lets me ask you 2007, george w. bush in white house the fact is that two years previous a republican congress and senate. we've seen republican presidents, democratic presidents ignore those san carrywarcities what that -- sanctuary cities what they are in clear violation of federal law. why should american people tolerate it. >> they should not there is blame and guilt to go on this. but, you cannot reward people for violating u.s. law and you cannot choose to enforce a little bit of the law but not the whole law. the fact that department of justice has never gone after any of these cities look at arizona what they did to them when they

tried to strength en their strengthen their immigration law it says that they have to be picked up by i.c.e. i.c.e. has to deport them, feds have to payback your local state government, train them on immigration laws and how to properly provide. it also says that if you are a sanctuary city, and violation of law, that federal government with hold funds to you. and it is time for us to do that. nobody wants the criminal illegal aliens running through our communities. look at what we've seen happen over past 12 years every state is a border state and every town has become a border town town. let's enforce the immigration law. and stop process of sanctuary cities that leads to sit wag situation we just saw in san francisco, my

heart goes out to her family. charles:family. lou: all americans, should be extending their condolences it is a tragedy unfortunately that is being repeated in communities across the nation. most illegal immigrants as we know are law abiding good people. but when -- i have to ask were you astonished by this report yesterday from u.s. and sentences commission, a. >> you. >>judicial bipartisancommission reports first time the penetration of the illegal imgrapsimmigrants into our correction at system, 37% of sentences it is stunning. >> it is stunning, 75 per of the drug offenses are from the illegal immigration population. so you look at that, and the fact is that is criminal illegal

alien, 75% of your drugs offenses and 37% of your incoarseincarryingraising-- incoarseration it is time to move it forward in a bipartisan manner in house and say we're going to deal with this criminal illegal ale yep element that is in our community there should be bipartisan agreement on this. lou: congresswoman always good to talk with you. >> thank you lou. lou: be sure to vote in our poll do you believe that presidential candidates of both parties will engage in honest debate on the issues that matter most to our med ill class? -- middle class we would like to hear from you loudobbs.com. >> indiana residents are trying

to cheap up their homes after a massive flash flooding 4 inches of rain fell in indianapolis tuesday, breaking a hundred-year-old record, dozens of family displaced. including several that had to be rescued by boat. >> up next, a few thoughts on america's ebbing military strength. airstrikes continue against the islamic state. we may lack the political will to beat the radical islamist terrorists, we take that up here next stay with us, we're coming right back.

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killed by a u.s. drone strike. they are trying to spread beyond areas of current control in syria and iraq. >> british ministry of defense releasing this video of a royal air force drone destroying a islamic state armored vehicle in iraq drive are tried to hide under palm trees hell fire missile had no trouble finding him. >> a few thoughts now to america's slingerring -- shrinking military might. army announcing they are cutting 400 thousand troops over next two years army will have smallest active duty force since 1940. year before this country entered world war ii. army has warned that reducing our army troops strength below 450,000 would mean we could lose a war as a result. it is bad enough our army forces

will belowest level in 3/4 of a century. but army could be forced to slash another 30,000 troops because of automatic spending cuts. other brarns brarns-- blanches of our military have been cut 8% in last 4 year, marines 10% and air force with fewest number of personnel our navy fewer than 300 deploy able battleships. >> now naive navy may have to withdraw all aircraft carriers from persian gulf for first time since september 11, theodore roosevelt leaving the gulf in the fall, nato will depend on french in the gulf. our national questions these

days are coming fixer question are getting bigger not answered, why for example are none of our leaders asking how the out loud, who are we as americans, what is our once great and powerful nation becoming. we're relying on russians to gets to us space chinese to buy our debt, and 47 to french to catch over persian gulf. they seem up aware that america's strength is ebbing or they are too meek to confront was that fundamental transfer may be that president obama sought when he hook office 7 years ago we seal what happens to the questions that are asked over course of this campaign. quote of the evening.

in a let in 1863. he said, honor to the soldier and sailor everywhere who bravely bears his country cause honor also to citizen who cares for his brother in the feel, and sers as best he can the same cause. honor to him only less than to him who braves for the common good the storms of heaven and storms of battle. we're coming right back. stay with us. >> coming up more market madness, "wall street journal" halts china crashes and then recovers, europe waits for greece. what are we to make of this? this is next. >> and a wild chase police cruiser chasing another police car, and for a

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as part of the efforts to clean up the city, mayor stephanie rawlings-blake fired her commissioner, as the u.s. conference of mayors for her fine work, presumably. and a federal judge ordered the obama administration to explain why it should not be held in contempt of court for ignoring his immigration injunction. dhs issued 2000 work permits to illegal immigrants as part of president obama's executive order on amnesty after the federal district judge blocked it. trading returning to normal at the new york stock exchange today after yesterday's nearly four-hour halt. stocks closed higher but well off session highs. the early rally driven by a rebound in the chinese markets. the shanghai composite posting the best gain in six years after losing nearly a third of value over the past month.

joining us s&p capital iq chief equity strategist sam stove all and prudential chief financial strategist quincy crosby. good to have you here. looked like doom was at hand only yesterday and today a bounce. on what, quincy? >> first of all, the chinese authorities came in with step number 25 to try to boost the market. it took off, it ignited, and europe was up on the back of the, perhaps, deal with the greeks, and the u.s. market came in, you know, on the coattails of all of that. you know, lou, when you keep going down, down, down, you're going to get a bounce, and we got that bounce, the question is, is it sustainable? is it viable? lou: that's the question you get, sam? >> i get the hard one, all right. i think that we're still overdue for decline of 10% or more. we've gone 45 months now without one, and the average

since world war ii is about 18 months. i think that we have second-quarter earnings we're going to have to deal with, i wouldn't be too overly bearish about them, the bar is set underground at this point with a more than 4% decline expected by s&p 500 capital iq, so as my father once said, you can't kill yourself from jumping out of a basement window. lou: well, and as i would expect of your father, eloquently put. in vivid imagery. but the reality is here, with declining quarterly earnings, with all of the pressures we're seeing mount in europe and china, obviously, the moment, the story of the day, the hour is greece, but it is potatoes compared to what is happening in china. how severe are the consequences that are likely to flow from the world's largest emerging economy? >> the biggest worry is that

the growth is not rebounding, and that the deterioration in growth rate accepting global, global growth. that's the real issue, you can argue how many people in america are really in equities in china, affecting them? but really what matters is china has been the relevant center for demand, demand for commodities, demand for luxury. lou: obviously that demand is evaporating. >> it's slowing, and then you also get the purge, you know, of the elite, and luxury bling is out, is out. so what you have is a country which people are being very careful, now losing their money in the stock market, and obviously, the authorities don't want that. they want the average demand -- lou: to lose some of the government's holdings as well, by supporting the market. i mean, when we talk about the chinese markets right now, we're talking about a sliver of

those markets actually being in float, right? >> we are. also i think we have to realize that chinese gdp is expected it grow at about 6.5% this year, and slow to only 6.3% next year. i think the u.s. would love to get that kind of growth rate, so since china had been the engine of optimism and enthusiasm with that engine sputtering now, i think people are quite concerned, but until we actually start to see the economy go into a tailspin, i think it's something to be watched over but not worried about. lou: is it a fair construction that you would not urge investors to put money into the market right now? >> you're asking me? [ laughter ]. >> she gets all the tough ones. >> look, there are very good companies that are, there but you have to be very, very careful. unless you have the patience of job to stay in there, there are other places to invest. lou: and a very brave heart. >> and a very brave heart.

there are other places can you do quite well. lou: sam? >> i think that for the long term, if have you money to invest, you should do so, i don't think you should go too far out on the risk curve. based on the fact inflation is incredibly low at this point, earnings are expected to be prz territory a year from now. we're going in a v-shaped recovery, in my opinion, we could see the s&p at about 2250. lou: i think with that blinding sunshine, we'll call it an evening, thanks for being with us, sam, quincy, thanks, you guys are great. >> thank you. lou: be sure to vote in our poll tonight, the question is -- cast your vote at loudobbs.com. an explosive lifestyle isn't always the good thing, new york giants defensive end jason pierre-paul and tampa bay buccaneers corner back c.j. wilson lost appendages handling

fireworks on the 4th of july. pierre-paul lost two fingers and had a reported $60 million contract on the table which was taken off after the accident. no word on what actions tampa bay will be take with wilson. up next, american general ranking russia as number one threat to america. and if you had a bad evening commute, you're not in this city. an update on the travel chaos millions of folks had to endure across the pond. stay with us. you owned your car for four years. you named it brad. you loved brad. and then you totaled him. you two had been through everything together. two boyfriends. three jobs. you're like "nothing can replace brad!" then liberty mutual calls. and you break into your happy dance. if you sign up for better car replacement, we'll pay for a car that's a model year newer with 15,000 fewer miles than your old one. see car insurance

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. lou: the nominee to be the next chairman of the joint chiefs of staff says russia poses the greatest national security threat to the united states, marine general joseph dunnford shared his assessment with the armed service committee earlier today. >> in russia we have a nuclear power, we have one that not only has the capability to violate the sovereignty of our allies and do things inconsistent with national interests but they're in the process of doing so. you want to talk about a nation that could pose an existential threat to the united states, i'd have to point to russia. if you look at their behavior, it's nothing short of alarming.

>> the general also said it would be a reasonable military decision to supply lethal arms to ukrainians fighting against rebels backed by russia. joining us tonight former army vice chief of staff and fox news military analyst general jack keane, good to have you with us first your thoughts on general dunford himself as the new chairman? >> i think he's a good pick. a good reputation, smart, tough guy, i think he'll represent the military well and the counsels inside the white house, distinguished combat commander. he enjoys a lot of high regard inside and around the military. so i'm hoping that people listen to him. lou: i was taken, as i listened to him by his straightforward assessment of russia. it was clear, he communicated without political fear. that's refreshing to me. what are your thoughts?

>> i agree, and i totally agree with his characterization. i agree with his ranking, except i would put isis first, it's the fastest growing radical islamist organization in centuries and it's expanded into seven countries and more on the way and it's got a worldwide following. and it's a very immediate threat. but i'm not sure the difference is worth the distinction. but the -- i agree with his comments on russia. this is a growing menace to us in the sense that putin has a clear design that's different than the political order that exists now, and he's taken advantage of weak leadership in europe and frankly weak leadership in the united states, he's a master at psychological warfare. lou: i could not help but think, this distinguished decorated general is take over as the chairman of the joint chiefs, he'll be reporting to a man as president of the united states and commander in chief who makes it pretty clear he

does not want to, in anyway, be anything other than flexible with vladimir putin, who has backed away from his, his vow to degrade and destroy the islamic state. how frustrating a job it must be for the general to assume the chairmanship of the joint chiefs. >> yeah, well, i think he's humbled by it and feels honored to have that position and also to represent all of the troops that are in the united states military, and he's got a tough road ahead of him in front of the next year and a half with the next administration, i'm convinced in my own mind, many of his thinking and policies are very different than the administration's. i think he'll represent the military well and those counsels. he owns the decision process and we've seen it time and time again, the policies have contributed to the failing and the challenges we're facing in the world today. i hope this general has impact

on them. i suspect he may not have much because i suspect the president is closed in on his major policy decisions, i don't think he's going to make much change here. lou: tens of thousands more troops will be leaving the army under his watch as chairman. another 30,000 may also be reduced from the 450,000 that will result. we're going back to an army that is smaller than 1940 a year before we entered world war ii. is this not the definition of madness? >> it certainly is. it's beyond irresponsible. it's actually reckless, lou. you're right, you have to find that number, it's pre-world war ii, and numbers have a quality all of their own. numbers do matter. it's not just technology. and as we know, the army's

taking the disproportionate cut that the military is facing, and you can't win wars without ground troops. watching it the last 14 years and talking about russia who has a significant land force, and it's the land forces he's using to push around the countries in europe. so this makes no mistakes. what happens inside the counsel of the white house and the civilian leadership of the pentagon, they've convinced themselves they're not going to win a war on the history of ground troops again, that has proved wrong time and time again. lou: good talking to you. stocks posted gains closing well off session highs, the dow up 33 points, the nasdaq up 13 points higher. volume 3.4 billion shares, and a reminder listen to my reports three times a day on the salem radio network. misery today in london for millions of commuters. the british capital's underground system came to a halt because of the biggest

strike in more than a decade. those trains not moving anywhere. the strike called after the unions and london underground failed to agree on a pay deal for new overnight services set to start in september. 54% of workers are unionized, compared to 36% in the united states. a brazen car thief taking police on a wild chase through bergen county, new jersey, dash cam video shows police in hot pursuit of that cop car. the suspect tried to carjack a woman once cornered by police, he carjacked a police cruiser. he even crashed into another police car. the chase ending only when police used a p.i.t. maneuver on the vehicle, he tried to run on foot but caught in moments. he's held on one million dollars bail, he faces multiple charges. did jeb bush say americans need to work longer hours?

are you kidding? republican party leaders fear donald trump is doing too well and the party not well enough. we take it up with the a-team, what's going on? gotta love politics, don't you? stay

. lou: presidential candidates finding any reason they can to attack one another. in new hampshire former florida governor presidential hopeful jeb bush said this.

>> my aspiration for the country, and i believe we can achieve this is 4% growth as far as the eye can see, which means we have to be a lot more productive, workforce participation has to rise from all-time modern lows. means that people need to work longer hours and through their productivity gain more income for their families. lou: whoa, longer hours? hillary clinton jumped on that one. via twitter, she said this -- bush then equipped anyone who discounts 6 1/2 million people stuck in part-time work and seeking full-time jobs hasn't listened to working americans. take that! the "washington post" reporting republicans may not be enjoying trump's way with words, the report claims republican national committee chairman reince priebus called donald trump and asked him to tone down comments about immigration.

donald trump responded to that report in a tweet saying -- joining us now, radio talk show host chris plat, and alex smith, thank you, both for being here. >> thank you. lou: i love it, trump said end. your generation, are you galvanized by the republican field of candidates and with trump in particular or bush or whomever? >> i think that our generation is absolutely galvanized by the republican candidates. we have such a diversity in our field unlike the democratic party which has a few candidates. lou: you're not affected by trump? >> i will say this, what donald trump was attempting to say is to be critical of people who come here illegally, that's something we can all agree on. lou: you know what he was saying, ms 13 this year, 250 cities have criminal gangs coming out of principally ms

13. saying there's 70,000 criminal illegal immigrants in this country, turned back into american society by this administration. we know what he's saying. he said it inartfully and defensively. >> we need to find a better way to say it. if we don't think that -- lou: how about the way i said it. >> great way to say it. lou: there you go! >> praise people for being like ronald reagan. lou: which one would you start with? >> on which presidential candidate? lou: you said we need to praise them for being most like ronald reagan. who is most like ronald reagan? >> each has qualities that could blossom into a ronald reagan-like figure. lou: chris, the donald, are you a fan? uncomfortable or like a reince priebus, dynamic leader of the republican party. mr. electricity he's known as, i understand. do you think trump should tone it down?

>> he should pay attention to phrasing, ventured into new arena here, and it's a different arenthan the one he's accustomed to, and brazenness has always served him very, very well and many respects service him well right now. he lacks a couth, finesse, he's got rough edges when it comes to the arena of politics. but he's striking a chord with the american people, you're hearing this also lou, and hearing it from the radio and a lot of people. he's striking a chord with people, he's a no-nonsense, we're on your show. he is no-nonsense, he cuts right to it. what he's saying is from the heart, it's essentially the truth, and he doesn't sound like one of the politicians who holds his hands just so and refuses to use that word and uses that word instead. he's not polite company, but he cuts to the chase. lou: the other thing here, it's a question i ask congressman

blackburn earlier, when i want both of you to respond as well. were you shocked by the u.s. bipartisan judicial commission revealing 37% of the sentences handed down last year in our judicial system were illegal immigrants in this country? did that shock you? >> it's absolutely shocking, and i think that where we can all start from a common place as republicans is we need to secure our borders. i think that having a country without borders is about as useful as having a coffee cup. >> the last one, george w. bush wouldn't do it. he wanted them open. in point of fact, he's one of the driving forces for this, right, chris? >> that's true. he has a very poor record among other things. the border security issue. i don't like calling it the immigration, the illegal inflow issue. president bush has been gone for more than half a decade now. president obama and the democratic party's entire philosophy is predicated on

race based coalition which to a very large extent they think is resting on the growing latino vote, and they are pandering like nobody's business and they don't care about the country. they don't care about the legal immigrants or the illegal immigrants, they care about the democrat party. i can't say george bush was that cynical and that sinister when it came to his shortcomings regarding border security and the other alien issues, but the democrats are entirely self-interested when it comes to behavior and motives. lou: whether democrat or republican or cynical or sinister, the reality is our middle class is being sold out working men and women are being sold out and the border remains insecure. we thank you, both for being here, chris, alex, great to see you. >> thanks so much. lou: time for a look at our online poll results, the question was --

that's it for us tonight, we thanks for being with us. brad thor and naomi woolf tomorrow. good night from new york. thanks for being with us. . kennedy: oh, thank, lou very much. it's our last show of the week let us make it good and on the watch tonight, jeb bush stepping in a big pile of his own context. he was in the middle of making a good point about our limp economy when he dropped an inartful line of americans needing to work longer hours. that was immediately picked up by hillary clinton and her philosophically aligned brethren in the press. go for it, jeb. >> we have to be a lot more productive, workforce participation has to rise from all-time modern lose. means that people need to work longer hours and through their