comment is read here receives a signed copy of my book. thanks and good night from new york. reporter: a dangerous new low in the global showdown with north korea. but who will blink first? president trump now repairing for his first meeting with russian president vladimir putin. and which party will come out of this summer with a stronger political hands? republicans or democrats? chris stirewalt breaks it down. grab a partner, it's time to dance. i'm dagen mcdowell in for kennedy.

the nuclear standoff with north korea taking a grim turn after the country tested a missile that could be capable of hitting the united states. the wall $street journal is reporting the white house warned the hermit kingdom that the u.s. is prepared to go to war. this latest round of escalation started yesterday when the north launched its first intercontinental ballistic missile. limit experts say this is a major step forward towards the nuclear attack capabilities. the state media claiming its leader kim jong-un was pleased with the test. president trump said he's on top of the crisis. the president also put pressure on china, tweeting trade between

china and north korea grew in the first quarter. so much for china working with us. but x l -- but we had to give it a try. you would agree china ignored sanctions. it has benefited continuing to trade with north korea. they haven't joined the party to contain that regime. so what now? >> president trump needs to impose costs on china. he started that last week with a series of actions that made the chinese very upset. including cutting off a chinesebacchain da chinese bankl banking system. the bank of china was engaged in

money laundering for the north koreans. trump will be meeting with xi jinping on the sidelines at the g20 and it will be a difficult meeting for them to hear. dagen: the "wall street journal" is advocating for regime change. saying we need to start shooting down these missile launches. >> there are a lot of things we can do before kinetic options. yesterday's launch came off a chinese missile launcher. president trump needs to ask the chinese how come the north koreans have all these chinese-looking equipment in its missile inventory.

there is all sorts of stuff the chinese won't like that the u.s. should be doing. when we do that we give the chinese for the first time ever an incentive. we are telling the chinese we are serious about our tone security. dagen: china being the second largest foreign owner of our debt. being an important exporter into the united states market, do we need to be willing to feel financial pain in the united states to contain this growing nuclear threat by putting pressure on china? >> that's an important point you make. every solution is going to cost us. because of misguide policy. everything we do going forward will cost us. but it's going to cost china a lot more. they have taken economy gears to selling stuff to us. they are the trade surplus country. we are the deficit country.

deficit countries don't worry about trade wars. we have an economy that is twice the size of the chinese economy. that gives us enormous leverage. but what we haven't done in the past is use that leverage. trump can do so. dagen: will we be at war with one entity or another? >> there probably will be a trade war with china. the chinese have been even gang in increasingly predatory practices against the united states. when we step back with this, we are drifting towards war but there are thing we can do that are short of kinetic options. and we absolutely have a responsibility to try those things because war with north korea will be horrific.

dagen: the trump administration has seemingly put north korea on notice. the secretary of state rex tillerson warned other nations to steer clear of the regime. in a statement secretary tillerson said quote any country that hosts north korea guest workers or fails to fully implement u.n. security council resolutions is aiding and abetting a dangerous regime. is there a chance this could turn into a wider conflict? let's bring in the party panel. kat timpf. carry sheffield, she is founder of bold. and tom shillue. he's author of the book "mean dads for a better america." let's start with kat.

being a libertarian, just the idea of military conflict with north korea is unfathomable. kat: it should be unfathomable to everybody. when we talk to about a military option it will likely lead to world war iii. there are no good solutions. it's not that i'm not concerned about it. because i am. but there is no good way to handle it. dagen: i am a big geek so i look at what we haven't done. there is a division the bank of china was doing hundreds of transactions on behalf of north korean companies. any entity conducting business with north korea would be cracked down on by the international community. >> 95% of north korea's economy

is flowing from china. i think president trump has taken a more measured approach. he just signed an arms deal with taiwan. but i agree it's unfathomable. we should not want this at all. but that being said, inacross is action as well. obama has had no action for 8 years. dagen: this was a problem never solved by the last administration. we always make fun of kim jong-un. maybe we should stop. tom: it's just because he looks funny and he has a funny haircut. the chinese have not been that concerned about it. what are the numbers you said? 40%? dagen: trade has grown 10 fold

in 10 years with north korea. they benefit handsomely from the cheap labor coming out of north korea. >> the truck used for the icbm test was a chinese truck. >> if we have to go to war, it's bad times for china. i think they simply won't do it. dagen: mean type the president today left for europe a -- meantime the president left for europe for the g20. perhaps the biggest event of all, the highly anticipated meeting between president trump and vladimir putin. political analysts have been curious whether he plans to bring up russia's alleged

interest neerns in the 016 elections. how do you shake his hand? tom: it doesn't matter what they talk about. because all anyone is going to do is play video of that stupid handshake. again, what happened between him and macron? nobody cares. because all they want to do is show video of the dumb handsha handshake. >> people are like he needs to step it up about 2016. apparently obama said that. cut it out. how is saying cut it out in a five-minute meeting going to do anything. you have to do the hard work

behind the scenes before you get there. i think it's a good idea that president trump is going to poland, and poland is an ally president obama neglected the whole time. i think it's great that trump is going there and showing we have a robust relationship with poland and we are not going to neglect them anymore. dagen: putin and russia don't get the first dance. kat: no matter how he handles it, everyone will say it was wrong. too friendly or wasn't friendly enough. even russia doesn't like us because trump is too bad. or they like us too much. if i were trump i would give him a big hug. it just doesn't matter what he does. the coverage of it won't be positive. dagen: i think you are right. i said earlier, punch him in the nose and bring up the russia

hacking thing and lay it on the table and see how he reacts. you know putin has studied up on trump in terms of how to interact with him. just lay it all out. >> i think that's the best thing he can do. but when he walked away, i didn't see him hold melania's hand. but i agree "you. i would love to see that happen. dagen: new jersey beaches are back open after. >> 4th july shutdown. christie remaining defiant in face of wide sprayed criticism saying he had every right to use the beach house baits was part of an official governor's residence.

kat timpf, somebody on mornings with maria, that is the governor trolling his own people. kat: that's what giving up looks like. why was he even wearing a shirt. put it all out there. at this point you just quit. it doesn't matter that he hadder right to use the beach. but when a lot of people can't use their beaches. no matter whose fault it is, you can't figure it out. and you say i'm the governor and you are not. dagen: if you don't like it you can run for governor and use this beach that was closed. tom: that's a true answer. it's a mansion, he lives on a beach. what's he going to do, hide in the kitchen? >> i have said this for years now about chris christie? i would not trust that man with

my lunch money. i used to rate bond. he's been downgrade 11 times by the bond analysts. but he's an amazing fundraiser. let him go be like this bravado charismatic person. dagen: he's not even bravado. he's a big raspberry to new jersey. you would lay it out on the beach. tom: he has a house on the bea beach. i'm defending him. he should go back and tell everybody to sit down and shut up it's so true. who's trolling is the people who get in the plane and fly by almost.

if there was a young hottie next to me, he was there with his family. he's fine. >> he would have been the king george during the revolution. tom: he has the best song in "hamilton." dagen: speaking of elitists. you have seen "hamilton"? >> there is tom shillue with his spf800 sitting on the beach watching "hamilton." the weight of expectation of the healthcare plan that works. the democrats have their share of problems. i'll ask chris stirewalt which party has a deeper hole to dig out of next.

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what should i watch? show me sports. it's so fluffy! look at that fluffy unicorn! he's so fluffy i'm gonna die! your voice is awesome. the x1 voice remote. xfinity. the future of awesome. dagen: mitch mcconnell is known for his ability to get senate republicans on the same page. but repealing and replacing obamacare is proving a challenge. he's under pressure for the lack of pressure and faced criticism from allies like rob portman,

john mccain and lindsey graham. while republicans keep going back to the drawing board on healthcare, democrats are also in disarray. now a couple billionaires from the silicon valley want that party to reinvent themselves as the party of billionaires. a project called win the future where people can discuss and vote on issues important to them on twitter and let their congressional lead terse know what they think by but the putting up billboards in washington. which party is in greater dire straits. chris, let's start with healthcare. it looks like an absolute

disaster on repeal and replace. is it that way in d.c.? chris: in part you good people in new york are at a disadvantage. people in the business community want to apply rational choice to the irrational act of governance. when you putt 50 people together around something one say you need to do this for xy and z. and you should make this happen. and then they say, i have interests that are unique to me and my state and my reelection and unique to who lives in my state and those concerns. then you find this is hard to do. if businesses did their earnings estimates the same way washington did its estimates on passing legislation, the sec would be a very busy entity shutting everybody down all the time. dagen: where are the republicans

in the senate? it seems like the idea of a bold repeal, then worry about replacement was gaining traction. but based on the way its nutty reconciliation rules work, that would seem like an impossibility. you would have to do the repeal under the reckon significance was for last year and do the replacement under the next year's. so logistically that seemed like a non-starter. chris require's possible a repeal now replace later could work. you could do the replacement under reckon sill bracing next year. that is certainly a possibility. the problem is of course there are plenty of republicans that don't want repeal. the big pressure is the growing realization that voting for this will be voting for higher premiums for people in the

independent market. and the premiums will be really high for people in the inltds market who are older. when you are talk about 63-year-olds in the independent market, and that's big trouble for the gop. dagen: if they don't do something, i argued' the republicans already own the continuing collapse in the exchanges. you will have more than 40% of counties in this country that will only have one health insurer or no health insurer next year, that's on the republicans now. chris: the republicans have worsened their situation. they love to talk about how the exchange is staying and the statistics you cite. every time anthem pulls out of this or blue cross pulls out of that. the republicans tout it to the

high heaven. but they have to couple a patch because they will write rate books and they will be out by november. the clock is running fast on what to do to patch obamacare. any idea the republicans will stand idly by and let millions of people lose their health insurance and say it's obama's fault. that's death nell talk. dagen: you have half of these rough candl -- ofthese republicg i'm open to keeping the tax on investment income so we can keep that $172 billion it raises over 10 years. that temperatures ideologically not republican party. chris: you have a tighter eye roll game than almost anybody i know.

when you roll your eyes hard it's serious business. the republicans have a terrible problem on their hands in this way, which is democrats are waiting, hoping, yes, please vote for legislation that cuts benefits for working class voters, the voters who helped fume donald trump's presidential victory. do that and do it in exchange for a tax cut for wealthy americans and the investor class. democrats are look at it, come on. this is the problem with populism. if you do things on the basis of what is popular and what everybody likes, guess what you are going to do? nothing. when you talk about something as big, complicated as health insurance, there is always going to be losers and always going to be winners. dagen: you will wind up enjoying spending other people's money.

the two silicon valley billionaires will reform the democratic party through this resist effort? chris: yes, it will be awesome. where they are starting is putting up billboards to tell democrats that people who are online think democrats should be more liberal. if i would say during h and duh. obviously. it would be like what is the republicans grassroots think the party ought to be? they think it ought to be more conservative. democrats won't get anywhere until new leaders arise. put them in some sort of governable working fashion. until then the billboards won't help. dagen: single syllable words need to be made into two

sillables. so it am not duh, it's during h-hu. the chicago public schools have a new plans to keep younger people off the streets. the panel returns to explain next. (burke) at farmers, we've seen almost everything

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dagen: the hits keep on coming at cnn. after a series of high-profile retrakss, they are being accused of blackmailing the reddit holder who made the wrestling logo. they said cnn is not publishing the name because he showed his remorse by saying he has take down all his offending posts. cnn reserves the right to reveal his identity should any of that change. it had many people accusing cnn of shakedown tactics.

joining me, tim carney. this trending topic on twitter took over on the 4th of july. it smacks of cnn being so solve-involved they can't see the rest of the world. >> it seems that cnn is what cnn says donald trump is. thin skin, an organization using its power to harm anybody who criticizes it. you have cnn issuing threats saying stay on my good side or we'll come you have a even harder, demanding an apology. as journalists we are given this access, given this megaphone to help people in the country figure out stuff and know stuff about the way the country runs. but cnn is using its resources

on this. dagen: cnn had to issue another statement. cnn decide not to publish the name of the reddit user out of concern for his safety. user who is an adult male, not a 15-year-old boy apologized and deleted his account before speak with our reporter. cnn never made any deal with the user. the fact it was a joke. why are we treating this like it was some threat to the safety of our nation. >> i think it was embarrassing that president trump tweeted that out. that's the story the way the president behaved.

that somebody made something stupid on the internet is not a story. that cnn defends him is misleading. at least it conflicts with what we saw saying the apology came after cnn contacted them. it all came down, then the guy responded. if you read the last line of that cnn piece, it clearly read like a threat. we reserve the right to publish his name if he acts up again. this is why people go along with donald trump's tirades against the media. but now people actually fear the media, that the media will come after them if they criticize the hide yeah or hold ought wrong position, hold pot wrong view. this guy had some pretty nasty stuff.

antisemitism, racism. but you can get the same stuff if you oppose gay marriage or hillary clinton. that's why people see the media as the enemy of the people. dagen: violence spread through chicago over the long holiday weekend leaving 101 people shot, 14 of whom died. in an evident to keep some of the city's youth safe. mayor rahm emanuel is pushing a new rule that will prevent students from graduating from high school unless they have a plan for the future. student will have to prove they secured a job, acceptance to a college, a trade program or the military. will this help chicago's youth or will dropout rates be on the rise?

i begin with you, tom shillue. it seems like people won't bother graduating from high school. tom: according to these rules i wouldn't be able to graduate high school. i had no plan, i had no job. i graduated and went off to summer man the fall i finally found a job. but i didn't have a plan. i wanted to waste some time and get my act together before i went to college. >> you have the luxury of having a mean dad. 45% of these kid are drifting without a father in the home. this could have potential to force kid to think about their lives. they have mandatory military service. it create a sense of belonging and purpose and a sense of you know what? i have something bigger than my little world view.

dagen: it take government rules and regulations. the government knows better. it's all the rules that always make everything perfect. kimberly: kat: there is no way for the kids to find purpose without the government mandate. what's a job. babysit your cousin. does that count? it's ridiculous. if you graduate, if you graduated, that means you completed high school. and a lot of these schools don't have the resources to help these kid find anything. so this won't help the people who need the resources the most because they are not there. >> it's not set up for mandating graduation is a bad way to do it. but we have to do it. we already mandate don't kill

people, yet they are doing it. dagen: murder is bad but the government chronically oversteps. >> there is strong capital. chicago is falling to pieces. dagen: if the dating world wasn't stressful enough. there is a new question plaguing today's singles. who should pay for the first date. in a survey done by chapman university, 39% of women said they hoped the man would pay for the entirety of the bill. but some women claim they get stuck paying for the whole thing. with the cost of dating on the rise, should couples just dine and dash to avoid confusion?

kat: i don't date in the traditional sense. first date. i don't know. i think that it varies. if one of you is very rich, then you pay. stuff like that. but i do that all the time. i pretend i'm going to pay for it. >> if they don't stop the reach, they are toast. if they make me pay. no. i'm a proud conservative. dagen: somebody made the argument to me, if you were dating somebody and they were overspending at dish and ordering expensive bottles of wine, it was a sign they were deep in credit card debt. tom: guys reach for the check and then -- the thing is, you have got to give the women an out. if you are on a first date and

she is not impressed she'll go in for the fight. the more she fights the less she likes you. that was the signal. when you see that money. kat: i dated a man who was in clown college. i would pay for a few more things because he was in clown college. dagen: i dated a lot of clowns. i believe in civil ar in chival. like holding the door for me. >> a call for more troops in afghanistan to end america's longest war.

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who died monday afternoon from taliban mortar fire. despite these deaths and all the money that has been spent there, the taliban still controls one-third of afghanistan. to try to change that a group of senators visited afghanistan to push for more military action. >> we need a strategy in the united states that defines our role in afghanistan. that defines our objective and explains how we are going to get from here to there. >> having more american forces with nato forces with more aggressive rules of engagement. utilization of american air power will turn a stalemate into success. dagen: the trump administration is thinking about sending in more troops putting the surge at 3,000 to 4,000 americans.

here to discuss whether a true surge would do the job is buck sexton. what do you make of the idea we are going to send 3,000 to 4,000 more americans into afghanistan? >> it's not going to be enough. repeating the word strategy when it comes to afghanistan is not a strategy. to be fair to the administration, we should see. maybe they will come up with something. but so far everything we are hearing from members of congress and those being open about the challenges we face in afghanistan is much of what we heard for a decade. as long as the taliban has the ability to reequip, to train and do everything it wants to do on the pan andy side of the border, we are in our best case scenario.

the reality right now is the taliban is in the strongest position it's been in arguably since 2001. so to talk about sending back a few thousand troops. that may temporarily stabilize the situation. but i don't think anyone will seriously make the argument a few thousand troops will be sufficient. during obama years, he had the whole surge. i didn't think the way he did the was putting national security first. but the idea that we are going to be able to do this now with 4,000 more when we weren't able to eradicate the taliban, a self-sustaining active government. these have been the goals for over a decade. dagen: would you send those troops? would you put those lives at risk if it's not going to be enough?

>> if they don't have a enough idea, committed to a new strategy. the answer is we should be committed to a draw-down. it sounds defeatest. but i don't think there is anybody who can win a debate on the other side of the argument that somehow 4,000 u.s. troops will change the situation. it's worse than it has been in a decade. dagen: a dog lost on stage during a musical concert. we'll tell you all about it in the "topical storm" next.

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. dagen: the following five stories were picked out by ken difficulties staff during the morning pitch meeting. from the looks of it i think they were still drunk from the 4th of july. but i'm not going to judge because at least they made to it work. there is a saying that the only thing certain in life is death and taxes and cnn lying about

donald trump. joey people say is like the michael overdafn hot dog eating contests. but judging from the amount of food he feet web's more like it charts barclay. he wolfed down 72 dogs. nobody is going near that dude for at least three weeks. topic number two. if you are at a party and someone asks you to do a few lines in the bathroom, do not assume you know what substance they are talking about. there is something called cocoa loco, it's a fast and legal buzz when you are in the mood for a rush. european club-goers have been

doing snortable chocolates. just ask the spice girls. or sign for obamacare. topic number 3. a dog wondered on to the stage during a classical music concert and set the internet on fire. he was hoping to go to the jersey shore and catch a few fril -- afew is from bees but cs christie closed the jersey shore. meantime, people are calling this dawght most exciting thing to happen at a classical music concert. that's like being called the smartest kardashian. topic number 4. a bear fat moscow zoo was asked top dp predict the winner of a

soccer match. for the record. the russian bear chose the german bowl. she picked germany to win over chile. and it's not her only talent. hillary clinton claims the russian bear helped hack the election. topic number five. and finally anybody can take you to a horse race on the 4th of july, but it takes a few patriot to take to you a camel race. you are looking at louisiana downs where they held their exotic animal race yesterday. i didn't get to watch but i hear the russian barrel predicted the winner. i think the camel races would be a lot more fun if the people

smoked camel cigarettes. we'll be right back. okay, i picked out my dream car.

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dagen: thank you for watching the show tonight. you can follow kennedy on twitter and instagram @kennedynation. and email her at kennedyfbn@foxbusiness.com. tomorrow on the show ambassador john bowl attorney and his fabulous mustache.

mike barrack without a fabulous mustache and kmele foster. i'm dagen mcdowell in for kennedy. good night. >> i am hoop. >> i'm baird jones. >> two eccentrics from new york's disco days. >> if you were on baird's list, your social life was assured. >> two oddball art collections. >> all right. >> mel brooks, david bowie, art carney, muhammad ali. >> but the weirdest thing about this story... >> and it's really solid. nothing's going to fall off. >> ...is how the square from the burbs ends up with both. >> i can only imagine this driving around the streets of new york. >> will this two-for-one strange inheritance -- >> i've got $150, can get a $175? once, twice. first piece sold. >> ...ultimately add up? [ door creaks ] [ wind howls ] [ thunder rumbles ]