put us up to it. lauren: we have north korea and a military option for venezuela and the domestic agenda here at home. lou dobbs is next right here on fox business. [♪] david: good evening, i'm david asman for lou dobbs who is on vacation. president trump issuing new warnings to north korea telling reporters his administration is considering leveling additional sanctions against north korea. he hopes for a peaceful resolution but will not' hesitate to protect america and itsal life. >> we have been working closely with china and other countries. nobody has don't job they are supposed to be doing and that's why we are in this horrible situation right now.

it's a very bad situation it's a dangerous situation, and it will not continue. i can tell you. i support peace, safety and having to get tough if we have to. kim jong-un would quote truly regret any attack on guam and that u.s. military is quote locked and loaded. >> if he does anything with respect to guam or any place else that's an america territory or american ally, he will truly regret it. and he will free get it fast. reporter: president trump warning north korea's leader after learning the people's army

is planning a missile attack against guam. the president said submit solutions are fully in place, locked and loaded should north korea act unwisely. hopefully kim jong-un will finds another past. the furious language is unique for an snare today president and in line with normal north korean rhetoric. the. the dprk statement. despite these exchanges the seen yoimplet s. diplomat is in regular contact with their north korean counterparts at the u.n. multiple state department officials refuse to comments on the report.

though secretary of state rex tillerson did detail how the u.s. and north korea could negotiate. >> the first and strongest signal they could send to us would be to stop these missile launches. we have means of communication to hear from them if they have a desire and want to talk. >> am bass dorm brokered the return of otto warmier who died a week later. >> i'm firmly convinced an escalation of the rhetoric will not contribute to a solution of the conflict. >> when it comes to a fight, the first one who has to take a step backward from the dangerous line will be the stronger and smart were one.

we would hope so. reporter: president trump says he will be speaking tonight with chinese president xi jinping. the state department said china is making progress on north korea, though it needs to be doing more. david: the u.s. pacific territory of guam posting knowledge guidelines to help residents prepare for any potential nuclear attack. the move coming after north korea threatened to fire four intermediate missiles towards guam. reporter: can you afford not to take kim jong-un seriously? look at a document put out by the guam department of homeland

security it's a warning of an imminent missile threat. it says don't look at the flash directly. it will blinds you. take a shower immediately and dispose of clothing exposed to nuclear fallout. people are anxious and upset. they are on an island and they have nowhere to go. and it tomorrow takes about 14 minutes for a rocket to fly from north korea to guam. >> if we are going to get nuked, there is nothing i can do or say to change anything. reporter: how do you feel about coming here. was that a consideration? >> a little bit. but if the two sides get together, hopefully they won't do something stupid. reporter: guam is 200 miles long and 10 miles wide.

10 times the size of manhattan. people born here are u.s. citizens. there are two large military bases here. this is the backbone of the u.s. capability. one is the aegis system and the other is the thaad system. there is a lot of ex-military here and they have confidence the u.s. missile system will stocht attack. >> i don't sense people being scared. i think people know our nation has defenses that can take care of us. >> there has been no change in the threat level in guam or our civilian community. reporter: this is a very catholic territory so the archbishop asked parish priests to hold a mass sunday to pray for peace. david: president trump urging

senate majority leader mitch mcconnell to quote get back to work on healthcare. working to deliver on the president's agenda as congress faces a slew of dead lines. peter doocy has our report. reporter: the gop congress hasn't gutted obamacare to president trump's liking. he's contemplating canceling cost-cutting reductions, checks written by the administration to keep costs down for insurance companies so they will offer plans on the exchanges. >> they are the way low-income individuals meet their co-pays. part of the contract is this money goes through the understand companies to them to make sure they don't have to pay that stuff. reporter: fox news was told the

administration is working with his staff to assure payment. at the end of july the president expressed a negative view of these payments. tweeting if a new healthcare bill is not approved bailouts for insurance companies and members of congress will ends soon. the president is being warned about destabilizing markets by getting rid of csrs. >> rates will go up as much as 40% if the payments aren't made. reporter: insurance companies found out they have a few more weeks to set their premiums for next year. so expect the president's decision to be a major factor. >> this is a big part of the uncertainty. >> if the president decides to stop these payments, it's not

sure when lawmakers will find time to find the money because they have a debt ceiling to deal with when they come back. president trump says america is locked and load, ready to take on any threat from north korea. >> let's see what he does with guam. he does something in guam, it will be an event the likes of which nobody has seen before, what will happen in north korea. david: we take up the escalating north korea crisis with tony shaffer. jim us is from west -- jim justice from west virginia joins us to talk about what drove him to abandon democrats and much, much more. stay with us.

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david: a senior islamic state leader used e-bay to fun money to an operative living in the united states. that was part of a recently unsealed fbi affidavit. he pretended to sell computer printers on e-bay to flannel man dwroint united states to potentially fund terror attacks through paypal. north korea's news agency said the u.s. was no more than a lump to be reduced to jelly in little time. >> i don't know what you are referring to and who is making the statement. but let me hear kim jong-un say it. he's not saying it. he hasn't been saying much for

the last three days. david: joining me on what must be done to end the north korean tensions, lieutenant colonel tony shaffer. the president did lead to a suspicion that maybe something happened to the leader -- the north korean leader. do you know anything about that? >> no. we have been studying the situation in north korea for a long time. they tend to speak with great bluster, then back off. but what is different here is the result of this. when we dealt with kim jong-il and kim jong sung, we would always cave in. the president made it clear there will be no appeasement. that may, they are trying to do.

i'm sure president trump is very serious. david: you can still have diplomacy. there is room for both. some people say the many good cop-bad cop. i say it's diplomacy without appeasement. i single out one person. that's general mattis who is a tough marine general. he knows how to be tough an also knows how to be diplomatic. he sent a message earlier in the week that was tough. he said cease any consideration of actions that would lead to the end of its regime and destruction of its people. but listen to what he said a little bit later. >> right now secretary tillerson and ambassador haley, you can see the american effort is diplomatically led, it has diplomatic traction and gaining diplomatic results.

i want to day right there. the tragedy of war is well enough known. it doesn't need another characterization beyond the fact it would be catastrophic. david: the mainstream media jumped on that and said it's an example of the mixed messages out of the administration. what do you think? >> it's in our interest to make sure the north koreans know there is military might that will be used if necessary as well as a path out. you don't want to put an animal in a corp and give it no option but to fight. we are trying to message to the chinese as well. the chinese said they would be neutral in a fight should the north koreans attack us. that's not acceptable. we are here because of the chinese allowing the north koreans to develop these weapons.

i think mattis is saying as part of the unified strategy and communications plan to say what's necessary to move the ball forward. david: unless we forget, there have been presidents and diplomats that preceded this administration that did do what i would call appeasement, and the proof is, these agreements they extract from the north koreans, they led the development of nuclear weapons by the north koreans, they led to the development of icbms. and these people are barbarians. so we did appease the barbarians, did we not? >> we did. the '94 agreement gave them two nuclear plants. david: we literally helped them develop the nuclear weapons we are now aiming to destroy. >> we have similar agreements

with the iranians. david: as important as the chinese are, the iranians may have become more important. they are clearly benefiting from the success the north koreans have had in technology, and they have a lot of cash. so they could substitute the cash that perhaps even if the chinese sanctions were successful and they pulled back, wouldn't the iranians step right in? >> they already have. that's why we have seen the rapid progress in the north korean program. some of the information we gave the north koreans was in technology research. david: the fact that north koreans miniaturized nuclear

weapons. a miniaturized nuke in the hands of a terrorist is a frightening thing. >> that's what we have been telling the officers in the pentagon. you don't have to have interballistic missile capability to use it as a weapon. david: be sure to vote in tonight's poll. do you believe in cyber china to stop aiding and abetting china. cast your vote on twitter @loudobbs. a reminder to follow lou @loudobbs, like the show on facebook and instagram @loudobbs tonight. the dow up 14 points. volume on the big board 3.1 billion shares. for the week the dow falling 1%s

and the s. & p and nasdaq 1.5%. a reminder to listen to lou's reports three times a day coast to coast on the salem radio network. west virginia governor jim justice is a proud republican supporting president trump. >> he's got real ideas, he cares about america and cares about us, west virginians. david: governor justice joining me next to discuss yes switched parties and why the democrats are in such dire straits. gary: i have a ford f-150. michael: i've always been a ford guy. potsch: then i have a real treat for you today. michael: awesome. potsch: i'm going to show you a next generation pickup. michael: let's do this. potsch: this new truck now has a cornerstep built right into the bumper. gary: super cool. potsch: the bed is made of high-strength steel, which is less susceptible to punctures than aluminum. jim: aluminum is great for a lot of things, but maybe not the bed of a truck.

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in the middle of the night. hold on dad... liberty did what? yeah, liberty mutual 24-hour roadside assistance helped him to fix his flat so he could get home safely. my dad says our insurance doesn't have that. don't worry - i know what a lug wrench is, dad. is this a lug wrench? maybe? you can leave worry behind when liberty stands with you™. liberty stands with you™. liberty mutual insurance. david: barack obama will reportedly take tentative steps back into the political fray this fall. aides say it will be a delicate

balance as he tries to raise money and give policy guidance to the democratic party without crowding out new faces and become a target for the republicans. first half of the years democrats tomorrow raised $38 million while the republicans brought in $75 million. the gop also winning in grass roots fundraising. my next guest is familiar with the problem facing the democratic party. west virginia governor jim justice joined president trump on stage to switch his affiliation from democrat to republican during a rally in huntington last week. what kind of feedback have you received from your democratic friends for the switch? >> i have got to say this

because i'm listening to your segments before. you didn't have to lead off with the news and tell me barack obama is coming back out. why in the world are we doing that. you talk about appeasement. i know donald trump really well. he's a good man with a great family. i think back to john kerry with james taylor singing you got a friend over in france. can you imagine if we were doing that today in north korea? we have a president that's the real deal. he stand up for america and we hope and pray we don't go to war, that's for sure. but at the same time if we have to, we are willing to go. david: a lot of people probably forget the reagan democrats in the 1980s, and a lot of their reason for going with ronald rod

reagan did have to do with national security and defense. a lot of people thought the democratic party was appeasing the soviet union. but was that one of the reasons that you made this switch? was it all domestic or did some of your reasons for going republican have to do with national security? >> well, i mean, you know, like i said before, i'm great friends with the trump family. ronald reagan was a hero in my family and my mom and dad loved him. we are very close. i honestly would have to tell you the primary reason was this. i am a person that just wants to get something done. i am not a politician. i don't think our president is a politician. matt bevin, the governor

kentucky called meet other night at 11:00. i loved it because i couldn't think of anything but one thing. my dad growing up used to say if you can't get it done in 24 hours a day you are going to have to work nights. i'm sure matt bevin and donald trump and jim justice work a lot of nights. at the end of the day what happened in west virginia is we got run to the altar with a lot of things that helped our people and the democrats walked away from me. and we got virtually nothing done that we should have been able to help a lot of people and we hurt a lot of people. david: when i was watching that rally in west virginia. you look at the people that were there. and they look like just normal folks who generally didn't participate, i think back to the tea party folks.

were most of of them like you, democrats who made the switch because of what trump represents? >> well, i would say so. for a long long long time my mom used to say you can elect pluto the dog on the democratic ticket if pluto of were to run. but all that changed in many ways. donald trump won our state by 42% of the vote. but i would like to say one other thing. you mentioned ronald reagan. the gift ronald reagan gave to us is he made americans feel good about being americans. is donald trump not doing that to the common everyday people every day? he's unleashing us. that's why the stock market is on the move. we have hope today. i wish we could get away from this russia junk. this man has real stuff to deal

with. can you imagine dealing with iran and north korea and all the different things, healthcare, tax reform. david: that phrase, make america great again, it was first coined by ronald reagan. that was one of his campaign slogans. so they both represent a rejuvenation of the american spirit. best of luck to you have as a republican. >> come to west virginia. david: i sure will. the mueller russia witch hunt continues despite no evidence of collusion. >> we had a great team, and i guess i did a good job. david: my next guest says mueller has stacked the deck against president trump.

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learn more at myakathisia.com. time's up, insufficient we're on prenatal care.es. and administrative paperwork... your days of drowning people are numbered. same goes for you, budget overruns. and rising costs, wipe that smile off your face. we're coming for you, too. for those who won't rest until the world is healthier, neither will we. optum. how well gets done. david: i'm david asman in for lou dobbs who is on vacation. texas congressman brian babbitt circulating a letter seeking support for the idea to bring mule per quote out of the

shadows concerning his alleged conflicts of interest. our next guest believes mueller has shrewdly stacked the deck against president trump. gregg jarrett wrote a piece about stacking the deck. in what way has he stacked the deck? gregg: he hired liberal lawyers and picked a grand jury in the one place that is the most of hostile to the president, and that is washington, d.c. could have sent it out to virginia. i think it was 92% of washingtonians voted for clinton. gregg: you are close. 94%. virginia would have been more fair and bipartisan. and who is presiding overred the grand jury?

pane obama appointee who happens to be a close associate with mueller's top lawyer andrew wiseman. they wrote an article together responsible obstruction of justice. she was an appointee by president obama. she is the one who will be approving subpoenas and witnesses and hearing arguments over fifth amendment privilege. david: they could have put out subpoenas with one grand jury. gregg: mueller who doesn't answer questions for subject himself to testimony before congress refused to say why. david: there is a separation of powers between the legal system and congress. should he testify before congress as congressman babbin

wants him to? gregg: congress has constitutional authority over the purse. the point is if this is an incredibly biased witch hunt with lawyers who are unfair, congress needs to know if their money is going squandered. it's taxpayer money. david: what is this hunt for? and he was asked that question -- rod rosenstein web was the one who appointed mueller. he didn't really answer the question. what mueller's scope is. greggf: he was deacceptive and dishonest. he denied it's a fishing expedition. here is his order to authorization to robert mueller. the first line is fine. any links between the russian

government and the trump campaign. but then rosenstein adds an additional line. any other matters that may arise. that's unlimited scope. when so rosenstein pretends it's limited, that's not the truth it's pun fettered discretion. it's unlimited. the special counsel law says it's supposed to be limited. david: even though rosenstein said there is a specific scope to the investigation. he leaves it wide open in that letter. gregg: you can go online and look at the letter. it's dated may 17 when mueller was appointed. as i right, it's a violation of the law. which means rosenstein is violating the law and in following this order so is robert mueller violating the law. david: please roll the video and take a look at a biker who has

literally no fear. taking to the streets of quebec at top speeds, stopping on a dime, then launching himself off a ram and over an abyss only to land with relative ease. unbelievable. there he goes. and there he drops. right on the ground. perfect. unbelievable. coming up next, president trump suggesting he may ditch mitch if the senate majority leader can't deliver on his agenda. >> if he doesn't get repeal and replace done and doesn't get taxes done, meaning cuts and reform, and if he doesn't get an easy one to get done, infrastructure, if he doesn't get them done, then you can ask me that question. david: steve forbes takes up the

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david: president trump voicing his displeasure with congress about healthcare and tax reform. >> what happened in my opinion last weeks unacceptable. people have been talking about repeal and replace for 7 years.

long before i ever decided to be doing what i'm doing. 7 years they have been talking repeal and replace and it didn't happen. can we do good? i think so. we can do well on taxes, cuts, reform, infrastructure and things will happen with respect to healthcare, and i think things will happen maybe outside of congress. david: joining me to discuss the *'s concerns. steve forbes. steve, just to focus on what happened with the healthcare debacle. mitch mcconnell was claiming trump had excessive expectations, but it was mitch mcconnell who back in january said it would be a done deal by now. he was leading everybody on to think it was an easy pull. >> the condescension when he

said trump doesn't up this thing. at least the house got a healthcare bill through and they will get a tax bill through next month. i can see senators being referred to as fake senators. david: a group of body that made such a mess of it when mitch mcconnell predicted it would be an easy pull. kevin brady, the head house ways and means, he seems to understand tax process. but i have no faith in the senators that they do. >> i think the house will pass a tax bill in september or october. the question is what will happen to it in the senate. if they can't get a tax bill through the senate after the house does the heavy lifting. then you will have a real crisis and people will ask who should

be leading this party in congress. david: you wonder if people have went in beltway for so long they lost sight of the real world. they get ensconced in this beltway mentality. i don't think they understand incentives which taxes work on. >> this is where the epa can do some good work. why is it people like mitch mcconnell and others go to washington with good intentions, but later get beltway-itis. david: some republicans have bought into democratic rhetoric about class warfare where taxes are needed to punish the rich.

>> you saw that not cutting capital gains, the ones obama raised in obamacare for fear we'll be labeled the party of the rich. if you can't defend your basic principles, it's time for you to find new employment like an uber driver. david: we had three years of redistributionist policies and we saw the divide between the poor and the rich. with ronald reagan you had across the board tax cuts and look what happened. the poorest 20% did just as well as the richest 21%. if you want the divide to come together, you have tax cuts across the board. >> that number for the poorest has the take into account millions of people coming into this country. immigrants who start at the bottom of the ladder. david: they come here because

they want to be rich or have their own business and have a piece of the american pie. >> one of the things people are disappointed on the senate side is the lack of imagination in getting something through. steve moore the economist on healthcare, if you can't get through one bill, why not have a separate bill on the individual mandate and a separate bill on taxes. you vote up and down on pieces. david: how pessimistic, optimistic are you on tax reform? >> i think it will happen. i think trump will light some fires on it. the tax thing i think they will get it through on an instinct of self-preservation. if they don't get it done, over. david: tomorrow at 11:00 a.m. on forbes on fox you can catch it on the fox news channel. look for something to read this weekend? check out lou's new book,

"putin's gambit." i love thrillers and this did not disappoint. every viewer's comments read on the show will receive an autographed copy. president trump says he's not impressed with the legislative branch. >> 7 years they have been talking repeal and replace and it didn't happen. and it was a horrible surprise and it was unfair to the republican party and unfair to the people of this country. i was not impressed. david: byron york and ned ryun join me after the break. stay with us.

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when he's offended, he's offended. >> who are you talking about? >> indianapolis my point. we have to borderline irrational leaders and they both have their thumb on the nuclear button. >> we have an unpredictable liar who has the nuclear codes. david: a moral equivalency between the elected president of the united states and the brutal north korean dictator. is the american public going to buy that? >> probably not. what we just saw in this news conference with the president and the secretary of state was a good cop-bad cop routine they have going in which the secretary of state talks about pursuing diplomat is options but also saying diplomacy makes no sense without the underlying

threat of american military action which the president has been talking about. you put it together and it's an entirely coherent message to north korea. david: back to this message the media is putting out. the media has been driving a lot of what the democrats have been saying. you have heard a couple of pretty far to the left democrats saying. will they tbien this narrative? i think it's so far to the left that they never would. ned * it highlights their hypocrisy. if you look at what bill clinton said about north korea using nuclear weapons, the response would be quick and overwhelming and lead to the destruction of north korea. but the poor journalists who seemingly didn't have to pass reading comprehension to get out

of j school. that means annihilation. don't lecture me on fire and fury when mattis and clinton said the same thing. when it comes to donald trump it's a visceral refaction in which objectivity goes out the door. david: rush limbaugh has a theory that what seems to be happening it's not the democrats driving the media, it's the media driving the democratic narrative. byron: there will be a democratic base that's receptive to this. districts around the country that are safe democratic districts, you will see this stuff repeated over and over again. this is not surprising. it's a piece of what they have been saying about trump all

along. net: let's -- ned: let's not forget the senate ma'am. david: we just had the governor of west virginia on. he became a republican. and a lot of democrats are being persuaded that insanity is being spread through the mindset of the democratic leadership. >> this is a microcomes many of the real problem in the democratic party. they are going further and further left. while some of this rhetoric might appeal to their hard core base, this is not what's going to bring them back to the party. it will not resonate with the most of of the american people voting in 2018 and 2020. david: when you look at the healthcare debate and the

leadership, the republican leadership failed to get healthcare reform and they are now in charge of tax reform which is near and dear to my heart. i'm concerned about this. you have the ditch mitch movement. is that spreading inside the beltway? >> it's interesting that the president who has been far more interested in tax reform than obama care. now he's attacking mccomfort failure suggesting they need to go back and get at this again. and as far as mcconnell is concerned. this is the man who did save a supreme court seat for nearly a year. david: and he claimed in january we would have healthcare reform. byron: it's legitimate for the president to say you republicans talked about this for 7 years and when you have had the chance you couldn't do it. ned: 7 years and hundreds of

millions of dollars raids off we'll repeal obamacare. david: ned and byron, have a wonderful weekend. that's it for us tonight. judge andrew napolitano will be here monday. maria: welcome to week, the program that analyze the week that was and helps position you for the week ahead. i'm maria bartiromo. house chairman kevin brady my special guest. the dow industrials hitting another milestone grabbing its 9th consecutive record close. it did hit a speed bump wednesday amid rising tensions between the united states and north korea.