♪ stuart: shake it out. florence and the machine. okay, let's move on. good morning, everybody. it's 10:00 eastern. straight to the money. look at this on the markets. we've got the dow industrials now up just over 100 points and nasdaq down 25. not that much big time movement in stock prices this wednesday morning. the 10-year treasury yield, we have it at 4.22% now. the price of oil, $81 per barrel and gas prices by the way are still going up 90, there you have it. bitcoin, not moving much, 29,059 per coin. that's the markets on a wednesday morning. now this, for 40 years, from 1980 to 2020, china was the marvel of the world. it became the workshop of the world. a stellar performer where hundreds of millions were lifted out of abject poverty. that was the mantra, it is deal. leave us in power and we'll make

you prosperous. that was the deal. it worked. now it's not working and you have to wonder what happens to the deal. the pandemic was the pivot. a long and near total lockdown was imposed and hit the economy and damaged the party's image. when the lockdown ended, the economy didn't return to pre-covid growth. in fact, the property crisis got worse. and unemployment hit 20% for young people, foreign companies started to leave after taiwan was threatened and hong kong overrun. as of now, china's economy is in a slump and it's getting worse. this is not an easy situation for china to deal with. it is a brittle dictatorship and can't tolerate political opposition. that means new ideas, outside communist orthodoxy cannot be conceded. it's a top down government, not geared to the people who are getting hurt. the people who's prosperity is vital to the communist party. don't celebrate. bad news for arrival is not

necessarily good news for us. we have to deal with china's decline and dictators in a corner are dangerous. they can play the nationalist card and strike at foreigners. times do change. china has gone from workshop of the world to dangerous threat to the world economy. second hour of varney just getting started. ♪ stuart: mark grant is with us this morning. mark, this is very much your area. question, will china start a downward spiral for the world economy? >> well, stuart, i think they've already started a downward spiral. their shadow banking system is in trouble. two largest property companies are in trouble. their economy is sinking, and i

think it's a real mess over there and much worse than most people think. the other thing you have to keep in mind is even the data that china gives us that we're basing all this on, you don't know if it's accurate because they manufacture data to suit themselves. stuart: are they about to experience what i would call a credit crunch? >> well, you could call it a credit crunch but it may even get worse and turn into a recession. one of their largest shadow banks came out today and said they can't pay the chinese people the held their products and they're protesting in front of some of the banks and institutions in china, and it's going to affect america too because of our interaction with them in terms of production of

goods. stuart: is the deal broken in china? by deal, i mean the communist party keeps control and return for confirming prosperity on the masses. is that deal broken? >> i don't know if you would say it quite that way. they promise to uphold the economy and make sure everybody was working and so forth. the problem in china is there's no counter parties so when you say the deal is broken, it's just whatever the communist party decides. there's no one challenging its power. it's certainly not like the situation in the united states where we have different parties running on different plat for the purposes. flat forms. i would say their chips act is in the process o issue -- economy is in the process of breaking. stuart: that's what i'm interested in. mark, thank you for joining us this morning. this is your area and if the

economy is in the process of breaking in china, that's not good news. thank you, mark. see you soon. interesting story, treasury secretary janet yellen admitted to eating hallu hallucinogen mus during her trip to china last month. lauren: it was an accident, here's her story. >> i was with a large group of people and the person who'd arranged our dinner did the ordering. there was a delicious mushroom dish i was not aware these mushrooms had hallucinogen ick properties. all of us enjoyed the mushrooms and none of us felt any ill effects from it. lauren: she didn't trip. that dish is selling out because of the press in different restaurants throughout china. stuart: here's a headline for

you. here's something to hit you w look at this, the headline: will michelle obama take biden's place in 2024 thanks to hunter's scandals? as you can see, liz peak wrote that. very poignant piece and she joins us now. you really think that could happen? >> stuart, for many weeks, if not months, you and i thoughted and a lot of other people thought joe biden cannot possibly run again for four more years, not just because he's unpopular but also because of the alleged corruption, which definitely is eating into his popularity and i think really threatens his reelection campaign so the question is, if he waits months and months to drop out of the race or be pushed out of the race, who could probably step in and really the only viable alternative is michelle obama. everybody knows her name. she has widespread fame, and

more over, she's very popular and she's one of the most admired people in the country and could win elections. the real point of this piece though is not that piece but this scandal that's engulfing hunter biden and joe biden and the whole family also begins to ding the obama white house, which supposedly was scandal free but let's face it, this took place under obama's nose and many people in the white house knew about it, talked to joe biden about it, and so we wonder why did barack obama not endorse joe biden in 2016? why did he not push his candidacy and even in 2020. why was he so tepid on joe biden? is it really because he was old or because he knew about the stuff going on and feared eventually it would come out?

stuart: all right, transfer our attention to the other side of the coin to the gop race. i wanted to listen to ron desantis weighing in on trump's latest indictment. watch this. >> atlanta has huge problem withs crime right now. there's criminals that were let out that shouldn't have been let out. they're now doing an amount of resources trying to shoe this 2020 election into a rendition rico statute,that was designed o go after organized crime and not necessarily a political activity and so i think it's an example of this criminalization of politics. stuart: do you agree with that, liz, the criminalization of politic s? >> i do. i do 100%. good for ron desantis -- this is what ron desantis has to do. he has to show the american people he's a fighter, and he doesn't just go along with kind

of the sound bytes on tv, he's willing to put up defense against this. i think this is a messy sprawling case. i think the georgia prosecutor obviously has it in for donald trump, but i think she has a lot of work cut out for her. stuart: i just can't imagine that trial, all 19 defendants in the trial together and it's supposed to take place in the next six months. i mean, that's just out of the question. >> which it won't. stuart, it won't. i mean, there's a trial from last year that's dragging on still. it can't possibly happen in time for the election, i don't think. stuart: i agree with you. liz, always good. thank you very much indeed. see you again soon. >> thanks so much, stuart. stuart: lauren, come back into this one, please. what's this about the fulton county judge using tram's old tweets in the indictment? lauren: they're haunting him. that georgia indictment used 12 tweets as evidence against trump. they were about his advertising of election fraud coverage on some networks, and then a pressure campaign of certain

officials. okay. this is a racketeering case so prosecutors essentially have to prove that if you buy a schemassing, you're -- ski massing, you're plotting to rob a bank. are they part of a pattern ovbehavior to organize the crime of election interference? that's tough to prove. stuart: yeah. lauren: either way, trump is mad and said if he wins, he'll appointment a special council to investigate biden's alleged crimes and bribes and called biden the manchur ashley: n candidate. stuart: coin base. lauren: regulatory approval first time to offer a crypto futures trifoliated trading and futures trade asking speculative than spot trading. so it's a little bit more risky. coin base is up 2%.

stuart: i'm barely up on stock fusion. lauren: ubs takes them to a buy and undervalued and shared can jump more than 25%. from here they like their coffee like doughnut shop and green mountain. stuart: what's with intel? lauren: about a $5.5 billion deal to buy the company tower semi and down 8% and it was scrapped because china did not approve this deal. i wasn't expecting that to be the reason. are tensions that bad? tensions that involve semiconductors and ch chips and artificial intelligence? it's a sensitive subject. intel down 1% has to pay a $350 million termination rate. stuart: china intercedes and says you can't get together. what a situation that is. lauren: correct. stuart: thanks. police departments losing officers faster than they can hire them.

it's so bad an entire police force in one minnesota city has quit. madison alworth has the full story coming up. north korea confirmed the u.s. soldier that voluntarily ran across the dmz is in the country. they claim the soldier is seeking refuge in north korea. we have the pentagon's response to that. it's been two years since taliban fighters recaptured afghanistan following the disastrous u.s. withdrawal. is america safer under biden now two years later? we'll speak to a retired green baa raythat served in -- green t that served in afghanistan after this.

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we have not that much movement and not sure alaska the trading volume either. this week marked two years since biden's botched withdrawal from afghanistan. what is nicky haley saying about this? she's getting pretty dramatic, isn't she? lauren: she says the world is less safe, our enemies are elmore boldened and our allies -- emboldened and allies are questioning our relationships. no one has been fired for the botched withdraw or replaced. remember the testimony from the families of the 13 service members that lost their lives two yearsing a? they want answers and they'd applaud what nicky haley is saying that no one has taken responsibility, nothing. stuart: the taliban celebrated their, as they call it, the great victory in afghanistan as the anniversary of the withdrawal marked their return

to power. we have a retired green bernards healthcare retrocochlear that served -- green beret that served in afghanistan and he's joining me now? how do you feel now after your time serving in afghanistan? >> i feel like most veterans and americans that served over there alongside our brothers in arms. it's a high disappointment for the reason that many of us enlisted in this post-9/11 generation and myself is the youngest volunteer on ground zero in new york city, bagged four bodies right in the aftermath. then to go over there, serve with special operations teams, many who have done operations across generations serving their country, serving the u.s. mission's interest, and saving american lives. for instance i serve on a board of special operations foundation and we're trying to get one of my afghan special forces guys back, habib, who was i was roadway cently successful to geo

get him to turkey and they don't have the special immigration visa to take care of him. and we're funding now on sos.org to try and find peace for him. i shouldn't be doing this. our charities shouldn't exist. the u.s. government should have done a better job of taking care of the withdraw plans, shouldn't have mashed a date, shouldn't have given a time or location. lot to be angered about. stuart: do you think biden has made america safer? >> i don't think anything that we did in afghanistan has made america safer. referring back to habib who worked alongside the most elite special operations teams, he was enrolled in bio-metrics and these bio-metrics, which we handed over to the taliban, you know, are now being -- had been used against him and he had to void multiple check points and arsenal weapons, you know, rear wing aircraft that they have. i really want to try and compare

a pre-9/11 versus a post-9/11. we went over and green berets and horse soldiers and went over and did their duties and found bin laden and sought revenge for 9/11 but we left this country in a bubble that only history will tell and not fore karating a very -- forecasting a very safe future for us. stuart: how would you describe moral amongst the military right now? >> admiral mullen said it best in a recent interview with "the wall street journal" and acknowledge that had teachers, coaches, mentors are advising children -- teenagers that are becoming of age to enlist in the military not to join the military. of course he'd agree that's not what we need. we need the teachers, coaches and mentors to advise smart folks to join and need the best leadership and it's where the culture is and what they're seeing on tv and end of the war

and semi-reminiscent of vietnam. stuart: started so badly two yearsing a, so badly. sir, thanks for joining us today and hope to see you again soon. >> thank you. stuart: we have update on u.s. soldier named travis king that willingly crossed the border into north korea. what's north korea saying? lauren: north korea said king willingly sought refuge there because he was disillusioned about life here and he was upset about racial discrimination in the u.s. army. the pentagon says it can't verify the claims and it's working to bring him back home. i just read this and i said, wow. all the tension here, all this wokeness in the army is now being exploited and used as propaganda essentially by the enemies against us. stuart: that's precisely right. they're using it against us. house republicans pushing the department of justice for answers on the use of taxpayer dollars. what are they looking for?

lauren: who gets the federal grant money and why. the house republicans are looking for transparency and how the doj allots grants. how is money earmarked? was it for projects tailored to social or political issues and asking for doj behind documentation and those headline haves passed and no answers. stuart: politicization of the doj. that's what's going on. thanks, lauren. now this, retired nfl lineman michael oher whose life story inspired the movie the blind side is suing the family, which took him in. the family says it's the former football star who's trying to shake them down. we have details on that . a new study shows 6.5 million students were chronically absent from school after the pandemic. one state's looking to jail parents if the children don't show up in class. we'll deal with that next. ♪

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stuart: samson is down, meta it down and rest of big tech somes are also down. jessica mitchell, they are. alphabet is off and microsoft struggling with $1 gain at 322. lauren: yeah, chevron is a dow stock up 1 a 1.25% and price tat of $209 from $160. nice jump. they see value in large cap oil firms and strong demand outlook. stuart: target sharply higher earlier and ross stores higher. i think that's it. lauren: rising tides. lifts all boats. macys is higher, tjx is higher and this is what i'm trying to wrap my mind around, they all said off price is working,

consumer is cautious. retail sales yesterday were stronger so what is the actual state of the consumer? are we just charging everything? stuart: yeah, looks like it. they're still spending. lauren: these are good numbers all around. stuart: progressive home and auto insurance no. 1 on s&p. lauren: it is. it's a home and car neuroer and they -- insurer and just reported july results and numbers were better than expected. stuart: in new jersey, three school districts want to notify parents if a student wants to change their gender identity. the state is suing to stop that. kind of complicated and nate foy has the story. the latest, nate. >> a lot of parents are so passionate about this and angry and right now they're awaiting that ruling from the judge but as we await that ruling, which could come at any moment, i spoke this morning with the vice president of the new jersey board of education and he says that we are just scratching the surface in terms of this case

with the educational policy that is being forced on students in new jersey. the latest just a vote a couple of weeksing a, the new policy in new jersey is that sex education courses will be divided based on gender identity and not biological sex. listen to this. >> if you've got a young boy that's, you know, expressing as a girl, he would go into the girl's school, the girl's class and, i mean, poor young girls, it's a sensitive topic enough, but they're going to sit there and talk in front of a boy about these sensitive things? doesn't seem right. >> yeah, more than that, remember according to regulations in the state, teachers are not required to tell parents if their child changes gender identities, which is why we saw about 100 parents come out yesterday at the hearing, butt parents here told me they -- but the parents told me they elected school board members to represent their values and the state maintains

guidelines are misunderstood. a statement from the new jersey attorney general's office reads "to be clear the state has never suggest or will seek a ban on parental notification. what the state won't do is require it, and that's something the attorney for the marlboro school board brought up yesterday in court". >> notification and involvement is certainly not discriminatory under the circumstances here. >> so lawyers for the three school districts involved made clear in court the conversation would start privately with the child at home. if its deemed safe, the parents would be brought in for that conversation but the judge's ruling will have immediate impacts because school starts in new jersey in three weeks. these policies by the way, stuart, impact kids as young as 5 years old. stuart: oh, please. nate, thank you very much indeed. adam she shelton is with us ands a attorney at gold water institute and knows all about this particular story. do you think schools should require teachers to tell parents about gender identity changes?

>> absolutely they should. parent haves a fundamental constitutional right to control and direct the education upbringing and healthcare decisions of their children. the supreme court has upheld this right and reaffirmed this right for the past century. the new jersey supreme court held this is a fundamental right separately under the new jersey constitution, and parents simply cannot meaningfully exercise that right if schools are in power to withhold information about decisions they're making that will directly affect the mental health or physical well being of a child. stuart: on what grounds would teachers and educational establishment withhold information about gender change from the parents of the children? what are they trying to do by withholding that information? >> i'm not sure what they're trying to do or what the new jersey attorney general is trying to do or why he believes the parents shouldn't be notified. i can say these due policies all expressly exempt cases when there is a substantial risk of

harm come together child if the parent is notified. that's how it should be. shalls shouldn't be in the bises of putting children in danger, but they also should not be in the business of hiding information from pans, and that's exactly what the new jersey attorney general wants is schools to hide information from parents. stuart: the supreme court in missouri upheld a state law which says parents can be jailed if they fail to bring their children to school. we've got this new study showing 6.5 million students were chronically absent from school after the pandemic. what do you make of this? jail for truancy? >> you know, i'm not sure what the deal is on that. i can't comment on the specifics but i know schools across the country have decided they know what's best for students rather than their parents and even some brave school boards like new jersey adopting policies requiring parental notification and creating and fostering environment of parental collaboration, there's the new jersey state, the new jersey attorney general suing those

schools over that. stuart: i don't think that sex education when it comes to gender identity and gender change, i don't think that's a subject to be brought up in school for youngsters, do you? >> you know, i'm not sure. i think that's best left up to local legislatures but parents need to know what's going on in schools and need to be told exactly what's happening and exactly what their children are learning. we fought for years at gold water to make sure parents know exactly what their children are learning and it's parental notification and parental involvement. stuart: adam shelton, thank you for joining us, sir. hope to see you again sir. >> thank you for having me. stuart: we told you about former nfl player michael oher accusing sean and leeann tuohy about lying about his adoption. lauren, the tuohy family, i'm sure they've responded. what are they saying? lauren: what a story. the family says oher threatened

them, demanded $15 million cash and if they didn't uponny that up -- pony that up, he'd plant negative stories about them duping him into conservatorship rather than adopts him. oher said that's how they cut him out of the profits through the conservatorship and the profits through the movie that won an os correspondent, the -- oscar, the blind side about his lifestyle. the couple that a couple would canive a few thousands against someone they loved as a son. so many questions and why now after all of these years and this movie came out in 2009 and why are we hearing about this now? stuart: it was a wonderful story. lauren: beautiful story. a story of love and betrayal apparently. maybe a blind side two. stuart: got it, lauren, thank you very much. chris christie pulls ahead ophryon desantis in a but poll

in new hampshire. i'll ask gop megadonor and desantis backer hall lambert if he's worried about that. administration marks one year since the signing of the inflation reduction act, but americans have yet to see any real progress on the key propses the president -- promises the president made. edward lawrence will break it all down for us from the white house, next. ♪

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stuart: the standout stock certainly amongst retailers today is target. it's now up 4%, $5 a share at $130. we've learned from their

earnings report that they made a lot of profit, that's why the stock is up. we also learned that shrinkage, that is theft from violent crime, violent left, up 120% in the last -- first five months or the last five months of this year. how about that. up 120%. and they did and they've been impacted and affected by the pride displays that they had earlier this year. there you have it. it's profitable and stock is up and there's a lot of good information about shrinkage in that report. global wealth shrank and dropped in the last year for the first time since the financial crisis of 200 and will how much did global wealth -- by how much did global wealth fall? lauren: 2.4% according to credit wise and in a report fell 2.6%. this is like a race to the

bottom. there's fewer millionaires and that's not a bad thing. the world has 3.5 million fewer millionaires because of high inflation and high interest rates and what's happening in the global economy. stuart: what about america? we've lost a few millionaires too. lauren: u.s. and they did lead the decline. we've lost 17,000 millionaires in 2022. the number of millionaires in america dropped by 17 million -- 17,000. lauren: is that a good story or bad story? depends on who you talk to. stuart: yes, bernie sanders would have a lot to say about that one. thanks, lauren. president biden touted his bidenomics in wisconsin yesterday. we're not seeing much relief from the masses. what is a massive spending bill. edward lawrence at the white house. break it down for us please, edward. reporter: stu, on the last story seeing shrinkage from inflation and going to the gas pump or grocery store and president joe biden talking about what he sees

as successes of specifically the inflation reduction act and the original cost of the inflation reduction act, $370 billion. that cost has now ballooned to more than 1.05 trillion according to that model. the increase of the bill with no caps on subsidies for clean energy programs n time we hear this from the president. >> pay for low wage workers ha gone fade patternsest in decads and waging grower faster than inflation. folks, that's bidenomics growing a economy and strengthening the middle class.

>> a 11% increase and record increase in homelessness in homelessness so far this year. some think that's homeless counts are actually still low. >> bring all the people in and build all the housing for them and the mall is getting robbed every single day and that'll close and turn that into housing and it'll be eliminate the middle class people, the strong employers and just the super rich they depend on and super poor that depend on them. >> hear frustration from that la resident as well as he's a business owner too. the white house has a feeling from the president is that bidenomics is working and the middle class of americans are seeinge advantages in growth. back to you, stu. stuart: thank you, edward. democrats could see a big

economic payout in biden is defeated in 2024. how does that work? lauren: well, with all the talk of bidenomics i guess it's not resinating with even democrats. democrats say the economy would be better if biden was not reelected and 38% of democrats say his defeat would be good for their wallets and overall nearly half of voters say the economy is in poor condition. doing better without biden. stuart: kind of convoluted logic here. now new york city schools bracing for influx of migrant children. administrators scrambling and thousands are expected to arrive in the next few weeks and eric sean will have that story coming up. migrants living in new york have been raving about the four star hotels they're staying in. many residents believe the migrants are actually destroying the city. we'll speak to the president of the queens village republican club all about the migrant takeover, next.

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stuart: on the market, i'm beginning to see green. dow industrials now up 70 odd points and the nasdaq down just 29 points a mere 0.2%. a mixed picture on wall street this morning. now this, new york city schools bracing for influx of migrant children. they're expecting thousands of new students when the school year starts next month. eric sean is with me. do the school haves enough room for all the migrant children and the teachers? >> that's a good question. i don't even know, stu, because they're not sure human migrant students will be enrolling in the schools and we're here in midtown hat tan -- manhattan and

parents are concerned about the upcoming migrant student surge. right now in new york city, the public school system has roughly 18,000 migrants short of enrolled and they're not sure how many will come and many don't speak english and the staff and could cause a crushing financial burden. the nonpartisan group the empire center estimates the migrant students could cost up to $32,000 per students and that means for new york city, more than half a billion dollars. new york state republican senator calling for more state funding so that districts around the state are ready. >> it's going to be hundreds of millions of dollars of local taxpayer costs that they were not prepared for that will be in place now because they decided to kick the can down the roads and use these individuals as pawns on a chess board. >> one school district three hours north of new york city and

the school district and they've enrolled just under 3,000 students and are expecting 70 migrant children and they're living in local motels and the school district is hiring extra teacher assistance looking for those who can teach english as a second language. we talked to the school superintendent and he wants to row assure parents concerned about class size and immunization and effect of migrant classmates on their kids. >> they run the gamut from class size going and you happen services going to be reduced for my child and questions about, hey, lawmakers going on with immunizations and could there be communicable diseases? >> school starts here on september 7 and, stuart, lots of questions and answers on how many one thing is for certain, it's going to cost a lot. stuart: eric, thank you very much indeed. check out how the migrant influx

affects parts of the city. joined by fill and he's a president of the queen's village republican club joining us here on the set in miami get straight at it, what impact have these myograns had in queen -- migrants had in queen s? >> i thank you for having me, stuart. i could tell you right now. we've assembled all our neighbors and hopefully my voice is speaking for their frustrations. the latest impact its having is migrant trent at creed mother psychiatric facility and they'll house one thousand single male migrants so called asylum seekers and they're being bussed in and they're wondering the streets smoking and strewning garbage and that's what i hear from people on the ground there and this is right across the street from an elementary school

and a playground right next door to seen yore center and snap senter and seniors going for meals and service. they're not going to go there anywhere. there's a tradition of feeding the hungry and housing not necessarily the homeless but providing a real safety net for people these folks arrived on our doorstep. are with being uncharitable if we oppose them and want them out? >> we're posed by charitable americans but they're putting migrants over needy americans. our first responsibility is to our families, to our neighborhood and to america. stuart: what do you do about it? >> as i spoke to mayor adams the other day in our impromptu session there after the india day parade, which we're celebrating, i told them take

the tents down at creed mother. they're in the -- creedmore. they're in the wrong neighborhoods and don't belong in residential communities and we have common sense solutions and one of them i proposed to him which was a proposal by counsel councilman robert holton and house in the abandoned building at riker's island and you could house 30,000 of them there or more. to which mayor adams it tried to give them more solutions and common sense solu solutions de-e the state of emergency and we can't take in more migrants and overturned. stuart: who's basically at fault here? mayor adams is secondary and biden and the open border at fault? >> the mayor's frustration and all our frustration with the opener boarders, with biden and we told mayor adams in our

strongest voice tell biden to close the border, build the ball just like there's a wall around gracie mansion, he has to close the border this. is all our issue but don't put them in our residential community where children play, where they go to school ball fields across the street from 1,000 male so called asylum seeker facility at creedmore. stuart: i'm sorry, i'm out of time but thank you for coming in and explaining what's going on in queens. appreciate it. >> thank you, it's a pleasure. stuart: what's ahead for you, martha maccallum on fox news power rankings desantis backer hall lambert said republicans backing trump are taking the party down a losing path for 2024. kennedy on college offering, a course on all things taylor swift. the 11:00 hour is next.

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