thank an american from ohio who you're about to meet. you're on "fox & friends." we start right now. >> we begin your monday morning with the fox news alert because the house and senate are expected to take up the debt deal finally today hours after the president and congressional leaders reached a compromise to keep the nation from going into default. >> joining us from the rotunda washington, d.c. is doug mcelway. doug, give us a preview of what's in it because last time, something big went through washington, we had to pass it to find out what was in it. we'd like to know ahead of time. >> that's a novel idea, steve. i'll try to give you a sense of what's gonna happen today first before we get to the details that we have. the house will meet this morning at 10:00 and they meet again at

12:00 noon for legislative business and they'll have to dispense with several suspension bills before they get to the deal that was worked out of last night. so we expect debate in both houses as early as this afternoon or this evening. as far as the bipartisan agreement that was worked out last night, there's likely to be a lot of dissension within the far right and far left in both houses. let's get to a graphic that has details on the deal that was worked out last night. the debt ceiling is going to be raised $2.1 trillion through the year 2012 under the deal worked out last night. it will cut a trillion dollars right now with a commensurate $800 billion increase in the debt ceiling right now. and then later, a special committee of congress composed of three republican house members, three democratic house members, three republican senators, three democratic senators will work out another $is.5 trillion in cuts.

this will have to be done by december. if they can't come to an agreement, these painful triggers will set in. triggers that will be harmful to either side. for democrats, the pain will come with substantial cuts to medicare if republicans can't agree, the painful cuts will come to defense spending. as much as 50% of the defense budget gutted and that's where the disagreement and the dissension may likely lie. but here's the important thing, steve. if a lot of far right republicans defect from this plan, it will likely be made up support from democrats in the house. if republicans defect, they might see a resurgent from republicans in the side. hopefully if this deal will be worked out, it will be balanced out by that factor. again, first vote is in the house slated for 12:00 noon today. >> doug elway live in the roughly rotunda. thank you very much, sir, for that thoroughly informative

report. >> we should mention that peter johnson jr. is in for brian this morning. here's one of the concerns for the debt deal now other than trying to get it passed in the next 24 hours. some people are saying look, we don't have enough time to read this. remember the whole health care debacle that nancy pelosi famously said now that we passed it, we can find out what's in it. most of the country doesn't want to go through that again. is there enough time to know the intricacies of the deal? >> one of the things that john boehner put out, this is the power point presentation. i just printed it out on our xerox copier downstairs, essentially lays out everything and the important stuff his caucus wants to know. caps and control, it's all spelled out very, very carefully. but it all depends on what happens down the road. and also, you know, the cuts aren't immediate. and some of them are too far into the future and future congresses, peter johnson jr. because we're talking about the next decade are not necessarily going to be held to the same standard that this congress is

trying to prop this up as. >> absolutely. we're talking about this dirty dozen concept where people go forward and decide what's in or what's outment a lot of americans are saying this morning, are there tax hikes in america's future as part of this plan? and as of this point, there are not. tax hikes are not part of the plan. >> ok. >> in the first trillion dollars of cuts, no, but then this little special committee takes over and that's what has a lot of people nervous because there are going to be six republicans and six democrats on it. so what are they going to decide? because remember, if they don't find the next 1.2 trillion in cuts, that's when those triggers go into effect that take immediate cuts from medicare or immediate cuts from defense. and see, you don't know if -- they might recommend tax increases to make up that $1.2 trillion. >> that's always the devil is in the details. i can't imagine, though, that these 12 could impose new taxes on the united states --

>> you can't? >> no, without a full vote in both houses. >> exactly right. ultimately, the super committee could pass, ok, we'll reform taxes and jack taxes up. it would be to the house that you assume has more republicans in it than vetoes would go ahead and veto any tax hikes. greta van susteren had a special live show asking both sides who they had tax hikes. they differ. >> i'm understanding although i haven't seen the details that tax increases are on the table, revenues are on the table and it's important that they be. >> the president keeps talking about that but from what i understand, this bill doesn't have it in it. we're going to fight to make sure that doesn't happen. >> joining us right now, we have stuart varney. the whole question of tax hikes and in boehner's power point, hold it right in front of you, it says very closely right at the top. no tax hikes in the first phase. >> yeah. >> ok, look, can i just get out of the weeds for a second?

my head is spinning first thing on a monday morning. i mean, it really is. get out of the weeds. big picture. look at this. we're going to add $7 trillion to our debt. we're only going to add $7 trillion. that means we have not gotten our debt situation under control even though we've got this deal and it's probably going to pass. we're still adding to our debt. at a pretty fast clip. that means, we're likely to get a downgrade at some point in the future. and bear in mind, please, we're on the verge of a recession so here you've got we're adding to our debt, massively. we're on the verge of a recession. and we're probably going to be down grading. big picture is that's not a very good picture of america's finances. >> the flip of that would have been out a republican controlled house, we would have raised the debt ceiling without any cuts. >> that's true, ok. >> here's my question that's been bugging me all throughout the night and in the morning. i hope you can answer it.

if the republicans gain control of the senate and let's say we elect a republican president in 2012, can any of this be adjusted or is this the 10-year plan? >> no, it can be adjusted. of course it can. yeah, they can override whatever is decided today or tomorrow, you can override that with fresh legislation from a different senate and a different president. that's what conservatives are hoping for because the only way to unwind obama care, for example, the only way to unwind entitlement spending and all the rest of it is to have a clean sweep of conservatives and republicans, free market types to believe in reducing our debt. >> let's talk about the sweep. you are the ultimate fiscal weed whacker in the united states. let's get through the weeds. a lot of people i'm talking about, just regular folks are saying who are these people? moody's, standard & poor's, who are these other americans to speak in such an ill way about our finances in the united

states when you compare it to greece and the other countries around the world? aren't we still as bad as we are in some ways but standard in the world? and why destroy our country? >> that's a lot of different questions. >> it is. i agree. >> that the ratings people are very unpopular. they made a total hash of it in 2008 giving triple a ratings to essentially subprime mortgages. that's what they did. they made a real mess of it. now they're coming up -- now, they want to sort of get back into the public esteem by taking a pretty hard line on america's debt going forward. are they objective? are they politicize ed? you've got to make that decision for yourself. the fact is they do have this power. they do. like it or not, they've got this power and standard & poor's says unless you cut $4 trillion and we're not cutting $4 trillion, you're on a downgrade watch. that's where we stand this morning. >> sure. so later on today, it's going to probably be voted on in the senate and the house, there are

people on both the wings, the far right, the tea party, they don't like it but apparently boehner talked most of them into going along with it and on left, you've got some super democrats who are upset that there are no tax hikes. in fact, the congressional black caucus referred to them as a sugar coated satan's sandwich. >> yes, look, when you get out of the weeds, the market, the stock market, investors past judgment and when that bell rings for the opening of wall street today, you will see the dow industrials go up maybe 100, 130 points. that's not a lot. we dropped 500 points in the last five sessions. now, we might bounce back a little. 130 points, that's not a real vote of confidence in america's immediate financial future. >> we'll check you out at 9:20 eastern time on the fox business network. see you there, stuart. >> i just made one, didn't i? >> we were just touching on what will happen likely today.

well, why will it go to the senate first? here's why they're saying this. when tarp came around the corner in 2008, they thought the house would pass it first. the house did not pass it and the dow went down 800 points so they're thinking now they have a more friendly time in the senate. get over there and pass it first. if somebody passes it first, the other chamber says hey, it looks a little bit better. >> and capitol hill producer here at fox, brilliant guy says it's maybe the mikey method. remember the commercial for life cereals where they gave the cereal to mikey, let mikey give it a shot. could that be the thing? let's watch. >> what's this stuff? life cereal, it's supposed to be good for you. >> you gonna try it? >> i'm not gonna try it. you try it. i'm not gonna try it. let's get mikey! >> yeah. >> >> he won't eat it.

he hates everything. he likes it! hey, mikey! >> when you bring life home, don't tell the kids it's one of those nutritional cereals you've been trying to get to them eat. you're the only one that has to know. >> we've made it so simple. you don't have to take poly sci 101. it's all right there. >> rather than start at the house because there would be a food fight, start at the senate because then when one house has already passed it, things just go down a whole lot easier. >> couple of headlines we have to get in here for you on a monday. breaking story overnight. a u.s. drone strike in pakistan leaving four suspected terrorists dead. pakistani officials say the drone blasted a car near the border with afghanistan. u.s. missiles regularly hit this area, hotbed for terrorist activity. it's the third dust storm to hit arizona this summer. take a look at this time lapse video of the cloud that covered the city of chandler. the haze followed by heavy rain and lightning about 1500 people not without power. temperatures expected to hit 104 degrees today.

a good grab by tsa agents. they discovered a knife in a carry-on bag at tampa international. one problem, though, they detained the wrong passenger. the right passenger, philippe martinez who produced the movie "game of death" by wesley snipes. he was board an american airlines flight to miami. he didn't realize the knife was in his bag. kelsey grammer for mayor of new york? he tells today's "new york post" he's planning to run for mayor possibly in the big apple. grammar says he looks at politics as a chance to give back. his next tv role, playing the fictional character of mayor. he looks tough there. >> he does. on this monday morning straight ahead, listen to this. this plane you're about to see right there crashed shortly near the runway and split in half. how did everybody live to tell the tale? you can thank an american hero from ohio and he'll join us live

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>> welcome back. an airplane with 163 people on board skids off the runway in guyana and splits in two but when the passenger in the emergency exit row froze, our next guest stepped in, in the dark and saved everybody on board. >> stanley scarter joining us on the phone from guyana in south america. good morning to you. >> good morning, fox. >> thanks very much. i know that you were formerly an engineer and lived in ohio for quite sometime. so you were going back home. now, explain to us when you land, everyone thought that everything was perfectly fine. >> right. they think we're going to just taxi in and, you know, boogie down. get the plane off and everybody embark but the most tragic thing happened. we started to skid and then tremendous speed, a lot of speed. it was trying to stop. and then the sudden crash. first the tail end and then

split. >> from where you were sitting as we look at the pictures of the airplane bent in two, as you were sitting, could you look down and see that your airplane was broken? >> yes, of course. >> oh, man. >> so as i understand it, stanley, the person who was in the exit row, he was trying to open the door. >> that's right. >> but he couldn't figure out how to pull out the spindle or something like that and what did you do? >> i was the only one on the plane that was talking to the guy because he was at the door. but he didn't understand it in the dark, there was no light. so i went up there with him and we were fighting for the door. eventually we got it open and the flow of people, the injured tried to get to the exit. >> here's the thing, we're watching these amazing still photos here of this crushed in half airplane, people are saying well, it's daylight. you know, they could just open the door and jump out but it was pitch dark. >> that's right. >> so you get out on this wing

and then what happened? >> you got out on the wing and gauged the distance of the wing to the ground because it's a ravine, i figured 12 to 18 feet jump off the wing. you don't know what direction is safe. person to jump. and rows back jump in rows, two people jump, one broken leg. next one is knocked out. >> stanley, where did you get that training to know how to do that? >> in the army. >> in the army. that's right. >> now, these pictures we see right here, it's just at a stop crumpled in half there. ahead of it is a giant ravine. if the pilot wouldn't stop the plane there, what would have happened? >> the worst thing, after the smoke, everybody thought fire is the next one. get out, guys. get out! they get out, escape to jump.

>> the other thing, thank goodness for you, mr. scarder because rescue crews didn't show up for a very long time. if it had not been for you, i don't know what would have happened. you have to get back on a men to come to ohio. >> i can't sleep, i remember flashback, so i'm trying to get some debriefing from the authorities of, you know, the airlines are trying to see get some people to talk -- some counseling people to talk about so calm me down a little bit, you know, right now i'm kind of wound up tight and find a way to calm down. >> absolutely. very understandable. when you fly back to columbus, ohio, stanley, try to sit in the exit row because you know what to do. >> exactly. exactly. >> what a story! thank you very much. we hope you have a nice visit given all that's already happened to you down there in guyana. stanley scarder, the guy that

jumped up in the middle of the dark and was able to crank that door open and save some lives. thanks very much for joining us live today. >> thank you, sir. >> good job. >> coming up on the show, almost 10 years after 9/11, is it time to drop the term ground zero? or would that be one step closer to forgetting what happened there? that debate is next. >> there's suddenly a debt deal on the table but will tea partiers get on board? we'll talk to tea party backed congressman, sorry adam, how he's going to vote straight ahead. [ male announcer ] imagine all of your missed opportunities

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>> 24 minutes after the top of the hour. the sentencing phase for the cleveland strangler starts today. he could get the death penalty. the ex-marine was convicted of killing 11 women, burning their bodies in his home and backyard. and tonight, people in nassau county, new york will vote on whether or not to use millions of dollars in taxpayer funds to build a new hockey arena and baseball field. if so, they could see a tax hike for the next 30 years. let's go over to peter. >> thanks, gretchen. it's been almost 10 years since the 9/11 terror attacks and some people say it's time to move on and drop the name ground zero from the world trade center site. they want to use the original name world trade center but not everyone agrees. joining us for a fair and

balanced, we won't call it a debate, a discussion is jim richards, a retired new york city firefighter who lost his firefighter son jimmy on 9/11. and retired u.s. marine mark finelli in the south tower when the planes hit and decided to enlist in the service of this country. good morning, gentlemen. happy to see you both, jim. nice to see you again. chief, why should we continue to refer to the site of the attack as ground zero? why is that important in terms of our national interest and our psyche? >> well, we said after 9/11 never forget and i feel you can't sanitize it. 3,000 americans were murdered that day. we can't forget that, you know, they sent us down there without the proper respirators and people got injured and it has to be all -- you know, those who forget history are doomed to repeat it. we feel no matter what you build down there, it's a site where 3,000 americans were murdered. we have to remember that 19 islamic terrorists crashed a

plane into there and i think no matter what you build down there, it's a cemetery and everybody has to remember don't forget 9/11. >> now, mark, i don't believe you knew jimmy richards who was 29. >> i did not. >> in a sense, you honored his service by deciding to enlist in the united states marine corps. >> he ran up and in when i ran down and out. >> but you have a different view. you say let's move away from the term ground zero and let's look towards the future. tell me what you're saying. >> i agree with everything chief richards said. i'm going to add one more spin on this is that i'm very concerned of the perception that the jihadists have. it's sort of like moving from desert shield to desert storm. they changed the name of what -- of the world trade center ground zero and we put ground zero in their backyard. so i see it as no different than us setting the tone of a resurgence and a victory that i can't think of a better -- a bigger salute to the jihadists

of saying hey, we came back even stronger and put ground zero in your backyard. >> when you look back at history and look at the battle of gettysburg, that was known as the bloody wheat field for a long, long time after the battle. we're still calling that area ground zero now. where do we come together in this shared spirit of american service between you guys and the viewpoints that you represent going forward? what do we do to bring it forward? >> well, i think, you know, you're seeing a lot of rebuilding down there. we're going to see it come back, the families were never against that and all of america, you know, we have to remember exactly what happened that day. this was the worst day in american history. 3,000 americans were murdered. we're going to have buildings down there, industry is going to move on. we're going to have stores down there. we'll have a museum down there to remember but i think in our hearts, no matter what you build down there, everybody knows somebody who died down there that day and like you say, pearl harbor, you know, gettysburg, you can put, you know, a mall down there, whatever you want to do. that's going to be the site.

that's what it will be remembered for and we'll never forget and neither will my family. >> closing remarks on that. >> again, we're in total agreement. i want to make sure the enemies know that we've changed the mission down there on our terms, not theirs. >> thanks for being here and thanks for your service and your family's service. god bless america. speaker boehner is betting the house that the new debt deal will pass but to do it, he needs the tea party. where do they stand? congressman adam kinzinger is here. what he and his fellow freshmen plan to do. then this ship is already on its way down and sinking fast. so can a couple of tiny boats rescue hundreds on this big ship before it tips into the ocean? the breaking details here on "fox & friends." ♪

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>> leaders of both parties may have a deal but now it's up to the rank and file to pass a bill before tomorrow night. our next guest is a tea party backed congressman who supports raising the debt ceiling. joining us from washington, d.c., freshman congressman from illinois, adam kinzinger. good to see you. >> great to see you. good morning! >> looking at your resume and first of all, you're a former air force pilot so the first thing that would come to mind to me and you've spoke been thn ab on this show, defense cuts. would that trouble you most in this deal coming forward? >> i'm still a pilot in the air national guard. i'll tell you what, it is a concern that we have. when you come with an agreement, it's going to be one of the things that nobody likes and most people can tolerate but i'm very concerned about the future of defense cuts because at a time when we're engaged in two different wars and in theaters all around the world fighting

terrorism, you got to be very careful where -- that's some of the questions i have today as we get into this legislation as what are the cuts and how seriously -- how serious are they before i, you know, decide on a yes vote on this. >> uh-huh. no doubt about it, congressman, there are areas in the pentagon budget that could be trimmed. but this is such a gigantic number. i mean if the super committee makes some recommendations and they're not acted on, then the triggers kick in and half the pentagon, half the cuts are going to come from the pentagon. that's just a lot! >> yeah, it is a lot and i think what happened is that automatic triggers are actually set up to be so painful that we don't have to get to that point where making those across the board cuts so hopefully we can do the work of adults here and really try to get to the cuts that we need or send a balanced budget amendment to the state but again, to really target defense is to me a little worrisome. i'm not saying this is a bad deal. i'm not saying i'm going to vote against it because of it but i am saying myself and i imagine a

number of other congressmen have a lot of questions about that. that i'm sure the leadership will be very forward about answering. they've been very good so far. to be honest, say it's not the best deal in the world but it's the best we can get. >> what's the deal, congressman? the clock is ticking down. what piece of paper have you actually seen, how much in defense cuts do you believe that are there at this very point in time because we have until tomorrow. >> yeah. i know. and that's -- you know, the tragic thing is in washington, d.c., what i've learned in seven months is washington, d.c. is so last minute. what i hear is that it may be around a $400 billion cut but we have to get more details on that. the bill is going to be posted on line or actually was posted on line last night. and i'm going to look forward to actually reading that and then we got a little bit of a power point presentation, seven pages which basically outlines the gist of the bill. again, it's so broad because speaker boehner and, you know, the president were really in

these conversations and finally said all right, this hurts for everybody but it's something we can move forward on so, you know, again, i hope it's something i can support because i think the american people really do want both sides to come together, work this thing out, and look, we're not getting tax increases. we're cutting spending at a greater rate than we're raising the debt ceiling. to me, this is very close to what we set out to do at the very beginning. >> it's great. >> some people think the most breaking news on capitol hill wasn't the discussion of the debt ceiling in the last couple of weeks but the 50 most beautiful people. and the -- sorry for the surprise bright and early but damn, you look good this early in the morning so might as well point it out that you were number five according to "the hill" newspaper, does that do anything? i know it does something for your self-esteem but does it help you vote or anything like that? >> here's the deal. what's the old saying, politics is like hollywood for ugly people so you're really putting

yourself on desk. i guess it's nice to be recognized but kind of funny. >> who got to vote in that, by the way? >> i don't know. they need to have their head examined, whoever it is. >> i'm wondering, is there any competition between you and congressman eric shock because he's also from illinois and he was the guy who was on the cover almost in the buff, there, keep that picture up, who he was on the cover without any shirt on. any competition there? >> no, you know what? aaron and i are actually really good friends. he's my neighbor and congressman and he was very helpful in me getting here and you know what? i could be on the "men's health" so i would be the before picture. he can keep all that. >> we don't know who voted for that. congratulations on that. before you go, we got to kind of try to pin you down on how you're going to vote on this debt deal. >> yeah. well, look, the boehner version one i was supportive of. version two, i obviously voted for. i'm open to doing it. if this is real cuts and, you know, we move the ball forward and down the field, we can't get

a touchdown every pass but if we can move the ball forward, then i'll be supportive but again those defense cuts are something i've got to look at and look at very seriously and i think later today, you know, i'll have read the bill and been briefed a little bit more and be able to move forward. >> so you're definitely leaning towards saying yep. >> i'm leaning towards being open to saying yes, i guess that's the best way to put it. >> what do you hear from your colleagues, congressman? people that have tea party support. are they moving forward or moving away? what's the consensus? >> i'm hearing a lot of the same thing. there's some that have said i can't do it. there's some that have said i'm definitely in. the most people i've heard of said look, we don't want to have to do it. this is so last minute which is good to be in this position, we want to make sure we're going to do the homework over the short of time that we possibly have. i wouldn't be opposed to a short term debt deal so we can work this out. i don't know if it's going to move that way. i think people are cautiously optimistic and i'm cautiously optimistic. again, we've moved the ball down the field.

we have a serious problem here. it will be nice to talk once again about creating jobs in this country and getting people back to work. >> all right, congressman adam kinzinger from illinois, great to see you this morning. thanks for getting up brighted and early. >> you bet. >> the family of that missing 11-year-old girl is speaking out for the first time. she disappeared from her home in new hampshire a week ago. divers are now searching ponds and rivers nearby. over 150 tips have poured in and a $30,000 reward is being offered for information leading to selena. >> whenever you're ready to come home, selena, daddy will be here. >> success here today in my opinion and these divers' opinion would be able to go back to the command post and tell them nothing is in this pond. >> the f.b.i. is searching her computers to see who she was talking to on line the night she disappeared. >> meanwhile, texas governor rick perry isn't officially running for president but a new ad makes it looks like he's running. >> what if we had a better option for president?

we do. rick perry. >> well, that jobs for iowa is a new super pac called just that. and they are kicking off ad campaign supporting perry today. they're planning to run similar ads in the states of south carolina and florida as well. >> take a look at this picture, 168 people have been rescued after a cruise ship sinks in the central philippines. the captain ordered everyone to abandon ship after the boat began tilting at a 45 degree angle. >> whoa! >> the coast guard, some fishermen and two other ships came to the rescue. no word on what caused that ship to sink to the bottom. >> and take a dozens of bottles of expensive booze disappearing from shelves right before your eyes but it's not a magic trick. just a couple of thieves at work. they busted holes in the wall of an empty store next door and then they swiped every single bottle of high end liquor before they got really greedy and cleaned out the register as

well. they got away with about $23,000 in cash and booze. >> i'll be darned. >> that's a little sneaky. >> that's hitting bottom. >> you mean the bottom of the bottle? let's take a look at where it is raining on this monday. as you can see, we have some action in the panhandle of florida this morning. we had the rumble of thunder through coastal georgia up through south carolina. those things are starting to dissipate and also, cell or two in portions of central, let's see, minnesota, back through portions of the great state of north dakota at this hour. and the readings, well, things are already starting to warm up in the central plains. we've got 80 in kansas city and 87 in dallas. heading north. for you folks in the metroplex. temperatures here in new york city and raleigh, tied at room temperature. 72 degrees. but later on today, man, it is going to be hot! look at dallas. i think they're moving in on close to 30 days in a row north of 100.

it should be 109 there later on today. my wife and daughter were out there yesterday, said it was really hot. but it was a dry heat. and it wasn't that bad. actually said it was warmer in new jersey when they got off the airplane. >> really? >> it's that darn humidity. >> how do you like the view? believe it or not, this is one guy's backyard. but even though he paid for it, the government says he has to share it. is that fair? we're going to talk to him next. >> and they've reached an 11th hour deal. now it goes to a vote. who gets the credit for making this happen? we're handing out report cards in washington. >> how would you grade washington? e-mail us, friends at foxnews.com. k9 advantix ii. not only kills fleas and tick it repels most ticks before they can attach and snk on us. frontline plus kills but doesn't repel. any tick that isn't repelled or killed may attach

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hour. quick headlines. update on the infamous northwest airline hijacker known as d.b. cooper. the f.b.i. says they have a credible lead now. they're testing an item for fingerprints that could lead to their man. in 1971, cooper jumped from the plane mid air with a parachute and 200 grand in ransom money. and amy winehouse was in the middle of adopteding a 10-year-old girl from the caribbean when she died last week. according to "the sunday mirror" winehouse met the girl in st. lucia while she was on vacation. gretchen? >> they have owned this piece of ocean front land for 26 years. now the city of virginia beach wants them to share it with the public and instead of paying a fair price, the city is turning to eminent domain to get what they want for free. joining us from virginia beach is one of the property owners and his attorney joe waldo. good morning to both of you. >> good morning, gretchen.

>> good morning. >> so you have owned this property for 26 years. i got to say, it's a beautiful view. so you have the beach right out in front of you there. the city came to you and said, look, we need to take this from you because the public is entitled to use it as well. do i have it correct? >> that's pretty much what they said. they said they wanted it. >> they said they wanted it. all right. so mr. waldo, that's where you come in. as an attorney, i guess you put up a fight for that, right? >> well, gretchen, tommy, as you said it in 26 years, he understood the city was going to condemn it for a public park but he didn't agree when they took it for $4,000. he thought that was unfair and he fought them. the jury agreed with him awarded him 38 times wt they took it for or $152,000. the problem is today the city has come back, they've got a runaway attorney and he said gosh, we owned it all along, we're not going to pay you the

2,t stand now the city will be able to use the land and your client will get nothing in return? >> well, if the city gets their way, that's what would happen but once again, tommy is fighting them so thursday, he'll go before a judge and he'll ask the court to award him the $152,000 instead of letting the city have the $152,000. >> i want to read a statement from the city. here's mark davis, media and communications manager, virginia beach. our goal is to protect the public's right to enjoy the beach and to preserve the beach itself. the public has been using cape henry beach for decades. so mr. waldo, when you go back in time and see what the law says about public beaches. >> the city does have public beaches but this beach is very unusual. shortly after the civil war, the state of virginia sold this beach to the private property owners to recover and pay for debt. so tommy and the predecessors in

his chain of title have owned this property for 160 years so the city has it wrong. there are public beaches in virginia beach. that's when they took it from tommy. that's why he fought them. >> did you ever think you'd be in that situation and i take it that you're going to go to the bitter end to save your property? >> yes, i mean, it's just been my beach the whole time. and no one ever objected to it being my beach until they just come and decided they wanted to take it. and then offered us hardly anything and now that we've been awarded substantial amount of money, they don't want to pay that either. so it's kind of confusing. >> let me ask you this -- if the city did agree to pay what the jury awarded you which is $152,000, would you take it? au >> well, i wouldn't have no choice because they've condemned. it it's not a matter of choice

the way they worked it. they did want it for nothing. i know of people they offered them $4,000 and they couldn't fight it. they didn't know mr. waldo so they took the $4,000 so you're just waiting to see what the courts do. >> yep, you're brought up to believe you can't get something for nothing. we'll see how this whole thing turns out for you. unfortunately, you're in this situation. keep us apprised about what the judge rules on thursday. thanks so much to both of you. >> thanks a lot. >> they've reached a deal now and it goes to a vote. who gets a credit for making this happen and who doesn't? we're handing out report cards coming up next and the things we do for love. we'll tell you why maria and arnold spent the weekend together? the "mystery spot". not a mammal in this household isilling to lay claim to its origin. but now is not the time for blame.

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>> the debt deal now in the hands of the rank and file members of congress later today after congressional leaders in the white house agreed on a deal late last night. who are the winners? who are the losers? our inside -- washington insiders, that is to say joining us to debate. we have the associate editor teen why corby and former communications director for minority leader nancy pelosi brendan daly. good morning to both of you. >> good morning. >> let's start with the tea party. they came to washington to shake things up and they certainly did. how would you grade what they did? >> so far, i'd say i'm giving the tea party an 8 because they're focused on actually finding a solution and not just a deal. >> brendan, what do you think? >> terms of setting up the terms deaf bait and forcing cuts, they get an a. in terms of responsible governing, i'd have to give them an f. they weren't willing to compromise and work together at all. >> isn't that what you do when you negotiate? if you ultimately want something and you're not budging, do you

budge neither? >> that's why we have the drama in the last few days which was completely unnecessary. we didn't need this to have come this close to a default. i'm glad we're able to get a deal here. >> let's talk about the president of the united states want he did not get his top priorities. he wanted to jack up taxes. how would you give him a grade? >> i would say maybe the president i'd give a d in all of this because the original budget that he produced and the senate dems have the issue, if they would have come up a budget that would have tackled spending right away instead of introducing a budget that increases spending, we would have come to a deal. >> what grade? >> a d. >> i'd give him a b. i don't think he did some of the things that he could have done but he got the deal. he was the responsible adult as he kept saying who stood at the table even when republicans left and he said this is -- we've got to get this done and he was willing to do some difficult decisions for his own party. so you've got to give him credit for that in the end. >> let's move on to speaker john

boehner. tina? >> definitely an a for effort. this is a difficult one to give a grade because i'm a little disappointed with the deal that emerged. i recognize the political reality that something needed to happen now but i was a huge fan of cut, cap and balance originally. he's framing this deal with the principles of cut, cap and balance but in the end, it's really not a long term solution. >> brendan? >> have to give him a c. he almost really lost his speakership last week and when he had to delay that vote, that was a real down moment for him and in the end, the final deal was much more of a senate deal than a house deal. the elements of it are much more what senator reid and senator mcconnell put in there than speaker boehner. >> lightning round, let's talk about reid or mcconnell. what would you give reid and what would you give mcconnell? teen gentlemin tina? >> reid dips below because they failed to get a budget in 824 days. mcconnell appeared late on the scene. i agree with brendan about

speaker boehner that at the very end, it was more of a senate deal. because it was more of a senate deal, that's why we don't have the cuts and caps we need. >> brendan, you get the final word. >> probably give them both a b again because they got the deal through. a lot of people are unhappy and certainly progressives are unhappy with a lot of it. i know on the far right, they're unhappy but in the end, this deal will get passed by congress and thankfully for that. now we need to talk about jobs. we haven't done that and we need to so. >> tina and brendan daley who used to work for nancy pelosi, thank you for joining us live. >> thank you. >> police say an awol soldier wanted to murder more soldiers at fort hood. sounds like a big story. where is the mainstream media? they don't care about this story, do they? liberals claimed they had reaganomics on their side. art laffer has a different

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>> good monday morning, everyone. it's august 1st. i'm gretchen carlson. fox news alert to kick off your morning. a debt deal is struck. does washington have the vote? all eyes on the house this morning. every angle of this breaking story and all the details as we can best give them to you. >> throughout the debate, democrats says they had reaganomics on their side but did they? art laffer who was reagan's money man is here with a much different story. >> meanwhile, deal or no deal. we are still dealing with a 9.2% unemployment rate and many of our nation's military having the toughest time of all. this morning, we need your help changing that. people need jobs and we're going to try to do something about it. "fox & friends" hour two for a monday starts right now.

>> this is a fox news alert. it was in the 8:00 hour last night you saw it here on the fox newschannel, the president of the united states went to the podium and said we have reached a deal. and when he's talking about reached a deal, he's talking about the four leaders of congress. now it's going to go to the members of congress, perhaps as early as today. they could vote on it tonight and pass it and we'd be out of this but right now, let's take a look at what's in this proposed deal. >> so the debt ceiling will be raised. it's going to go up $2.1 trillion through 2012. that will also include cuts of $1 trillion. those will be immediate cuts. and then here is the kicker for most people, the special committee that will be set up for an additional $1.5 trillion cuts, they have to be approved by december.

otherwise, the massive triggers go into effect so the republicans don't like the trigger that would be defense cuts and democrats don't like the trigger that would be medicare cuts. i guess they're trying to force them into coming to the decisions on how to make these cuts without having to go to those drastic measures. >> what they're saying is come to some conclusions, this kind of gang of a dozen. if you don't, there are set points that will kick in. some people have concerns this morning about this agreement in principle. is there enough time to read it before passage is needed? we had a very bright congressman on earlier who hadn't had an opportunity to read it yet. are the cuts immediate enough or are they too far into the future? >> that's exactly right because we're talking about cutting things 10 years from now and future congresses might not go ahead and follow through with this one. also, you have to rely on another committee for cuts and that's that super committee that's going to be appointed by the leaders of the house and the

senate as well. and, you know, what are they going to come up with? are they going to come up with a tax reform? they might. would that essentially be a tax hike. john boehner made it very clear in his power point presentation to his members last night there will be no tax hikes. even given the parameters of what's going forward, this special committee ultimately couldn't jack up taxes either. >> yeah, but he had his own deal to all the democrats and republicans quite frankly in the house so that's going to be the headline for them right now. nobody can say for sure what that special committee will come up with. that's the problem. i think the most important thing about that committee and people at home are going another committee, another commission nobody is going to listen to. maybe they have to this time. the most important thing is who are you going to put on that committee? if you're john boehner right now, are you going to put on a republican that's willing to compromise before like a member of the gang of six. probably not. and if you're on the democratic side, who are you going to put on?

so it's interesting -- that will be interesting to see who ultimately is going to face off against one another on that committee. >> there's a big face-off now because there's an issue of who really is going to step up and vote for that in the house. there's a lot of folks on the left that are calling this package kind of satan's sugar coated sandwich and then there are people in the tea party and tea party sympathizers who are saying, well, we want cuts but do we want cuts to be in the defense area where they may be heavily weighted, potentially affecting the defense budget as much as 50%? >> sure, and then you look at some of the other stuff, there were, remember, speaker boehner had to put off his vote on his bill until he could sweeten the deal for members of the tea party and one of the things that helped get them to the table where he was able to pass it, got 218 was the balanced budget amendment. that's actually going to be in this particular proposal going forward and apparently, the house and the senate have to vote on a balanced budget

amendment no sooner than october 1st and by the end of the year and there are a lot of people out there who say this is something we've been waiting for so stand by for that. in the meantime, will there be enough votes given all this stuff and what are the deal breakers as well? >> doug mcelway it live at the russell rotunda with more. fill us in. >> a lot of this depends on how it shapes up as the morning progresses, we'll be able to gauge as the morning progresses, the house set to meet at 10:00 this morning for the morning business and the first votes of the day scheduled for noon. by that time, we should have a much clearer picture of how much support and how much opposition is inherent in this deal that was worked out last night. there are potentially two very large problems for either party in this thing. you guys have hit at it. it deals largely with this congressional committee, the 12 member commission that's been set up as of next december to impose the second round of cuts $1.5 trillion in cuts. if they are not able to come to agreement, that's when these automatic triggers set in.

and for the democrats, the big liability here is substantial cuts to medicare and the president addressed this last night in his remarks. >> despite what some in my own party have argued, i believe that we need to make some modest adjustments to programs like medicare to ensure they're still around for future generations. >> and for republicans, the painful cuts would come to the defense. and this trigger would call for 50% slicing of the defense budget. for a lot of republicans, that's just untenable. the speaker talking last night. >> i think we're going to jeopardize to defend our nation if we're looking for the defense department to bear the burden of this deal. i know they're working against those who don't want to do anything to change the size, scope of the government. but details matter. >> no matter what support is

lost, it's likely to be balanced out by support from the opposing party. democrats are likely to support the house bill because of the defense cuts that impose. similarly, they are likely to thwart it because of cuts to entitlements. much clearer picture coming up. >> what will the speaker of the house john boehner to get the votes. he would need 215 so he'll need both democrats and handful or more of the tea party people probably will not vote for these. congresswoman gnome from south dakota said that she believes that she will vote for this and support john boehner and she says congress is more transparent than it's ever been in quite sometime. at least the house. >> in the house this year, it's totally different. i mean, this is a much more open process than the house has experienced for years so our speaker has let bills come to the floor. open amendment process, we've

offered hundreds of amendments, we've -- there's no earmarks to try to get votes anymore like there used to be in the past. there was nobody kicked off their committees or chairmanships taken away to get votes this time. it truly was -- this is the policy, what do you think is right? let's see if we can round up the votes. >> yeah, read a couple of days ago that jeff flake, congressman from arizona said, you know, back in the day, a bill like this might cost us $20 billion to get through. remember the cornhusker kickback and things like that where you'd have certain members of congress to vote for stuff. this particular congress and particular house of representatives did away with all of that so this time around, the only real horse trading was pizza. the speaker would bring in pizza and they'd have some cokes and have to figure out what to do. >> hard political discussions. what's going to happen today, then? it's far from a done deal. it will likely go to the senate first because of the experience with tarp. in 2008, the leaders believed they should start off that

process in the house. what ended up happening is it was voted down and the stock market dropped 800 points and it went to the senate and the senate said yes to it and it came back to the house and they said yes to it. there's something about political persuasion or life in general when you hear somebody say yes first, does it make easier for you to say yes also? >> yeah, what it reminds us of is remember that commercial back in the 1970's, the little boys are sitting there in at the table. nobody really wants to eat the cereal. they slide it back and forth. that's kind of what's going on between the house and the senate. who is going to take it first, the house or the senate? here's a little graphic depiction of what could be going on coming up shortly. >> what's this stuff? >> some cereal, it's supposed to be good for you. >> did you try it? >> i'm not gonna try it. you try it! >> i'm not gonna try it! >> let's get mikey>> yeah! >> he won't eat it. he hates everything.

he likes it, hey, mikey! >> when you bring life home, don't tell the kids it's one of those nutritional cereals. >> nutritional indeed. so what you've got today is they're going to start in the senate because like gretch said, last time they started it in the house, there was such acrimony and it went down in flames, they're not going to chance it this time. >> mikey goes to washington. in the house leadership now. what do you think? do you like it? is it enough? should mikey be eating the cereal? where's the senate? where's the house? e-mail us here at "fox & friends." >> i like mike. >> he's probably 60 by now. >> people don't think it's that nutritional. another rest of your headlines and breaking story overnight. a u.s. drone strike in pakistan leaving four suspected terrorists dead. pakistani officials say the drones blasted a car near the board of afghanistan. u.s. missiles regularly hit this area. it's a hotbed for terrorist activity. check out this third dust storm to hit arizona this summer.

this time lapse video of the clouds that cover the city of chandler in arizona. haze covered by heavy thunder and lightning. they can expect to hit a breezy and cool 104 degrees there. good grab by tsa agenagents. they discovered a knife but they actually detained the wrong passenger. the right passenger is this guy who produced the movie "game of death" starring wesley snipes. while agents grabbed the wrong person, martinez was able to board an american airlines flight to miami. he was later arrested and told police i didn't realize the knife was in my bag. one month after filing for divorce, maria shriver and arnold schwarzenegger spotted together in beverly hills. the two along with sons patrick and christopher enjoyed a birthday lunch for arnold's 64th. shriver reportedly picked up the tab. those are your headlines. that's interesting. since the report last week was

that he didn't want to have to pay any spousal support. >> he said look, i know i signed that but i haven't read it and i feel bad. now i'll give her whatever she wants. >> yeah, right. >> coming up, peter johnson, what is next on "fox & friends"? >> nearly 1 in 10 americans can't find work. many of them troops who are returning home from war. but you can help. three vets who need your help here live. >> throughout the debate, dems said they had reaganomics on their side. is that really the case? reagan's money man himself is next.  [ female announcer ] so you think your kids are getting enough vegetables?

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the lexus golden opportunity sales event, with exceptional values on the lexus is. but only until september 6th. see your lexus dealer. >> welcome back, everyone. ronald reagan, the former president made his economic goals clear during his first inaugural address. >> it is time to reawaken this industrial giant to get government back within its means and to lighten our punitive tax burden and these will be our first priorities and on these principles, there will be no compromise. >> he's clear. how would have ronald reagan handled this debt debate?

the founder and chairman of laffer & associates and former member of reagan's economic policy board joins us today from nashville. good morning, art. >> good morning, steve howe are you? >> fine, thank you very much. i was working down at nbc in washington during the reagan years and i remember they lifted the debt ceiling a whole bunch of times but we never had this going on. what was it that reagan was able to do that this president has not been able to do? >> well, he's able to get along with people really well. he didn't have this type of agenda and, you know, back then we all wanted to raise taxes. if we all wanted to raise them but not by raising tax rates, by creating economic growth and by this time in the reagan term, and presidency, we were creating jobs like mad, steve, if you'll remember. >> sure, yeah. >> in 1983, the economy was booming. what's happened with obama and congress is they passed bad legislation and there is no recovery in sight and i don't think there will be one. unfortunately. >> the interesting thing is that it was obviously a democratic strategy in the last six to eight weeks to invoke the

memory of ronald reagan. >> isn't that amazing? >> since you worked so closely with him, i've been waiting and wanting to ask you why, why did they do that? >> i don't know. i think they think it's sort of a gotcha. i don't know what they do -- >> he'd be the hero. >> he's a hero but they never invoke the lines that are correct. even in the speeches they quote, they tonight do on the end by cutting taxes and, you know, we cut the highest tax rate from 70% to 28%. we created the beginning of the greatest prosperity ever. this guy is going the other way. it's huge deficits and it's slow growth. you can't balance this budget on the backs of the poor, the unemployed and the minorities and they don't get it! and you've got to have economic growth. >> did they do it because they felt like this would be an appeal to the independents in the entire battle about the debt deal and just in general? >> i think they're just ideological. they don't realize that government spending doesn't

create jobs, it costs jobs. if you have two farms and one of the farmers gets unemployment benefits, who do you think pays for them? have you heard a poor man spending himself into prosperity? it's ridiculous but here we go! >> there you go again, art laffer. >> there you go again. >> you know, the thing about this particular political cycle, though, is you have the tea party and they came to washington last year to -- this year to change things and they certainly did. what would reagan think about the tea party? >> i think reagan would have been in the tea party. reagan was very much for balancing the budget and cutting taxes and creating growth and deregulating the economy. as far as i can tell, he would have been the tea party. i like all the politicians there in washington but i do think the tea party serves a very good purpose and it brings these issues to the fore so that honestly the electorate can see what the issues are and in november of 2012, they can choose which path they want to go. people deserve the governments they get. >> that observation is so fascinating to me because many people have said that ronald

reagan would not even become the republican nominee with the tea party movement right now. >> goodness gracious. >> i find that fascinating. so is this a win in your mind then for the tea party? >> well, i don't know if it's a win. you have to wait until november of 2012. but i surely am pleased that this issue was brought to the floor and it was debated and i'm glad they've got an agreement. i think that's really wonderful, too. but people need to see what's going on in washington. they've seen it first hand in this clash and if they want to go with the nancy pelosi and with reid and obama, fine. if they want to go with the tea party, boehner and mitchell, mitch mcconnell, they can do that. and i just love the debate. i think it's great for america. >> america sees that there are two different paths going forward. one party wants to spend and the other wants to save. >> there really are. >> and one goes to the shining city on the hill and the other one goes, you know where. >> stop it. art laffer, thank you very much. you know where you are today. you're in nashville, thank you,

sir. >> yes, thanks. >> you bet. did the president's failed negotiations with white house speaker or not white house, the house speaker john boehner force the senate to strike this very different bargain that we're dealing with today? gene sperling, director of the national economic council and advisor to the president here live moments away. >> they say an awol soldier wanted to kill more soldiers at fort hood. big story. why does "the new york times" appear not to care about it? we'll talk about that straight ahead on "fox & friends." [ male announcer ] to the 5:00 a.m. scholar.

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>> all right. it's time now for your news by the numbers. 48%, that's the percentage that the vote presidential candidate herman cain won in the straw poll in denver. rick perry hasn't announced yet but he came in second with 13%. next $3,017,000. that's the one year deal wide receiver plaxico burris signed with the new york jets. he served time behind bars for having that gun. that's how much "cowboys & ail owns" and "the smurfs" brought in the box office this weekend to tie at the top. that's news by the numbers. >> thank you, steve. accused fort hood plotter abdo not only admitted he was behind the failed plot but claims his muslim faith played a large role in his relationship with the united states army.

>> we're talking, of course, about that second alleged plot at fort hood. why is the mainstream media down playing religion in that case while focusing on the right wing christian views of the norway shooter? kim is the author of oif left turn, how liberal media bias distorts the american mind" and she's our guest. i guess we're pretty clear on what your book is about, right? >> yeah, i think it's pretty obvious by the title. >> let's take a look at the headlines and let you decipher if you think there's bias here or not. this is "new york times." a soldier held amid claim of terror plot at fort hood. we recall that was the recent one with regard to the second alleged attack, if you compare that to the norway situation as horrors emerge, norway charges christian extremist. your thoughts on the difference? >> yeah, that's the thing about the mainstream media. they've been very quick to point out that the norway guy is a christian but slow to point out that the guy in fort hood is a

muslim. and you mentioned that headline. i did search. i found a few cases at least where the mainstream media would mention in the headlines that the -- that the norway guy was a christian. i found no case. i did a very extensive search, no case of a headline mentioning that the fort hood guy was a muslim. >> why? why? >> well, my wife gets on to me saying this is 93-7. that's the most important statistic to know about. the mainstream media and you ask washington correspondents who they voted for last election, 90% will say democrat. 7% republican. cambridge, massachusetts, actually votes 86-14. there are double the number of conservatives in cambridge, massachusetts, than in a mainstream newsroom and i think that's what's going on is the political correctness within a newsroom. >> i guess you're supposed to be fair and balanced when you come to work but maybe not. let's look at the l.a. times headline on the fort hood plotter from july 29th of this

year. soldier suspected of planning fort hood attack. no mention of his religion there and then the norway attacks, terror from the right. i mean, when you juxtapose them against one another, it's quite blatant. >> i agree with you, yeah. that's everything, they talk about the guy from norway being a right wing extremist. i still don't know the politics of the guy in fort hood. i'm willing to bet that he did not vote for george bush in the last election. i'm waiting to hear something. but what you're saying is i'm trying to get to the bottom of it. you're saying that the reporters who are mostly democratic are anti-christian, is that right? >> well, yeah, i'm not sure if anti-christian as just -- i've noticed this even though i work at a university and i live among the far left and i just notice it's just not in vogue to be sympathetic to christianity but strangely -- >> tim, it's all about political correctness, is it not? i don't think we want to say on this show that liberals are

anti-christian. >> i agree with you there. >> tim, it seems to be your point, that the democrats engage in these headlines as reporters. there's got to be a reason. what's the reason? >> well, and i sense this on the far left, they're more sympathetic to muslim. i don't know why. but the best explanation i've heard is the scholar out at claremont university says the left worship the god of equality. and the best i can see, muslims happen to be poorer than christian so the far left worshipping the god of equality will be more sympathetic to the poor people, the muslims. that's the best i can find out but there's definitely something about being more sympathetic to muslims than christians. >> all right. check out his new book, the author of "left turn" tim, thanks for your time this morning. >> thank you, gretchen. >> nearly 1 in 10 americans can't find work, many of them troops returning home from war. stay tuned, please, this morning, we need your help. to change that. >> would we have a better debt

deal if the president negotiated more with house speaker john boehner a little before the last couple of weeks? we'll ask advisor to the president gene sperling when he joins us live next. [ male announcer ] want to achieve more with your money? pnc virtual wallet gathers your spending and saving in one place. credit and debit purchases, checks, bills, and other financial information. it lets you see the details as well as the big financial picture. so you can do more with your money. see what a complete view of your money can do for you at pncvirtualwallet.com. ♪ pnc bank. for the achiever in you.

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>> 7:20 on the east coast right now and after weeks of battling, a deal has been reached between house republicans and senate democrats. >> but critics of the president are saying the republicans and democrats were forced to negotiate a bargain without him. joining us from the white house north lawn is gene sperling, the

director of the national economic council and assistant to the president for economic policy. good morning to you, gene. >> good morning. >> i would imagine over the last couple of days, you guys have been drinking buckets of maloxx not knowing how this was going to turn out. you have to feel good it's heading towards a conclusion. >> well, i think it's enormous relief for our economy that the threat of default, that cloud of uncertainty has been lifted off our economy and that i think many people in the private sector, job creators are quite happy this president insisted that we not only resolve this now but we push away the threat of default from our economy not only for five months or six months but well into -- but for the next year and a half or so into 2013. >> a lot of people, though, will say that here we go again with another commission. because the second part of this deal is this 12 member committee made up of half republicans and half democrats. some people will ask this question of you, gene, i'm sure throughout the day which is

what's the point of the full year afterwards from the president who came up with the deficit reduction plan, what was the purpose of that if we're going to have yet another committee? >> let's be very clear. i mean, this president wanted to have the big deficit reduction deal and have that kind of shared sacrifice and balance like that was recommended in simpson bowles. there was a bipartisan effort in the senate called the gang of six which did eventually produce a plan that does look like it has more bipartisan support which hopefully can inform this commission and as you know, on two separate occasions, the president was close in personal negotiations with speaker boehner that went on over weeks in getting that kind of larger deal that would have had structural entitlement reforms -- reform and tax reform to lower our deficit. we're disappointed that didn't take place but this president will stay at it until we get that type of shared sacrifice, balanced debt reduction plan that we believe this country needs and that we believe there

is support for. >> mr. sperling, in today's "new york times," paul krugman, the economist and columnist savaged the president and savaged the president's plan saying that the president had surrendered and that this plan will lead to a further depression of the economy in the united states. how do you respond to these rampant and almost savage criticism being brought forward by a lot of the people who had supported the president's economic policies in the past? >> well, i strongly disagree with what professor krugman said and i think as people understand what's in this plan, i think they'll have a different view. first of all, all that was locked in was cuts in what we call discretionary spending, almost a trillion dollars that were mutually agreed to by both parties and this president ensured when we did this, $300 billion or more came from defense or security, so this did have balance in the package. it had special protections for

millions and millions of college students rely on pell grants and what the -- and then secondly, the president stood firm on things he absolutely demanded which is we take off the specter of default into 2013 to give this economy certainty and to allow us to have the kind of vigorous debate on the values that president obama supports which is shared sacrifice and that's not to have any kind of class warfare. that's just to say that if we're going to do significant things on entitlements, that are going to affect seniors and others, we have to make sure it's fair and we're asking those who are most fortunate or most well connected with the best corporate tax expenditure and tax breaks to be part of the solution as well. >> well, i hate to disagree with you on the class warfare thing but last night the president himself from the briefing room was talking about how he felt going forward that people who were the higher tax brackets should have to pay more. and what's interesting is and i have the power point from republicans and john boehner's office, one of the things they

say is there won't be any tax hikes going forward under this deal but the president made it sound like there could be tax hikes. could you explain, mr. sperling, how there could be tax hikes going forward under this deal? >> well, listen, this bipartisan commission is going to have to make a decision whether they want to work it through in a bipartisan way in which the gang of six, bipartisan group in the senate has tried to do. if so, they're going to make room to do kind of tax reform that can be both good for democrats and republicians. that usually would mean you cut tax end expenditures but raise rates. if you do that, you ask for the contribution from those who are well off. that's not to punish anyone. that's to have a sense of shared sacrifice when you have deficit reduction. what doesn't work or doesn't fly in the public is to say typical middle class families are supposed to sacrifice. seniors are supposed to sacrifice but those who are most well off are completely left off the hook. that's not class warfare. that's asking everybody to pitch

in as a great country. >> sure. mr. sperling, 51% of the country doesn't pay any federal taxes, maybe shared sacrifice is you make the taxpayer base expand a bit. >> well, you know, first of all, that's not true. almost everybody who works pays payroll tax cuts. there's social security. >> federal income tax we're talking about. >> on income tax, it's true there's been a goal of democratic candidates to remove people from the roles when possible. but one shouldn't say they're not paying taxes when they're paying state taxes, payroll taxes on social security, sales taxes, they are contributing and that's why the president when he gave tax relief this year and is pushing for additional tax relief next year is calling for a payroll tax cut because he wants it to be broad and to help as many working families as possible. and we hope that republicans will join us in calling for extending the payroll tax cut. because we still have 9% unemployment and we do need to help this economy out in the short term.

>> well, i'd love to be a fly on the wall when the special committee gets together to talk about taxes. both republican and democratic plans moving forward in the past week have no new taxes. gene sperling, director of the national economic council and assistant to the president for economic policy, thanks for your time this morning. >> thank you. >> still ahead, senator john mccain, neil cavuto will be here, donald trump, and representative renee elmers so we have a full show straight ahead in our last hour and 20 minutes. >> sure. right now you want the headlines and we've got them for you. the family of a missing 11-year-old girl is speaking out for the first time. she disappeared from her house in new hampshire a week ago. divers are now searching nearby ponds and rivers. over 150 tips have already arrived at the police door and $30,000 reward, one of those is being offered for information leading to celina. >> whenever you're ready to come home, daddy will be here. >> success here today in my

opinion and these divers' opinion would be able to go back to the command post and tell them nothing is in this pond. >> meanwhile, the f.b.i. is searching her computer to see who she was talking to on line the night she disappeared. >> look at this picture. 168 people had to be rescued after a cruise ship sank in the central philippines. the captain ordered everyone to abandon ship after the boat began tilting at a 45 degree angle. might be a little nerve-racking. coast guard and fisherman and two other ships came to the rescue. no word of what caused that ship to sink. >> vice president joe biden has another job. landlord. records show that biden charges rent to the secret service agents who protect him and his family. the government shelling out $2200 a month to rent a cottage next to biden's mansion in delaware. he's collect the more than 13 grand since april and he'll rake in more than $66,000 before the contract expires in 2013. >> they got to be there to take

care of him. why not the cottage instead of parked in a big truck out on the street? >> keep them safe. >> going out with a bang. people honoring their lost loved ones using fire power. >> many of the americans desperately looking for work are soldiers headed home from war. meet a group of veterans that you can help today with jobs. >> first, though, the trivia question of the day. boy, i'm glad we got aflac h aflac! oh, i've just got major medical...

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>> the united states top admiral officer mike mullen expressing concerns that u.s. troops will not get paid. should soldiers ever have to be worried that they won't get a paycheck. we've assembled a special panel to hear what they think. i'm going to introduce now sergeant ivan jasmine, petty first class andrew icifus and navy veteran barbara mcdonald. good morning to all three of you. let me start with you, obviously a concern if you're a member of the military and you might not get a paycheck but at the same time, you're defending our country. >> absolutely. that's always a concern. of course, i'm unemployed currently so i haven't, you know, been in for about six years now. but that is a concern for all soldiers which shouldn't be a concern. >> i want to move on to why we're here with the three of you today and that is because

veteran unemployment is still on the rise and it's higher than the national average of unemployment. it's 13.3% compared to 9.2% of the annual rate of unemployment. so andrew, what have you been doing about trying to find a job and what area would you like to find a job in? >> well, i started looking for employment in the work that i knew which was mechanics but yeah, as you can imagine, it's really rough for a jet mechanic to find employment in the civilian world. i'm a full-time student so i've started to take classes on public policy, international relations, public speaking, to sort of apply some of my skills in writing, speaking and also management to sort of broaden my horizons and try to find really anything. really anything. anyone that will take me. >> barbara, i know you're a navy veteran and you have an interest in food management or just the food business in general? >> i just received my associate's degree in culinary arts and now i'm working on my

bachelor's in food service management. >> your dream job would be what? >> i kind of like would go back to sea. i'd like to work for some military commander and go overseas with airmart, kvr or something like that. >> i know you had a little problem about your ear piece there but you're back hearing us. >> i did. >> i'm interested in knowing what kind of job you've been looking for and what would be the dream job if it came your way? >> you know, i have been unemployed for about two years now. i have my bachelor's degree also. i'm educated. i'm a veteran. i have my degree in criminal justice preferably in law enforcement. my dream job has always been in the f.b.i. i've been looking a lot at background investigation a lot lately. >> why do you think veterans have a tougher time finding jobs? because so many people say wow, if you spend time in the military, you've really learned all of these wonderful leadership skills and oh, by the way, you're a disciplined person

as well. >> right. well, you have to remember that a ton of the jobs that we do in the military don't really directly transfer into civilian jobs. for example, i was a jet engine mechanic so i have tons of mechanical skills but i can't apply those directly to a car which is the more common mechanical job. so, you know, when i apply for a job and i say i have x, y and z mechanical skills but they're not directly related to a car, they're directly related to a jet engine, it's tougher to find employment in that field. >> calling all airlines, if you see andrew today, he may be looking for a job although he's looking into public policy as well. barbara, you said you wanted to go back out at sea. now, does that mean on a cruise ship, potentially? >> cruise ship or maybe civilian support for the navy, military command is really interesting to me. i really miss the u.s. sailors sometimes so it's different when you're not in the service anymore. there's no comraderie.

>> i understand, once it's in your blood. you're out in arizona, do you want to relocate? is that plausible for you? >> definitely. i'm just like the other two here, i'm not really being picky right now, you know, i want to start a career, i want something that's going to be respectable that i'll be able to take care of myself and take care of my mom so definitely willing to relocate, absolutely. >> all right. so if anyone out there is doing any hiring, tucson, virginia beach or washington, d.c., but they're willing to relocate as well, take a look at these veterans who are willing and able to do a good job. to all three of you, thanks so much for joining us on "fox & friends" today. >> thank you. >> thanks so much. >> and e-mail us, friends at foxnews.com. hope and change was his brand but our next guest says that's over! did the president destroy his own brand? during this debt debacle. and on this date in 1981, the number one song was jesse's girl. how many women out there

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>> all right. i know you've been racking your brain and your answer to the trivia of the question is tempest bledsoe and somebody did win, trust me. congress could start voting on a debt deal in a couple of hours in order to avoid defaulting on our loans and even if the debt deal passes, is the damage already done? joining us right now to explain is political analyst and author of a great book called "you are the brand" steve ottabato. good morning to you. >> good morning. >> we have seen the president of the united states, haven't seen him give this many speeches and pop up in the briefing room so

many times as he has over the last two weeks. what has he done to his brand? >> in the book, you write the book and a lot of things happen including usama bin laden thing and now this, i got to tell you something and i voted for obama but his brand has been tarnished in this way. a great candidate, a charismatic candidate. he knows how to fire up a crowd. being a chief executive, getting things done, getting your hands dirty, getting in there. he doesn't seem to enjoy it. he doesn't seem to be good at it. he delegates that to other people. in the health care situation, i think he thought let me just keep giving a speech and people will understand. same thing here and i'm not a big fan of the class warfare going on. listen, millionaires, billionaires, hedge funds, i get that part but that's not a way to negotiate and get it done. no matter what happens here and i'm glad, by the way, this is going to happen so that we avoid a massive problem with the government and more importantly people getting access to money, 401k's getting whacked, the whole bit but obama's brand will take a massive hit.

as is -- >> sure. congress which is over your shoulder right there, they have had a stinky approval rating for a very, very long time. but what's interesting now and you talk a little bit about it, is the mainstream media wants to blame the republicans. anything bad that happens, they want to blame the republicans but now they have to give the president some blame as well. >> you know what's interesting, i'm not a big fan of those of us in the media that pick sides. again, i'm an advocate of obama in certain ways. you have to look at someone and their performance objectively even if you like them or voted for them. part of my problem with my colleagues in the media is they will explain a way, apologize for obama on everything. but at the same time, i've seen certain networks, certain radio stations, certain newspapers who will not in any way criticize the tea party. i think the tea party brand has taken a hit as well, too, steve. the difference is the tea party doesn't have as much to lose as the president. he has a presidency to lose. >> yeah, but they came to

washington to do what they have done over the last two weeks. >> yes, here's the thing. they have done exactly what they said they wanted to do. i'm not a fan of what they've wanted to do even though i respect what they're doing because it potentially is an obstructionist policy. but the stakes are higher because they're not the chief executive. they can throw bombs. they can be critical. barack obama needs to understand that speeches and being a scholarly professor of law where she was and apparently was very good is not the same as being president. we're finally seeing if you've never run a candy store or never run any store, if you've never run anything, sooner or later, it begins to hurt you and your brand and more importantly the country. >> interesting stuff. all right, steve, his book is called "you are the brand". >> now that's a good book. >> that is a good book. that's what i've read. >> thank you, steve. appreciate it. good to be here. >> straight ahead, when it comes to providing health care for the heroes who worked at ground zero on the pile, the government says cancer doesn't count. one of the men who got sick here live to respond.

then this new debt deal could require cuts to military spending by law. how does john mccain feel about that? he's our guest on the other side of this quick time-out. dad, why are you getting that? is there a prize in there? oh, there's a prize, all right. [ male announcer ] inside every box of cheerios are those great-tting little o's made from carefully selected oats that can help lower cholester. is it a superhero? kinda. ♪

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>> gretchen: good morning, everyone. today is monday, it's already august 1. can you believe it? i'm gretchen carlson. thanks for sharing your time with us. the debt deal is on paper, but does washington actually have those critical votes? you can expect a real nail biter in the house on both sides of the aisle. >> steve: meanwhile, have you heard the other parts of the bill, like the trigger, requiring big cuts to the pentagon? senator john mccain not a fan of big cuts to the pentagon. also the ranking member of the armed service committee here with reaction in moments. >> peter: a plane overshoots the runway and splits in two. every single passenger escapes alive. but don't thank the rescue crews. thank the american from ohio. "fox & friends" starts right now.

>> steve: good morning to you. >> peter: good morning to you. >> gretchen: peter in for brian today. that sounded like all the phones ringing at the same time. seer is who is coming up on the show for the last hour. jam packed. senator john mccain in a couple of minutes. also neil cavuto to give us his business expertise on the deal. and donald trump, imagine what he'll say, because he didn't want the republicans to cave at all. >> steve: he's been critical of the republican party. senator ayotte is going to join us and senator renee elmers will round out the program. let's talk about it. it happened in the 8:00 o'clock hour last night. the president of the united states came out and said, we've got a deal. the deal with the leaders of the congress.

what are some of the particulars? we'll give you the numbers and they are very big numbers. >> gretchen: all right. so first for your calculator, 2.1 trillion. that is how much the debt ceiling will be raised and that will be through 2012. this is the important point for the president. let's face it, he wasn't going to get the taxes, so he wanted to make sure that we were not going to be debating this again before he's up for reelection. so you have to put a checkmark in the column for president obama on that one. >> peter: made a trillion off the bat and 1 1/2 trillion in cuts based on this gang of 12. the so-called dirty dozen, the special committee of congress people and senators approved by the legislative leaders. if they can't come to terms, then certain triggers automatically placed cuts in defense and medicare, both, which are substantial. >> steve: when you say if they can't come to an agreement, what they've got to do is figure a way to cut another $1.5 trillion

from future spending. and if they can't, where will they cut it from? well, the triggers will go into the pentagon and medicare as well and as hard as it is to find a doctor to take your medicare anyway, it would affect the providers. that is really not good news if you're on medicare. >> peter: so the looming question and a very tense, tired washington, d.c. today is, are there enough votes to pass the deal and what are the real deal breakers? >> gretchen: joining us from the white house is wendell goler to break that all down for us. >> the white house says there are enough votes to pass this bill, though house democratic leader nancy pelosi says she is still studying the plan, which is likely to get more republican than democratic support, at least in the house. all along the president has said that the solution to this problem had to be bipartisan and this one has made for strange bedfellows. south carolina republican senator jim demint, bernie sanders, both opposed to the

bill, as are tea party favorites michelle bachman and members of the congressional black caucus, both for different reasons. the president himself is less than enthusiastic supporter. when he spoke to the nation last night, he said, even though the agreement avoids default and pushes the debt ceiling debate beyond the next election, it's not the deal he really wanted either. >> i believe that we could have made the tough choices required on entitlement reform and tax reform right now rather than through a special congressional commit process. but this compromise does make a serious down payment on the deficit reduction we need and gives each party a strong incentive to get a balanced plan done before the end of the year. >> really they don't call it a deal unless they feel they've got the votes, though lawmakers miscounted on the first tarp vote in 2008. that went down, the market dropped nearly 800 points. 60 lawmakers changed their votes

when it came up for a second vote a couple days later and passed. this time they need 216 votes in the house. the white house advising congress to leave itself time for a redo if necessary before tomorrow midnight. guys, back to you. >> gretchen: wendell, thanks for breaking that down. >> steve: meanwhile, one of the concerns among republicans in the debt ceiling debate is a possibility of those drastic cuts to defense spending that would be triggered if the recommendations made by that super congressional committee are not adopted by congress. joining us now is the ranking member of the senate armed services committee, arizona republican john mccain. good morning to you, senator. >> good morning, steve, peter and gretchen. >> steve: how big are the cows? we're talking about -- cuts, we're talking about over ten years. we're talking about guys over the armed services committee in the house, they have said if they are over $439 billion over

ten years, they would have nothing to do with it. >> well, i think they are possibly and i emphasize possibly could be higher than that. but that assumes that this committee is unable to act and come up with a result. i'm confident that the committee will be able to do so. i also believe that there is trade-offs in every agreement. the fact that the president did not get his tax increase, that he can no longer have this line about corporate jets and all of that is significant. and i also think that when you look at the markets today, you'll see that this is generally approved of by financial markets, but most importantly, the american people wanted us to reach an agreement and our approval ratings are at an all-time low. they expect us to come with a result. i think this result, which is basically the mcconnell last

option plan is one we can live with, none of us like it particularly, but i think it's something that has to happen. >> gretchen: it's almost like you're admitting to the rest of the world that it's tough for congress to come to a decision and a compromise because you're putting in these trigger mechanisms that both parties hate. the democrats don't want to cut medicare. the republicans don't want to cut defense. so you're setting yourself up to try and come to this compromise with the committee, but that's really never happened before, at least in the last year. so why are you so confident? >> first of all, no committee has ever been like this that i know of, outside of the base post commission because this requires an up or down vote only. and that is, in my view, significant. that's what makes it different from the gang of six or simpson bowles or so many of these others. congress is going to have to vote yes or no. i'm confident that we can come up with an agreement which will

have some pain for everybody. gretchen, you can give me another result that can get through both houses and senate, i'd love to hear it. i'd like to say again that it does require -- could i mention, it does require a vote on the balanced budget amendment. i'm for that. i've always supported that. it's not going to pass the senate, but it will -- pulled put impetus behind the balanced budget amendment and eventually pass because that's what most americans want. >> gretchen: will you at least agree that members have pointed to this committee will one of the most important decisions that the leaders of both parties ever make? >> absolutely. and i have confidence that the selections will be people who have the credentials to act in a way that's in the best interest of the country. >> peter: what was your assessment of president obama's leadership skills in terms of how late he came to the table

and to this discussion in bringing us to the point that we are today? was there leadership or absence of leadership, in your view? >> peter, m.i.a. the negotiations, the agreement was conducted between basically harry reid, mitch mcconnell and john boehner. and obviously with white house input, but i don't think -- i don't think president obama's jealous advocate would admit the president did not lead. he's been doing this on domestic issues, quote, leading from behind. >> steve: what about the tea party? they came to washington to shake things up and you know what? say what you may, i know love them or hate them, a lot of people are on both sides of that, they got some stuff done and wound up with the balanced budget amendment in there, that was one of the sweeteners they

got pain tore include, and they would like to see how people in washington vote on that very topic. >> first of all, i agree that the tea party movement has had an effect in that i don't think without the tea party we would have had an agreement where the president had to back down and aban donning his advocacy and it was his primary position that we had to have tax hikes. so i think the tea partiers can claim a lot of credit. but i would say again, for tea partiers to insist that we pass a balanced budget amendment to the constitution with only one third of the government is not a realistic assessment, but that doesn't mean we can't do it over time. we can. >> steve: all right. >> gretchen: senator john mccain, it's always great to talk to you and thank you for giving of your time today. we'll see you again soon. anders behring breivik, the alleged mastermind behind the norway attacks reportedly bought key ingredients on-line to kill 77 people last month.

according to britain's sunday telegraph, he used ebay to purchase sulfur powder, respirator, and a haz-mat suit. it's noted he mentioned ebay repeatedly in his manifesto, writing, ebay is your friend. plane with 163 people on board skids off the runway in guyana, splits in two, but the passenger in the emergency exit could not get the door open. that's when an american from ohio came to the rescue. earlier he told us about the harrowing experience. >> i went up there and he was trying to get the door open and the flow of people trying to get to the exit. >> gretchen: there was concern the plane would catch fire and rescue crews were late getting to the scene. luckily everyone survived that crash. talking about going out with a bang. alabama company called holy smoke is offering a to turn your loved one's ashes into real bullets that can be fired. they use a pound of ashes and small portions placed into each

shell or cartridge. they claims their service is actually cheaper than burying a loved one. 250 bullets will cost you $1,250. those are your headlines. interesting concept. we live in america. the home of the brave and the home of the free and doing whatever you want. >> steve: ultimately, it means going out with a bang. all right. straight ahead, investors around the world are giving america the thumbs up. turns out the markets like this debt deal, according to the futures. but hold the horses. neil cavuto from washington will tell us what's really happening behind the scenes. >> peter: then donald trump gives us his report card. if he were running things in washington, who would he hire and who would he fire? the donald here at the bottom of the hour. [ male announcer ] to the 5:00 a.m. scholar.

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and i switched to one a day women's active metabolism, a complete women's multivitamin, plus more -- for metabolism support. and that's a change i feel good about. [ female announcer ] from one a day. >> peter: president obama and congressional leaders announcing a deal on the debt limit that includes spending cuts and a vote on a balanced budget amendment. but does the deal show the markets that we're serious in reducing our nation's deficit? >> steve: i watched them all day yesterday. he's back on capitol hill complaining about how hot it was there in the rotunda. the host of "your world" and senior vice president of fox business news, neil cavuto. good morning to you. >> good morning. and it was hot. you know me, i'm not a whiner.

>> steve: of course. this is not whining. that would be a much higher pitch. yesterday a member of the democrat party referred to this as a sugar coated satan's sandwich. although you look at the markets and the futures, asia liked it. europe liked it, our futures like it. >> they did. so obviously either they're fans of sugar coated satan sandwich ors don't look at it that way. but the markets are liking the talk that the leadership has agreed on a deal. but i don't want to rain on this parade here, but it is not a don deal. we've already heard from a top white house advisor some things that many thought were not in the deal and that is the possibility that tacks, in fact, could -- taxes, in fact, could be raised in the second part, the part that includes raising the debt ceiling. tea party is just hearing that and they're not going to like that and i'm sure they're going to pounce on it as proof that maybe the details in this don't

look too good and it's not worth passing. >> gretchen: that's why it will be so participate as to whom they put on this 12-member committee. this will be one of the most important decisions for the leading republican and democrat, would you agree with that? >> absolutely. and then you have to look at the possibility of them delaying who is on this committee. in other words, it's sort of like it's being pushed down a lot of these guys' throats like a used car deal, trust that the air conditioning works, trust that everything is clean and it's been checked and rechecked examine and you're buying on faith that it has. we might be looking at a big old cordova and we don't want it. >> peter: in terms of trust and faith, a lot of people ask me the question, they say, we keep hearing about these rating agencies, moody's, standards and poors, and so much of our future seems to be depending upon how they view the american economy and how the government responds to it. is that properly placed? should we be listening to these folks?

do we have to listen to them? >> unfortunately, we do. they're the only game in town. you're quite right to say, peter, it seems a little frustrating that we listen to the very agencies that missed the whole real estate bubble and all of these questionable junk loan deals and were rating them triple a at the time, that we have to now march to their drum beat if they say this deal isn't good enough. but i must stress, moody's, s & p, they're pretty much the only ratings game in town and they have said, as i pointed out, that unless this deal looks at trimming spending by $4 trillion over ten years, it isn't worth the paper it's written on. that's to simplify it. that then compelled the ratings agencies to be attentive to following up on that threat, which would probably be a downgrade. take our tripping a rating away. >> gretchen: so let's say that they pass it tomorrow before

midnight. the rating company could come out the next day and downgrade us? >> i doubt they would do it that quickly. they would probably want to wait to see if they're following up on the cuts. but if they start seeing this is, like so many other washington promises in the past, where they raise the debt creeling and really, really, really promise to address spending, even though this deal was a little different because an actual budget was attached to it, they might just go ahead and downgrade anyway. keep in mind, we put these rating agencies in the spot and we criticized them for missing the boat before and not being aggressive enough when it came to banks and melt downs that they were giving the highest possible ratings. so we more or less told them, you can't repeat that again. so we might have prompted them to be more aggressive than they normally would because we yelled at them so much. >> steve: all right. neil, we would never yell at you. we appreciate you getting up early and joining us live from capitol hill.

>> sure. >> steve: we'll be watching your program later today. >> gretchen: the government says sorry, you can't way for cancer treatment for workers who got sick at ground zero. one of the men who got sick here live to respond. >> peter: you will soon be calling him mayor. gramar? rumor is the actor is considering a run for mayor. kelsey grammar for mayor. where? we'll tell you. we used to bet who could get closest to the edge.

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>> peter: welcome back. we have quick headlines. al-jazeera english goes on the air in new york city for the first time today. the news network is leasing air space from a former spanish language channel. al gentleman leer a had a very tough time getting on u.s. cable providers and executives claim

that they're being black listed. and it's one of the strangest pick pocketings you'll ever see. a chinese thief was able to swipe a cell phone out of a man's pocket with chopsticks. at first the thief missed the phone, so he tried again. on the second try, he was able to grab it. steve, gretch? >> steve: smile, you're on candid camera. >> gretchen: the health and compensation act was a sign of help for thousands of responders who suffered with their health attacks after the 9-11 attacks. but the government says cancer doesn't count now as a health problem. >> steve: richard bakely was working for verizon at the time and spent every day at ground zero for four months. he was diagnosed with lymphoma and counting on this bill to help provide health care for him. he joins us right now from north carolina where he lives. good morning to you.

>> good morning. >> steve: okay. so you spent four months down on the pile working in that area, working for verizon because they had business interests there. when you found out that apparently the government has said, yeah, if you've got cancer, you're not qualified, you're not covered because we don't consider that something under this bill, what was your reaction? >> i thought it was ridiculous. it was a ridiculous thing. you have to be covered under cancer. any small dust particle, anything that gets into your bloodstream, into your breathing, airway can cause heart disease or cancer. that's a fact. and you would have to be there to actually see. maybe i should have taken a little bottle and had kept all that air from the day one of september 11 and put it in a jar and saved it. >> gretchen: it's so important, richard, to put a face on this issue 'cause when people see you, you're a young man who has already gone through lymphoma and you think you're in

remission. but because you worked for verizon and you're not a firefighter or police officer, you don't have a pension coming in, so is it true that you haven't been able to get a cat scan in three years to really find out about your health? >> corrects. i haven't had a cat scan in three years. so i really am living in limbo. i have five children. i'm very happy. i feel like i'm healthy. i keep myself healthy, but that doesn't mean that i don't have cancer. cancer is something that sneaks up on you and if not caught early enough, can kill you. >> steve: absolutely. let's take a look at some of the things that this particular bill does cover. if you've got acid reflux, you're covered. sleep be a nia, covered. carp tunnel syndrome, covered. cancer, not covered. so what sort of coverage do you have? >> nothing. if you have cancer, you have nothing. you're left out in the cold. >> gretchen: when i see acid reflux, who doesn't have that? i mean, it seems sort of

ridiculous that that's on the list and cancer is not. but why do you believe cancer is not on the list? >> why do i believe? >> gretchen: yeah. >> i think it's simple. i think that if they -- right now i think they just don't want to cover the cancer because the cost of cancer, and they're afraid to admit the truth and the fact that cancer is the most deadly of all diseases and it will continue to affect all these other first responders that were in the world trade center disaster. >> steve: so you don't have coverage. you are just high and dry. what are you going to do? just hope it doesn't come back? >> that's it. that's all i can do is hope it doesn't come back. you know, it's funny, but they talk about all the heros and the people that had went there on the first response. the difference between coward cowarder -- a word and a hero -- coward and a hero is they're

both afraid, they do it anyway. the next time something happens, who are you left with? i won't go. not after the way they treated me. >> gretchen: that's why it's so important to see the face of a person because there were so many different layers of people down there. people like you working for verizon at the time. keep us posted on your health and we'd like to talk to you again as this continues to move forward. richard, thanks so much. >> thank you so much. >> steve: you bet. meanwhile, straight ahead, so will this debt deal save the american economy as an economic super power? maybe not. why china will be number one by 2016. >> gretchen: then grading the big players with help from donald trump. who would he hire or fire? would he tell you? the donald here next. i have a sneaking suspicion he would. he kind of tells it like it is. mine was earned over the south pacific in 1943.

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of up to 55% off top hotels. harpist not included. ♪ >> gretchen: welcome back. half hour left of "fox & friends." let's get to some stories making headlines right now. we want to bring you up to date on this missing girl. the family of the missing 11-year-old speaking out now for the first time. selena cass disappeared a week ago. divers are searching ponds and rivers, over 150 tips have poured in and a $30,000 reward is being offered for information leading to her. >> when you're ready to come home, daddy will be here for you. >> success here today in my opinion, and these divers' opinion, would be able to go back to the command post and tell them nothing is in this pond. >> gretchen: the f.b.i. is searching the little girl's computer as well to see who she may have been talking to on-line the night she disappeared.

>> peter: it's been almost ten years since the 9-11 terrorist attacks. some people say it's time to move on and drop the name, ground zero. they want to use the original world trade center name, but not everyone agrees. earlier on "fox & friends," both sides weighed in. >> we've said after 9-11, never forget. i feel you can't sabotage it. 3,000 americans were murdered that day. >> i want to make sure the enemies know that we've changed the mission down there on our terms, not theirs. >> peter: the site is home to the brand-new 9-11 memorial which will be dead indicated in a special moan -- dedicated in a special phony this september. president obama and president george w. bush are september to attend. >> steve: meanwhile, t.v.'s in venezuela just aired this video of hugo chavez exercise to go prove he's not dead and he's alive and well. he can be seen leading exercises with his ministers, his cabinet, while talking about government

issues. the 57-year-old chavez was diagnosed with cancer and has been getting treatment for that cancer in the country of cuba. >> gretchen: kelsey grammar for mayor of new york? the conservative republican tells today's new york post he's planning to run for mayor, positively in the big apple. he says he looks at politics as a chance to give back. he says the leap from actor to politician isn't that great. both he says require a, quote, narcistic personality. he might have to get past a few other things as well. that will be up to the vote force decide. >> steve: now it's time to turn to donald trump who joins us every monday at this time. good morning. >> good morning. >> steve: we were talking about kelsey grammar running for mayor of new york. i know you have kind of thought about president. but you are mr. new york. would you ever run for mayor of new york? >> no, i don't think so. i really don't think so. michael bloomberg is doing a really good job. i'd like to keep him here. but i guess this is about it.

but we have a very good mayor in new york right now. >> gretchen: i like that. you didn't bring any speculation at all because let's face it, you're still keeping the whole thing open about running for president. i'm interested in knowing how you look at this whole debt deal right now and your reaction to it. the first question is, if you were a member of congress and not the president, would you vote yes for this deal? >> well, first of all, before i get to that, the country is just in such trouble. we are in such a mess, and what's happened to this country over the last period of 20 years. i'm just blaming obama, although he really exacerbated it and made it worse. but what's happened to this country over the last period of time is just unbelievable, where people are saying china takes over in 2016 and other countries take over. we're like a laughing stock throughout the world. so it's a very, very sad situation. believe me. >> peter: in terms of situation, mr. trump, you're a great judge of character. let's see if we can grade the players in this drama together. let's start with the president.

how has the president done? has he exercised leadership or not? >> he's missing in action, peter. he absolutely is just missing in action. he wasn't leading. he didn't submit his bills. he just followed. and you know, he got what he wanted. he really got something good. he got a pass on the election. in other words, nothing much is coming up before the election. and if you really look back over the last two weeks, the one thing he was insistent on was that you don't have a six-month deal or one year deal. he wanted to get this mess past the election. so he really had a great victory and i'm shocked that the republicans allowed him to have that victory. i think the biggest mistake the republicans made, frankly, is allowing him to have that victory because that could lead to a victory of obama again, although it's inconceivable. >> gretchen: but also if you couple that with the fact that he appeals to the independents by not raising taxes potentially. >> well, i don't think he appeals to anybody right now. i don't even think the liberals like him, if you want to know

the truth. i would not be totally surprised, i mean, it's probably a long shot, but if you look at obama on afghanistan and iraq, that's not liberal. if you look at obama on so many other subjects, they are very unhappy with him. i wouldn't be surprised if you remember with jimmy carter where kennedy about a little number on him by running. i wouldn't be surprised if some liberal person came out and took him on. >> steve: you might be right. but he did want to jack up taxes on people like you, but that is currently not in the deal. let's go over to the big board. what about john boehner? i know you were highly critical of the process. now that it looks like it's almost in our rear view, what sort of grade would you give him? >> i think he really worked hard. you could see it. he aged 20 years in the period of the last two weeks. he was in there -- >> steve: we all did. >> that's true. that's actually true. and i watched you guys. but he was in there pitching and really working hard. so i have to give him a for effort. as far as the bill itself is

concerned, you know -- this goes for everybody, i heard 5 trillion. i heard 4 trillion. where is the none? there is no cutting. there is very, very little cutting. >> gretchen: you still didn't tell me whether or not you would vote for the deal that's on the table right now. >> i probably would not. there are too many things in there that i wouldn't vote for. one thing would be giving the president a pass on having it done correctly because basically i think that's really a mistake that the republicans are making. this is almost like the lame duck session where they brought him back to life. this is the same kind of a thing. he rose like a phoenix. he was absolutely gone and he rose like a phoenix. they brought him back and i think that bringing him back again because he really thought that this does not come due before the election and they allowed him to get his wish on that and i think that was a huge political mistake. >> peter: let's round out the pack. senators reid and mcconnell, did they do themselves a favor in this process or do they go to the dumper? >> i don't think they go to the

dumper. i think they had a very hard time and like boehner, they really worked hard. the one that didn't seem to be working hard was the president actually. but boehner worked hard and reid, mcconnell worked very, very hard. a very difficult situation, no doubt. >> steve: what about the tea party? they came to washington to shake things up. they certainly did that. they stood on principle, pretty much united, and after this, you've got to figure they are emboldened going forward. >> well, as you know, i've always loved the tea party. they made people think. more than anything else, they made people think. they did an amazing job. they're doing an amazing job and you know, i'm a fan. they're making people realize that you can't have $15 trillion in debt. this country is in big trouble and they made people realize it. >> steve: you're right. >> gretchen: so speaking of where this country is headed, according to the national review, the international monetary fund, imf, is predicting china will be the number one economy by 2016. do you agree with that? >> well, i agree if we have current leadership that would

happen. if we have proper leadership, it wouldn't because china is an abuser of our country. they manipulate their currency. they make our products. they take our jobs. and we are rebuilding china and yet, our schools are like hell. our roads are falling apart. our bridges, you don't even see bridges. in china, they're building them all over the place and they're doing it with our money. i will tell you, if we had proper leadership, this year china is going to make $300 billion off the united states. let's call it profit. 300 billion. we're rebuilding china. we are rebuilding china. europe to a smaller extent. but believe me, if you threw a heavy tax on china for the abuse -- and this is abuse. they're manipulating their currency. it's impossible to compete. their politicians are much, much, much smarter than our politicians and that goes from the top because believe me, obama is out of his league compared to the chinese. i deal with the chinese. i've done very nicely with the chinese. and i will tell you he's out of his league. so i agree that that will happen

in 2016 unless we have a change and get really smart leaders, which could happen, and then will not happen. >> steve: all right. donald trump who joins us every monday at this time, thank you very much. have fun today running your empire. >> thank you very much. >> gretchen: they refuse to spend more and got washington to cave. are tea partiers the new power players? one freshman from each house is here live. senator kelly ayotte and renee elmer. >> peter: he's still dragging her heart around. why maria and arnold spent the weekend together. every day, all around the world, energy is being produced to power our lives. while energy developement comes with some risk, north america's natural gas producers are committed to safely and responsibly providing decades of cleaner burning energy for our country,

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♪ hah >> peter: almost a quarter to the hour, we have quick headlines. fox news alert, wall street futures are up sharply on news of the debt deal.

dow futures up about 155 points, with just 45 minutes until the opening bell. markets also rose in asia and europe overnight on word of the deal. good deal. and one month after filing for divorce, maria shriver and arnold schwarzenegger spotted together in beverly hills? the two, along with sons patrick and christopher, enjoyed a birthday lunch for arnold's 64th birthday. shriver reportedly picked up the tab. steve? >> steve: that's nice. fox news alert. congressional leaders worked through the weekend and are now handing the debt deal over to the rank and file to approve perhaps as early as today. but will they? joining us right now is new hampshire senator and a member of the senate budget committee, senator kelly ayotte. good morning to you, senator. >> good morning. >> steve: nice to have you. i know you haven't seen all the details yet, but what does your gut tell you about how you're

going to vote on this? >> i really appreciate the work of the speaker and our leadership and making sure that we avoid default. but one of the concerns that i have is that we're still on pass to add close to $70 trillion to -- $10 trillion to our debt in the next ten years, even with the reductions in this bill. i haven't seen the language yet. we're receiving a briefing at 11:00 o'clock. i'm going to look at this very closely. but i'm really concerned. i want to avoid default and avoid downgrade. one of the concerns i have is that i don't think this deal will insure that we don't lose our triple a bond rating. >> steve: you want something bigger. >> well, i think it's important. this is the largest debt ceiling increase in the history of our country, and we're on a path right now, we've heard it from the rating agencies, but we can see where we're headed if we have a downgrading of our credit, it will cost all of us more. it will hurt our economy and so that's one of the concerns i have about it. i do appreciate the hard work that was done by the speaker, our leadership, in avoiding

default. i think all of us want to avoid default. but i think we can do both. >> steve: you're on the armed services committee, you're a committee member there. one of the things that if this super committee gets together and they make some suggestions and they're not acted on, these triggers are going to hit the fan. one of the triggers is it sounds like half of the amount they would have to extract would come from the pentagon, and i don't have to tell you, we're fighting what looks like two or three wars right now and people need equipment and 400 or $500 billion is a big chunk to take out of the pentagon. >> it certainly is. i'm the ranking member. i come from a military family. our number one duty is protect our country. we need to make sure that we continue to give our troops what they need. we're still at war. there is still terrorists out there that want to harm us and kill us and i think that that's really important with whatever comes out of this. there is no question we can cut some things from defense, but we

need to protect our country. >> steve: sure. just one exit question. one of the things that members of the tea party were able to get out of the deal, the sweetener from john boehner, was a vote on the balanced budget amendment and i know the house and the senate have got to vote no sooner than the first of october and by the end of the year. it will certainly pass the house. john mccain was on 48 minutes ago. he said it would not pass in the senate though. what do you think? you're in the senate. >> well, i think, unfortunately, back in 1997, it only lost by one vote in the senate. so right now i'm hopeful that my democratic colleagues will see it makes sense to balance the budget. only in washington is the notion of balancing your budget called extreme. >> steve: only in washington indeed. thank you very much for joining us today on capitol hill. we know you got a busy day and could be a vote on this in no time. >> thanks. >> steve: you bet. all right. next up, we head over to the house of representatives where the vote tallies are in a dead

heat t. could go either way. we're going to ask republican congresswoman renee elmers and kathy hochel what they're going to do. let's check in with alisyn camerota for what happens in 11 anyone. >> we're going to do much of what you're doing because yes, we have a debt deal, but is it a done deal? not everyone likes it. so we're going to talk to a democrat, a republican, and a tea party member about whether they will vote for it. we'll also break down the details of the bill for you. and the father of the missing new hampshire girl finally speaks to the press, but does his statement raise more questions? we'll explore all that when bill and i see you in ten minutes. i. not only kills fleas and tick it repels most ticks before they can attach and snk on us. frontline plus kills but doesn't repel. any tick that isn't repelled or killed may attach and make a meal of us. [ male announcer ] ask your veterinarian about k9 advantix ii. listen to this. three out of four americans don't get enough vegetables.

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>> gretchen: the senate will likely take up the debt deal first, possibly today, before it moves over to the house.

so can speaker john boehner and leader nancy pelosi turn dozens of nays into yeas in 24 hours? let's ask both sides. joining me now, north carolina republican congresswoman republican na elmers and kathy hochle. good morning to both of you. >> good morning. >> gretchen: welcome to "fox & friends." you were the final person to give the argument against john boehner's debt bill on friday. will you vote for it now? >> there has been substantial changes and we need to put this to bed right now and not kick this can down the road for 18 months, which the original boehner bill would have done. i think this economy desperately needs security and the knowledge we've taken care of business and we can start moving forward. we need -- this is what this bill does. the number one attraction to the bill, which i haven't read yet, but i will examine it closely and probably vote for it, is that it gives this economy the certainty it needs, we don't get downgraded in our bond rating, we don't cause a default and we

don't continue the insecurity we're putting in not just the american markets, but the global markets. we can't do this to our economy, it's too fragile. let's get the job done. that's what the american people sent us here to do. >> gretchen: yet we're not sure whether or not we actually will still get that downgrade because the rating agencies were looking for $4 trillion. congresswoman, is it satisfactory to you, because you are a freshman part of the tea party contingent, i'm assuming you would vote yes for this? >> i am in favor of this at this point. however, i do have some questions as my colleague does, about the plan going forward, especially -- we got to make sure we're doing the right thing. i've got some questions, but at this point i am in favor. >> gretchen: congresswoman hochle, you are a new member on the armed services committee, and one of the trigger effects on this second part of the deal is that if that 12-member committee cannot come to an agreement as far as how to cut another $1.2 trillion from the budget, then there could be

massive cuts from the department of defense. as a new member on this committee, you have concerns about this? >> i haven't even been received on the committee yet. even the secretary of defense would admit there are areas for major cuts in defense. we have to be smart how we're doing it. in a vote that was taken over a month ago, i voted to cut $6 billion because i think we're spending too much money trying to give money to pakistan to buy friends and that's not working. so i'm willing to look at it very closely, but the number one issue that was important to me not only in getting this under control so we don't default is making sure we're not touching beneficiaries of medicare and social security because i held a town hall meeting on saturday, 6,000 people dialed in and the number one issue was get our deficit under control. number two, don't mess with medicare. i have some ideas on how to cut the cost of medicare. i think that's got to happen. we all agree on that. this plan does not do that.

>> gretchen: medicare could be cut in the second round. correct? >> that is correct and that is an agreement that can be voted on in the house and senate. so you can see how important it is. we really want to do everything we can to empower and to strengthen medicare. that's what we're doing as republicans. we want to repair and replace and strengthen medicare, not cut away. so those are our concerns. you know, most importantly about this as my colleague has said, there are no tax increases in this plan. that's the real solution. >> gretchen: at least for now, yet again, nobody knows about that 12-member committee coming up. thank you both for your time. you have a very busy schedule today. >> thank you. >> gretchen: more "fox & friends" two minutes away. i kept feeling this radiating ache everywhere.

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