>> the fallen, right. >> sean: he said i see many of out there. >> excuse me this man nailed osama bin laden who did a courageous job in libya, you sit back here he's probably been the best commander in chief. this is going to -- [ talking over each other ] >> you've had a long night bob, give it a rest. [ talking over each other ] >> greta: this is a fox news alert. she is so mean. hurricane irene showing no mercy. still causing trouble. right now her death toll >> this , delaware, pennsylvania, new jersey, new york, connecticut, massachusetts and vermont. that death toll is going to get worse. massive destruction to

historic flooding a better look at the widespread devastation from irene. much more on this straight ahead. but first, perry under attack not for his policies, nor his experience. that would be fair and that is journal. . is name calling journalism? politico's headline is: is governor rick perry dumb? what is up with that. joining us rick klein. we all know the author, it is a terrible headline. we know the author of the story. >> look, i don't think -- whatever his brainpower is he was elected three times governor of texas many now a first tier presidential contender. smart enough to be elected, i think we can stipulate that. whatever his book smarts i think that is irrelevant for this discussion. he has met the bar in texas several times. and he's had a record that he

is now running on. >> greta: the power of the media, you can destroy a candidate unfairly. if the media is so dumb, to use the word from the article, and even cruel to say, is perry dumb? and to put that in expect we are talking about it now, they talked about it on hannity, now that will be stuck out there, there will probably be a "saturday night live" skit about it. who wrote it, probably never met him it is open season on these candidates, not good journalism. >> it puts a final point on a question. he had a month here of pretty good publicity. he came in and seemed to be what republicans are looking for. leading if in a couple of national polls. this happens like clockwork after the first couple of weeks people start to dig into the record. the times and post both had stories. >> greta: were those stories about whether his policies are dumb or whether he's made bad

mistakes or bad judgment? that's different than taking a swipe personally at someone. in the article, first i thought it is jut a headline. -- it is just a headline. it refers to him as light white, incurious, doubts about perry's intellect. isn't so deep, governor good hair. it goes on and on. >> the broader point, what is legitimate, the guy does not -- he's not someone that knows the details of policy. >> greta: that's fair. >> totally. you want to flip it to what it means for the presidential contest? it is going to be how he wears unpressure. first debate next week, how does he hold up there? >> greta: i think this stuff sticks. when the media gets nasty and mean and when they go after someone personally, everyone chatters and giggles about it behind the scenes. i don't think it is fair to the candidate.

>> this is part of the vetting process. part of what you would have to face as a presidential candidate these days. >> greta: why? because the journalists looking at your policies to see what you have done in terms of your work experience just taking swipes? >> we ask a lot of questions. character questions are part of it. background questions are part of it. i think for him, rick perry is one of the challenges he has to show that he can bring it. the idea of filling out this resume a little. showing up against candidates -- if rick perry has a stellar debate performance next week and shows he knows policy and has a command of details and able to hold up against romney and bachmann the other folks these questions 10 to fade away. i don't think this can stick without evidence. >> greta: do you think it is fair? would you nut article out under your name? >> headline went further than i would be comfortable with personally. if that's what the reporting

says you have a responsibility to present that as well. >> greta: don't you think the reporter would go back and look at his policies, about his hair that didn't take a lot of reporting. >> he does have good hair. growth get he does have good hair. paul be -- he was not known as a bright guy. paul begella a political opponent. it wasn't like his policies weren't any good and he did a terrible job in texas. >> someone made the point the other day he's what everyone thought bush was. the swashbuckling texan who doesn't have a command of policy isn't a detailed guy. he really is a texan and does not care about policy as much as he does about the gail. he's a great campaigner. growth -- >> greta: i like to see journalism be a little more

like journalists. rick nice to see you. >> president obama is back from martha's vineyard what about jobs? he promised for starters first thing this morning he named a new chairman to his council of economic advisers within week before the president is expected to layout his new plan. who is the new chairman and will he make a difference? louise story joins us. who is the new appointment? >> alan kruger longtime professor at kingston. the idea that perhaps in professor from princeton can come in and help with this job's crisis we are having. >> greta: does very any experience? he has studied labor, studied unemployment. does he have any real life experience hiring people in a

work environment? >> his post reason real life experience was earlier in the obama administration he was the chief economist for the treasury department. while there one of the big things he was very active in was the build america bonds program which helped a lot of cities and states raise money with the federally backed programs that was a a bit of a boom to the wall street banks. his research on unemployment the most important piece has to do with the minimum wage. a lot of people say if you raise the minimum wage, you will make it so that companies don't hire as much. what his research has shown is, even if you raise the minimum wage, companies will still hire. >> greta: i guess it depends on whether you raise it a dime or $50. >> of course. >> greta: tell me, in terms unemployment dogging this country. there's so many americans across the country, as you

know, who are desperate to get jobs. we have to turn that around. the strategy has not been effective. unemployment has been -- >> we have not had much improvement. >> greta: does he have or experience or ideas or written or shown anything that he has a strategy different from the one the white house has been employing since january of '09? >> it is unclear what his policy proposal would be. obama may already have some plan that work. a lot of people hope he does, since time is running out. this appointee may walk into a plan that has already been somewhat laid out. that sad, -- that said, one of his policies that has been he came out and say he would like a consumption tax this is a bit controversial. he made an interesting proposal. he said don't do it right away

that would be hard on the economy and lower income people who have a big percentage of their spending money that has go consumption. he said, announce now that you are going to do it in two years. that would make everyone spend lots now. go buy your car now, clothes, anything you can buy to get ahead of that tax which is coming. it might help in the short term. in the long term, i would encourage people to save and raise money. i think a lot people will be watching to see if once he's back in the white house vicing the president if we here -- advising the president if we hear more about that consumption tax. >> greta: everyone is hired in any administration a particular skill the president is looking for. is his job to come up with a strategy get us out of the dull drops economically? or more seen as -- doldrums economically? or -- >> it is both.

he's supposed to look to history and research advise the president on what may or may not work. he's supposed to be a voice in front of the cameras out there in congress convincing people. when he was in the treasury department as chief economist, he was instrumental in pushing for some of obama's economic policies, which of course people are saying now a lot of those economic policies did not go far enough and the stimulus was not big enough back then. he helped push for those back then. you are sure to see him pushing a lot for obama's plans now. >> greta: those are plans that failed. >> it is hard to know what it would have been like without them. if it would have been worse. he was certainly promoting on ma's plans. the other twist of course is -- phaopl's plans. the other twist of course is because he has already been affirmed once in the senate, the administration is hoping he will breeze through this

time around. >> greta: did the president consider anybody with which is experience -- with business experience? >> he does have the ceo of general electric who is an adviser to him on economic and job policy. he's got him. he's also got a former executive from jpmorgan as his chief of staff. those are people with real world experience. >> greta: those guys are at the top. how about somebody who has a country with 200 people and has hands on experience. not the guys at the top of these corporations. people who have really done it. >> who would you suggest? >> >> greta: there you go, you stumped me. on that note i'm getting out of this. >> thank you. >> greta: president obama has been teasing us he has a new jobs plan but won't tell us until after labor day the house republicans are trying

to beat him to the punch. eric cantor announced the propose tald of the republicans. what is it? -- republicans are trying to beat the president to the punch. what is the republican house plan on jobs? >> greta, before i get to that, let me touch on the last clip in regard to this gentleman from princeton that is coming onboard with the obama administration the council of economic advisers. if he is going to recommend a consumption tax the senate should confirm him 100% and let's get this guy onboard. we've been waiting for the fair tax for a long time. i say oo-rah! if he going to do that. >> greta: i guess he has your vote. >> if that's what he is going to do. as far as our jobs program as eric cantor announced today, earlier today, that as we go back and he set a schedule for

this, back in february i think february 11th, we passed house resolution 72, requiring each of our committee chairpersons in the house to look at different rules and regulations of agencies under their jurisdiction that needed to be either reformed or repealed. they have done a fantastic job. i'm on the committee with fred upton and the other committees who have come up with a number of things. there are 10 specific rules and regulations that over the next several months leading up to the winter and spring of next year. we will be moving to repeal those regulations. they are job killers all across the board these utility mack and cement mack and farm dust and -- all of these

things are killing jobs. >> greta: is it possible this going to be a declaration of war come next week when the president cop back with his plans the republicans will try to him and democrats will try to block your ideas. would it be improbable that the places that you don't like rather repeal them now let's get a moratorium if you think it is is up a good idea to rev up the economy. rather than the more harsher thing which would be change it right away and have a war with the democrats. what about a moratorium on some of these? >> i love that the epa in 1970 supposedly employing many 'tises and folks that know what they are doing, some 17,000 with a current budget of 20 billions. i was thinking about this, why don't we send those yo-yos

home for two years with pay -- [ talking over each other ] >> let the economy motivated and let's get out of station and start creating some jobs. i don't think the country is going to go to hell in a hand basket in the meantime because of pollution of the air, water or land. >> greta: i don't mean to suggest i'm in any way in favor of any pollution of anything. >> no, i'm not. >> greta: what i'm saying is we really in an economic crisis. there are many americans hurting to avoid a war. i see the fight right now over the regulations. if there's some way we can put the fight on told for two years while we try to rev the economy up. i don't know if that is practical. >> i think it is practical. i'm all in favor of that. we have other tools that we can use. congressional review act, as

you know, i guess it was passed in the mid 90s. we've only used it twice now. the latest alliteration of that was in regard to the sec. they wanted this net neutrality rule. the broadband industry and the internet has flourished under deregulation, if you will. now all of a sudden this is a regulatory hammer looking for a nail in the house under the congressional review act we repealed that rule and it is sitting in the senate right now. harry reid is sitting on it. all he has to do is bring it up and let's get rid of that. we want to cooperate with the administration. we want to pass the three trade agreements that we've been waiting for three, four years with colombia, panama and south korea. and yet, obama -- president obama, excuse me. will not submit those trade agreement to the congress.

[ talking over each other ] >> greta: congressman i'm sure you and the president have a lot to talk about next book when everybody is back in town. thank you congressman. >> i'm looking forward to it greta, thank you. >> greta: big news about the guy who murdered 270 innocent people. scotland sent the killer free sending him back a royal welcome in libya that enraged americans. we helped the libyan rebels, will they help us now? ambassador bolton, next. >> wisconsin supreme court -- [ inaudible ] ♪

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>> greta: new reports that the lockerbie bomb bedridden and on the edge of death. is it true? we've heard this before. megrahi was the own person convicted and sent to prison for the bombing of flight pan

am 103 blowing up the plane 38 minutes into flight from london headed to jfk in december of '88. two years ago scotland let megrahi go saying the mass killer had cancer and only a few months to live. he's still alive in libya. senators asked libya's rebel government to held him accountable. rebel leaders say they have no plans to deport him. always taken when i hear that scotland released him for compassion. a guy who had no compassion. >> he spent a little over 10 years in jail. 270 murders that works out to about two weeks per mur. the scottish authorities had to be believing that a two week sentence for murder was appropriate. no way you can justify that.

>> greta: i did want to talk to you about meg me -- about megrahi. i suppose this could be a chance it is another act. >> he was soed to die three months after he was released. -- it is two years he's still alive if he does have cancer i suppose he could die at any time. or this could be his relatives' effort to try and get him more assistance or protection. >> greta: now the complexity of the fact that we've aided or nato has aided the rebels. we helped nato immensely. now the rebels are reluctant to turn him over should we or the scots ask him for. at least making the statement. tell me the diplomatic or foreign policy issues associated with this? the trouble that the rebels have? >> i don't know what trouble the rebels would have. megrahi was an agent of the

gadhafi government. i have no doubt that gadhafi gave the word to blow up pan am 103. while we ae at it, why don't we ask them to send us gadhafi so we can try him first flash flood the rebels want a complete break with the gadhafi era what better way to show that than to turn megrahi over to us. >> greta: i don't know who these rebels are. why even issue a statement or make a statement? >> apparently they've contradicted themselves i'm not sure what their position is. if they want to demonstrate a little gratitude to the united states for having over thrown gadhafi this would be a good way to do it. and to show they've renounced the practices of that regime. >> greta: what happens with megrahi, if he dies he dieses? the families just suffer the

indignity of what the scots did? >> this is outrageous interest start to finish. the scots didn't have the does shun to do what they did. i think our statement department dropped the ball. -- >> greta: they were careless or complicit? >> i think complicit. i'm go that far. i think if they had jumped up and down and said under no circumstances do we an i think the british government would have had to think twice. the scots pretend they had discretion to do this, they did not. the only reason megrahi was tried unscottish law was a three-way agreement between washington, london and the scottish s -- authorities to try him that way. it was put out by the u.s. government in the clinton administration, megrahi would remain in a scottish jail. >> greta: how do the -- how could the brits do this to us? they were our best friends. >> it is a disgrace.

inexcusable. it had to do with british petroleum and their -- >> greta: how much money do you need? how much oil do you need? >> the new conservative government in the united king come, there is no excuse for it, it is a disgrace. it is a disgrace for scotland to have done that. i say that as somebody who is predominantly scottish by heritage, it is embarrassing. >> greta: did they say it was about oil? >> the british have wanted to get into libya for a long time. >> greta: this is beyond me. there's some honor even like we are their best friends, these were our americans, our kids, our college students there were foreign nationals. >> british citizens died, 11 on the ground in scotland. idea that there's justification to demonstrate

compassion for the guy who kill 270 people in cold blood, just mist fews me. >> greta: who made -- who made the decision? >> i think by prime minister brown's government. he's -- [ talking over each other ] >> greta: to me this is like a decision -- >> there's no other explanation if they allowed this to happen at a lower level is miss fee sans in office. >> greta: when -- when i talk to the family members -- >> i don't think we ought to let in go. what we have done to give the rebels control of libya -- >> greta: how did they let this happen to us? >> there's a lot to go around. >> greta: indeed. nice to see you. >> any time. >> greta: coming up the dysfunctional wisconsin supreme court. justice david prosser admits touching justice's neck, she

is doing a lot of crying. a new tape releask

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>> greta: the damage is breathtaking. hurricane irene is still

causing heartache. causing 38 deaths, .4 million homes and businesses without power, billions worth of damage. flood waters washed away bridges, roads and homes. in new jersey swollen rivers and creeks, devouring neighborhoods making it hard for crews to battle fires like this one today where a house exploded. in vermont, hundreds of people ordered to evacuate as streams and rivers rose above their banks. transportation brought to a halt many travelers are stranded. airports are scrambling to get back on track. here's a stunning image, soldier on duty at the tomb of the unknown soldier in arlington national cemetery. a guard has continuously watched over this resting place since april 6th, 19348. even hurricane irene could not break that tradition. >> wisconsin state

supreme court justice david prosser admits he put his hands around the neck of a justice and said she charged at him he was defending himself. all this done in front of four other justices. a deck was called to find out -- a detective was called to find out what was going on. theninterview was taped. here's justice prosser telling the detective his sigh of the p >> so i'm look here and suddenly, she charged at me. as simple as that. i've heard some stories about walking no, she charged at me. it would be just like this. she is coming on and all that i can remember is this kind of looking this way, her face is

right in this area. and her fist is right about here. now, i don't know, but if my hands were here, i kind of suspect i went like that. as simple as that. now, did my hands touch her neck? yes. they did. i admit that. i admit that. did i try to touch her neck? no. absolutely total reflex. >> greta: this is the highest court of wisconsin making important decisions for its citizens. joining us jason stein report we are the milwaukee journal, subsequent to this incident, whatever happened. a detective investigated and no criminal charges will be brought. now it is being sent to a

judicial commission. why were they fighting to begin with? what was it that both sides are trying to achieve before the assault? >> well, this goes back to governor scott walker's bill to repair the state budget and in most collective barginning employees your viewers are familiar with that bill. it was struck down by a trial court judge in march. in june the court was arguing whether or not the timing of releasing their decision that would restore that law. justice prosser and other people in the majority on that decision were eager to get that decision out the door before the legislature took another vote to essentially pass the same legislation again. there was an arguement over when to release this decision and they were trying to get it released more quickly. >> greta: justice prosser was

accusing chief justice abramson the author of the dissent of dagging her heels so it would be passed this deadline. he was accuse her of playing politics so they would have to have another vote. i guess there lies my real criticism of the court besides the fact i don't think people should be charging each other and putting their hands around each other's throats. the wisconsin supreme court was haiging -- was releasing a decision for political reasons, rather than for judicial. >> certainly the politics of this, as you know wisconsin everything has been extremely partisan and political in reason days. i'll leave that to people to decide what they may of that. whether they felt that was praise worthy because they were trying to be timely or that was playing politics. yeah, they -- certainly prosser in his taped testimony that you just gave an excerpt from, did talk about feeling that the -- he felt the court

was in an awkward position. they felt they needed to get this decision out quickly. >> greta: i read the police reports. it is so weird. like they are at that time ing on each other, they have a meeting -- meeting they bring in the chief of police, justice walsh stars crying and rehearses some speech, he denies it, another justice says -- this is so weird, i cannot understand how account people of wisconsin have any faith when it looks like -- how can the people of wisconsin have any faith when it looks like kindergarten, at best? >> it is awkward for the core, the people of the state. every legal observer has expressed nothing but dismay over this things that you never expected to hear about the court. justice bradley saying she called him buddy because she wanted to put put him in the diminutive. him saying when he put his

hands-on her neck he could feel the warm of. there are things you don't expect to hear justices saying. >> greta: anyone asking them to step down? peeps lives depend on decisions of the supreme court -- people's lives depend on decisions of the supreme court, this isn't fair to the people. are newspaper editors saying they got to go? >> you are right this is sort of funny, but no joke. one thing that i've heard the time when this came out, governor walker talked about the possibility of having an appointed rather than elected court that didn't go anywhere. didn't seem like that proposal -- seems like it would be dead on arrival in our legislature. certainly, there's been a number of people saying, look this can't go on. something has got to change. >> greta: now it has again to the judicial commission to

investigate. -- the commission investigates has hearings to determine whether there is any wrongdoing. if there is, they give it to the supreme court to decide what to do, right? >> you got it. >> greta: that is insane. can we agree that is nutty? they've sent it to a judicial committee to decide. the supreme court decides what to do about themselves. >> it is their policing themselves, yes. >> greta: thank you. coming up, wisconsin governor walker's collective barginning law just provoked another political showdown. this time republicans are banned. banned from what? find out in two minutes. >> secretary of state hillary >> secretary of state hillary clinton

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>> from america's news headquarters, i'm ainsley earhardt. no immediate relief for hundreds of thousands of air travelers, stranded by hurricane irene. the airlines saying that it could take several more dice get passengers to their final deftinations. irene forced the cancellation of more than 13,000 flights, ground crews are working around the clock to get planes airborne again. and airports must gear up for a deluge of extra flights before the labor day weekend. there are reports that members of muammar al-qaddafi's family have fled to algeria. his wife two, sons and a daughter crossed by land, according to the country's foreign minister. libya's rebel council has demanded their extradition. algeria won't say if qaddafi was with his family. the white house has no indication that qaddafi has left libbia. i'm ainsley earhardt. we return to "on the record" with greta. thanks for watching fox newschannel. have a great night. ked there. my back to greta.

-- now back to greta >> greta: new and more political outrage. first governor walker sparked hot wire controversy with his collective barginning law two supreme court justices got into a brawl and facing an ethics investigation. labor officials banning all gop lawmakers from the state's upcoming labor day parade. joining us is wisconsin state senator pam galloway. senator, tell me what the problem is? >> well, there's a parade that occurs annually in the city and i've been in that parade in prior years. my office called the parade organizers the labor council about a week ago and told them that we were going to sign up for the parade. we found out through representative duffy's office that he wanted to be in the parade and was told that he would not be able to attend.

we then heard through the milwaukee journal that the labor council had posted a memo saying they were not allowing the republican office holders in the parade this year that's where we stand now. today the mayor issued a memo saying that if the labor council wishes to proceed with the parade they will have to pay for the cost of the parade, which before this, it had been paid for by the city of wausau. >> greta: why don't -- do they have a stated reason why they don't want the republican law maker in the parade? >> their stated reason is related to the collective barginning bill. saying they believe that we are not supportive of workers. and they are relating it to our vote earlier this year on the collective barginning issuing -- issue. >> greta: was that to state union workers? did it also affect people in

the private workforce? >> it only applied to government workers. it is important to understand that only 15% of the workforce is represented by unions. so they were refering to the wisconsin act 10 where we restricted the collective barginning privileges to wages. and removed the collective barginning privileges for things like work rules and benefits. >> greta: if the union pays for this parade, the organization, so the city of wausau doesn't have to, do you have any problem excluding them and having your own parade? >> if labor council pays for everything then it becomes their parade. what we might do is just use the float that we have the republican party has a float and just drive that around the city. and do that kind of thing. >> greta: what has been the reaction in wausau of this?

i know wisconsin people love their parades and a lot of floats this is really a different year people are very angry. >> i haven't heard feedback from a lot of people. i think there is some dismay that this event which is supposed to be a finance, family oriented event has been -- to be a fun, family oriented he did haven't has been injected with this partisan rancor. i think people want get our economy back in shape. there's a lot of skepticism and disappointment about this situation. >> greta: how many times have you been in this parade? >> i was in the parade last year as a candidate. and the prior year as the chairman of the republican party marathon county. i'm disappointed to not be allowed in as an elected representative. it is ironic that last year i

was allowed in as a candidate. and this year i've been elected by the people of the city of wausau and the rest of the district and i can't interact with these people. >> greta: i'm sure this is not the end of it. i hope you come back if there is another chapter. thank you. >> thank you. >> greta: governor sarah palin and senator mccain, three years ago the governor was chosen to be his running mate. what else is the senator celebrating tonight? also, is she thinking about another run? will hillary cli

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>> greta: here's the best of the rest. happy birthday to senator john mccain. the senator's twitter account has been buzzing all day with messages from well-wishers. offering his thanks by tweeting thanks for all the birthday wishes. if i had known i would have lived this long i would have taken better care of myself. do you know what he did three years ago? he tapped into sarah palin to be his vice presidential candidate.

>> is the president certain that hillary won't run against him? [ laughing ] >> you win the award for original y. >> can you guarantee? -- are you sure hillary is not going to run? >> you have to ask her. we are fairly confident that we need to focus on the task at hand. >> greta: secretary of state clinton has ruled out another run for the white house in the past, but i guess anything is possible. >> routine pat-down is anything but. a woman arrested for trying to smuggle two birds through. she wrapped the birds in socks and taped them to her body. one was taped to her chest, the other to her leg. fish and wildlife officers arrested the woman on suspicion of smuggling an ink

deered species out of the united states she was headed for china. we are -- we are happy to report the birds going to be all right. >> who says no such thing as a free lunch? ohio lawmaker launching a contest called there ought to be a law. she is asking voters to accepted her proposals for future ledge -- legislation. she will invite the person with the best idea to lunch. the proposal may be turned into a law. constituents in the suburban cleveland district, get your thinking caps on deadline september 30th. >> did you know singer katy perry is from wisconsin? maybe not but she sure looks like she.

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>> greta: 11:00 is l here, flash studio lights, it's time for last call. is singer katy perry a cheesehead?