program, pakistan, there's more out there and we need to keep working it. >> sean: mr. vice president thank you for your time. >> great pleasure to see you. >> sean: that is all the time we have left. tune in this thursday night, 9 p.m. eastern my second interview with vice president cheney. we'll have an audience and talk about topics such as the iraq war, valerie plame, scooter libby and much more. thank you for being with us. >> greta: distressing question. is our government covering something up? new information about our government's bizarre fast and furious operation in which our government supplied weapons to mexican cartels. in -- one of those weapons ended up at the scene of the murder of one of our border patrol agents. there's news the acting director of the at if has been reassigned. is he being forced -- forced

soe higher up? much more straight ahead. >> meanwhile, mexico's president is slamming the united states saying it is our drug problem that is causing the violence in his country. that's not all he's saying. >> plus, on the record special only right here. we'll show you how your tax dollars are being wasted. we are not talking millions, but billions and billions. we may have to peel you off the ceiling after you watch this one. >> first, have you heard about this? in the past two days, top two republican presidential contenders have accused the obama administration of putting our national security in danger. >> cuts of this magnitude can own the product of one of two different beliefs. on the one hand, is the wishful thinking that the world is becoming a safer place. the opposite is true. on the other hand it leaves us with the belief that america should become a lesser power. and that flows to the conviction if we are weak,

that otay rans will decide or the -- or the tyrants will decide to be weak as well if we can talk more, engage more, pass more u.n. resolutions that peace would somehow break out. that may be what they think at the harvard faculty lounge. but it is not what know from the battlefield. >> we cannot concede the moral authority of our nation to multi-lateral debating societies. when our interests are threatened, american soldiers should be ledx> greta: joining us is former u.s.vñ ambassador to the u.n., john bolton. good evening. both statements, i thought if we had a strong economy, unlimited money, we probably wouldn't be hearing those statements, i didn't think. >> i think we would. i think contrary to the the beltway political commentary who say americans don't care about foreign policy they are only concerned

about the economy. i think that is wrong. i think governor perry and governor romney hit had important note. americans care about america. exceptional country. they don't like their president apologizing for the country. and they want a strong national defense. it is a deep gut level feeting that the candidate who taps -- level feeling. the candidate who taps into that has an enormous issue with president obama. you look at one of the big complaints, certainly romney mentioned the fact cuts in the defense budget. the reason is because we are going broke if we are not broke already. we are going to see more and more of that. the president is7s going to get hammered for that as though he's weak on defense. >> if you don't have a strong economy, obviously, you can have a strong national defense. if we can't protect our interests around the world, our domestic economy is in peril.

romney's speech was longer so had an opportunity to make an important point. of course there's waste and fraud in the defense department budget. you will talk about that later tonight. part of the government inherent in government. the thing to do is eliminate the waste and fraud and reinvest in defense. don't think that you can make savings by cutting the waste and fraud and cutting the defense budget. >> greta: it is going to be later in the show i did research for my own amusement. candidate president obama said he would go line by line through the budget and get rid of -- in 2008 in missouri. famous last words. they all say that there's a new study that just came out that will be released tomorrow this is the wartime commission contracting report to congress. it says the report estimates between 31 to 60 billion in waste and fraud in wartime contracting in iraq and afghanistan. if we were better stewards of our money or our politicians, we would be stronger and the

nation would look stronger within the world community. >> i don't think there's any question. i think you could find that or more in terms of waste, fraud and an bus in domestic spending. -- and abuse in domestic spending. we face a huge battle over the budget. the idea that somehow you can cut defense spending equivalent with cutting domestic spending, risks our future. there's an interesting development today, congresswoman iliana ros-lehtinen introduced a bill to change the way we fund the u.n. if there's a fight between cutting defense spending or contributions to the u.n. and other multi-lateral organizations it will be interesting to see how congress handles that. >> greta: one of the things that within of the governors talk about, -- that one of the governors talked about, [ unintelligible ] the one in cairo, early on in

his presidency he was talking to the muslim think that was supposed to be the big one that was going to change how the muslim world looked at us. that didn't work out well. >> the whole attitude that talking a global war on terrorism is somehow offensive to the muslim world is condescending to muslims. muslims around the world have felt the brunt of terrorism over the years. they know what a threat radical islam is. they want american leadership to help -- neat threat. it is self-defeating not to be able to describe the kind of world we live in. that's a problem for the obama administration that ties in to their apology mode. >> greta: they had a rude awake that speech. >> speeches alone don't mean a thing in foreign policy. >> greta: action speaks louder than words. then the missed opportunity in iran in june of '09 when there

was rumbling on the street. i think the president has gotten a rude awakening. we have problems in egypt, tunisia, libya, iran, north korea, mexico, yemen. some definitely preceded him becoming president. these are not problems that can be talked away. >> two basic problems with president obama. i don't think he cares about foreign policy and national security. i know that sounds shocking. >> greta: i don't agree, but go ahead. >> unlike every american president since roosevelt the day after pearl harbor, i don't think he gets up every morning and his first thought is what can i do to make america safer. i think he wants to restructure our domestic economy. he does not see the world as terribly threatening or challenging to america. i think that affects everything he does in the national security field. >> greta: i think many americans are hoping he is thinking about the jobs.

>> a president has to be able to walk and chew gum at the same time. >> greta: i think things, -- when you look at this list of nations and all the uncertainy, i suspect he may not have the right answer we may not have the money to do the things we want to, but i suspect he's well aware these are threatening times is >> but he's not acting effectively. and the rest of the world sees weakness in the white house and moving to take advantage of it. >> greta: it is hard to look strong when you are begging people for money and you don't have a dime and your leaders are fighting. >> the president spent close to 900 billion dollars of wasted stimulus money he could have spent, 100 billion dollars of that to beef up our defense capabilities. >> greta: i guess we'll see. these are perilous times, thank you. >> in case you didn't notice, we do need jobs. president obama is promising to make that happen.

he not only needs to make it happen for us, but for his own political survival. he will be out the door if he doesn't turn things around. he has 14 months to turn the economy around before facing voters on election day 2012. joining us former senator rick santorum. i know you have a different plan than the president. is 14 months is that a window so short that even if you had a ma joining wand you can't turn things around? >> if your plan is more of the same of government programs and big spending on long term projects that are not going to get the economy going right way, the answer is of course 14 months isn't enough. the plan i put forward that is getting a lot of support, is something that would turn around this country immediately the big problem in this country is we are losing those good paying jobs that made up the middle of america. when i was growing up in the steeltown of western

pennsylvania 21% of the country was involved in manufacturing. now it is nine. we haven't lost the innovation -- >> greta: now we are more of a service economy there has been some evolution in terms of what our economy is. >> that's right in that evolution we have lost a lot of good paying jobs that supported families that allowed for upward mobility that is one of the things that people are saying. look at governor perry he talks about his unemployment rate. a lot of those jobs were dead end jobs not resulting in a growing economy in the middle. that's where manufacturing comes in. we need to make things in america. i'm here in pennsylvania. we make things here. we are proud of that we have a stronger economy as a result of that. i propose take the corporate tax 35% on manufacturers and cut that to zero. eliminate the corporate tax if you manufacture and process in this country.

that will buy a lot of knows jobs back. combine that with a plan that says if you are a manufacturer that did export jobs and created things and built things overseas and you made profits, most companies have not brought those profits back because you get hit with a 35% additional tax when you bring them back. cut that to five, bring that money back and invest that in america. >> greta: i know free trade is popular. to what extent has free trade contributed to this problem? you can now get cheaper labor in other countries. other countries if they feel like they can devalue their currency so we want to buy their products instead of here. to what extent has free trade been a condition by for to this problem? >> most of the free trade agrees we've entered into have not contributed greatly to the problem. i was not someone who supported nafta i thought

mexico was not going to be a trustworthy trading partner. i think that proved out to be the case. it has been a bust in my opinion. a lot of free trade an gramms have economic and national security benefits. you don't do free trade agrees just because of economics you do it to build relationships that are important from a national security point of view. the bigger issue is countries competed for those jobs they cut taxes, cut regulation they did the things to attract businesses. i talk to lots of manufacturers in this country. none want to send their jobs overseas. we need to create a tax environment, an environment and regulatory environment that allows them to be competitive here. >> greta: you bring up regulatory. i looked up regulations it is hard to follow, so complicated. let me ask you a question along the same sort of conversation i was having with ambassador bolton. to what is our failing economy

here in the united states having an impact on our standing in the world and our political muscle and how we can try to make things better in the world as we seek to make things better in the world so it safer at home? >> no question that america's might is related to our economic might. when we suffer economically and we're now looking at whether america going to reman the largest economy in the world, that has an impact on america's on the world. it is not just our military might and our economic might. it is also the culture that we have, all the components of america matter to the standing we have to the respect to -- in the international community. people want to come to america because of our freedom, vibrancy of our culture and our religion. all of these things are important. just to focus on the military is wrong. it is important, . but all of -- it is important,

essential. all of america is important in projecting that american sense alism. >> greta: even in terms of our -- products. fact we are scrambling and trying to make ends meet and politicians at each other's throats, we owe china. it begins at some point to have a little odor. i think perhaps might have some reflection on our in the world we can even handle our own internal affairs. >> obviously, we have to get our economy up and going, most importantly to make sure people who are out of work and those who want better jobs can have them. i think you are clearly right if it looks like america is drifting along that's not a positive sign to our allies. and certainly is an encouragement to our enemies. getting our economy up and going is first important for here at home. also for america's prestige and power around the world. you are right on that. >> greta: senator, thank you. by the way, where are you?

>> i'm at the studios of accuweather. i can give you the forecast if you want one? >> greta: maybe next time, thank you senator. >> sean hannity had a special guest, former vice president cheney. he's promoting his controversial new book, a. here's a clip of the vice president talking about another former vice president, al gore. >> election night 2000, your daughter liz wakes up, congratulates you, you are vice president. then al gore, you tell ther to in the book, retracts. who retracts a concession speech? you called it amateur hour. >> we were all trying to figure without what was happening. we were contacted by i think it was bill daley. and indicated that gore was going to concede. florida had at this point been called for bush.

then, he call back to say that gore had changed his mind and was withdrawing his concession. gore may have called back himself. this business of conceding and then withdrawing the concession, i had never seen anything like that before. >> sean: what were those days like, hanging, swinging, dimpled, chads and you know, not knowing the results, shifting, results on a daily basis, what was that like for you during that time? >> we had plenty to do. my big concern was we were going to miss the transition. we had a lot to do. we had to pick a cabinet and fill thousands of positions. and we were everyday we lost time on that, because of the ongoing recount. >> sean: ever have any doubt it wouldn't come out that way? >> no, every time they

recounted, they recounted several times, every time they reconned we won. we never had a time when the result came out the other way. >> greta: part two of sean's interview with vice president cheney will air thursday night right here at 9 p.m. eastern. >> straight ahead, this will unglue you. we are scrambling to payoff our national debt. congress keeps talking spending cuts. in the meantime you are getting ripped off and you don't know it. until now. >> remember, the bizarre operation fast and furious? united states gun trafficking plan that is now linked to the murder of a border patrol agent. 74% of weapons used in the operation are still unaccounted for. right now there's bigger news inside the department of justice. congressman darrell issa is here. stay tuned.

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>> greta: right now we are in really big trouble. we are more than 14 trillion in debt and that number is growing every second. we hate to think how much it grew in the last commercial break. do you wonder whether your elected leaders care? 34 areas within our federal

government money is wasted. that money is yourses. billion -- is yours. billions lost in waste and duplicative services. griff jenkins gives us an in-depth look at the 350 page gao report. >> reporter: imagine what the government could do if it could save one billion dollars. forget the 14 trillion debt or the 500 billion dollar budget for this or that. just one billion dollars would allow the government to give a $10,000 raise to all 100,000 troops serving in iraq and afghanistan. would it allow the government to buy two million school children a brand new ipad 2. and if the salary of 50,000 a year they could hire 20,000 new employees. what if i told you there was a plan, a blueprint already existing to do that? well, the government accountability office, the gao as it is none here in

washington did an over 350 page study looking across every agency of the government and the results are remarkable. >> every agency of the government is touched in some way by this report. >> reporter: the report was prepared under the coordination of patricia dalton, chief operating officer of the gao. >> in report originated out of the mandate we had that requires the gao to look at overlap, duplication, on an annual basis. we are required to look at the entire government. our first report was issued in march of this year. it covers 34 areas where we identify potential overlap, duplication, fragmentation across the government. in addition we identify 47 areas where there's potential cost savings. we felt the report would be used as a vehicle in the budget debates and it has been over -- since it has been issued. it would provide other

potential areas for the congress and the administration to look at to identify savings. >> reporter: i think the report we just got from gao that is constructive. i think there are duplicative programs we could eliminate. i support, i don't say this often, i'm glad coburn asked for that. that's a step in the right direction. >> with one billion dollars we did a little digging. you could give the 100,000 troops serving in iraq and afghanistan, a $10,000 raise eve of them tomorrow. you could give two million school children brand new ipad 2's for learning. imagine the savings if you could save 10 billion or even 100 billion. >> exactly. that's why i think this report provides some targets of opportunity whether it is one billion or 10 billion, that's money that can be spent in a better way. >> i would ask every one of you to look at this report.

none of us would run our families this way none of us would run our businesses this way and there is tremendous potential for us to accomplish great things for the american public and still take care of those that require a safety net by eliminating duplication in the dollars we are spending that we don't get anything in return for. >> reporter: republican senator tom coburn of oklahoma requested the study, the first of its kind. >> what you should be appalled at is congress isn't doing its job in terms of oversight and eliminating duplication. we have 47 job training programs we spend 20 billions a year on them. all but three overlap each of the others and there's not one study to say any are effective in terms of job training. why would we have 47 job training programs? why would we have them all overlap? why wouldn't we test to see if they are working? >> redundant and ineffective programs infect the like a

playing long congress has punted on its -- responsibility to rein in wasteful spending. when i read this report i had the same feeling as my constituents, i hated it. >> reporter: how is this being received? >> very well received. we have touched -- i think it is at leave 10 times if not more. also, when we look at the administration, they have -- they are considering this report as their -- they are developing their 2013 budget. the director of the office of management and budget recently issued his direction to all federal agencies, all cabinet agencies on what they should consider in developing their 2013 budgets. one of those elements is this report. >> reporter: should the american people continue to be optimistic? whether it is led by the white house orsen like

yourself or republicans in the senate and congress, -- that perhaps, we may be talking a year from now, dr. coburn, and see the fruits of some of your labor and the gao's report? >> you are not going to see any fruits until we have a president that says i'm not signing any appropriation bill until you eliminate this duplication. you need somebody tough in the white house that says, the only way we are going to fund the government to run the next six months or year is if you eliminate this waste. send me the bill i will veto the bill you will have to override it and i'm taking it to american people you won't do your work. you won't eliminate the waste, fraud, duplication to the tune of 350 billion dollars a year. that's what we need. we need courageous moral leadership. somebody that will stand up for the best of this country in the lonnnzbz term rather than for political expediency. >> greta: if you think that report is all there is, you

are wrong. tomorrow night the shocking amount of your money wasted by the department of education. >> also tomorrow night, donald trump is talking to us about everything from president obama's jobs plan to the republican race for the white house. that's tomorrow night. >> new developments in the investigation to operation fast and furious. the operation where the united states sold weapons to mexican drug cartels. who in the government green lighted this operation? how high up? congressman darrell issa has been investigating. he goes on the record, next. >> talk about nerve! did you hear what mexico's president calderon is now saying? he's pointing a finger at the united states and taking a nasty swipe at us. we'll tell you about that, straight ahead.

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>> greta: there's new fall-out from the controversial operation fast and furious. the government program nascent thousands of guns into mexico into the hands of -- mexican drug cartels. atn officers were hoping the operation would lead them to the cartels, but the plan backfired big time including one of those weapons found at the scene of the murder of one of our border patrol agents. agent brian terry was gunned down near the border. two weapons found near his body were linked to the failed operation. the on the focus of a congressional investigation. tonight new developments

happening inside the justice department. joining us is congressman darrell issa. good evening. first, how high up was fast and furious authorized? >> certainly goes much higher than the three individuals who were transfered or dismissed today. more importantly, those higher up have not yet said how they are going to make sure this doesn't happen again. it is that second part that the american people have to be concerned with. bad things happen. but they shouldn't happen twice. right now we are afraid this same failed program could go on again. >> greta: not only that. we are talking about mexico the place where few want to z enormous consequences here in the united states and humanitarian issues in mexico. the fact this program, it seems like an unorthodox way to solve the problem by sending guns to mexico and hopefully we can track them

down later. it does matter who is the one who pulled the trigger, who green lighted it, because that person's judgment may not be the wisest0 maybe that person should be reassigned. so how high up? >> you are right. certainly as high as lanny brewer who thought it was a good program just poorly executed. more importantly two triggers. the people who authorized it. brian terry's family, his mother, siblings, they've never gotten a fair recognition of who is responsible. there are people who were part of the chain of those weapons that ultimately killed brian terry who have not been charged with any crime of this magnitude that's one of the things that the u.s. attorney burke that we had a problem with. it seemed like he orchestrated this program. then he didn't want to really do the kind of enforcement for those responsible that's what we are hoping willgege

under a new u.s. attorney. >> greta: ken melson, acting director of atf who has been reassigned. he was a former united states attorney in washington, d.c. area in virginia he has a great reputation. and i know that he has been helpful to your investigation. it seems like he's been made the saab official lamb by being reassign -- the -- am i wrong? >> no. reassignment is probably appropriate. at the same time he's cooperated, he's been helpful. i'll never forget when he said specifically about when he began seeing certain information that was withheld from atf, including them that had he known that he wouldn't have allowed it. he was sick to his stomach when he read it. then he began trying to get this program shutdown.

we have to balance the fact we need a good director. we need one that is senate confirmed. at the same time the u.s. attorney being allowed to resign, we also think is probably appropriate. we need to have real independent eyes look at how this happened. unfortunately, one of the problems is some of the eyes that are watching this are high up in eric holder's office and had a lot to do with this happening. >> greta: in your role, do you intend to move on now or is this an ongoing investigation? >> greta, there's two things we have to do to wrap up this investigation. first, we have to get to those responsible. which means we need the cooperation and discovery we haven't been getting. and >> greta: can i stop you there. why are they not giving it to you. don't you have the authority?

>> we've issued lawful best, often giving us information that is so redacted it is black pieces of paper that used to be white before they put lines through it. >> greta: are you feeling gamed? there is stuff that needs to be kept out of public domain. is this legitimate stuff? >> this is one of the problem -- -- problems. we have information given by third parties redacted when the administration gave us their version. we know we are being gamed and we think the time for the game should be up. >> greta: have you spoken to the attorney general and said let's stop let me have what i can have? >> i have an arrangement to meet with the attorney general when i get back to washington.

there was a request for me to have a conference call with him today or tomorrow. i chose to wait until we get back. i do think now we need to work together jointly to get this investigation wrapped up with some satisfactory conclusions that we are not heading toward now. >> greta: how about the09n missing weapons? do we think they are in the hands of the cartel or other citizens? >> no, they in the hands of the cartel. we have confidential sources that have shown us why the administration's representatives knew these weapons were going to the cartels. not mostly not maybe, but virtually all of 'em. they knew that in the chain that's one of the reasons we can't give up on this investigation. we know what they are not telling us. we need to have the cooperation that we don't yet have. certainly, for brian terry's family. they need to know this can never happen again.

>> greta: also for those who are being reassigned and scapegoated, we need that for them too that is not right if that is happening to them. congressman, thank you. >> thank you. >> greta: new look, easier to use and one scan an check out the barcode on the bottom of your screen now. all you need is your smartphone and a barcode reading app get close to your television, open the app and scan with your phone. you will have an all access pass to everything greta wire. >> here's a look at what is coming up on the o'reilly factor. >> bill: is there a big feud between romney and perry? we'll have the inside story. >> it is legal on president obama's uncle held by ice. >> greta: that's 11 p.m. eastern time. >> coming up mexico's president is blasting the united states. we'll tell you why, that is coming up.

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get deep into ridges picking up more dirt, dust and hair than a broom to help leave your floor up to three times cleaner. you sure are a pick-me-up! [ male announcer ] swiffer gives cleaning a whole new meaning. >> from america's news headquarters, i'm lauren greene. people are still being rescued days after hurricane irene. emergency crews pulling some 50 people from their hopes in flayed-ravaged pattedderson, new jersey, on tuesday. the storm killed more than 40 people and some 5 million homes are without power n. north texas, firefighters are battling a destructive blaze. the fast-moving wildfire has destroyed at least 20 homes and is threatening another 125 houses. flames cover 3,000 acres. the area has been evacuated. and a crane collapse at an amusement park, near sacramento, california, injures two workers.

two workers were hanging by harnesses before they were rescued. no one was seriously hurt. back to "on the record" with "on the record with greta van susteren." >> greta: is anyone looking next door at mexico? a cesspool of drugs and violence. the violence is exploding. kidnappings, police killings, drug-related beheadings. last thursday 52 were massacred in the capital of monterey. what does mexico's president do? he points the finger at us. now claiming the united states' demand for drugs fueling random murders across the border in his country. tim, tell me, is this something new with the president or is this the level

of frustration he's now pointing the finger more directly at us? >> no, it is nothing new. blaming the u.s. for mexico's problem has been a mexican presidential tradition for many two centuries. he has long made the point that the united states shares a large part of the blame for the drug war, the drug war tragedy in mexico, because we do have an insatiable demand for drugs in this country. in that sense, president calderon is half right. we spend more in this country for illicit drugs than on higher educating. we've got to come up

af problem there. militaries, armies don't take

down organized crime, police do. until mexico fully appreciates that, we are going to continue to see the kind of rampant violence that is terrifying -- that is terrorizing that country now. >> greta: can the united states do more? we don't want a lot of that -- we are already getting some of it, not humanitarian issue the selfish point of view is there something we can do to stop this sooner? >> what many think calderon may have been suggesting in the speech he gave last friday was to have the united states legalize at least less harmful drugs like march mav. a -- like marijuana. a lot of experts believe if we were to legalize marijuana in this country right now we could be depriving the drug cartels of half of the 30 billion dollars in annual revenues they make from selling drugs to the united states. there are a lot of people who

believe that is a solution. the main thing is we've go to come up with more ways to reduce demand for drugs in this country. >> greta: tim, thank you. >> thank you. >> greta: indiana governor daniels is still in office. now a famous face not a career politician wants his seat and may be jumping into the race for governor. for governor. who is it?

>> greta: here the best of the rest. indiana governor daniels could be replaced by a familiar face. reality tv star eyeing the governor's sea. you may remember him from the hit show survivor pearl island. he's formed an exploratory committee to investigate whether to seek the libertarian party's nomination. also vying for the seat mike pence daniels is out next year because of term limits. >> talk about being in the right place at the right time. drivers in the netherlands scooping up cash falling from the sky not exactly. a pack -- a package fell from a bank truck. sparked a dangerous dash for cash. it is not clear how much was lost or how it fell from the

truck. >> finally, the super bowl champions the packers are sticking to tradition. 50 years in the making, every training camp the packers pick children out of the crowd and give them a ride on their bikes. dozens of kids carrying signs hoping the players pick them. the lucky ones ride from the locker room to the practice facility across the street. of course, they do get a ride back. there you have the best of the rest. >> coming up, college football season is here. why does congress have such a ed interest in one team? ♪ ♪ ♪ [ male announcer ] the most legroom per dollar of any car in america. the all-new nissan versa sedan from $10,990. innovation sized. innovation for all.

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>> greta: 11:00 is almost here, flash studio lights, it's time, last call. looks like some members of congress headed south with their helmets. jay leno explains. >> and after allegations that a rich booster provided dozens of