this real-life party in houston, partygoers brought out guns and began firing. one young man was hit in the head and died. awful, awful story. that's going to do it for us today. jenna: "america live" starts right now. megyn: fox news alert, confusion and chaos on the oil markets now as we first get reports that the united states will open strategic oil reserves to drive down prices, and then moments ago the white house says those reports are false. welcome to "america live". the news is breaking right now, i'm megyn kelly. with new polls showing anger growing over gasoline prices, it got a lot of attention when the president yesterday said he was talking with prime minister david cameron about possibly releasing some of our strategic petroleum supply. by this morning that possibility somehow became, quote, fact, reportedly, and markets started selling until the white house

came out and denied those reports saying they were wrong. the irony here, the president gave a speech just hours ago saying again there is no silver bullet on gas prices. >> there is no such thing as a quick fix when it comes to high gas prices. there's no silver bullet. anybody who tells you otherwise isn't really looking for a solution, they're trying to ride the political wave of the moment. offshore i've directed by administration to open up more than 75% of our potential oil resources. so do not tell me that we're not drilling. [applause] we're drilling all over this country. [cheers and applause] i mean, i guess there are a few spots where we're not drilling. we're not drilling on the

national mall. [laughter] we're not drilling at your house. [laughter] yes, develop as much oil and gas as we can, but also develop wind power and solar power and biofuels. [cheers and applause] make our buildings more fuel efficient. make our homes more fuel efficient. [cheers and applause] make our cars and trucks more fuel efficient so they get more miles for the gallon. [cheers and applause] that's where i want to take this country. megyn: we've got team coverage for you now on this with radio host guy benson in our washington bureau, but we begin with correspondent doug mckelway who is live at the the white house now. doug? >> reporter: as you said, the white house has momentarily, just moments ago, i should say, knocked down that reuters story of an agreement with the british prime minister, david ram on -- cameron, that the two countries open their strategic petroleum reserves to lower oil prices n. a statement a senior white house official said to fox news,

quote: the reports of an agreement are inaccurate. we regularly consult with the british on energy issues, and any discussion that we had was this that context. we will continue to monitor the situation and consult with them and others. but all of this points out the absolute volatility of oil prices in an age of lower inventory. the obama administration acutely aware, also, of the correlation between rising oil prices and lower presidential poll numbers, a correlation that has gone back to the carter administration. it's one of the reasons that president obama went to the democratic stronghold of prince georges county, maryland, today to tout his administration's energy policy and also to defend it against accusations that his energy policy is in part responsible for higher gasoline prices. he took aim in particular at one republican presidential candidate without naming him, newt gingrich, who has said under a gingrich administration the gasoline will return to $2.50 a gallon. the president said all the

republican presidential candidates want to keep us stuck in the fossil fuel past, and he used this anecdote about a former president to make that point. >> one of my predecessors, rutherford b. hayes, reportedly said about the telephone, a great invention, but who would ever want to use one? [laughter] you know, that, that's why he's not on mount rushmore. [laughter] because he's looking backwards, he's not looking forwards. [cheers and applause] >> reporter: the president also called for an end to $4 billion in subsidies to the oil companies. of course, the oil companies have said long, for a long time that that is a mischaracterization. quoting from the api's site, the policy's underlying costs in the tax code legitimately utilized by the oil and natural gas industry are no different than those for any other industry

industry and are necessary to insure that our industry is treated no differently than other. the president to the growing thirst for oil in the developing world. megyn: doug, thank you. all this back and forth and the intense focus on the president's energy policy just goes to show the political stakes involve inside gas prices during an election year. joining me now, guy benson. he's a radio host and town hall.com political editor. he has been watching this story develop over the last few weeks. guy, what a mess this morning. first it comes out they discussed it yesterday, that's one thing, to have the british prime minister and the u.s. president discuss releasing oil, then the report comes out this morning from reuters that we're going to do it, then we see oil prices start falling by $2, then the white house is forced to say, whoa, whoa, whoa, we said discussions, we didn't say we're doing it. now the oil prices are climbing again. there is a huge political element to all of this. >> well, of course there is. there's a couple things here, megyn. we're talking about tactics, whether they're going to open up

the strategic reserves or not is a band-aid and a short-term thing, and i guess we'll have to wait and see what the real truth is on that story. but the broader context here, megyn, is if you look at what this president and some of his advisers have said dating back to 2008, higher energy costs for average americans, higher gas prices should be met with celebrations in this white house. president obama, then candidate obama in 2008, told an editorial board that under his energy policies costs for americans would necessarily skyrocket. steven chu now has to back off of it, the energy secretary, but he has said recently that he wishes we had gas prices closer to what we see in europe at $8 a gallon, and so, look, these guys are pretending, they have to make the american people feel like they care about these high gas prices. but in the long run for our own good, they tell us, high gas and energy prices for average americans is a good thing in this very ideological administration.

megyn: president obama wants to get us off of oil. he wants to get us off of the dependency on oil, but he raised the point, guy, at a recent press conference, what sense does it make that an incumbent president running for re-election this close to november would want gas prices to go up? if you just think of the president as a purely political being, what sense does that make? >> well, he is a purely political being, i think, is what we've seen over the course of his career, and he's right in that very narrow sense. high gas prices at this particular moment and for the next, oh, i don't know, eight months or so -- just kind of, just kind of spitballing here, megyn -- during that time period this is a political emergency. for president obama and the obama administration. so they have to try to make americans forget all of their policies, everything they've done from solyndra to blocking the keystone pipeline to their slowing by 30% of drilling permits compared to the

historical norm. they have to make us forget all of that information and seem like, oh, all of a sudden they're really, really concerned about this. so i think the second that president obama gets reelected, if he does -- which i hope he doesn't -- if he gets reelected, i think they can drop this pretense and once again come back to lecturing us about how higher energy prices are really in our own best interests even if we're too dumb to figure that out on our own. megyn: guy, thank you. so you heard president obama's take. we're going to have a panel with both sides represented to come on and talk about this. who is to blame? the president says it's not his administration, and there's no silver bullet here. we'll have a fair and balanced panel coming up at 2:30 to discuss both sides of this issue. well, the fbi and department of homeland security are putting out security warnings today about the violence here because of the recent murders of civilians in afghanistan allegedly as the hands of an american soldier. federal agents here releasing a

bulletin saying the incident could contribute to the radicalization and mobilization efforts by terror groups in america. it also warns home grown violent extremists historically focus on american military targets. while there is no specific threat, the fear that terror groups are using these deaths as propaganda. well, there is new evidence today that iran is supplying the weapons being used in the deadly government crackdown in syria. [gunfire] megyn: this is something ambassador bolton's been saying for a while, you've got to be very careful if you get involved in syria because you're asking for a proxy war with iran. this is amateur video capturing the near-constant shell anything cities like homs. in a fox news exclusive, we are about to show you how iran is giving supplies to government forces. leland vittert live with more in

jerusalem. >> reporter: in the past few months, iran has become more and more icelated, but they still have a friend in syria. commercial airliners were trying to ferry weapons from tehran to damascus, but after our reporting some intelligence sources said they had all but abandoned that method and now have a new way to sneak weapons in to their friends, shows you just how desperate the iranians are to keep their ally in power. [gunfire] >> reporter: almost every day for the past year syrian military pounded away at its own citizens with tear gas, sniper fire and, lately, tanks or artillery rounds. it's left president bashar assad's military running low on ammunition, weapons and spare parts. enter this clandestine resupply route from iran. western intelligence sources confirm to fox news this opposition video showing unregistered, unscheduled but civilian cargo planes landing at

syrian military bases near the city of hama. its precious military cargo is quickly unloaded. the photographer offers a narration of what's next. [speaking in native tongue] >> translator: this is another truck, he says, that is transferring the ammunition to use in the killing of unarmed people. >> reporter: in addition, sources say the plane delivers soldiers to fight alongside the syrian military. the iranian cargo plane is flying out of iran over a rocky air space into syria. the arab league has come out and asked the iraqis to stop doing this, stop allowing the iranians to use this route but, megyn, since the united states' pullout there in iraq, iraq doesn't really have any air defenses. this could keep these iranian planes from flying over, so until then, the air bridge can resupply president assad there in syria. back to you. megyn: leland, thank you. well, his story has made international headlines. up next, brand new details on the fate of a pastor reportedly

sentenced to death after abandoning islam and becoming a christian. and new questions are coming up about greg smith, the goldman trader who just quit his job by publishing a nasty attack on his company in the "new york times." what is his background, and why does he make this decision now? stuart varney has the story behind the story after the break. and u.s. marines ordered to disarm before going into the same room as the secretary of defense. we debate a painful question of trust just ahead. >> because of your work, because of your dedication, because of the tremendous sacrifice that you're making, the reality is that we are achieving greater stability and greater security in this area. the best part of angreat meal? delicious gourmet gravy. and she agrees. with fancy feast gravy lovers, your cat can enjoy the delicious, satisfying taste gourmet gravy every day.

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i get my cancer medications through the mail. now washington, they're looking at shutting down post offices coast to coast. closing plants is not the answer. they want to cut 100,000 jobs. it's gonna cost us more, and the service is gonna be less. we could lose clientele because of increased mailing times. the ripple effect is going to be devastating. congress created the problem.

and if our legislators get on the ball, they can make the right decisions. megyn: new questions today about a former goldman sachs executive

who took a scathing parting shot at his former company on his way out the door. greg smith writing an op-ed in "the new york times" calling goldman sachs, quote: toxic. he claims coworkers spoke about ripping off their clients, and this is what he wrote about moving up the ladder at goldman. quote: megyn: so who's really, who is this guy, greg smith? and can we believe everything we're reading about him? be stu varney is the anchor of "varney & company" on the fox business network. my first thought is if you write this after a year or a few years after the company -- 12 years? if he hated it so much, what was he doing there for 12 years, stu? >> we're asked to believe that when greg smith joined goldman

sachs it was all sweetness and light -- megyn: rainbows and unicorns. >> and all of a sudden those evil bankers came along and turned it into an evil empire. he's a young man, 33 years old, made a half million dollars a year, we are told, and was denied a promotion to managing director. i think he's disgruntled, i think he took part in not a plot, but a way of discrediting goldman sachs, discrediting wall street and putting the whole morality of modern wall street back on the front burner. megyn: which plays into a political narrative that's emerging in our country right now as well. >> i'd say, yes. "the new york times" -- obviously, no friend of wall street -- they did not ask for any comment from goldman sachs before they printed this article. the article is now being used to attack bankers, attack the 1%, and as the times said in its headline today, talk about greed and excess be. put those words back into the political lexicon just as we're in an election year.

this will be used by the administration to beat up on those wicked folks at wall street and to bring back a past argument so we do not concentrate on the curve record of president obama -- current record of president obama. megyn: can i ask you something? just because this guy may be disgruntled, and i think it's easy for people to question his motives working there for 12 years and then coming out with this doesn't mean it's not true. >> that is correct. and goldman sachs paid a $550 million in the year 2010 because they have been what insiders call double dealing. establishing a pool of money, selling the securities from that money to a group of clients whereas somebody else on the other side of the firm sells against that original pool of money, double dealing. megyn: yep. >> okay? they didn't plead guilty to it, they accepted the charge, paid a $550 million fine. greg smith is saying it never went away, it's still being done. the clients are still being used, and goldman is looking out

for itself exclusively to make more money. so the basic charge is that goldman sachs never really changed. paid a big fine, but it's still the same old same sold cutthroat mentality. megyn: you know wall street very well. there is -- it's not a place you go to work if you want rainbows and unicorns. you need to have sharp elbows if you want to work on wall street. the language used, the attitude toward money, it's not rom per room, we'll put it that way. is that shock to you? is that news to you? >> no. no, no. almost all businesses, surely, are cutthroat at the top. we live in a capitalist society where you go to make profit. we're not a welfare state, we're not a charity. you cut -- you don't cut corners, you might cut a few throat toss -- throats to get to the top and make serious money. but isn't that america? isn't that what we want in our fan system? megyn: it depends on who you

ask. >> it does, indeed, and that political question will be asked by this administration. megyn: so this guy gets used as an example by occupy wall street, by folks on the left why the rich are evil and why we should hate banks. >> yes, yes. beat up on the banks, vote for me, i'll take care of those wicked bankers. megyn: but they still want them to donate. >> yes. [laughter] megyn: the bankers -- by the way, how much did this guy earn at goldman sachs? >> we're told $500,000 a year. what do you think of that? megyn: i think that sounds pretty good. stu, thank you. >> sure. megyn: what do you think? follow me on twitter,@megyn kelly. "the new york times" is on the defensive after publishing an ad mocking the catholic church, but then refusing to run an ad that questions islam. why the double standard? plus, vice president joe biden today painted a stark choice for voters. republicans in what he calls a rigged system or democrats and a

fair system? is the re-election team ramping up another class warfare message? we'll debate i. -- we'll debate it. >> we're about promoting the private sector, they're about protecting the privileged sector. we are for a fair shot and a fair shake. they're about no rules, no risks and no accountability. okay, team! after age 40, we can start losing muscle -- 8% every 10 years.

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megyn: fox news alert, we're just getting a live look at the final moments of freedom for former illinois governor rod blagojevich. check it out. there he is in the black car on screen right. he's on his way to a federal prison to begin his 14-year sentence. passengers who shared his flight to colorado said "blago"

maintained his celebrity charm but appeared more somber once they landed. where's he going to lunch, deb? he's going to lunch at freddie's. [laughter] that'll be his last free lunch. before he goes into the federal pen. [laughter] despite his conviction on 18 counts of corruption, he told reporters this morning he feels his conscious is clear. ♪ megyn: well, new accusations of a glaring double standard at an iconic american newspaper. catholic leaders slamming "the new york times" today for running an ad that reads, quote: it's time to consider quitting the catholic church. but when it came to a similar ad about islam, the times refused. trace gallagher is live with more. trace? >> reporter: and, look, we're not going to show you either one of these ads because the bottom line is they're both offensive, but we are going to explain why the catholics, so many of them, are outraged because of this. a group called freedom from religion, a very controversial atheist group, ran this ad in

the "new york times." they, by the way, have run many other ads in the times. it is a scathing ad not only suggesting it's time to quit the catholic church, but it shows a disparaging cartoon of a catholic bishop. it blames the church for, among other things, causing poverty, misery, unwanted pregnancy and death. "the new york times" ran the ad last friday. in response, a woman named pamela geller who is a controversial anti-islam activist, produced an anti-islam ad that mimicked the anti-catholic ad saying it's time to quit islam. instead of disparaging cartoon of a bishop, it was about an imam, and she goes on to blame muslims for much of the violence around the world. "the new york times," we contacted them, and they would not give us a statement. they said the statement they gave geller still stands which is: the fallout from running this ad now could put u.s. troops and/or civilians in the afghan region in danger. geller told us she ran the ad

simply to show the hypocrisy. listen. >> i think that this is a crushing blow for free speech and freedom of the press. if you're going to be -- if you're going to run these ads, be consistent. either don't run them, but don't select which religion you prefer that "the new york times" also told us that they may consider running this ad at some point in time. bill donahoe, the president of the catholic league, weighing in saying this: the times was based on either anti-catholic bigotry or fear of islamic violence, and they have painted themselves into that corner. for now the anti-islam ad will not run. the anti-catholic ad did run last friday, megyn. megyn: trace, thank you. well, a new report is showing a big jump in foreclosures last month. right after the break we'll see what this means for buyers, sellers and the nation's economy. plus, a new twist in the case of the florida polo tycoon

on trial for dui manslaughter. he adopted -- remember this guy? -- his longtime girlfriend as his own daughter, some say to protect his wealth in this case. she is about to take the stand. and is vice president biden using a class warfare message as part of a campaign strategy? we'll take a closer look at his speech to union workers just this morning and let you decide. >> a system that says everyone will be held accountable for their actions, not just the middle class. a system that trusts the workers on the line instead of listening to the folks up in the suites. [ male announcer ] to the 5:00 a.m. scholar.

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megyn: a new report showing a big jump in foreclosures. what does this mean for buyers, sellers and the economy? >> reporter: the foreclosure activity fell by 8% across the country. that's the good news. but the number of foreclosures we are seeing turn up in some of this country's biggest cities, we can't get a recovery in the housing market until we get through this backlog of foreclosed and distressed properties. we need to unclog the foreclosure pipeline. an agreement between the big

banks and the government on how to handle these foreclosures speed up the process. but also these foreclosed properties are pushing count average home prices and that will not do well for our economic recovery. we haven't have a recovery until we get this housing situation sort out. as for the states that saw the most activity. take a look at the list. no big surprise. one in every 278 house old got a foreclosure filing including repossessions, default notice.and auction notices. when you look at actual cities. the big metro areas. riverside, san bernardino, los angeles county got the most filings. that's east of l.a. six years into the biggest real estate collapse since the great depression, it could be years

before we get out of this mess. megyn: i like the music now. it does grow on you. new questions about the obama campaign's reelection strategy. vice president joe biden delivering remarks to auto workers in ohio. what got the most attention is the choice mr. bind says voters have to make on election day. >> we are about promoting the private sector, they are about protecting the privileged sector. >> ultimately that's what this election is all about it's a clear choice twean system that's rigged and a system that's fair. a system that says everyone will be held accountable for their actions, not just the middle class. a system that trusts the workers on the line instead of listens to the folks up in the suites.

megyn: is the president's reelection team pressing a class warfare message? it -- i have heard similar remarks. not just from vice president joe biden, from the first lady and president obama came out with what was build as a populist speech. it sounds like class warfare and devisiveness. mark, where do you fall? >> joe biden can't help i am self. the idea that the republicans are defending a rigged system while the the democrats are for fairness is falls on the face of it. peter switzer looks at the obama green energy program.

what he found was 71% of the green energy loans and grants went to obama's political cronies. they gave $58,000 shall -- gave $458 million to the obama campaign. the obama cronies gave him $458,000 in donations and they got in return through the green energy program like the one for solyndra, $11.4 billion in return. 71% of the grants that obama gave out were to political cronies. if they want to make this an issue about fairness and the rigged political system republicans would love to campaign on that. megyn: i'll let you pick it up from there, simon. megyn: i understand the numbers $500,000 in and $11 billion

back. >> if the republicans think they are going to win this election by talking about an energy program that george bush brought about in 2005, what joe biden is talking about what is happened to the middle class. we have had no wage and income growth. we see great income gains among the wealthiest among us and the republicans answer to that. what to do about that is to cut taxes on the most privileged people amowngs and to take money and investment away from middle class people. that's the strategy that got us into the mess. i don't think the american public will replicate that in 2012. i think joe biden is right. there will be a smashing choice the american people have to make. one party wants to protect privilege. i think the democrats will win that election. megyn: this is the theme that's emerging at least from the white

house. this is a theme they want emerging about fairness, about privilege, about the system being rigged. i know you don't believe tonight. but is it an effective message that will resonate with voters? >> it's a weak message. president obama would love to be running ronald reagan's morning in america campaign except he can't because it's not morning in america. what he's stuck with is class warfare. he's stuck with fairness and all the rest of it. this is not a strong message for him. we want to talk about the middle class? under president obama's policies, 2.million people have slipped out of the middle class and entered the poverty line. food stamps at record levels. millions unemployed. millions unemployed and millions more who have give up up looking for work. what's fair about that? president obama's policies have

exaser bad it income inequality. they pushed up upward mobility. we don't want to divide up a shrinking pie more equitably and fairly. we want to grow the pie for everybody. if the pie is growing nobody cares about income inequality because everybody is getting ahead. megyn: is this unnecessarily devisive? >> i don't think so. it's an accurate representation of what happened to america over the last decade. where the republicans and mark are in a bind. if you look at the fox poll that came out today, more people say the president improved the economy, they say he hurt it. that's in the poll that came out today. let's go through this quickly. the stock market is at a 12-year high. corporate profits are at an historic high. the auto industry had record profits. we have seen the unemployment rate drop by 2 percentage points in the last three years.

one of the most dramatic gains in american history. the economy is clearly improving. the american people feel it to be improving based on your own poll that came out today. and this notion that obama has failed and he made everything worse. the public doesn't believe that. so i think -- it's also not true. so i think the relationship cans will have to move on to a different argument, something that's no longer factually correct. megyn: i thank you both for being here. see you soon. u.s. marines stripped of their weapons before they meet with the secretary of defense. why? you know when i grow up,

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megyn: u.s. marines in afghanistan are ordered to disarm before attending to speech about it u.s. defense secretary. secretary sheon panetta spoke to the troops days after a blown american soldier went on a shooting rampage killing afghan

villagers. all the weapons left outside of the meeting raising troubled questions about wirt our leaders trust our troops in the field. joining me now will the colonel bill cowan and geraldo rivera. thank you for being here. this is extraordinary. this is not the norm. the defense secretary has gone over to speak with the troops many times and the commander-in-chief has as well. let me start with you. they normally let the marines have their weapons inside these halls. why not now? >> that's a great question. this general -- allegedly their commanding general is the one who made the decision. i looked at his record, he has a lot of time in combat. he knows our men and women do not just put them down somewhere. asking them to leave their weapons at the front door is like asking them to leave their right arm at the front door.

i have to believe that the decision came from somewhere above this general though he will stand by that decision. the real question you just suggested is who do we trust? if we can't trust our marines, who can we trust? megyn: this general said, look, i did it because the afghan troops attending the talk were unarmed and i wanted the policy to be consistent for all and we are told that's not unusual to have the afghans leave their guns outside. >> reporter: the officials are suggesting they heard something, something came to light. quote-unquote. i hope that's not true. but it may be. the other point, camp leatherneck is a gigantic base. it's extremely secure. it's not likes it's a forward operating base. it's not terribly extraordinary. by the larger picture and we are dancing around it is -- there

is, i believe some real disillusionment with the mission in light of the koran burning and the staff agent's massacre. there are rumblings of discontent and i'm not suggesting morale is down and we might revert to what in vietnam was called fragging where 230 american officers were killed by their own men when that war was winding down. i think there is enough rumbling and troubles that suggesting why when you have a cabinet level official here, one of the most famous people in the world, the defense secretary of the united states, why even take a chance. megyn: why take a chance and at u.s. marines? >> there is another way to do it. you leave your ammunition at the door. you take it magazine out and clear the weapon and you threat go in with their weapon. megyn: both of you are assuming

there is a reason to distrust the marines in the wake of one marine -- one soldier killing afghan innocents. that's one. >> you are right, megyn. when you take your weapon into the mess hall you take the magazine out and clear it. in the mess hall there are plenty of high-ranking officers in there at any time for any disgruntled troops to go after it's a dramatic difference in my difference, ask them to leave a weapon versus asking them to leave the magazines out of it. the ammunition is maybe left outside and the magazine is cleared. geraldo is right, i'm sure there is a lot of questioning, not so much dissolutionment on the part of our men and women about where we are going. are we going achieve anything? megyn: you are having that here stateside as well. but that doesn't mean you can't trust marines to take their

weapons in front of an american defense secretary speaking to them. if that's going on they don't trust marines. the military is saying it wasn't about that massacre and it wasn't about the threat defense secretary panetta faced. they said we wanted this to be an even deal. afghans don't have their weapons, neither do the marines. >> reporter: i hope that's true and that's what happened. i'm merely suggesting that if indeed somebody thought someplace why in the world take a chance -- it's a one in 10 million, one in one trillion, but why take a chance, why even allow a prospect -- we have troops coming back now multiple deployments, worn down by 11 years of war. they have seen their buddies die, now they see the end of this mission in this unsatisfactory climate we are enduring. you have returning g.i.s

commit he suicide. megyn: are we piling on? like the faces of those marines in that picture. look at them in the still shot. are we piling on by sending a message we don't entrust you anymore. we don't trust you not to shoot the defense secretary. >> reporter: i hope they convey to those marines and trust them with all the bone and fiber in their bodies. but if the prudence dictates this one step to make sure that nothing awful happens because the consequences of this astronomical long shot of one person freaking are so profound it would so damage just our status in the world but our own image of ourselves, they could have done as colonel cowan suggests. but what they did they did, and i don't want anyone to think that we don't trust our g.i.s.

megyn: i know what you said about the marines. i'll give you the last word, colonel cowan. >> i think somebody whispered in the general's ear and suggested that can done. megyn: we apologize. some of the pictures are dark but that's how they came to us. we appreciate both of your insights. as always ... we are keeping an eye on breaking news in afghanistan. president hamid karzai demanding all nato forces return to their bases. if he gets his way it could end america's combat role there. police just releasing the chilling 911 calls from inside this home while a convicted rapist hold a group of female college students stat knife point. we'll show you how the dramatic showdown unfolded.

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megyn: terrifying 911 calls just released from a home near a college campus. a convicted rapist holding them at knife point. >> reporter: this is offcampus housing near seattle. there was a man, a 34-year-old, broke in through a main window on the bottom floor. he round up six of the girls at knife point. put them in an upstairs bedroom and tied them up with tape. two other girls were in the house. listen now to one of the girls who was hiding in one of the

upstairs back bedrooms. >> reporter: there is a girl downstairs in the main room. she has no idea her roommate is also on the phone with 911. listen to what she is hearing. you heard cops say there were police officers around the house. they arrived moments after these girls called. but one of the girlings suddenly has her door pushed open.

should i go? >> reporter: that was police opening her door. all six of the girls were fine. no physical injuries at all. the suspect could be sent to prison for life because of the two strikes law in state. megyn: thank god those girls are all right. fox news alert. associated press is reporting there is a verdict in the case of the georgia man who admits killing the husband of an employee, but says the ghosts, a demon who looked like barry white and an angel that looked like olivia newton john. we have been following this closely on "kelly's court." a businessman threatened with fines and jail time for flying the american flag.

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megyn: fox news alert on a major developing story out of afghanistan. a dramatic request for all u.s. troops to pull back that could essentially end our combat role in that country. welcome, everyone, i'm megyn kelly. hamid karzai recommending a big change for american forces hours after he met with leon panetta. he wants u.s. forces forces to n to their base and let the afghan soldiers take over. he says the work with the implet s. force is is over.

>> reporter: the current u.s. strategy in afghanistan appears to be in flux and even in jeopardy. but u.s. officials say the plan is going forward. about it suffers two devastating blows. the taliban announcing they are suspending all talks with the u.s. government. talking to former taliban officials awrchlt s. officials, nobody thinks this is a permanent suspension, about it seems like a negotiating ploy. the taliban says it's because u.s. keeps changing the conditions for the talks. president hamid karzai announced just a few minutes after that announcement that he wants to see a faster transition from security forces from u.s. and international to afghan security forces. he says he wants u.s. forces out of the rural and smaller villages in afghanistan. that's a devastating blow because the entire strategy focuses on training the afghans and battling the taliban in

those rural areas. the embassy and the military released statement on karzai's statement but they say they are committed to transitioning from u.s. and international forces to afghan forces. but this dual sort of blow to the current strategy is devastate together overall strategy here in afghanistan because it comes on the heels of weeks of protests and the koran burning incident and the soldier shooting incidents it's a mixed bag of the results here for the u.s. strategy hereby. there isn't a lot of positive news coming out of afghanistan right now, megyn. megyn: moments ago white house spokesman jay carney was asked about the breaking news on afghanistan and here is what he had to say. >> without getting into the specifics of what you do in certain parts of the country and the nature of different deployments. it's consistent to say as we saw in iraq, that that kind of

transition involves a change in the footprint. megyn: we are going the follow up with that in the moment. but first an alert to a potential hot spot. iran. the state department denying foreign media reports that officials asked russia to deliver a message to iran that it is facing its last chance. that report appeared this morning in a russian daily newspaper. also today in a crippling blow, the international oil payment system announced it is shutting out iran's banks. cutting them off from all global business. jenniferivein is following this from the pentagon. >> reporter: the state department says secretary of state hillary clinton did not ask the foreign minister to send a message to iran. meanwhile planning for a possible strike continues a u.s.

central command, but there are questions about what is rule can do with its current air force. >> they have no strategic bombers. we are the on ones who have that kind of bombing capability. and you need something like a b-52 to carry the 25,000 to 30,000 pound bombs we think might be necessary for some of these targets. >> reporter: israel has 87f-15 bombers. 307f-16s. the u.s. air force has 522f.-15s, 1,000 f-16s. the b-2 bomber can carry a 70,000 pound payload. two of those bunker buster bombs which the u.s. has and israel has asked for but the u.s. won't

give them. israel couldn't even carry those bombs if they were given the massive ordnance. iran's nuclear facility is buried 250 feet underground. >> even the american president says in explicit terms, don't even think of that. they would dare to do something against an explicit american request or claim. >> reporter: former pentagon planners are suggesting israel's air force may not have what it needs to carry out a strike on iran that would last more than

just a few days. and that the u.s. may need the help. megyn: jennifer, thank you. another alert for you. there is a verdict in the case of a georgia man who admits tha? edkilled the husband of one of his employees. the prosecution and defense claim she was more than an employee, she was his lover. he said a demon who looked like barry white and an angel who looked like olivia newton john made him do that. the defense has gone after the former employee and his alleged lover. claiming she was the manipulator that forced hemy into murdering? her husband. it is unfortunately not common enough that we get to bring@? cameras inside courtrooms which

are supposed to be open to the public. but we are being told the verdict will be read in the nex? three minutes. we are were@? told at 2:10 p.m. this is happening near atlanta, @?orgia. trace gallagher is joining us as we are officially on verdict watch. >> reporter: the major players are starting to gather.@? the fudge called everybody back in. it@? could run a minute or two late.@? we anticipate this could be read sometime in the next couple minutes. we have been told the jurors@? three hours ago asked to see reports from the four psychiatrists who interviewed hemy meuman. the judge denied that request because the attorneys objected. yesterday the jurors sat throug? an hour and a half interview that one of the psychiatrists did with hemy neuman. they@? are focusing a lot of

weight on what the psychiatrist said about his mental capacity. he says demons and angels made him do it. whether he had an affair with andrea snyderman was never@? realized. she says they never had an affair. he says he saw@? her naked in te room. that he fell in love with@? her. but went on to say under questioning if she says they@? didn't have an affair, maybe they didn't have an affair. this of course the courtroom in decatur, georgia where the verdict should be read. the lawyers have yet to appear back in court.@? they may be walking in right now. megyn: this is always such a terrible moment for the defendant and the family of the victim. but also@? for the lawyers as yu fight the battle hard and ultimately it's in the jury's

hands. that's how the american system of justice works. this man's life is potentially in the about balance. he will spen@?d life in prison f he is found guilty of the murder charge. they can find@? him not guilty ? reason of insanity. that's what the defense wants,@? or guilty but insane. which means he would go to amenity alpha silt.@? then go to prison. so this man who gunned down a father moments after that father had dropped his young children off at daycare, steps from the daycare center will soon find@? out whether he is going to be held accountable by this jury of his peers willisened to weeks o? testimony as both sides as i@? mentioned tried to pin this on andrea snyderman.@? the widow. do we have any of that sound? we saw and exchange where the@? prosecution showed her emails@? she exchanged with the defendant hemy neuman. he was saying all sort of "r"

rated things. and her response was, that sounds fantastic. the prosecution asked her about? that, and her response was something to the effect if that? how you are going to right. she had contentious exchanges with the prosecution who called her as a witness. here is a sound bite from the prosecution's closing argument. >> this selfish individual, this twisted little man, he did this to sneiderman. this is real. and they have the unmitigated gal to call him a good man? good men don't sleep worther men's wives. good men don't sit at a table when they know they are having

an@? affair with the otherman's wife.@? good men do not do this! megyn: as we listen to the prosecutor in his closing argument, we found the sound bite of the evenings change between this woman who has not been charged though she has been described as a cospir by the prosecution. she is questioned over her email. did she have an an affair with him? we don't know.@? did she ma name lit him into killing her husband? we don't@? know. but when asked when the@? defendant made some "r" rated statement to her she didn't respond like she was offended. >> this is a gentleman who has said i love and marry me, and it as fantastic idea to go with

him. >> if that's how you are reading the email. >> then tell me how to read it. i just know english. megyn: then she had an incident where she hugged one of the witness hospital had taken the stand and made a comment that@? was made as threatening and got? banned from the courtroom. now we'll find out whether the man who was allegedly her lover will be held accountable for murdering her husband in cold@? blood. he admits he killed him steps away from the daycare center.@? trace, we'll be back to you as we await the verdict in the case of hemy neuman. we'll take a quick break then come back and let you watch this verdict. we also have a lot of other news for you. including a man flying the stars and stripes outside of his business for 30 years. then he's told, take that flag down, if he does not do it they say he could go to jail. what gives?

>> it's my property. it's city right of way. but it's my property. i take offense when the government is trying to tell me where and where not i can fly my u.s. flag. hey, this is challenger. i'll be waiting for you in stall 5. it confirms your reservation and the location your car is in, the moment you land. it's just another way you'll be traveling at the speed of hertz. diarrhea, gas or bloating? get ahead of it! one phillips' colon health probiotic cap a day helps defend against digestive issues with three strains of good bacteria. hit me! [ female announcer ] live the regular life. phillips'.

megyn: we have breaking news on flaunt last hour. the state department denying reports that it told iran it could face military action from america if it did not come to the negotiating table on its nuclear weapons program. joining me now to discuss this, former ambassador to the united nations and a fox news contributor, john bolton. the reports are we asked russia to pass a note to iran that there could be an attack. i'm making light of it because@? the state department denied it. about it comes on the heels of president obama saying outright the window for diplomacy is closing on iran. do you believe that? >> i believe the state

department's denial that the u.s. threatened the use force because i don't think the obama administration will ever use force on return. i think obama's comment reflects in part what he heard from benjamin netanyahu. just as a practical matter the window on negotiations on iran is closing. megyn:@? when he said to iran n, the president, you meet your obligations, meaning to disarm and make it transparent it nuclear program or face the consequences, just bluster? >> the consequences are a stiff note and disapproval and hems and hahs. the iranians have seen that comments about how unacceptable their weapons program was didn't lead to anything serious. i think they are in the same biebd now. the european union is preparing

to resume negotiations. i think iran will try and take advantage of that. this perhaps is trying to set up those negotiations by the president. but i don't think iran is intimidated by it. megyn: jennifer griffin was talking about that israel can't get it down. we have been talk for weeks they may not be able -- the stuff may be so deeply buried we may not be@? able to get to it. but israel may not have the capability of attacking iran over more than just a couple days and the weaponry necessary to do it. what position does that leave us in? >> there are a lot of people speculating about what israel's cap it built are and how difficult this is. it's clear on the facilities we know about, that israel does have the capability to destroy them. they are well known, they are their exact locations are known.

the one that's hard for israel is the iranian enrichment facility. and that would be very difficult other than to close the entrances and the vent st. louis capabilities. if you can't breathe down in the middle of the mountain it's tough to enrich the uranium. we to do a lot better but everybody understands this is the limit of israel's capabilities and nobody understands it better than israel. megyn: i want@? to ask but this move we saw in europe and i wan? to ask whether you think it has any real significance. we are watching to see if diplomacy can work. europe is dancing this dance, we are dancing this dance, and@? today the headline from the a.p. is iran was effectively cut off from global commerce today when the company that handles financial transactions sit was going to sever ties with most of iran's banks.

this international thing called swift said no more for you, iran. you@? can't participate in these transactions. does that have teeth? >> it affects banks sanctioned about it european union at least for now. it's not all banks and it's not banks in places like venezuela that are helping iran launder money. does this increase iran's transaction cost and make it more difficult to conduct some of its financial transactions? yes. but that means that perhaps 5, 10 cents a barrel of the oil that iran is selling are now going to be consumed with the complicated task of moving the money around other than through the system. iran has not been sitting around waiting to be slapped silly by financial sanctions. they have been preparing contingency plans. they are studying money laundering techniques. did you know drug traffickers

can still launder money throughout the world despite the efforts that have been nut to stop them? they will get their money into the international financial system. megyn: ambassador john bolton, thank you, sir. if president obama gets hit with a series of bad polls he said the administration is not to blame for height gas prices. so who is responsible in both sides of that debate just ahead. we just got word that george clooney is at the white house and wants to speak to the press in 10 minutes. we'll see what that's about. and threatened with jail time in georgia, all for flying his flag outside of his auto shop. up next the small town story generating anger from coast to coast. >> i'm at odds with -- like i said, our local government telling me where and where not i can fly my flag. @?@?@?@?@?@?@?@?

megyn: fox news alert and live to the courthouse in georgia where there is a verdict from@? the hemy neuman trial. >> i have been informed you reached a verdict. with the foreperson please@? stand. madame foreperson have you and@? the others reached a verdict? >>@? yes. ice it unanimous? >>@? yes. >> would you start at the top of the@? form and right in its entirety, please.@? >> in the superior court of dekalb county, state of georgia, state of georgia versus hemy@? neuman, defendant, indictment@? number 11cr1364-5, verdict form,

jury verdict. count one, we the jury find the defendant as to count one guilty beyond a reasonable doubt but mentally ill. count two, we the jury find the defendant as to count two guilty beyond a reasonable doubt. >> would you pass that to the state's lawyer as to form. >> you may be seated madame foreperson.@?

any objection as to form? >> no rx as to form, your honor. >> mr. deputy would you pass me the verdict. i'll 70s verdict in open court as published by the jury. anything else for the jury from the state? >> nothing from the state, your honor. >> anything from the jury as to the defense? >> we ask to poll the jury. >> ladies and gentlemen of the jury the defense asked that you be polled. the clerk will come around and i will call you by number. you. and she is going to ask you a series of questions and you have to respond here in open court. all right? madame clerk? megyn:@? that's typical procedu. they will poll the@? jury to mae sure that's the verdict of each juror.

the jury finding hemy neuman@? guilty but insane.@? but mentally ill on one charge and finding him guilty as straightout guilty on the second charge. that means@? he's going to jail? but will receive mental health assistance while he is there. that's my understanding now as i look at the georgia law. trace, it was a long shot from the beginning to blame this murder on barry white and olivia newton john. >> reporter:@? the clincher may be the head of the mental health facility in dekalb county testified for the prosecution. he says@? he has seen hemy neumn in the past year. he has been in jail since 2010. he said i have had a number of consultations with hemy neuman@? and i can tell you i have seen a lost mentally ill people and hemy neuman does not fit the bill of@? being insane.

that was a big blow to the defense. the defense was saying hemy@? neuman was trying to rescue@? andrea sneiderman's children. he says he didn't want his kids to have the same childhood of abuse that he had when he was a child. that was the excuse on top of the barrie white, olivia newton john's angels and demons made me @? it. the jury was focused on the@? psychiatric testimony yesterday. they asked for it yesterday and they got it. they asked for it again today and they did not get it because the judge and all the attorneys said no, no more psychiatric@? testimony, so that played heavily in this case. megyn: a guilty but mentally il? verdict has the same effect as a guilty verdict. he will get mental health assistance while he's there. that's what we are told that means. but it has the same force and

effect as any other guilty verdict with the exception you get some counseling while you are there. that's what we are being told. it's either life or life without parole's looking at at the discretion of the judge. it is not a big surprise. but it is a big verdict in a case we have been watching and others have been on a national basis. hemy neuman found guilty of@? murder in the case down in georgia. trace, thank you. we promised you this story about the georgia businessman told could not fly his american flag in front of the business where that flag has flown for 30 years. we still have that for you. we'll bring you this. president obama saying there is no quick fix for gas prices and the administration is not to blame. so who is. in three minutes both sides of that debate. >> there is no such thing as a quick fix when it comes to high gas prices.

there is no silver bullet.

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but when she got asthma, all i could do was worry ! specialists, lots of doctors, lots of advice... and my hands were full. i couldn't sort through it all. with unitedhealthcare, it's different. we have access to great specialists, and our pediatrician gets all the information. everyone works as a team. and i only need to talk to one person abouter care. we're more than 78,000 people looking out for 70 million americans. that's health in numbers. itedhealthcare. megyn: you are looking live at the white house where we are told george clooney will be appearing any moment. there is an alert for you. not sure what the topic is. by has been in washington lobbying on the conflict in sudan. the event will be streaming live at foxnews.com.

it's an important topic. it's getting a lot more attention when you put george clooney's face on it. that's the way america works these days. so foxnews.com if you want to see those remarks live. >> there is no such thing as a quick fix when it comes to high gas prices. there is no silver bullet. anybody who tells you otherwise isn't really looking for a solution. they are trying to ride the political wave of the moment. megyn: that was president obama today going on the offense about gas prices. again saying there is no silver bullet it's a message we have heard pretty steadily in recent days. >> while there are no silver bullets short term when it comes to gas prices, anyone who says otherwise isn't telling the truth. we can't just drill our way to lower gas prices. there are no quick fixes or

silver business. >> what i have also said about gas prices is there is no silver built and on the way we are going to solve this problem over the medium and long term is with an all of the above strategy. i think the american people understand that we don't have a silver bullet when it comes to gas prices. we have been talking about this for 30 years. megyn: is there a silver built or isn't there? joining us now, matt mccall, melissa francis, apartment former communications director for senator jon corzine. there is one or isn't one. >> there is no silver bullet. let's talk about george clooney. megyn: let me just start on a political point. that message doesn't appear to be working because the poll numbers when it comes to economic approval on how he's

handling gas prices are bad and going downward but they continue to stick with it because it's true? >> there is no silver built. this sounds like when my mom yelled at me as a kid. why isn't your homework gete better. i can't get smart were overnight. obama says we can't do anything about it but he's doing nothing about it in the long term or medium term. megyn: everybody wants to know who is to blame. they are going to hold president obama accountable and all the political pundits say election year they will hold the president accountable. >> permits for drilling are down 60% since he has been in office. 70% in the rockies. because he's an environmentalist. so he's been figure it right now. there is more oil being produced

in the u.s. based on permits from the last administration. he's selling the presidency short. look what happened with natural gas. we have more drilling going on because of the shale revolution. the price of natural gas has gone from $15 down to $2 because there is so much supply out there. also ben bernanke is printing money like there is no tomorrow. the value of the dollar has gone down. we buy oil on a global market so the dollar is worth less. so ben bernanke is part of the problem, too. megyn: both presidents say the wasn't me. >> i wasn't going to blame bush for this four or five years later. the person to blame is ahmadinejad for making an unstable situation in the middle east. $20 to $30 in the price of oil. megyn: there is only so much the

president can do about that. >> a year ago 70% of leased offshore leases were not used by the oil companies. 60% of onshore were not used. they have the right to drill, they are just not drilling. when you have permitting -- it takes a while. megyn: it takes 10 years. the point is if george bush was so good upon gas prices then why are they not drilling? the bottom line is they have the right to drill and they are not drilling. the oil companies are speculating on this issue. bill o'reilly has been beating the drum on this. >> steven chu our energy secretary. 2008 he said we'll get our gas prices as high as europe's gas prices. that shows we gave money to solyndra and pfister automotive.

he's pushing the initiative towards the green. then if that's what he's trying to get across -- megyn: there is a perception that he wants to wines off oil, get us on green energy no matter how much we don't want it. no matter how much the american people are pushing back. there was an exchange he had with one guy in a town hall a couple years ago. remember this? >> if you are complaining the price of gas and you are only getting 8 miles a gallon, you know -- you may have a big family but it's probably not that big. so how many do you have? 10 kids? well, you definitely need a hybrid van then. >> that kind of thing affects

people's perception of president obama's solution, get rid of your suvs. he's saying stop buying the gas guzzlers. >> the second pin is, the chu point, obama said are you crazy? do you think i want high gas prices? i'm running for reelection. >> he hired somebody to be a secretary of energy who is a here theoretical physicist. >> if we have the technology and gas stations were set up for it and it were cheaper, but we have to get there. megyn: how big a factor in all of this, his numbers and outrage and so on is keystone? >> that's a lot of it. it would have created jobs that would vo brought more oil into

the u.s. i'm talking to sunoco, they are closing a refinery. a refinery that can't make enough money to stay in business. we all think it refineries are making money. keystone will help solve that problem. >> the oil for keystone is earmarked to go overseas. so keystone will have a nominal effect many years down the road. >> it doesn't matter where it goes. >> the difference is the price of oil today, keystone will not affect us. megyn: i feel no better. thank you so much. he first made made lines after investigators say he caused a deadly crash in his bentley. then this multi millionaire made bigger headlines when adopted his girlfriend in an apparent

bid to protect his fortune. the prosecutor is hoping new witness testimony will seal this fate by his legal team says it has a strong defense of its own. >> did he tell you he had a few drinks? >> yes. he said i really "fed" up an had been in the end of the world accident. ♪

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canal. goodman is also charged with leaving the scene, leaving that boy to die. you may remember hearing goodman adopted his girlfriend after he got sued and the move was an apparent to protect his $300 million fortune from civil slaw suit. on the stand now a witness testifying about what the defendant goodman told her after he returned into her house moments after the crash. >> he said that he had stopped at a stop line. he looked, didn't see anything and he hid something. i said he needed to call 911 in case anyone was hurt. >> did he tell you he had a few drinks? >> yes. he said i really f'd up an had been in an end of the world accident. megyn: joining me is kimberly

guilfoyle and mark eiglarsh. so, kimberly, set it up for us. that woman is a woman who lived in a trailer 100 yard away from the crash. this is the manslaughter trial. he's look at dui manslaughter in the state and he's look at vehicular homicide. both very serious charges. he could get 30 years. basically he went in there to talk to her -- he was injured at the time, megyn as well and suffered a concussion, broken ribs. just to show you the severity of this accident. he says he didn't start drinking and become drunk until after the accident to try and ease his pain. this is the argument proffered forward by roy black, one of the top defense attorneys in the country. now, this witness crushes him because it's a statement right after the incidents that showed

he never even waited -- he never called 911. he waited and only after she told him to call in and say you need to report this. meanwhile this young boy is drowning in the water. megyn: she is not the girlfriend. she heard him -- he comes into her house. he picks up the phone and calls his girl froanld now adopted daughter. she hears his end of the conversation. the defense is claiming he wasn't drunk, he wasn't double the legal limit when he had the car accidents, he got drunk immediately after base was so badly injured. when he was talking to the girlfriend he may have said some things but this is about a car malfunctioning and the guy is not legally to blame. >> these are tough facts. roy black was handed a case with a lot of challenges from the defense perspective. but you have got the black factor. roy black has won many cases he shouldn't have. he will create reasonable doubt

as to the cause of the accidents. dui manslaughter becomes a felony when they are the cause of the accent. you know roy black has experts lined up to say this vehicle malfunctions. whether it's true factually who knows. megyn: there was testimony from the adopted girlfriend that he never mentioned anything about car malfunctioning when he called. >> this came up when he decide i'm in serious hot water. and when in doubt, blame it on the bentley. that's not a sympathetic defense. the prosecution has evidence there isn't any history whatsoever of bentleys accelerating and causing these times of things. that's a problem. he comes up with it after the fact. the admission that he's drunk. double the color limit. >> miss guilfoyle is lovely and makes compelling arguments.

but don't count out the fact that the girlfriend testified it was very brief and he didn't get into details. the star witness, they created some doubt because of the relationship between one of the attorneys. but my nose is still runny. [ male announcer ] truth is, dayquil doesn't treat that. really? [ male announcer ] alka-seltzer plus fights your worst cold symptoms, plus it relieves your ruy nose. [ deep breath ] awesome. [ male announcer ] yes, it is. that's the cold truth! ♪ feel the power my young friend. mmm! [ male announcer ] for excellent fruit and veggie nutrition... v8 v-fusion, also refreshing plus tea. could've had a v8.

megyn: a man in georgia is being threatened with jail time for flying his american flag juts side of his auto shop. >> reporter: last week a group of retired marines showed up at the auto body shop. they offered to replace his flag. he said okay. when he came back. tom violated the city's right of way. that's where your stuff is too close to the city's stuff and they want it taken down.

he said he would not take it down. and she says you face $1,000 a day fines or up to 6 months in jail. he still refused. >> my problem with it, it's my property. it's city right of way, about it's my property. i take offense when the government is trying to tell me where or where not i can fly my u.s. flag. >> reporter: he complained to the city about the fine, they lowered it to a warning, but they said you still have to move the flag one foot. but now he has lawyers saying i'll defend you. he has people saying i'll pay your fine and everybody is coming by to shake his hands. but he says eventually he thinks he will have to remove the flag because it' hard to fight city hall in albany, georgia. megyn: remove it or move it. >> reporter: moist one foot or remove it all together.

megyn: newt gingrich looking for a late game comeback. the former house speaker says there is no way he's dropping out of this race. are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today. ♪ [ male announcer ] help brazil reduce its overall reliance on foreign imports with the launch of the country's largest petrochemical operation. ♪ when emerson takes up the challenge,

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>> and now, we are batting on this and --