>> victoria tarjay. >> i love target. but in the down turn they will not shell out. >> that's it for forbes on fox. thank you for watching . number one business block continues with cheryl casone and cashin in. . iran threaten to close down a key oil route. and warning that it will fire u.s. bases. just as drivers are starting to get a break in the butches. could this slam the brakes on a shaky recovery. i am cheryl casone. let's get to it. johnathon and tracey and wane and john . krisian dorsey is back. welcome to all of you and good to see all of you here. saber rattling could hit the

u.s. in the pocket book. >> i don't know why this is not getting bigger play. middle east had problem so long and sabre rattling is not a big deal. no matter what happen in europe . it will take months to develop. iran is producing million barrles of oil. and something has to happen. shut the wells down or give in to the sanctions or do something stupid and if they do something stupid or israel preempts them it could take the economy off of the rails. >> americans for the most part are enjoying lower gas prices that is helping things out. if thisuation with iran gets more dangerous and we have a problem there. does it hurt americans here? >> i don't think it is going to get more dangerous. i think you are up on that

mountain too long. and welcome back anyway. >> well, welcome back. no, i don't think so. and iran putches more than two million barrels a day and down from 3.8 million and most of the oil is going in tankers off shore and stored and that's what they use for storage over there. and it is the threat of doing something that may bring oil prices down. if they turned the spick on the - spickot on. and it is not going to happen. it is just the threat of this and not going to hurt the economy awful that time unless the people who are dealing in oil and the guys who are trading oil. they can mess it up. >> that's the point . tell you what, christian and that's the issue. traders work on the future and if they are fearful. they will take the crude prices up. they did it more than four percent because of the iran

issue. what does that mean for the economy in >> john, identified correctly all of the dangerous what if scenarios and that speculative insight is driving the price of crude that affects u.s. gas prices and so many what ifs involved it is divorced from supply and demand. if the worst comes to past it is a bad deal. we are so far from that at this point. i wish the speculators would dial it down. they did this six months and four years ago. >> look at where gas prices are right now. they are still so low and we don't see consumers spending the money. we saw sail store sails and consumer spending is down. we have seen you have gas price to ratchet up. it will not help at all. johnathon? >> i agree.

but say iran shut off the strait of her mos. what hurt us in world war ii was not a ban on german sauce an but german sailor rattling and i see iran as a military threat. if we want to lower the cost of crude. we are fighting the environmentalist who keep it higher and taxes are a part of the cost of the gas. but i am more worried about the spiritual to militant islam and forgetting 9/11 or uss cole there is 51 militant attacks in the last decades than 10 cents more on the price of gas. >> your point of the persian gulf is taken. that is one . last things that the iranians have because of the sanctions . that disrupts. this is a more real threat today

than the past. >> that's right. we are getting to the inflection point in iran. they are using the tankers and they used up two-thirds of the tatchinger capacit yestoring million barrels that they cannot sell and they will be out of capacity in the next 20 or 30 days. they have 20 percent inflation and double digit inflation and they have to do something stupid and if they do something stupid. that's what the kansas city fed chief worried about for years. if you have a systemic shock in the global economy because of so low interest rates, there is no way for the fed to react. this could be a worst scace sceniario. >> and energy inflation and gas price inflation is still inflation . what does that mean for the commep then? that is an economic negative. >> if the worst comes to past.

that is a huge shock to the economy that will affect the united states in a time when we are weak. the world economy is sluggish and the united states is not quite as sluggish but we are vulnerable to outside shocks. and it puts the pressure on us to right the economic shift at home and so we absorb the issues. >> you say worst come to past. what do you mean as the worst? >> if the worst come to past that iran actually closes the strait of her mos. >> let me disgea with you. (talking all at once.) you did ask him a question and let him answer it. >> if the worst comes to past and they close the her mos that requires that the united states and the european allice go into military intervection to keep the strait open and that. >> i understand. my version of the worst coming

to pass is iran getting a nuclear bomb or suband that is the worst coming to pass. but that is their ultimate code. >> wayne, as we get back to the u.s. economy and what does happen in the middle east does affect the united states. even if we get some of the scenarios playing out. you think the economy is strong enough to with stand it. >> the economy is strong enough to with strand it and even if they do it, it is it a threat and if they exercised on the threat, the rest of the world would open up the straits immediately. yes, the biggest danger, johnathon is right. biggest danger it will boil over in a military confrontation and that confrontation is one thing that could upset a ot of things it is not the price was oil. a lot of that oil is getting smuggled and you don't know where oil comes on the world market. half of them are misname exclude

painted over. it goes on all of the time. oil trading is a bandit's scheme. it happens all of the time and not a question of the prices going up. >> cheryl, we do a topic like this a couple of months. iran stands up and does the sabre rattling. the fact we talk about this is laughable. we don't have a policy. and john talks about it every week . ee that is the root of the problem. we need to take control. >> we are happen that john is back safe and sound we might add. >> one much europe biggest companies creating job in america. why aren't the unions happy? with a better way. we took the best of the old and combined it with modern technology. together you get quality services on your terms, with total customer support.

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>> jobless rate is stuck 8.2 percent in june . the u.s. job market will get a lift from the europe biggest aircraft make yer u.s. unions

are not happy. air bus i 600 million to build a plant and create job in alabama, a right to work state. johnathon, you say the europeans get it. >> rationaly poom get it in this case the europeans, there is no conflicts among them. employers want to hire and employees want to work . they create wealth. but it is union and specifically union force and active big government that gets in the way most recently with the arm of government in boeing. right to work states, that is implicit in freedom and right to life. but union force an act through government has no place and that needs to go. >> tracey, look at jobs number that is we are getting in the state that is are right to work and the companies coming in over seas. mersed in alabama and volkswagon in tennessee. and they are picking these

states and maybe we need to pay attention. >> numbers show it, cheryl. you know what, companies don't want to deal with all of unions a bad press lately and that's last thing you want when your company is starting to get off of the ground. more and more, we are hearing about union dues spent errorously . elizabeth mcdonalds doing great job. they are not the for the people like they are supposed to be. it makes sense that air bus comes in and say we don't want to deal with this. >> and the governor said we are a right to work state and that's why they want to be here. maybe all states will follow this model. >> in air bus's case they gave 200 million incentives and south carolina gave billion to beaing in incentives to come here it is not only unfriendly to unions.

but it is the amount of public dollars to lure them there. keep in mind. air bus is a french company. it is fully unionized abroad . the reason they chose a so-called right to work state in the united states, they are competing with boeing which chose south carolina. they are competing on the low road and that is not good economic policy for the country. it is what they are doing to pad the bottom line. >> i don't know wayne, maybe all is fair in love and cheese. maybe the french have a point. what work in america. we'll build our aircraft in america . right to work state, going to do it. >> what christian mentioned was the word competition. that is the key to this. and there is competition for venues where people want to work and companies want to go and work and where the environment is for that. there is competition for venues and bid for that. if they get a thousand workers

who are paying taxes that. is a boost to that economy . not only is the competition for that. but there is competition for labor and we know that capitalism. we have capitol. and labor and it is going to go to the place where it produces the most for the least coast and that is a good thing. jobs going over seas if it is cheaper to produce it over seas they go over seas. it is going to happen here and that is good for the world economy. >> johnathon layfield. some of the comments about what the states get in return for the subsittedies tax deals. lower unemployment and that helps the local economy and wages improve and average wage improves for that state and that is a reason they are offering the deals and they are getting something in return. whether it is worth that, that is up to the individual state. i believe that workers have a

right to unionized. i believe that workers have a right to hire nonunion employees and we have a government that man dates how low you can pay people and work force relation. yowns are outdate that's where the money is going where it is rewarded. >> like i said, it is not will it happen, but it does happen in the right to work stages. you do population and wages going higher. >> you do, but it is not universal and one piece of data to keep in mind. the state with the lowest amount of unionianization. north carolina that has a 9 and half percent unemployment and the states with highest rate is new york. it is a percentage point loir. and the whole idea that jobs are more plentiful and so-called right to work states is not born out to the data. that is one element.

>> but i also think. johnathon quickly. there is times and we are seeing the states turn over and that's the important point. this is a trend. the trend is to nonunionize . the trend is that the unions are losing their voice in the political elections that. is the trend and that is the important part for our economy. right. it doesn't make it right. >> i think the economy said it is the right thing to do. >> if you had a billion to invest would you want to invest and get in bed with unions or work outside of unions. most individuals and companies with money to invest rather work with the unions. visit the car companis and airlines in the nines and list goes on and on. wealth is created for a benefit for all . right to work is implicit and right to life. everyone should have it. >> it is not unions fault what

happened to the automakers it is the ceo's and management agreed to things they knew they could not upold. politicians glade to contracts they couldn't issue uphold. politicians spent the pensions of the post office and that is not the union guys fault. it is the people who agreed to the contracts. >> this is an interesting discussion. coming up. residents ravaged by vicious storms and wildfires and a new storm is brewing over how to pay for this.

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>> hello everybody. dangerously high temperatures and fires in the midwest and east coast, many of us will deal with the triple-digit heat. 46 people have died because of the heat. we have live team coverage and a close look at hot spots and what to do to stay safe. secretary of state hillary clinton wrapping up a surprise visit to afghanistan. this comes as stan tan is one of the newest allies. mrs. clinton calling it a powerful commitment to afghanistan's future . thens of people may be losing internet service because of software on their computers that they may not have known about. we'll talk about how you can tell us if your computer is infected and what to do to fix it. country music star billy dean will yoin us on america's news headquarterings. stay with us.

costs mounting for the massive storms slamming midatlantic and west statings. wildfires that are scorching colorado towns and more folks are asking for disaster money and public funds need a taxpayer bailout. we should rely on private disaster insurance. >> you look at florida. rainy day fund is depleted. they get hit by a hurricane they are in trouble. these people chose to live in a hurricane zone. you talk about federal dollars to do this. this is something that a private insurance should be man dated on the people that are there and we have an act of god or rogue storm that is different from something that happens year after year and these people have to take responsibility for what happened to the property. >> and tracey, maybe you are thinking colorado is prone to

wildfires. it is costing them for what they are seeing now. whether that is colorado's i don't know. should it still be a federal program? >> it is a tough call. mother nature strikes wherever she wants to. we had floods in new jersey and people lost homes in places you would imagine. one of the things we need to do as a nation is help people. you live on the coast, you are choosing that and putting yourself in the line of fire. but there has to be help for people for people like in nashville who are under water in a blank blink of an eye. >> a lot of private insurance companies wouldn't insure you because you are living in an hurricane zone. would the federal government that i can that stance. >> you are make sound like a black and white thing that everybody would bail out people and not help others.

that's crazy. private insurance to affect private people . you can make and buy an insurance policy from an insurance company. even if you are on the coast there are insurance pools that help to do this and the federal government helps to do it is a fine and works well you don't need to fix something that doesn't need fixing. let the private fix the private and government insure the public property and leave it like it is. >> yeah, my heart goes out to all of those affected by the natura disasters. but in many cases government make its worse when it come to the wildfires, for example. all of the government owned land. if it was privatized the private owner would have a vested interest and cull of trees and make it more safe. let the private market hand

teleand people should voluntarily donate to those in need. >> last word? >> natural disasters are unexpect come from no where and the fact we have a civilized society where we are willing to pick up our neighbors in other communities when disaster strike to me is a good thing that. doesn't absolve people from carrying private insurance. >> thank you. >> thank you, christian for being here again. good to see you. >> body scans and pat downs are not enough. tsa wants to check out the beverage you bought while waiting for your flight. fully ct for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having your own trading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start.

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>> tsa upons to start testing your drinkings. they will not say what they are testing for. >> i like strong balance sheets. cash america trading less than 10 times earnings. >> johnathon.