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tv   Americas Newsroom  FOX News  July 19, 2013 6:00am-8:01am PDT

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you could have just sang and these people would have been happy. >> if i can do a couple moves, then, you know. >> steve: he's got the moves, doesn't he? [ cheering ] >> brian: more in the after the show show. >> gretchen: have a fantastic weekend, everyone. we'll see you back here on monday. bill: good morning. detroit, michigan gave birth to the nation's auto industry once drove the economy. it has gone bankrupt. what a sad sight it is to see there. martha: i'm martha maccallum live in london.
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detroit has rampant debt. >> there were no other viable actions. i view this as an opportunity to say let many stop the decline. this has been a period of decline of 60 years in detroit. it resulted in $18 billion in debt the city can't afford to repay. and it resulted in services that are not good nor are they appropriate for the people of detroit. bill: who takes the hit? >> reporter: 20,000 retired city workers will ultimately take the hit. within a reasonable period of time they will take a massive hit. they are owed $9 billion, they are not going to get. creditors, the people who lent detroit money, they are not going to get their money back. maybe 10 cents on a dollar.
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bill: $10 billion? detroit is only one city. does this go elsewhere? >> reporter: it probably will. other cities will look at detroit and say you have got the escape hatch. our problem is city pensions. we can't pay them. if we go the detroit route and declare bankruptcy maybe we can get a handle on it. bill: 2008 and 2009 you had the auto bailout. did it do anything for the city of detroit in the end? >> reporter: apparently not. not the city of detroit. there president obama step in with. >> the bailout for the unions. it's unions owed $9.2 billion in retiree evenings. do yo -- retiree evenings.the wg
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the situation. a bailout is not out of the question. you cannot tax to the max, you cannot set up a cradle to grave welfare system and you cannot pay lavish evenings if your economy does not grow. detroit shrunk. bill: you have to remember a time when all these deals came together, in the 1950s and 60s, the industry was booming. part of detroit's function problems can be attributed to a shrinking population. the population hovers around 700,000. a level the city has not seen season 1910. down from a high of nearly 2 million people decade ago. martha: union roots are deep.
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that contributed to the city challenges. detroit has 48 employee unions:'. they are $14 billion in the hole and the long-term projected cost of healthcare for city employees has ballooned to $7 billion. bill: bankruptcies like detroit are rare but they are on the increase. 53 cities, towns and villages have filed for bankrupt going back to 1980. stockton, california held the distinction of the largest u.s. city to file for bankruptcy before detroit. stockton filed in june of 2012 claiming $700 million in debt. pop. martha: we heard for the first
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time from airs agent at the center of the scandal. republicans have blamed his woman for tarringerring conservative groups. but she testified her higher ups knew exactly what she was doing. >> i'm proud of the fact that we are pursuing this. if we did what the white house wanted us to do, if we did what the ranging member suggests we do this thing would be over. nothing here. don't do it. as far as i'm concerned it's over. when you have the spokesperson for the president of the youth make a definitive statement that it was two rogue agents and start poking at these people who have no power to do anything about it, that is wrong. how dare anybody suggest that we are at the end of this?
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this is the beginning of this. we have to make an example of it. we need to get to the bottom of it and i'm tired of this administration having to keep having these hearings. we did the on fast and furious, benghazi, the irs. why? each time there is a pattern. nothing here. just a couple people. just move on. that's not true. when the ranking member went on national television and said this case should be closed. that's wrong. martha: what a hearing this was. very fiery. what else happened in there, elizabeth? >> reporter: the latest house hearing turning extremely heated. the attorney general took a stand against democrats who refused to accept his findings and these two key figures negate
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an earlier story line. was it the fault of only low-level agents in cincinnati? carl hall worked at the agency for almost 50 years. at one time he said was in an office led by an obama appoint he. >> you said one should be approved for protective staws and one should be disapproved. >> that's correct. >> they gave to it someone who had no experience dealing with it and they tieblght away from you according to your testimony you met with the chief counsel's office. >> that's correct. >> reporter: not a totally different story liner than we heard from elizabeth hoffacker. martha: we also heard from the inspector general he came under fire. >> reporter: as the afternoon weren't on it got uncreasingly heated.
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democrats grilled inspector russell george for not flagging evidence that liberal groups were caught up tonight as well. he said there was no political consideration during the process. >> we never treated an ig office like this. if there were an allegations of personal wrongdoing that's one thiig. but to just try to suggest that an audit could have been done differently, you know, this is unprecedented, sir. this is unprecedented. >> reporter: george went on to say he didn't see some of the information from the irs until a week ago. he said he's disturbed it took the agency that long to produce document. martha: we had a lot of developments in this story since it first broke. the targeting began 3 years ago when the irs started selecting
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conservative groups that applied for tax exempt status and subjected them to what is known to be excessive screening and probing about their beliefs. they were questioned about bizarre thing like what book they were reading and even in one case or several cases it seems what they were praying for. then after came the wait. some groups with tea party or patriot in their names were stalled in this process for 3 years to get their applications processed. and while they waited two election cycles came and went. bill: we are watching all of these developments, especially based on the hearings. the man you just heard from jason chaffetz will be our guest in a moment. the clip we just played, he was fired up. we will ask him ...
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martha: so you know we are doing the regular news over here. we are covering all the stories but we are keeping an eye on the royal baby story. the word out there is -- there is a lot of different stuff floating around. that the due date may have been today. which could mean we have several days to go. another story came out and said she is two or three days late. you watch all of this and of course the royals are in charge of the whole process. but it's pointing out kate has done this very much in her own way. she is the fir future queen to be at home with her mom and dad while she is pregnant with a royal heir. in every past jonration the waiting mother of the future king or queen has been cloy sistered at the palace under the watchful eye of the royals. her husband backs her up every step of the way. bill: she is no palace girl. i think that was an 1980s
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girl. the great kate wait continues, hashing to. you thinking tomorrow? you thinking monday? >> it's about 80 degree here. i think it's about hundreds where you are. there are a number of reasons to wait around for this. we'll see you soon enough. bill: the great wait continues. we are just getting rolling here, folks. we have brand-new graphic images that show the boston bombers minutes after he was found. why the police sergeant put out these pictures without thorgs. pictures -- without authorization. martha: new allegations the obama administration may be trying to silence the survivors in the benghazi attack that killed four americans september 11. new evidence one lawmaker says he has on this. president obama accusing republicans of playing politics after the house votes to delay
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key provisions of his healthcare law. >> we have to pass the bill so you can found out what is in it away from the fog of the controversy.
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bill: an investigation into the leak of pictures that shows the moment when dzhokhar tsarnaev surrendered to police. emerging from under the tarp of that boat where he was hiding at the time and a red laser do the on the sniper's weapon trained on his forehead. that's a far cry from the "rolling stone" cover. officer sean murphy leaked the photos that he himself took the
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night of the capture. he released a statement. as a professional law enforcement officer of 25 years i believed the image portrayed to "rolling stone" magazine is an insult to anybody who has worn a uniform of any color or the military branch and anyone who has lost a loved one in the line of duty. it could be an incentive to those who may be unstable to get their face on the cover of "rolling stone" magazine. reaction from boston. gee, good morning to you. why did this officer do this? >> people are upset -- beyond upset -- they say wound have been ripped open again by "rolling stone."
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he said he couldn't see that cover anymore. so he said take a look at this. this is the picture you should be looking at. bill: what he says in that letter is don't remember the image on the magazine. remember the night we captured him. he continues now. these were real people with real lives with real families. and to have this cover dropped into boston was hurtful to the memories and their families. i know from firsthand conversations that this "rolling stone" cover has kept many of them up again. it i are stated a wound that will never heal again. there is nothing glamorous in bringing more pain to a grieving family. murphy goes to the funerals of those who were killed in the line of duty. for him this is intensely personal. >> yes, it is. sthawn collier's brother spoke to us and he said he defends the sergeant.
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he says he's been a great guy. he helped us through this. he took photos at sean's funeral. this really did rip open old wound. victims' families are telling us they can't sleep again. that "rolling stone" doesn't understand he's not jim morrison * he's an accused killer. bill: murphy meets with the families of the fallen. he acts as liaison. you have to remember they lost two officers during this. we have four companies boycotting the seat of this magazine. has this in essence backfired when the magazine probably did this as a business decision to draw attention to this magazine? >> it backfired in boston. it backfired. it's band. people are not going to pick
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this up. and i believe, bill, that it didn't work. i don't know how the rest of the nation is feeling is. but boston is still healing. boston has been hit very hard and it's not over. people are now getting their prosthetics. people who lost limbs are still getting fit. they are having trouble getting fitted. you wake up and the "rolling stone" has this slap in the face. i think the "rolling stone" is going to plummet in the boston area. bill: murphy, does he pay a price for this? he wasn't authorized to put them out. >> he was suspended for one day. i don't think he will be fired. the u.s. attorney office is not happy. they have a big case in front of them. yet i don't think he will be fired. but he will pay a price. but at least he stood up for what he believed in. bill: some people may consider
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him a hero. he felt the need to counter the message on the magazine. do you think it worked for him? >> i think it worked. it's an amazing photo. could he have put the photo out to everybody that might have been a little better move? but still the laser do the on his forehead. him surrendering. lifting up his shirt to show i'm not wearing a bomb, a vest bomb. that's what i got from that photo. this is real deal. this is not a social media floppy haired photo. this what is went down that day when people were locked inside and no one knew how bad this would be. bill: this is the real boston bomber murphy where is. not someone fluffed by "rolling
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stone" magazine. martha: scorching and relentless heat. how long will the punishing temperatures be around? bill: 105 in new york, martha. accusations of a coverup of the deadly terror attack in benghazi. why the administration is putting a muzzle on those who survived the attack. >> he comes here and gets ambassador stevens from his bedroom and brings him and sean smith to this big dark windowless clothes. then outside a locked the gate. needed more support. i had tired, achy feet. until i got my number. my dr. scholl's custom fit orthotics number.
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martha: there are new allegations that the obama administration is trying to silence the survivors of last year's attack in benghazi, libya that killed ambassador chris stevens and three other americans. james, why is one congressman pressing hard on this issue regarding benghazi. reporter: congressman wolf is posing a question a day about benghazi. he previously questioned why survivors of the attack have not been made available to questioning by congress. secretary of state kerry told the house foreign affairs
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committee he wanted to resolve all outstanding issues on benghazi because he says he didn't want to be talking about the subject a year from now. >> how many federal employees, military personnel or contractors have been asked to sign additional none disclosure agreements by each agency and do these non-disclosure agreement apply only to those under coverer to have non-covert state department and defense department employees been directed toshine sign them, too. >> reporter: it's highly unusual for the federal government to sign non-disclosure agreements if they don't already have security clearances or undertaking a project that requires them. martha: some of these survivors did not need a lot of producing from government to with hold the
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stories from the government other press. >> a number of them are cooperating with book writers and some of them are writi books of their own. one book written by a former in tell jones officer. they enjoys access to some of the security agents on site at the consulate in benghazi and excerpts from their book appears in the issue of "vanity fair." s to the time line of the attack. four survivors of the attack are reported to have signed a $3 million book deal with 12. martha: james, thank you very much. we'll see you soon. bill: president obama accusing
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opponents of the healthcare law of playing politics. martha: the white house blamed two rogue agents they said for the irs scandal that targeted 500 conservative groups. but new testimony casts a lot of doubt on that. congressman chaffetz says he will not stop until he find out the truth. >> if we did what the white house wanted to us do. if we do with the ranging member suggests we do, this would be over. nothing here. don't do it. as far as i'm concerned it's over. members of the american postal worker's union
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martha: president obama says republicans are playing politics with the healthcare law after the house votes to delay parts of the obama-care law. here is the president fires up on this yesterday. watch. >> if the folks who have been trying to make political hay out of this thing. if they had better ideas, i have told them i'm happy to hear it. but i haven't heard any so far. what i have heard is just the same old song and dance. we are just going to blow through that stuff and keep on doing the right thing for the american people.
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martha: new hampshire republican kelly ayotte is on the committee. you heard the president. he said all this stuff you guys are throwing at this, he's just going to blow on through that. >> we have seen it time and time again that he's just blowing through what's right for the american people. if it's right for the american people why did he think he had to delay the employer mandate until after the elections. if it's so right for the american people why are the teamsters saying it's going to destroy the 40-hour workweek. going to destroy the health and well being of americans. he's trying to blow through the opinions of the american people who are against this law and i have heard it on the ground from people in my state concerned
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about losing their health insurance because of this workweek issue. and the changing of the workweek to 30 hours. and also higher premiums from employers as well as from individuals trying to get health insurance. martha: we are seeing different things happening the past few days. one of them is the letter that came from the unions which is quite explosive. to have three large unions including the teamsters saying we are crying uncle on this, this isn't working for our folks. the fox news poll has a dramatic change in it. according to these numbers we are seeing that 66% say they are worried about the future of the healthcare system and that's from now. a year ago the number was at 51% where it has been for quite sometime. up to 66 per is a big jump in that number, is it not? >> a huge jump because people
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are seeing what many of us have talked about from the beginning, the problems with this law. higher premiums, more taxes, and tax increase on health insurance hasn't even come into effect. that comes into effect in 2014 and that will further drive premiums up. this workweek issue. people are being forced to work less hours or they may lose their health insurance because of it. that's why the unions said city would destroy the 40-hour workweek in america. this is dramatic language from his key supporters to say it bo destroy the health and well being of millions of americans. martha: i think you are absolutely right about that. but the president does not seem to be changing his tune on this at all. he says we have seen this song and dance he called it, and we know 35 bills have come and gone and been passed in the house and there is some pressure and he
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put it forth as well for folks on your side to come up with an alternative people could wrap their arms around. something they could stay yeah we like this better. that's would say has not happened. >> i think we have strong market based ideas. how about allow the purchase of insurance across state lines. tort reform. making sure people can keep their insurance so that individual have the tax deductions to be able to carry insurance across straight lines. affordability. making sure we reduce health insurance costs instead of driving the up. and give people more choices than that's not what's happening here. instead people are being forced to purchase the plan he says is right for them. martha: in terms digesting that and giving people the opportunity to have a change happen. it feels like we are stuck in one place on this. what is the catalyst for the next step in all this?
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>> i think the catalyst is that the american people are getting fed up with this law. if it was so good he wouldn't have delayed the mandate. i believe he should delay the individual mandate. that's only fair to people facing penalties if they don't purchase the insurance he want them to do. but it will be the american people that speak up on this issue when they continue to see the negative effects of this law as demonstrated by his own supporters this week. i think that was extraordinary. martha: perhaps. we'll see. senator kelly ayotte, thank you. bill: baby, it's hot out there. a heat wave keeping a grip on much of the country. there are tens of millions of folks looking for relief. when will that come? good morning. >> a lot of red across the eastern half of the country. high temperatures into the
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ninth. in new york city yesterday you reached 100 degree. today your reaching 97 degree. st. louis, omaha also reaching the ninth. it will feel like 101 degree in the city of chicago. washington, d.c., 106, new york city it will feel like 105 degree later on into the afternoon hours during the hours you are getting out of work. like bill mentioned we do have relief in store very soon. we have a of swinging through parts of the great lake and the northeast today and tomorrow. look at n city. by saturday you are talking lower 90s. middle 80s by sunday. monday, tuesday you are slightly
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below average for this time of year. so a big relief coming up. that's associated with this cough that will be firing up showers and storms across the northeast and into saturday. so we have stormy weather in store for us. but i think this is welcome news for us. bill: i love it. it make me feel young, maria. 105. see you soon. martha: this is the spot. st. mary's hospital and the famous door in front of the lindo wing. we remember when princess diana and prince charles stood here showing off their new baby prince william. unlikely though they will go through the door we just showed you. who knows. she could come through the main gate and walk right into the front door. but if it turns out when you walk around, there is a lot of
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ways to get in this place. there are at least four entrances behind me right here. and around the corner we found yet another way to get in. we know she is going to get in one way or the other. in the end we may never know how. in fact, bill, she got in monday we are learning. she went in and had an appointment with the doctor monday. nobody knows how she got in or out. they are 6-8 ladders deep. those reporters are getting tired of standing out there in the heat. bill: imagine what she is feeling. does your family still recognize you? martha: hello, everyone they see me on tv. they think i look familiar. bill: there were fireworks at a congressional hearing. republican jason chaffetz letting loose when some suggest
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the irs investigation should be dropped all together. >> how dare anybody suggest we are at the end of this. this is the beginning of this. we have to make an example of it. we need to get to the bottom of it and i'm tired of this administration having to keep having these hearings. golden opportunity sales event to experience the precision handling of the lexus performance vehicles, including the gs and all-new is. ♪ this is the pursuit of perfection. ♪ man: the charcoal went out already? ... forget it. vo: there's more barbeque time in every bag of kingsford original charcoal. kingsford. slow down and grill.
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bill: a house committee pressing forward with its investigation into the irs targeting conservative groups after one of the so called rogue agents in cincinnati blamed for the scandal insisted she was just following order when she singled out tea party groups looking for tax exempt status. i was following directions from
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imagine the and they were aware of way was doing. >> when the spokesperson for the pft united states jay carney student before the american people and said quote irs line personnel had improperly targeted conservative groups, what is the accuracy of that statement? >> sir, i know the inference to any rogue agents is not correct. bill: where did this take you in the investigation? >> we have to untangle the lies and misdirections that came out of the white house, the former acting commissioner of the irs and get to the truth. we went out, our investigators did and found the person who wae agents. she was wonderful in her testimony. she shouldn't be in this mess. i foal bad for her having to come to congress. but i take issue how the white
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house tried to blame this on two rogue agents and that never was the case. bill: it seems to me you are trying to figure out who from washington was giving the orders. has it been confirmed that the chief legal counsel for the irs was in charge of this operation and is he not a political appointee from the white house? is that all true? >> there are 10s of house of irs employees but only two political appointees. the commissioner and the person in charge of the chief legal person. as you look up the food chain and where it went from lois lerner down the food chain how this came up through mr. hall and lois lerner's office and over to this political appointee. i think that's the next part of the investigation. to figure out why they requested these. we had 70 years of service from these two people who testified yesterday. they said it's unpress tented.
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tent different was unprecedented. -- it was unprecedented and never happened before. bill: what does that mean when you get to who was in charge of this? >> why did they do this? we are coming on the heels of rigorous debate about obama-care. we are coming up to 2010, we are getting ready for the 2012 election and suddenly we are targeting people based on their political ideals, people who think their government is being abusive and overstepping. why would we go to extra extraordinary length to grab those, look at them in depth and make sure they didn't get approved. bill: who then has that answer? >> we have got to find out. we are doing a good job. we are all diving into this. we are getting a bit stonewalled but we are going to uncover it. bill: democrats are saying the
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inspector general was just recently given information on progressive groups or liberal groups. not just folks on the right but folks on the left, too. how extensive was that based on what you know today? >> my understanding is there were nearly 300 cases that were tea party oriented. on the left side there were maybe 6. as chairman issa, if there is any so-called progressive group, anybody on the left who can point to a single case where their application was held up, give it to the committee. so they have not done that. we have hundreds on the tea party side. you don't have any with any substance on the left. if they have them bring them to us. >> i have got 291 for the conservative side, 7 on the liberal side. so far as we know no liberal group had a denial for their tax
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exam status and conservative dwriewms are still waiting. is it possible the tea party groups were so ticked off for obama-care that the rush of applications outnumbers those on the right. is that possible or beyond the sense of logic or reason, sir? >> i think it goes beyond the sense of logic. they took these hundreds of cases and distilled it into two. there were two so-called test cases. one of those, mr. hall said he accepted the other one he was going to deny. but after that they reassigned these cases, they brought them up to somebody who had been on the job for a couple months. they push them off the chief they will officer and they never went anywhere. that's fund am alley wrong with this case from top to bottom. >> thank you for your time. more to come. based on what we heard yesterday.
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jason chaffetz there. hemmer@foxnews.com. you can fire away right now. just need one line because you ask, bya. 10 minutes before the hour. bombshell testimony raising questions over who ordered the targeting of these groups. the lawyer representing more than 40 of these groups faces extra scrutiny. he will join us with his take later this morning. martha: a major wildfire threatening a tourist destination. the fight from the fire lines coming up on america's newsroom. all business purchases. so you can capture your receipts, and manage them online with jot, the latest app from ink. so you can spend less time doing paperwork.
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>> this guy tried the doggy
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door. a young boy with long hair crawling through the doggy door of the home. the suspect is a 17-year-old runaway. they issued an arrest warrant for him. from the gem state of idaho we have that for you today. martha: the head of the national security agency is saying the damage to the u.s. intel community by fugitive leaker edward snowden is irresponsible and irreversible in his opinion. catherine herridge is streaming live in aspen, colorado. hello, catherine. >> on the second day of the aspen security forum the director of the nsa said the damage is irreversible and he said there is concrete evidence terror groups have begun to change their strategy because they have provided a roadmap to
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the surveillance strategy. >> we are saying here is our play book. if you tried a differentness method you would be successful. that's just plain crazy. what you are doing is irresponsible and i think it's significant and irreversible damage to our nation. >> reporter: we also learned new information about edward snowden. general alexander confirmed one of his jobs was to move sweeping amounts of data in between the networks to a til 8 information sharing. that helps explain why he had so much access to classified information that touched every element of the intelligence community, martha. martha: how do they defend these programs? >> one of the key headlines. back in 2009 the nsa went to the
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tell comes and asked them if they would hold the phone logs of american citizens. what's often referred to as the metadata and the telecoms refused. that left the nsa and the government. general alexander said these programs need to be secret because when you look at the foreign threat overseas what you find is there are a number of threats that always come back inside the domestic united states. >> the purpose of these programs and the reason we use secrecy is not to hide it from the american people. not to hide it from you. but to hide it from those who walk among you who are trying to kill you. >> we heard increasingly from critics at the security conference that the nsa program seemed to show a lack of efficiency and they point specifically to the boston marathon bombing.
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martha: catherine, thank you. bill: there are triple digit temps along the east coast. the mayo governor of michigan wl speak about detroit going bankrupt next. that goes to work in seconds. nothing works faster. ♪ tum, tum tum tum tums! aren't always the most obvious. take the humble stevia plant, with a surprising secret to share: sweetness. truvia sweetener. zero-calorie sweetness, born from the stevia leaf. from nature, for sweetness. uh-oguess what day it is!is?? huh...anybody? julie! hey...guess what day it is?? ah come on, i know you can hear me. mike mike mike mike mike... what day is it mike? ha ha ha ha ha ha! leslie, guess what today is? it's hump day.
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martha: a fox news alert. we are waiting for a news conference a day after the motor city filed the largest municipal bankruptcy in the history of the youth. an incredible story. we welcome you to america's newsroom. i'm martha maccallum live in london. bill: it's the cradle of america's car industry and it's gone bust. $19 billion in debt. the city which was once the nation's fourth largest town in america has fallen to 18th place. population has plummeted to
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700,000. resident taking their tax dollars with them as they move out in droves. martha: what happens next? mike tobin joins us live in chicago. has anybody started to hear from the representatives of these now almost gone bust pension fund? >> reporter: a spokesman for the general retirement pension fund said they have been hasty in filing for bankruptcy protection. information that negotiations were going poorly is yong because they were still in the due diligence phase preparing for negotiation when the city filed chapter 9. kevin orr is on a time lynn agenda. something he made it clear he does not disagree. >> we don't have time for more delaying tactics. we have been saying that between
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and again. everybody knows i have an 18-month term and 15 months left in it. we are going to start and get the level of services this city needs. >> reporter: a spokesman for the emergency management fund says they were seeking a restraining order to prevent the filing of chapter 9. now a stay goes into effect that prevent people from suing the city. >> what does this mean for the retirement fund? are they disappearing or is there some recourse for them. >> according to the emergency managers office, the fund don't disappear entirely. there is still value in the pension fund. but they are badly under funded to the tune of $3.5 billion. that's the latest figure to come out. the people who represent the pension fund will challenge it
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because they say the due diligence hasn't been done. martha: it may come down to how many pennies on a dollar they are able to negotiate in this bankruptcy. >> in trait the city's unemployment rate has tripled since 2013. the homicide rate is at historically high levels. the city has been named among america's most dangerous for 20 years. and folks in detroit wait an average of 58 minutes for police to respond compared to the national average of 11 minutes. 40% of streetlights did not work in the first quarter of 2013 and 38,000 city structures have been abandoned. martha: the motor city was not always under water. working americans wasy one in
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employed directly or indirectly by the automobile industry. and detroit was the he of all of that. by 1950 the city had become the largest city and it was home to 2 million people. bill: what do it mean for a city billions of dollars in debt? sir, good morning to you. what does happen now? what is the future that these people now face? >> it's great uncertainty. how do you go from the shiny city to really what it is today. this is a cautionary tale for everyone. the pain any city peels by pulling back and creating austerity measures will pale in comparison to the pain detroit is feeling now.
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this is going to happen all over the country, all over this youth. if people don't start taking the proper measures. one of the thing that caught my attention, they said that people are now blaming this bankruptcy on a lot of companies and a lot of individuals leaving the detroit area. the reason they left is because there was an anti-business climate in detroit that has been there for 15-20 years. bill: you say this is just the beginning? fit' not detroit, where else is it? >> you can pick just about any city in california or new york. any city that has a huge union presence. unions are very expensive. there is a lot of spending and a lot of obligations that can't be backed. so you could pick just about any city out there. but specifically focus in on
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those cities in california, new york and the illinois area. you will see this again and again. >> we are looking at 53 cities and towns and villages since 1980 that filed for bankruptcy. stuart varney says other cities have watched this bankruptcy play out. other cities will find it more expensive to borrow money. retirees owe $9 billion. and those who have lent detroit $10 billion over the past several years, how much of that will be recouped if at all? >> that's a great question. the bankruptcy courts will decide that. but stuart is a very smart man and he's spot on with this. when you see something bad happen in one city it spread to other cities so the cost of borrowing in say tucson just went up because of what happened
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in detroit. all around florida where there is a huge municipal bond presence and offerings that go on all around the youth, those costs to borrow for every one of those municipalities went up. so for all those people listening right now. what happens in detroit is impacting your lives. it's not just something you should watch as a spectator. you should become emotionally involved with it because it's going to come to haunt you one way or another. bill: major reform in detroit. appreciate your input on that. kevin orr is the emergency manager. he was speaking moments ago to try to begin the process to figure out a way how detroit covers this scar. >> we have a process to go forward. we'll continue negotiating with our creditors. but the real issue is we have a process to get to a point and start bringing service to the
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700,000-plus residents of this city that are sorely needed. bill: 700,000 still call detroit their home. martha: talk about he can reals. a fox extreme weather alert. we can confirm the scorching heat wave turned deadly at this hour. health officials blaming thursday's 106 degree heat for the death after man found unresponsive in his home. millions from the midwest to the east coast are dealing with temperatures in the triple digit and when you factor in the humidity those numbers go higher. rick, i feel for you out there. it brings on a lot of problems, this kind of heat. >> it does. triple digit means a triple threat in new york. excessive heat warning.
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air quality alert and ozone advisory with a predicted high of 99 and a heat up deks of 88. the sidewalks of times square are virtually empty with people flocking to schooling centers and seniors centers and a lot of people going to pools and fountains to cool off. people are warned to reduce their energy use to release pressure on the energy grids. they are asking folks to turn off lights and appliances they are not using and set their a.c. for 78 degree. we talked to some people about how they are trying to keep cool. >> it's refreshing and provide a nice environment. it's fun to hang out with friend and try to beat the heat. >> i live in the bronx and this feeled like a citywide sauna. it's horrible. report imagine if you are on a
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train and the train is forced to stop and you have to get off and deal with a bus orsome other way to get home. that happened to commuters last night when a major train service was forced to stop running when a iran went off the rails. a number of cars went off the track and commuters having to take busses. martha: that's a rough night for those commuters. at least one death is being blamed on the heat as well. >> reporter: a philadelphia man with chronic lung disease passed away. he was suffering from the heat. he was in a home with a fan in the window but no air-conditioning. the heat undeck was well into the 106 range. so we are hearing the same advice from official and that is to avoid excessive exercise outside. stay hydrated. heat light.
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if you know someone who is older who may have a chronic health condition you should check on them just in case. martha: rick, thank you very much. we'll see you later. bill: new calls for the governor of california to declare a wildfire emergency. the flames are raging out of control and we are live on the front lines and it's hot out there too, martha. martha: the white house may cancel president obama's trip to see vladimir putin in russia. bill: bombshell testimony claiming the tea party scrutiny came directly from washington, d.c. >> more and more evidence coming out at the inspende -- the inspr general cherry picked evidence for your narrative.
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bill: the owners of the world trade center are losing a major lawsuit. the judge siding the airlines saying additional payouts over the $5 billion amounted to double compensation. the world trade center owners say they noon appeal that ruling. nearly 3,000 dead that day when the jets were flown into the twin towers causing both of them to collapse. martha: word is the white house is considering cans lung a consg canceling an upcoming summit between president obama and vladimir putin. chris, welcome, good morning to you. the news they are considering
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canceling the premeeting with vladimir putin is put out there for a reason, right? >> absolutely. the administration using whatever leverage it has to try to get vladimir putin to act properly on a few issues as the u.s. government sees it. just to explain. september there will be a g20. the international countries are going to meet in st. petersburg. the president planned to have an individual summit meeting in moscow beforehand with slad purchase putin. now they are saying we are not sure that's going to happen. there are a variety of reasons. one clearly, edward snowden applied for temporary asylum in russia. the u.s. wants russia to send snowden to the u.s. to face justice. another thing is putin has been cracking down on dissent. the leading dissenter was
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convicted yesterday of embezzlement charges. many think the charges were trumped up. the u.s. government not happy with that at all. and syria, the fact that putin is supporting the assad regime and sending weapons to syria. but i suspect primarily the u.s. government is sending a not so subtle message, you want to have good relations with the use the then you have got to he things our way. martha: the navaly story has been a stunning one. his whole perspective was the more you talk with people the better and he would be encouraging that that would signal he arrived at a decision
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opposite to that. >> reporter: it didn't work with iran or north korea. when he came into office medvedev was the president of the country and the president seemed to bet on medvedev and he could have better relations with him. and when his term ended putin took back the presidency and that's who the president has to deal with now and their relations seem to have been tense. they had that international summit in northern ireland and that infamous photo-op where they looked like they wanted to be anywhere in the world except in the presence of each other. relations clearly aren't good between the two. the body language is just great there. very warm and cuddly. it's clear that the president is sending a message to putin, we
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have ways of making life difficult or embarrassing to you and one of them is we don't have to sit down and talk to you. martha: hard to imagine why they wouldn't want to create that friendly meeting in that picture. when you can pass up an opportunity to do that again perhaps that's not such a hard time. we'll see what they decide. chris, thank you very much. we'll be watching you this weekend to be sure. >> reporter: good luck with the baby, martha. martha: thank you. it was easier having my own babies than getting this one out into the world. i'm sure kate would love to hear that. thanks, chris. and you have dr. ben carson coming up to discuss attorney general eric holder's response to george zimmerman's aquital and whether federal hate crime charges are likely in this case. thanks to chris for being here with us.
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bill: news from detroit. the governor rick snyder saying he doubts a lot of the creditors for the city of detroit will ever be repaid. that comment a moment ago along with the emergency manager keyvn orr. he says the city of detroit has no plans to get itself out of the function mess and they had no option but to go with bankruptcy. also major developments in the irs scandal. claims that tea party scrutiny came from high up in washington, d.c. thousands are out of their homes waiting to go home if there is one when they come back as as the wildfires are raging on. >> we start to move out of town because the fires come this way. >> we don't like the idea that >> we don't like the idea that you can't come back.
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martha: michigan governor rick snyder and emergency manager kevyn orr spoke moments ago. very compelling what is going on in detroit with regard to this bankruptcy. here's what they had to say. listen to this. >> be happy to listen to any other plans someone can come up with given the restraints we're working under. the reality with $12 billion in unsecured debt, there is precious little we can do. allison? >> you present ad plan in terms of -- [inaudible] achieve those goals and will it maybe make it easier to --
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>> bankruptcy, as i said, time and a again, bankruptcy is a tool in our tool box to get at the goals we want to achieve and the proposal that we made on june 14th. i think one in direct response, allison to, your question, one, it gives us breathing room. as you know we were being sued almost on a weekly basis. that is the very thing i had asked, pleaded for not to happen. to have a resolution, for whatever reason that is what people didn't want to do. fair enough. they're entitled to act in their own interests. number two, it brings in as the governor said, to bring in all parties, significant percentage of parties we have to speak to are unrepresented, retirees. what you will see in the papers we're filing a request by the court to, we are moving to appoint a retiree committee so we will have someone to speak to in all fairness, abundance of fairness. i recognize some practitioners say that is not a smart move. you're asking to appoint an opponent in your case.
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we think that is what is fair. we'll try to do this in a fairway. in addition to freeing up cash flow, it allows us to focus on key issue governor reiterated then again and again, health, safety and welfare of 700,000 citizens in detroit. there are 700 citizens who don't deserve a 55-minute response time. who don't deserve endemic blight and crime. who don't deserve no hope and future and continue debt over debt and borrowing. so we have to do this in some fashion. bankruptcy will allow us to achieve that in some way. >> [inaudible] martha: wow. what an amazing bit of information we received in this situation out of detroit this morning. $12 billion in debt. basically the message to those who are owed money in detroit, you may never get it. they said we had no choice to take this course of action. there is no way we can pay off
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debts promised to these 100,000 creditors out there. bill, when you look at this, this is cautionary tale to many american cities across the country and you look at the money that they, unions and deals that were made and how they got this in this deep, there are many communities around the country who find themselves slightly smaller but similar situations. bill: yeah. and they're looking at detroit and see how they get out of this or don't get out of it. if you're a creditor with them, you have millions if not billions of dollars on the line. how will you react to this? this is a case example we've never seen before. no american city this large ever gone this route. bankrupt in detroit? the city has a flat tire. martha, thank you. they're naming names. employees at the irs office in cincinnati say they will not take the fall. >> personally i, i felt it was like a nuclear strike. i felt they were blaming us.
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martha: massive wildfire is raging out of control in california. some 3,000 firefighters have been working around the clock. this morning the fire is only 15% contained. will carr is live outside of palm springs, california, for us. hey, will. >> reporter: martha, right now firefighters are getting set to go back up to the front lines this morning and i want to show you exactly where they're going. take a look at the thick plume
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of smoke behind me just billowing up into the air. as of now the mountain fire burned almost 25,000 acres. to give you an idea, that is about 35 square miles. it destroyed seven homes and thousands more and thousands of people who live or around the community of idyllwild have evacuated. we have heard from some who have decided to hold out. >> i'm half a mile from the fire station. there's a hydrant right across the street. and i'm too close to town. >> the fire's no imminent danger. it can be a danger but it is not imminent. so there is no need to leave right now. >> when it first starts out you don't think it will be that bad, then all of a sudden the wind changes. >> reporter: obviously the winds are a big concern especially with the other conditions today. it is supposed to be dry and very hot. right now there are about 3300 firefighters up there battling this fire. they have it about 15% contained but hoping to get more of a
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handle on it day, martha. martha: we wish them well up there, will. any idea what started this fire? >> reporter: they're still looking into that. the rule of thought it is one of two things. it is lightning caused or human-caused. there was not any lightning in the area when it starred. they believe it was human caused and they're looking into that they're asking people in the area to be very cautious. they don't need any other fires starting while they try to get a handle on this fire, martha. martha: indeed they do not. will, thank you very much. >> we may finally be getting answers who in the irs is responsible for the targeting of conservative groups. lawmakers hearing testimony from employees at the irs who were in charge of flagging tax-exempt applications. one saying that this thing went all the way to to the top in washington, d.c. and they have no interest in taking the fall. this is part of what they said. >> you said one group should be approved for tax-exempt status
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and one should be does approved and get further information from the data, is that correct? >> that's correct. >> did you and other people in the cincinnati office feel they were being unfairly blamed or used to excuse this political activity that was going on in the washington office? >> well, i can't comment on what others, but personally, i felt like it was a nuclear strike. i felt they were blaming us. bill: that was liz hofacre there was not about to take the fall. jorden sekulow, center of american law and justice. jordan, good morning to you. what you believe the lead counsel for the irs, working out of washington, william wilkins is his name. he must testify. what do you get from him? >> i think that's what came out of this hearing. carter hull was a focus of all the concern. you know, we had carter hull's name on one of the original two test cases, our client, the
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albuquerque tea party was one of those two he talked about yesterday, one of the two that his name was on going back. that was an applicant who applied in december of 2009, still waiting over 1300 days now to hear back from the irs. whether or not they get their status. bill: what is wilkins history? why is he considered so suspicious by you and some others? >> carter hull, bill, implicated him directly and the reason why carter hull, william wilkins is very important and different even from lois learner or other bureaucrats at the irs, william wilkins is one of two officials that the president actually directly appoints at the irs. most of it is pretty independent. federal bureaucrats but the president gets to choose the chief counsel. william wilkins, who may or may not have done something wrong here but certainly his office was directly involved in this slowdown. that is why he needs to testify. bill: what is his history? >> goes back to starting his career as a chief counsel for
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the senate finance committee under the democrats. he has worked for democrats for a number of years. he has a long, partisan democrat history. he has been a lobby it. he has been a big donor to democrat causes. that is because, he is a presidential pick. he now needs to answer because he is the direct link between the white house and the tea party targeting -- as well as possibly the obama campaign. involved in democratic politics. bill: will make everybody satisfied with the answers or lead us in a new direction. >> exactly right. bill: hofacre was not taking this laying down. she was micromanaging to the point she wanted out of her job or at least wanted out of that office. explain that. >> she asked not only for a transfer because of micromanagement and also because she felt that taxpayers were being so wronged that they were being, the irs was mistreating these groups. they were being angry to her. carter hull was not giving her any answers. she thought it was carter hull's
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fault. quarter hull said, no, i was following orders. he had been at the irs 48 years. hofacre, long service at irs. someone who never had any trouble. she said, i want out of this. she is now in a different division. bill: complete the circle. gordon hull, worked there almost 50 years right? >> carter hull. bill: carter hull, thank you. he did not make a move because he was waiting on the chief counsel that was william wilkins and william wilkins did not provide any answers or directions, right? >> right. he had lois learner yank the first two case away from him. he sent the original question nays to the tea party. they were normal questions. that the lois learner, holly paz questions that carter hull acknowledged at hearing. he said at one point these cases were taken away. he said we will have to do another round ever review. that was the second set of questionnaires. low which is learner told carter hull, in e-mails as well, it
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wasn't just her office it had to go through but the chief counsel. again to reiterate, the irs chief counsel is directly appointed by the president of the united states and this chief counsel, william wilkins, who directs all the lawyers at the irs, was chosen by president obama back in 2009. bill: so if he is called to testify? either he pleads or he answers some questions. >> right. bill: jordan, thank you. jordan sekulow trying to complete, round out what happened yesterday with the witness who is were there in that house hearing. jordan, thank you. back to martha in london with more. martha: well it's a parents nightmare on a hot summer day. a mom accidentally locks her car with her little boy inside. wait until you hear how the police managed to get him out. bill: also waiting on the prince or the princess we wonder. >> i do think it will be a girl but maybe wishful thinking but nobody knows for sure definitely
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my first time there were lots of bills. bill: great kate wait is on. lots bills in my family. live from london as we await the royal baby. man: the charcoal went out already? ... forget it. vo: there's more barbeque time in every bag of kingsford original charcoal. kingsford. slow down and grill.
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bill: quite a display a bit earlier today in the state of florida. the atlas v rocket blasting off from the launchpad at cape canaveral air force station. a brief weather delay. look pretty good there. the rocket carry ad hefty navy satellite weighing 15,000 pounds. the officials say the new hardware will improve communications for our troops on the move anywhere they are in the world. nice-looking shot. martha: all right. we have to be very wary of the buzz we hear around this story of course but there's some feeling that kate and william may have left her parents house in buckle berry because there appears to be a decrease in security out there.
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we're working to confirm that story. i went down to the hospital. i took a walk by the famous place where she is expected to end up by the time she is expected to have this baby. let's have a look. we're here outside st. mary hospital and the wing where the royal baby is expected to be born. the press is six or eight ladders deep as everybody waits for the big day. there is some speculation since prince william and kate are spending so much time in berkshire that the baby might be born at the red reading hospital where kate was born. the palace shot down those rumors right away. they say she is more likely to come back here. that is part of the national health system in berkshire. and could end up if crowded in a room with three or four other moms. here she will be in a $15,000 a night luxury sweet r suite. after the baby is born she and william will have a meal made by the finest chefs in london and have champagne to celebrate. all of that seems more likely
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for a future queen and future heir to the british throne. that is the best, most comfortable way to have a baby. odds are they will opt for that. i'm joined by arthur edwards, royal photographer for "the sun" newspaper since 1977. he has been invited into their home many times to do so. arthur, have you heard anything about the young couple having left bucklebury this morning mo? >> no, i've not. makes sense to come nearer to the hospital. once the labor pains start you want to be getting here as soon as possible. it would be an over hour's drive from bucklebury just 10 minutes from the clarett house to get here. this will be the place where this new baby, this prince or princess will be born because everybody is sit up for her here. she is familiar with the place. she has met everybody. the staff are all on standby and
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this is where it is going to happen. martha: you know, obviously prince charles was in the delivery room when prince william was born and you photographed the family when they came out of the lindo wing which they're comically referring to as the limbo wing in some quarters. this is a very modern couple and no doubt william will play a very large role in being daddy here which is not the way the royals did it a couple generations ago. >> well, even one generation ago. william will be changing the napm ys and doing the feeds. of course he is a very modern man and he is absolutely can't wait to get his own child. william is fantastic with children. when he is with children he become as child himself. when he gets his own baby, in the first year william will want to spend as much time as possible with the child. martha: they have said they will not have nannies or, you know, maybe just a little bit of part-time help. we know prince charles was
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raised with many nannies around as was william. so this will be a real departure. >> that's right. yeah, i think, i think that's, that's a little bit of, you know, i think a bit of talk for that. you know, once kate, william get back to full-time duties a nan at this will be essential. obviously in the first couple months bonding with the child there will be just the three of them. but once kate gets on the road, will probably take william with us when they go off to australia next year, there will be william, the new baby, kate and the nanny. that will help kate cope. it is quite a full-time job being a princess in this country with different fashion changes and different venues and different patronages of charities they belong to. i think a nancy will be essential eventually. martha: you know it is interesting in terms of the title, arthur, because she is the duchess of cambridge.
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so once she has a child that is an hrh, her royal highness or his royal highness will she still be the duchess of cambridge or a princess consort? how will that work do you think? >> welshing when this baby's born it will be a prince or a princess. she will still be the duchess and when, when prince charles becomes king, prince william will be made the prince of wales and then she will be known as the princess of wales. so, that's how it works. when william becomes king, she will become the queen. and the child, if it's a boy, it will become the prince of wales. if it's a girl it will be princess whatever her name is, whatever name they pick. martha: i know that they're talking about victoria and elizabeth and charlotte and alexandra, all those names in the mix. arthur, you have your camera on your shoulder. i know you're ready to go when
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the big moment arrives. we'll see you down there eventually. thanks, arthur. >> thank you, martha. >> like his enthusiasm. well-done. we all await on that. jon scott is coming up to in a moment. jon, maybe they go with jon? >> is martha ever coming back, hemmer? have you had words with her? bill: we have the gps on her ankle. she will not get away. >> we're talking about this big story. you probably heard the motor city filed for bankruptcy. what that sad milestones means for one of america's industrial powerhouses and also for your pocketbook. dramatic developments in the whitey bulger trial. the mafia on full view as a key suspect dice. one the accusations, some networks profiting off the racial aspects of the case and i said suspect. i meant potential witness. sorry about that.
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been a long week. bill: that's all right. i like king jon. >> women with that. bill: i'm giving you the green light. take care, jon. see you later. the sequester is on but why protection of gopher? they're safe from carl, from "caddyshack." who is spending millions of your money to protect them.
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martha: scary moments for a mom in california when she accidentally locked her child in the car the panicked mother realized instantly that she had locked her keys on the car with the 4-year-old son and family
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dog. he was able to open the door himself as the police officer coaxed him along. it took a half an hour. eventually he freed himself and the puppy. bill: nicely done. many questions about the priorities of our defense department. while thousands of workers are furloughed in an army base in washington state, the department of defense is spending millions of your money to save gophers. dan springer streams live for us, ft. lewis outside of seattle live from there. how many furloughs affecting army bases, dan? >> reporter: at in central washington 10,000 civilian employees are forced to take a second unpaid day off. white it is not shutting down the base, certainly affecting all active duty soldiers. no paperwork getting done. tougher to get a doctor's visit. 650,000 civilian employees at bases all over the country are being furloughed one day a week until the end of september. it's a $1.8 billions savings
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following the sequester cuts. >> there are civilians back here day in, day out sent the servicemembers off to combat, taken care of families while they're deployed and reintegrating into installations. to ask them to sacrifice again is personally very painful for me to do that. >> and tough for these employees. that amounts to 20% pay cut for 11 weeks, bill. bill: i heard that harley. the defense department is not acting broke, dan. still buying land around that base, is it not? >> well, that's the amazing thing. the dod and other federal agencies are spending right now $12 million to buy land around this base to help protect a pocket gopher? it is being discussed as a possible threatened species. the not threatened yet but a possible threatened species. the habitat is prayerly land on and around the base.
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they couldn't tell us how many are left or what makes them different from gophers around the country but officials say they have to protect. >> although our primary mission is fighting wars and military training, like other federal agencies we do have a requirement to support the recovery of listed species. >> and it's not just going on here. the dod and other federal agencies have spent nearly $400 million to help protect its species around the country at bases over last 10 years. a lot of money adding up that at the same time we're furloughing civilian employees, bill. bill: go for the gopher. dan springer, thank you, south of seattle. fort lewis. martha? martha: we'll keep a close eye what is going on in detroit today. it is the top story. they have filed for bankruptcy. the story of how the motor city went bust. >> the reality is, even the
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casual observer, even the casual observer has had to understand for some period of time that detroit is simply was not on a sustainable footing, continuing to borrow, continuing to defer pension payments. continuing not to pay its bills on the time, continuing deepening insolvency. what makes your family smile? backflips and cartwheels. love, warmth. here, try this. backflips and camm, ok!s. ching! i like the fact that there's lots of different tastes going on. mmmm! breakfast i'm very impressed. this is a great cereal! honey bunches of oats. i hear you crunching. hey, the new guy is loaded with protein! really? 25 grams of protein. what do we have? all four of us, together? 24. he's low fat, too, and has 5 grams of sugars. i'll believe it when i---
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[ both ] oooooh... what's shakin'? [ female announcer ] as you get older, protein is an important part of staying active and strong. ensure high protein... fifty percent of your daily value of protein. low fat and five grams of sugars. see? he's a good egg. [ major nutrition ] ensure high protein... ensure! nutrition in charge! [growl] we used to live with a bear. we'd always have to go everywhere with it. get in the front. we drive. it was so embarrasing that we just wanted to say, well,
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go away. shoo bear. but we can't really tell bears what to do. moooooommmmmm!!! then one day, it was just gone. mom! [announcer] you are how you sleep. tempur-pedic.
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bill: so before we check out, we're fe hours plus, right? it's 4:00 in the afternoon for you, martha. if the baby doesn't come today, what are you hearing about saturday or sunday? what are you picking up on? martha: you know what? the buzz right now is that there's almost no security left at kate middleton's parents' house where she and william have been all week, so that could indicate they're headed back here to kensington or possibly to the hospital. we're not hearing there's ramp up of security at the hospital, but it could mean that something's starting to happen. you know, you've got about 150, we figure, reporter spots that are set up right now. ladders, all of that outside the hospital. and at buckingham palace, you've
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got a huge group set up there. they all are after that iconic photo, bill. that's what it's all about. everybody's waiting for that picture that's going to last forever once it's taken. bill: and they've got 151 with you. good luck, and i hope she comes soon, might be a he. martha: have a good weekend. bill: "happening now" starts right now. jenna: if we get that breaking news, we'll be sure to tell our viewers. jon: he spent hours buried alive under 11 feet of sand, now new information on the condition of a 6-year-old boy. also, like a scene out of the sopranos, a potential witness in the trial of a mob boss suddenly found dead. what police are saying now about the investigation. and j.k. rowling now speaking out after it was revealed that she wrote a crime novel under a different name. why she is upset the secret's out. it's all "happening now."

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