>> no, no, no! >> you have to tune into the he fox news how. alert from egypt and the very future of that nation. security forces have been cranking down as the deadliest show of force since that country was rocked by revolution more than two years ago. there are now reports of nearly 80 people killed in those battles. makeshift hospitals have been overwhelmed with about 800 people so far wounded in both cairo and alexandria. i'm eric shawn. welcome to america's news headquarters. >> we've been watching this situation for a couple of days. hard to believe how bad it's gotten. i'm jamie kobe. it is great to have you here this morning. secretary of state john kerry is

calling this a, quote, pivotal moment for egypt as the new military backed government is clashing with supporter of ousted president mohamed morsi. secretary kerry is urging egyptian leaders to act immediately to help their country take a step back from the brink. conner powell is live from our mideast bureau with the very latest. connor, tell us more. >> jamie, there's been calling to have an inquiry investigation into saturday's silence. those aren't likely to do much to calm tensions in egypt which appear to be getting worse and worse. in an effort to clear out the muslim brotherhood from the streets and end their nationwide protest in support of now deposed former president mohamed morsi, the egyptian military opened fire on peaceful demonstrations yesterday killing at least 70 people, wounding hundreds more. egypt's top military commande e issue ed -- that statement is widely understood to be a request to crack down on the

muslim brotherhood. this is the second time the egyptian military has used deadly force to try to clear out pro-morsi supporters which so far really has fail. despite the bloodshed, the muslim brotherhood, however, continues to rejiect calms to ed its demonstrations. they continue to hold rallies in cairo and alexandria. the violence is beginning to divide the pro-military transitional government which has secular egyptians, very islamic groups part of the transitional government. several members of this transitional coalition are voicing concerns about the coalition. jamie, keep in mind, one of the foundations of the sort of justifications for this military coup to remove morsi was to provide stability and to end the political crisis that has really sort of plagued egypt for the last month or so. it really doesn't appear to be doing that. in fact, it seems to be making things much worse in egypt right now, jamie. >> such great reminder, though, of what it was supposed to do.

thanks so much, conor powell. >> will egypt come apart or will the deadly crackdown spell doom for the islamists and muslim brotherhood? will the violence only embolden them and they're supporters? john bolton joins us now as he does every sunday about this time. good morning, ambassador. >> good morning, eric. glad to be with you. >> as conor powell just reported it seems to be getting worse. what does that mean? >> i think you have to ask the question who's causing the confrontation. who is making the circumstances where -- where this kind of bloodshed can occur? while the temptation may be, as it is for some people, always to blame the military, i think you have to be a little more realistic here and understand that what the muslim brotherhood is trying to do is increase its arguments about the legitimacy of the morsi government by creating some martyrs.

they are very cynical in the leadership of the muslim brotherhood. they know people will be killed and wounded. they think it's to their advantage. to the extent the western press buys the argument that all of the bloodshed and all of the responsibility is the police and the military, the muslim brotherhood is winning again. >> what do we do about that? how do we achieve some sense of peace eventually there? is that possible at all? >> you know, egypt has been through this before. in 1981 the muslim brotherhood assassinated president anwr sadad. they killed him and almost killed his successor, hosni mubarak, because sadad has negotiated the camp david peace agreement with israel. when mubarak took over as sadad's successor, he repressed the muslim brotherhood. and it was bloody. so there are people in the egyptian military who know how this is the done and are probably quite prepared to go through it again. the fact is the brotherhood was engaged in a creeping coup.

it was determined not to relinquish power. and that's why millions of other civilian egyptians went into the streets in june and early july. this clash that we're seeing in the streets is not something caused by the military. maybe exacerbated by its tactics. but it's a reflection of the deep divide within egyptian society. >> and can that divide ever be fixed, or do you see this continuing and the muslim brotherhood potentially banned again as it was under mubarak? >> well, i think that may be what the military does. i think you've got to try and separate the brotherhood's leadership from the mass of people who voted for brotherhood candidates. if we simply move again toward elections as happened two years ago, we're going to get exactly the same result. because conditions in egypt are not right for what we call properly a democratic or better put a free and open society. so i think the military here has made a decision. i think they knew that they were

in for this kind of provocation and bloodshed. they should probably do a better job of restraining some of their people. but don't think this is going to stop. because the brotherhood's determined to keep it going. >> this is not going to stop, sadly. with other violence there. there are peace talks now set to begin this week between the israelis and palestinians. breaking thousand, israel has agreed for a prisoner swap with 104 prisoners. what is the prospect of these peace talks potentially achieving anything? >> i think the prospect is almost nil. i think netanyahu has calculated that it's better for him cede to obama's desire. while there are risks to him, for example, in this release of the palestinian prisoners that israel has been holding, he thinks it's better for him to allow the administration to

quote, unquote, succeed in getting the talks going and then pin the blame on the palestin n palestinians when they fail, as i think they inevitably will. >> we've seen this movie before. what do we do about that? >> i think netanyahu has his eye on the bigger picture, which honestly is where the united states' eye ought to be as well. that's the iranian nuclear weapons program. i think netanyahu wants to clear the decks in his relationship with the obama administration against the day when israel may have to decide to take military action against the iranian nuclear program. i think if that day comes netanyahu wants to be able to say to obama i did everything you asked me to do on the israeli/palestinian situation. even at great political risk. now i need you and the united states to stand with me and israel in the attack against iran's nuclear program. >> ambassador, if we do, indeed, get to that point and prime minister netanyahu has that type of conversation with the

president of the united states, do you feel that the president of the united states will stand with israel at that point? >> i don't know. if i were netanyahu i wouldn't have the conversation till after the israeli air force was over targets in iran. so i wouldn't be asking permission. i'd be telling the president what had happened. that's what israel did in 2007 when they bombed that north korean reactor being built in syria. i think at that point congress is going to need to make itself heard very supportive of israel. i think then obama would probably go along. but i don't believe that's his instinct. >> finally, do you think this is potentially how it could play out with iran? >> yes. i think israel has very little time left to make a decision. a very difficult decision to make. but twice before israel has struck nuclear weapons programs in hostile neighboring states. >> ambassador john bolton, always a pleasure. thank you for your insight on sunday. >> thank you, eric. >> of course. thank you. well, they're on the loose.

more than 1,000 inmates running free after a massive jailbreak in benghazi, libya. the prime minister blaming local residents saying they stormed the prison because they don't want it in their neighborhood. but some security officials are disputing that, saying it happened after riots inside the jail. it's unclear if the mass escape had anything to do with recent political protests all across that country. as many as 1,200 inmates on the run. so far police have captured 18 of them. back here at home, there's major trouble brewing today for president obama's health care law as the irs employees union is balking at the prospect of its own members losing their current health coverage and being forced into one of obama care's new insurance exchanges. as house republicans are expected to try and defund the program altogether, during the looming budget battle that is going on on capitol hill.

joining me now, jamie weinstein, senior editor of the daily caller. quite a bit to discuss, jamie. good morn. first on the irs employees, it's interesting. they're the agency that's supposed to enforce and implement the whole obama care program. they're complaining and two other unions are. unions that have been for the most part very supportive of anything president obama wants. what do you think the chances are that their push to actually change provisions stopping it altogether? >> i don't know if it will stop the exchanges altogether. certainly it's kind of a pr blow for the obama care exchanges. if even the own employees of the federal government are afraid to go to these exchanges because they don't want to lose the current coverage they have, what does that say to other americans who are going to be going into these exchanges. it doesn't say that this is a great program here to get health care. >> you know, what they're saying actually is they're calling it

that it will bring nightmare scenarios and take away their well earned health benefits. are we headed for a showdown? >> well, certainly on capitol hill, that's what it's looking like. you just had on fox news sunday senator lee who has a letter circulating among senate republicans to try to defund obama care before it goes into full effect this january. honestly, i think that if you -- if you look to other senators like senator tom coburn, known as dr. no, he's no squishy conservative, he says there's really no prospect of that succeeding. there's really no scenario in which you can imagine that president obama will sign a funding bill that does not include funding for his number one achievement as president. at least certainly from his perspective. which is obama care. >> so at this point we're facing a possible government shutdown. definitely the budget crisis is going to be a big topic of conversation on the hill. defunding, does it make more sense given that scenario? will there be more support?

because there are a number of democrats that are also calling for obama care, provisions of it, to not be implemented at this point. >> sure. i think there's the possibility that there's going to be a serious showdown. maybe there'll be negotiations. and there could be a government shutdown. and who to blame for that is up in the air. some people might say look at the republicans who honestly failed to stop obama care getting through the first time. they were failed to stop president obama from being re-elected. now trying to stop obama care from going into effect for defunding it. some people might see that as sour grapes. especially when there's really no prospect of it succeeding. it's hard to imagine a scenario where president obama has fought to get this one bill, this is his number one domestic achievement, and he just signs it away and says, okay, if no one wants to fund it, fine, let it go. i don't think republicans have the votes for that. i think as senator coburn has said it's building up false hope here that this is the way to end obama care. could it fall under its own weight?

i think that's more possible. the idea that they're going to defund this bill and actually stop it through cutting off funding, i think is a false hope. >> speaker boehner does have support from republicans. in terms of the prospect of defunding. they sent a letter. they've made their opinion clear. but when three labor unions are also sending letters, even asking their members to send letters to democratic leaders that this provision will hurt them in some way, this exchange program that's going to come online, is that a game changer? >> well, i think it shows that obama care could fall under its own weight, perhaps. >> what does that mean? >> well, look at the exchanges. you have the health care exchanges. what they need for these health care exchanges is you need young and healthy people to sign up for it so they can subsidize the sick and the elderly. you have to get these healthy young people to spend lots of money that they don't think they need to spend for coverage they didn't buy to begin with. that's why president obama is having celebrities come to the

white house. they're trying to get them to get these young people to sign up. if they don't sign up the health care premiums are going to explode even higher than they already have. if that occurs who knows what will happen. if you don't get those young people you need to keep up these exchanges, that's going to be a game changer and we'll see what happens. but it's unclear if they're going to be able to get these healthy people to sign up for it. >> so interesting as we watch this. it's been going on for a long time now. now the unions in on that as well trying to be heard. thanks so much, jamie. great to hear from you today. >> thank you. >> eric? jamie, brazil is celebrating world youth day as only they can do it. let's take a look at the pictures. 3 million faithful have hit the sands with one final mass with pope francis. we'll have his message that he's leaving behind after the first pontiff's visit, international trip, as the leader of the catholic church. the very latest ahead here on this sunday on the fox news

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[ speaking in foreign language ] >> how magnificent. huge crowds as pope francis is wrapping up his trip in brazil. a live look in rio de janeiro. the pontiff holding a final mass to mark world youth day. the city's mayor says about 3 million people are in this crowd, and hope francis reiterating a message he has emphasized throughout the week. the need for catholics to get out of their churches and spread the faith to people from all walks of life. the pope returning home later

today. >> that was beautiful, wasn't it? back here at home the obama administration gearing up for a nasty budget battle on capitol hill. republicans insisting on massive spending cuts to reduce the federal deficit. but some democrats are vowing a government shutdown unless the gop agrees to replace the cuts. this morning on fox news sunday treasury secretary jack lew said cuts are not the way to go. >> we are reducing the deficit at the fastest rate since the demobilization after world war ii. we need to talk about growth. we need to talk about how do we build that better future for america's middle class. you cannot just cut your way to growth. you need to have policies in the short term which help an economy grow and medium and long-term reforms that put things in the right place for the long term. >> joining us now is anchor of fox news sunday chris wallace. good morning, chris.

>> good morning, eric. >> we hear the old battle cuts versus growth. how is this going to shake out? >> it's even more complicated than that. the answer is i don't know how it's going to shake out. because you've got the government running out of money at the end of september so they're going to have to come to some agreement even if it's only a continuing resolution to keep the government funded. both sides want growth. the answer is how to achieve it. the democrats and the president and jack lew as treasury secretary are saying, this sounds familiar, raise taxes on the wealthy. spend more money on investments and things like infrastructure, education, clean energy, manufacturing, to boost the middle class. republicans say we've heard this all before. we've spent $800 billion in the stimulus. it hasn't worked. real median household income has actually fallen during the recovery since the recession enlded in 2009. they say get government out of the way. lower taxes. less regulation. let business be the generator of

growth. so it's an old argument, but we're going to see it renewed with new fury in the next month or so. once again we're bumping up against one of those deadlines for the government to run out of money. >> man, oh, man, if we did this in our house, you know, credit card company would be after us. what do we do? you've got the debt ceiling. they keep on expanding that. we have these fiscal cliffs. we're running up to 2014 where this certainly will be an argument then. >> it absolutely will be an argument. i will say that republicans, while they, you know, certainly have different feelings than the president, i would say the prevailing feeling at least among republican leaders, maybe not the tea party, maybe not some of the more conservative base, but the leaders is we don't want something cataclysmic to happen. they mean, one, a government shut down or, two, a -- to go into default. you know, go past the debt limit and maybe get another decrease in our downgrade in our credit rating. their feeling is that the way the election is going now,

they're almost certainly going to hold on to the house and have a good chance to take up with the senate. they think if they do something that forces this kind of a cataclysmic event, that that could be just what the president uses as a weapon to beat them and to help democrats either, one, hold on to the senate or even, two, take the house. they're going to push it. i don't know that they're going to push it to the point of a government shutdown. >> do they have political motivations? i remember the last government shut down. it ended up helping president clinton. >> that's the point. you know, generally speaking, and we talked about this with a panel and britt hume said almost every time the democrats have been in charge and the republicans have forced a shutdown, you can argue as to whether or not the republicans were right or not, politically it has played to the advantage of the democratic president and to the disadvantage of republicans. you know, there's a basic argument. i know karl rove makes it. you can't govern the country from one-half of congress.

when you've got a democratic senate and a democratic president, there's only -- there's a limit to what republicans can do. they can make their case. but they can't sit there and hold the government hostage. >> chris, sounds like a fascinating program. it deals with the budget and what we have to deal with with the economy. look forward to it. good to see you as always. >> let me also quickly say watch my conversation back and forth with jack lew about the phony scandals the president talks about. it gets pretty heated. >> can't wait for that. that's a huge issue, too, alleged phony scandal. we will. thanks, chris. talking about the economy and the budget, the shutdown and the so-called, quote, phony scandals with jack lew tune into fox news sunday. chris talks about the budget ahead with the exclusive interview of republican mike lee from utah. both sides fair and balanced on fox news sunday today on the fox news channel 2:00 and 6:00 p.m. and on your local fox station where you live. should be quite a show. >> feeling okay today, eric? >> feel great. >> because there is is a bad and

pretty serious stomach virus going around. the doctors want you to know about it. we're going to tell you what it's linked to and what you need to do to avoid it. the doctors will be here for "sunday housecall." and we mark 60 years of the truce that enlded the korean war we recall one of our warships. there she is. still behind enemy lines. coming up, what the north has done with the "uss pueblo" and the new efforts to try and bring her home. huh...fifteen minutes could save you fifteen percent or more on car insurance. mmmhmmm...everybody knows that. well, did you know that old macdonald was a really bad speller? your word is...cow. cow. cow. c...o...w... ...e...i...e...i...o. [buzzer] dangnabbit. geico. fifteen minutes could save you...well, you know.

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it's time now for "sunday housecall." joining us as always this morning dr. marc siegel. associate professor of medicine at nyu's lango medical center and author of "the inner pulse: unlocking the secret code of sickness and health." >> dr. samadi is here, too. david samadi, chairman of

neurology at lennox hill hospital and chief of robotic surgery. i'll go first. eric's doing great. i'm doing great. you might have the stomach virus definitely going around. hundreds of people have been sick across more than a dozen states. it's spreading, too. we wanted to ask you, dr. samadi, where is this coming from? it does seem in the nice weather you wouldn't expect so many people to be down with the flu or a virus. >> this is really nothing new. almost every other month we're coming up with listeria. we just had hepatitis a in the restaurants. now we see the psych lo spocycl. it's coming, jamie, from food, contaminated food and water. >> how do you know when you go to a restaurant or you buy something in the grocery store, maybe it even lives in your own refrigerator too long, y