watch. thanks to our panel. i'm rick folbaum. keep it right here on the fox news channel. a fox news alert. state department has just announced that peace talks between israel and palestinian authority are set to resume in washington. i'm heather childers. welcome to brand-new hour. >> kelly: good to be here. i'm kelly wright. >> heather: and conor powell has more on this. coner? >> a week ago, john kerrey announced that they would resume negotiations over the sort of a final agreement for a peace negotiation, but there weren't much in the way of details accompanying that announcement. now, we know representatives from israel and palestinian

authority will meet on washington on monday night and on tuesday to begin sort of framework discussion how the two sides can move forward. when secretary of state kerry launched the effort to have a renewed peace talks, there was a lot of people they would never get the israelis and palestinians to the table. that has surpassed what most people thought would happen. there is a lot that needs to be done. the side seems to be fully committed to engage in deep negotiations but the first step to get the two sides talking in washington. secretary of state kerry is really put all husband effort to get the two sides together. where it will go is a mystery and unknown. the first step has been talking. they appear to be set to do that tomorrow. >> heather: conor, i know you have been telling us we did expect this to happen but getting the date down. you are calling the deadly clashes in cairo. what is the latest on that?

>> the situation in egypt seems to be moving away from any type of political reconciliation more towards violent confrontations. one day after military opened fire on peaceful demonstrates straighters. new military backed it appears to escalate the situation. interim government granting the right to arrest civilians. its power that signals a move to crack down on muslim brotherhood. one official said the protests in the streets by the muslim brotherhood must come to an end. muslim brotherhood continues the sit-ins across egypt vowing to continue protesting until morsi is released and military restores him to power. that seems unlikely to happen in the future. u.s. secretary of state john kerry calling for restraint and also for the egyptian military to respect the right of peaceful assembly.

his calls for restraint to have been largely dismissed and ignored. >> heather: conor, thank you. >> kelly: how did it all begin in egypt deteriorate to go this point? just over three weeks ago you recall the military steps in after days of massive protests and ousts president morsi. his supporters demand he be reinstated. the new military backed government taking the first steps of legal action against morsi launching an investigation into allegations of espionage and murder. at the same time the government calling for an end to the protests telling morsi supporters, go home or face possible arrested. >> heather: more than a thousand inmates breaking free from a prison in benghazi, libya. they say they have rounded up

about hundred of them so far. the prime minister blaming local residents for the escape saying they stormed the prison because they don't want it in their neighborhood. some security officials contradicting that saying it actually happened after riots inside the jail. >> kelly: the driver of that spanish train that derailed at high speed questioned by a judge today as officials consider whether or not to charge him with negligent homicide. this as a witness tells local media that the driver said moments after the crash that he had been going too fast and couldn't brake. the witness says he spoke to the driver as they waited for emergency services to arrive. at least 79 people are dead and dozens more were hurt when the high speed train veered off thek entering a turn and investigators are looking at that video is so dramatic. they believe the train was going more than twice the speed when it crashed at the time. >> heather: we have an update,

a second body pulled from the new york hudson river after a tragic boating accident. a bride to be and fiance's best man, they both went missing after their boat hit a barge. a female matching the description of the miss go woman was recovered yesterday and second body recovered today matches the description of the best man. both bodies have been taking to the medical examiner's office to identify them. four others including the groom to be were hopped. driver of the boat has been charged with vehicular homicide. authorities say that he was intoxicated. >> kelly: sad news out of indiana, a youth pastor and pregnant wife identified three people killed in a bus crash. he and his wife were expecting their second child next month. a mother of five was also killed this in that crash. group was returning from a week long camping trip in michigan. the bus was about a mile away

from home when it struck a retaining wall on the exit ramp of interstate 46535 and flipped. the driver said the brakes failed -- 4675. >> congress could slap iran with tough new sanctions this week as tehran show no signs of slowing down the nuclear program. house voted on wednesday in a bill that seeks to squeeze the iran's oil exports slashing output by one million barrels day within one year. the bill is expected to pass easily but it won't become law right away because the senate has to pass its version of the legislation. >> kelly: keeping a focus on the nation's capital, president obama is looking to turn the spotlight away from the scandals and back to the economy. she actually heading to capitol hill this week to meet with democrats to discuss it. doug mckelway is live in

washington. doug, it seems republicans are pushing back against accusations that are investigating the phony scandals? >> they are. president obama has used that phrase to suggest republicans are distracting the american people from the urgent business at hand to get the economy faster. here he is. >> with this endless parade of distractions and political posturing and phony scandals, washington has taken the eye off the ball. i'm here to say this needs to stop. >> reporter: republicans think the investigation of the targeting of conservatives is producing results. >> we don't have any evidence directly yet but we continue to do depositions, do the interviews and keep working up the chain of command. now, we know it's in the chief counsel's office. >> reporter: the irs chief counsel is one of one of two

political appointees. he a former lobbyist among his clients, swiss bankers association. he was frequent visitor to the white house while the targeting of conservatives was taking place. >> kelly: it seems like this is not over. the department is supposed to be doing its own investigation of the scandals, is that correct? >> yes, they are. chris wallace pointed out to his guests that treasury secretary jack lew that wilkins reports to lew. >> there are 1600 lawyers in the chief counsel's office. there is no suggestion it went to the one political person in that office. >> what do you mean there is no evidence. have you asked him? >> i am leading the investigation into the proper people that do the proper people that do investigations. >> he blamed the targeting on career supervisors exercising bad judgment. they have been relieved of

their responsibilities. >> kelly: we'll be following this story and lot longer. thank you, sir. >> heather: another story we're following, growing fallout over the controversial nsa surveillance programs. house narrowly defeating a bill this week that would have ended the program by slashing funding. lawmakers are speaking out about privacy concerns and the vote. peter doocy reports from washington. >> the president's privacy policy is not accessible to members of his own party. we've heard from several democrats this weekend who are upset that the white house is standing by while the nsa collects phone records from everyday americans who haven't been charged with crimes. >> i really believe we should limit this collection. the notion that we're going collect all the phone records of everyone living in an area code on the off chance someone in that area code may be a suspect goes way too far. >> reporter: two more

democratic senators say in our opinion the government's ongoing overly broad collection is not authorized under a straightforward interpretation of patriot act or any other law. they ought to end the dragnet and sharpen on the terrorists and spy that has threaten our security. national security will suffer if the nsa collects data according to the republican chair of the house intelligence committee. >> in this program, zero privacy violations, 54 terrorists, violent terrorist attacks thwarted. that is great record. >> another republican, he says he has been assured that nobody at nsa has the ability to listen to any phone conversation or monitor any email without a court order. >> heather: peter doocy, thanks. >> kelly: there is a lot of excitement in brazil. pope francis holding mass in front of millions at world

youth day in rio de janeiro. the pontiff is reiterating his lifelong message, help the needy. dominic, as so many people impressed by seeing so many young people to hear the pontiff. >> reporter: you bet. the size of the crowd it turned out is one of the largest they have seen. estimates are 2 million. it could be as many as 3 million. that is massive. take a look at aerial views of the beach. people camped during a cold night. pope francis getting an ecstatic welcome to the crowd. and youth festival by urging young people to go out and build a new world he said. >> boys and girls, please

don't put yourself at back end of history. play for the future. take it forward. build a better world, a world of brothers and sisters, a just world of love and peace of fraternity and solidarity. >> reporter: many in attendance were in a state of rapture. they have made young people a priority for the church. >> i came to world youth day for a reason, to change the person in my life. >> he communicates a message, people that are simple and live their life. >> its wonderful experience. it's so special to be with so many people. >> reporter: this is his

first foreign tour. it's gone pretty well marred by security issue yearly in the week when he was mobbed in the street by well-wishers and anti-government protests that have criticized the authorities spending on his visit when there is so much poverty in the country. he urged brazil political leaders to end violent handling of demonstrations through dialogue he said. he heads back to rome in a couple of hours. >> kelly: bold move for the pope and obviously a lot of people enjoyed it. >> heather: we're not done yet. job numbers coming out this week and apparently some economists are predicting another month of slow growth. why aren't more companies hiring? >> kelly: and showdown over spending in washington. everybody is talking about that, as well. why some lawmakers are refusing to fund obamacare. >> heather: and a spectacular jewelry heist in one of the world's most glamorous

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♪ >> kelly: welcome back. while president obama tries to shift the nation's attention back to the economy, experts out there are looking ahead for the july jobs report which is due out on friday. economists anticipate another month of slow and steady growth with a surge in temporary job creation. this morning on fox news sunday, jack lew saying things are on the right track but not moving fast enough. >> the core of our economy is strong. it's resilient and we've been growing, we've been growing for 40 months. g.o.p. growth and economic growth for four years, it's not fast enough. we want to do everything we can to speed the pace of economic growth and job creation. >> kelly: here to help us make sense, l. kaplan ceo of

kaplan management. everybody wants too see our economy grow, how do we do that? >> there has been a paradigm shift in terms of jobs for a lot of people, temporary jobs are the new norm. we have seen this effect every single type of career and every single educational level. for people like factory workers, retail employees on through doctors and attorneys and nurses, we have send a trend from full-time employment to different temporary positions. >> kelly: why are we seeing the wall marts and doctors offices go more for hiring temporary workers? >> it allows large employers down to small employers to remain nimble and higher when necessary. so to run a seasonal

promotion, hire 10,000 employees and make sure the promotion goes on smoothly. if the promotion is success they can offer temporary employees permanent positions and if it is f it is not, they will try something else. >> kelly: if you are hiring more temporary workers for the average person out there looking for a job, and accepting temporary work they realize they have to be looking all the time for a position. it changes the norm? >> you are absolutely right. for the job seeker, a lot of people go into positions hoping that it is goes permanent. because this is a new normal, i know people that are temporary workers by choice. some are millennials that wants the flexibility to work and then travel and good friends that are physicians

going into communities and getting to know the area of the country and move on. they are content to be physicians that work in temporary positions throughout the country. >> kelly: i don't want to get personal. i recall my father-in-law working three jobs. full time jobs and two temporary jobs. are we going back to those days. is that part of the new normal? >> i think for some who is temporary positions, looking for something permanent, they just like the companies are nimble, they also have to be nimble. hoping that one job works out or if one temporary position ends and they can end quite suddenly they have something else. for a worker seeking full-time employment getting temporary positions, they are often paid at a lower hourly rage and hay not have healthcare benefits or 401-k plan. to the extent you have

multiple options it's a great option. >> kelly: let's talk about the temporary agencies offering online and in person. those agencies are now growing? >> that is one area where we are seeing a lot of robust job growth in terms of temporary staffing. there are some real benefits there. one, an individual can sign up with a number of agencies but one thing that i love about america that innovative economy, it used to be expensive to start a company but individuals can take advantage of this temporary. you can start a business for a lot less. >> kelly: good positive way to end this. thank you. >> thank you. >> heather: now to something not so positive. one of europe's biggest jewelry heists in recent years. police say that 53 million dollars worth of diamonds a

other jewels were all stolen from a hotel on the french riviera. they were hosting a jewelry exhibit. no suspects yet but local media reports says the robber was a lone gunman who stuffed the gems into a suitcase before making a quick exit. >> kelly: young cancer patients inspiring the nation with stories of strength and hope through social media. plus, intense reaction in the nation's capital after the president and his administration blamed republicans for what they are calling phony scandals. our political panel will weigh in on that. jrblg with the spark miles card from capital one,

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♪ >> heather: welcome back. time for the top of the news,

secretary of state john kerry advising israelis and palestinians to restart peace talks in washington tomorrow. both sides have accepted. >> kelly: retired colonel george bud day has died at the age of 88. he was medal of honor recipient that spent five and a half years as a pow in vietnam and was with john mccain's cellmate. >> pastor rick warren returned to the pulpit to the mega church that he founded. >> kelly: two high profile young cancer patients have died. documenting the battles with disease and now others are doing the same. live in our newsroom. >> social media is giving voice to cancer patients like 16-year-old lauren scott who was diagnosed with undifferentiated soft tissue sarcoma, terminal cancer but

a few years ago lola became inspired by two others. both had sadly passed. he started a facebook page then a youtube page, twitter and then instagram. he says peoples messages give her strength and inspiration. >> it's a wonderful thing, just putting all out there and being vulnerable. it's a good type of vulnerable. you are having all these people gravitate towards me and say -- it makes me happy. >> she is one of nearly 70,000 people between ages 15 and 39 who are diagnosed with cancer each year. yet this middle generation is often forgotten. on survival rates for teenager and young adults have not changed in 30 years.

a nonprofit organization that empowers young people affected by cancer. he battled cancer when he was 21 and wishes he had social media at the time. >> this is a life changing experience. it's difficult you in of to be in that age group. so the idea of meeting somebody who has gone through that, that is your age, it transformative. >> you can help lola finish her bucket list by going to her website or go to twitter. her biggest wish is to one day meet deni. >> kelly: thanks so much, brad. >> heather: battle lines are being drawn in washington and white house and republican leaders each refusing to give any ground when it comes to spending. setting the stage what could be another spectacular budget showdown. jack lew urging congress to raise the debt ceiling to

avoid a government shutdown. lawmakers say they won't vote for a spending bill that funds obamacare. >> first time in american history one side arguing that default was an option. it can never be an option. they to pass it. president has made clear we can't negotiate about whether or not the governmental of the united states would default. >> we all know that the government is going to get funded. the only question with on obamacare or without it. what i'm saying the president said lawsuit isn't ready for prime time. so if he was not ready, if the law is not ready we can't fund it. >> heather: justin and christy is here. thank you both for joining us. couple things to start to talk about. let's start to talk about

with the debt ceiling. a number of congressional republicans they wanted to impose conditions for raising the government's $16 trillion debt limit. some have insisted on spending limits. just when the treasury-secretary says, christy i'll start with you. it's simple. why not? >> heather, i don't know, this seems to be the opposite. we went through exactly this argument two years ago and republicans refused to raise the debt ceiling. it led to the unprecedented step of united states losing our aaa credited rating. the difference that we've seen in this republicans in congress is that starting with mitch mcconnell number one goal it was make president obama a one-term president which we all remember, it seems as though they are taking a series of steps which they are taunting

it. just because they don't want to do their jobs. it's increasingly dangerous. >> heather: to clarify, mcconnell made that statement but he made it at midpoint after president obama announced his preferred policies. went on to say in the same interview, he said i don't want the president to fail, i want him to change. so let's go to you justin. beginning with my initial question which was, why not negotiate and say, okay, we'll raise the limit but we're going to do this in order to do that? >> i don't understand why secretary lew, why the obama administration is basically giving congress the representatives of the american people, a take it or leave it ultimatum. this is not leadership. a president of united states who campaigned at one time, we're not red states or blue states, we're the united states, is now telling one party the republicans that control the house of

representatives, i'm not going to negotiate with you about $16.7 trillion in debt that our children and grandchildren are going to have to pay. to me, president obama should not listen to the nancy pelosi wing of this party and listen to the moderate voices of his party and bring the republicans, bring the democrats together and talk about what reasonable limits are on government spending in order to increase the revenues. >> heather: the congressional budget office says the debt limit does not need to be raised until october or november. partisan standoff we remember that, they downgraded the nation's credit rating for the first time. what do we need to do to keep it from happening but at the same time figuring out what is causing us to spend more money than we're bringing in? >> it is simple but not the

democrats are not opposed to it to reduce the deficit by $4 trillion already. have plans to reduce by many trillions of dollars more. it's not as though the index of that are the issue. the issue is getting democrats and republicans to come together and talk to one another. that has been the issue for the last number of years here. on anything we've seen an unprecedented gridlock in congress that is preventing democrats and republicans from getting together on anything. >> heather: we have a minute left. justin, i'll start with you on this. the battle over the debt limit. that keeps up as republicans are gearing up for a separate fight apparently among themselves and with the obama administration over the budget. some g.o.p. lawmakers including congressman mike lee, they threatening to vote against funding the government beyond september 30th unless money for president obama's healthcare law is eliminated. why should we fund something that even the president has admitted, parts of it, aren't ready yet? >> this is problem the way

they decided to jam obamacare in the middle of the night using procedural. >> year and a half, justin. you seem to be forgetting that. >> well, no, waited they did it. there were votes that were taken past midnight when the american people -- be that as it may, if president obama had taken a more bipartisan approach in terms of healthcare reform -- >> i'm pretty sure you know that. >> he wouldn't have the problems he has now and chickens are coming home to roost for president obama based on his very partisan way in which he got obamacare passed. >> heather: i have to end it on that. we have deadlines coming up. we'll see what both sides do to resolve it.

thank you both for joining us. >> kelly: whitey bulger defense team prepared to make his case. boston mob boss facing a long list of charges. should he take the stand in his own defense? our legal panel will weigh in. and after the phony scandals comment they say the white house's attempt to turn down the heat from the irs and benghazi controversies. we'll have that and much more and have a fair and balanced debate on that, as well. ♪ ♪ the joint is jumpin' ♪ it's really jumpin' ♪ ♪ come in, cats ♪ and check your hats ♪ i mean this joint ijumpin' [ male announcer ] osteo bi-flex helps revitalize your joints to keep 'em jumpin'.° like calcium supplements can help your bones osteo bi-fle n help your joints. ♪ osteo bi-flex... the best stuff in the joint. now in joint and muscle formula for people that demand

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heinous crimes. big question now is, will we hear from whitey bulger himself. >> he is born rap and he is not taking the stand because he couldn't withstand the cross-examination. >> kelly: doug burns, prosecutor turned, mercedes cohen both join us. good to see both of you. as we heard him say, bulger won't take the witness stand because the 26 years serving as informant. skeletons will come out of his closet? >> that is great point. he is very afraid of that cross-examination. they are going to, didn't you kill this one. didn't you do this. weren't you working with the f.b.i. and all the thing he has done. we were talking about this, talking about the opening how his defense attorneys, he is drug dealer and murderer but he is not such a bad guy.

>> not sure it is really working. >> and you are right. they are actually trying to show that he is criminal with a conscience, he is not that bad, a robin hood, part of the reason the lawyer stood up in the opening, he is guilty of loan shark go and drug dealing. they want to make two points in the trial. it's crazy. first of all he is 83. he was on the lam for 16 years. jurors will take that into account. they want to establish that he wasn't a rat but he is not taking the stand. >> kelly: you are a financial prosecutor and mercedes you have handled cases, as we are looking at this particular case, 60 people have testified. prosecution apparently has done its job. so what did does it leave for defense attorneys in terms of

who they will bring to the stand? >> that is great point. they are going to have bring in character witnesses to talk about the life he had. he had new identity. he lived for a number of years, he was model citizen for number of years. bring them in, look he wasn't that bad a guy. it's almost a disconnect. you see this 83-year-old man, is that much of a terror -- and you read about how he killed these individuals. he actually tied them up, strangled, shot the others in the head. he tortured and killed these individuals. he actually shook the jurors up. >> the jurors were actually with tears and people inside the courtroom would leave crying from what they heard. descriptions about whitey. >> what do you when you are in trial on the defense side and you assume for the sake

of argument they have proven the case and air into the mix, it's only going to get worse. there is no way to go. that is the situation on this trial. the other point mercedes made it's so interesting you have this guy that did horrific things and 83-year-old man in court. >> kelly: let's get back to the rule of law we have in this great nation of ours. you are innocent until proven guilty. so when the defense takes the stand, your basically saying what bulger won't take the stand. he himself could talk about his life as a model citizen. >> if he could. >> it begs the question on the crimes themselves. on the one hand as mercedes did for 16 years he was fine, but again the evidence and rule of law establishes that he did "a", "b" and "c" he is guilty. there is nowhere to go with it. >> you have to wonder why

didn't they struck a deal? what happened here? you have 63 witnesses, tons and tons of testimony and evidence -- why didn't you take a deal? >> kelly: to address that point. he is 83 years old. >> he is accused of something like 19 murders. what kind of deal could he strike besides life in prison. >> how much time does he have when he 83 years old. >> kelly: could it be perhaps he find redemption, i'm exonerated from these things because i have been forgiven. >> i think that is right. two part agenda is important to his legacy. i'm reluctant to use that word. >> didn't kill women and i killed men. give me a pat on the back for doing that. >> kelly: and taking the stand and actually putting on this case. mercedes, doug, thank you very much. we're coming back with more.

>> heather: we're going to talk about this. the white house drawing shopper criticism as it tries to shift the rhetoric in washington. president obama discounting recent controversy as too phony scandals that distracted from real issues like the economy. critics say that his comments are insulting and intended to keep americans in the dark. we'll have a fair and balanced debate. is because i have to go to the bathroom. and when we're sitting in traffic, i worry i'll have an accident. be right back. so today, i'm finally going to talk to my doctor about overactive bladder symptoms. [ female announcer ] know that gotta go feeling? ask your doctor about prescription toviaz. one toviaz pill a day significantly reduces sudden urges and accidents for 24 hours. if you have certain stomach problems or glaucoma, or cannot empty your bladder, you should not take toviaz.

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i think the attempt to try to keep finding that evidence is creating, the kind of phony scandal being referred to there. >> the problem has been addressed and there was no political involvement there was any evidence of. >> heather: and here on all of this.

alan colmes and radio talk show host and talk show host mike gallagher. >> so we're going to start the irs scandal because that is what they were speakin what jack lew was speaking on that has affected members, democrats and republicans. should it be offensive to americans across the board when it is referred to as a phony scandal? >> there should not be targeting of people or any groups and they targeted conservatives and liberals. darryl issa only released this when the ranking member of his committee said, get all the information and we find out they tried to hide the fact, the republicans, and you wonder why congress has 10 percent approval, they are not doing a fair investigation. >> and jack lew said there are not ties to the white house but we know there have been conversations of targeting of groups went to the i.r.s. chief

counsel hand picked by president obama. >> watching jack lew bob and weave and invade chris wallace' legitimate questions today on fox news sunday was astounding, first of all, this is a strategy, you use the word phony scandal and the membership will say, wait, these are talking points, they are developing a strategy to say, let's deflect from the real scandal. four dead americans in benghazi, well, that's real. the i.r.s. thing? with due respect, there were a few left-leaning agencies that were targeted bit i.r.s. but the vast majority were conservatives. >> that is because it was a time when all the tax party groups were trying to get tax-exempt stated us. >> that is your story. 9 majority of groups that were scrutinized by the i.r.s. were conservative groups and everyone knows that. you can say the sky is down and

the ground is up a lot but if you keep saying phoneness scandal and the president is in campaign mode, krauthammer was right, someone should tell president obama, you won. you won. >> the republicans do not have new ideas and they want to repeal and replace obamacare but they don't know how to replace it and everything is a scandal you cannot have any discerning ability to say what is a real scandal? the n.s.a. is a real scandal. >> there were not a new ideas on the economy from president obama last week of the. >> he has been consistent about what he will do for a long-term. >> i want to ask you what you said, you got in there, benghazi, four americans, dead. how is that a scandal? now is it not a scandal? >> what is the scandal? tell me the scandal. >> what happened the night? >> we invaded a country without a plan to have a government in place, we invaded a country we should not have gone into.

>> what did the president could that night? >> i wasn't with him, mike, but the fact is, the next day he talked about the attack and after that, he could fought have stopped the four people being killed. you are still talking about this on the right like it is a real issue. >> of course it is and we all me and you know if it were a republican president at the helm when four americans were killed and susan rice is making the rounds saying it was a demonstration. of course the i.r.s. issue is a scandal. you cannot say a scandal isn't a scandal. >> it is a tragedy not a scandal. >> semantics. whatever it is --. >> tell me what the scandal is. >> i just said it is susan rice claiming she didn't know it was terrorist. >> what if the military was ordered to leave. we don't know the answer to

that. >> she said -- i tell you the scandal: the n.s.a. is a scandal look e-mails is a scandal or phone records is a scandal, having companies participate with the government and letting them see the information is a scandal. >> the i.r.s. is not a scandal? >> i have to wrap you up real quick. this is being call add bait and switch to review the real issues. >> the republican party whose numbers are plummeting and congress has numbers the lowest ever since numbers were taken, should be concerned about presenting the public with a real narrative. keep doing what you are doing and see how this works. >> the chairs are like the titanic. >> all numbers are bad. both bad. we need to work together. >> spirited debate, no doubt.

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is >> welcome, everyone, a brand new hour inside america's news headquarters. >> it is nice to have you here on this sunday. topping the news this hour, president obama looking to hit the reset button on the second term after a series of scandals. will a new narrative make the old problems go away?

we are live in washington, dc. >> he was at controls when his train went off the rail. now the driver of the deadly crash in spain is facing tough questions before a judge. we will bring you the details. >> post francis is getting rockstar treatment wrapping up the first overseas trip as pontiff. the pictures and the holy father's message in a report. >> we begin the hour with president obama looking to turn the page on a second term engulfed in scandal focusing now on the economy and a series of speeches as he tries to draw attention away from controversies that he has called phony and this coming week he will make a rare trip to capitol hill to try and get the legislative agenda back on track. we are in washington with more details about this. doug? >> in two speeches on wednesday, president obama described republican investigations of his administration as phony scandals and suggested that the republicans are distracting the

american people from the president's plan to get the economy growing faster. the republican think their investigations of the i.r.s. in particular are producing real results. egyptive jordan said the key work is being done out of the limelight by committee investigators. we don't have any evidence directly but we continue to do depositions, the interviews and work up the chain of command and we now we know it is in the chief counsel's office. >> the i.r.s. chief counsel is one of only two political appointees to the i.r.s. and he is a long time democratic party contributor and a former lobbyist. he was a frequent visitor to the white house while the targeting was taking place. in the interview with treasury secretary chris wallace noticed that he reports to jack lew. >> there are 1,600 lawyers in the chief counsel office and there was in suggestion that this went to the one political person in that office. there is nod of it, there has

been no evidence of it. >> wait. have you ask him? >> i am leading the investigation to the proper people who do investigations. i don't think it is appropriate for me to do the investigation. >> on "meet the press" he reiterated the targeting was a case of bad judgment and there is no evidence of political involvement. >> thank you with those details, doug. >> heather: growing fallout overseas the controversial nasa surveillance program. the house of representatives narrowly defeating a bill that would end the program by slashing funding and now lawmakers are speaking out about privacy concerns and the votes. peter dozency reports from washington, dc. >> the president's policy is not acceptable to members of his own party. we heard from several democrats this weekend upset that the white house is standing by while the n.s.a. collects phone records from every day american whose have not been charged with

crimes. >> we should limit this data collection. the notion well collect all of the phone reports of everyone living in an area code on the offshore someone if that area code could be a suspect at later time goes way too far. >> in an op-ed, two senators say "the broad collection is not authorized under a straightforward interpretation of the patriot act or any other law. the white house ought to end this dragnet and sharpen its focus on the terrorists and spies who truly threaten our nation's security." however, national security will suffer if the n.s.a. stops collecting the data according to the republican chairman of the house of representatives intelligence committee. >> in this program, zero privacy violations, 54 violent terrorist attacks thwarted. that is a good record. >> another republican, senator chambliss, said he has been assured that no one at n.s.a.

has the ability to listen to any phone conversation or monitor any e-mail without a court order. >> heather: peter doocy in washington, dc, thank you. >> a breakthrough in the push for middle east peace. the state department saying a short time ago that israel and the palestinians will resume direct talks in washington on monday after stand off of nearly three years. those talks getting a boost early today when israel agreed to release over 100 long-serving palestinian prisoners as part of a push by essential of state john kerry to get both sides back to the cable and try to resolve a conflict that has defied resolution for decades. the prisoner release sparking controversy because the prisoners were convicted for deadly acts of terror. >> heather: an advocate for veterans rights has died. retired colonel george bud day, a medal of honor recipient, who

spent 5 1/2 years as a p.o.w. in vietnam and was arizona senator john mccain's cell mate, one of the highest decorated servicemen since douglas mcarthur died after a long imness at 88 years old. >> the united states is keeping a close eye on egypt as the stand off between protests and the ruling government threatens the spiral to continue. connor powell has more details. >> tensions are mounting in egypt as the new military-backed transitional government appears on the november of launching a massive crackdown on the muslim brother hood. yesterday, egypt's military opened fire on peaceful protesters demonstrating in support of deposed president morsi with dozens killed and hundreds injured but the brotherhood continues the protest of vowing to stay in the street until morsi is released

and the military restored him to power. now, there are reports that the interim government has granted the military the right to arrest fans, a power that potentially signals a massive crackdown on the muslim brotherhood that could come. a senior egyptian official said today that the protests must come to an end. secretary of state john kerry has called for restraint after the egyptian military should respect the right to peaceful assembly which have been ignored. supporters of the military coup that removed morsi from power justify the move as a way to ensure stability in egypt. so far it appears to have the opposite effect. kelly? >>guest: thank you, conor from the middle east bureau. >> heather: a thousand innates are on the run in benghazi, libya, with police saying they have managed to capture 100 of them, though, and the prime minister blaming local residents saying they stormed the prison

because they don't want it if their neighborhood but officials are disputing that saying it happened after riots inside the jail. it is unclear if the massive escape had anything to do with political unrest in the country. >> pope francis holding mass in front of millions for world youth day in rio de janeiro before heading back from rome reminding faithful of his message, help the needy and the poor. this is pictures from rio de janeiro and dominic is there with more news about the excited crowd. >> the crowd is ecstatic. the pope is on the way to airport ready to head back to rome this evening after a phenomenally successful we weekending with mass today on the beach in rio de janeiro where the largest crowds we have ever seen gathered saying up to three million people turning out

to see the pope were what up the first foreign tour. some people in a state of rapture. the crowd is peaceful but some were terribly excited with scenes of the pope hugging a man overcome with tears of joy meeting him. there was a married to attend to with the young people to go for the and build a new world was the plea. >> with these majority, jesus addresses each and all of you saying it was good to participate in this world youth day experiencing faith with young people who have come from all four corners of the world. now, you must go and transmit this expense to others. jesus calls you to be disciples. >> he sent them on a mission calling for them to be not "pop christians," and to buildup the

church like his namesake was called. many in a state of ecstacy paying attention to the message. listen to what some had to say. i came to world youth day for a reason, to change the person, and learn a lot. pope francis communicates a message of simplicity and prior and this is really what the church needs. people who are simple and live for love. >> francis has been very much hands on, on this tour, and now he is saying this could be a pope not prepared to flinch at the real problems addressing the violence crackdown that government has had in brazil against those protesting against corruption. a rather political but, also, hugely successful visit for pope francis. >> it would seem so, the pope spreading the good news and giving that special message.

>> heather: a sad update, a youth pastor and his pregnant wife identified as among the these killed in a bus crash in indiana. the couple were expecting their second child next month, a mother of five, also, was killed in the crash. they were returned from a camping trip in michigan. police say the bus was a mime away from a home and it struck a retaining call on the exit ramp of interstate 465 and it flipped on its side and the driver told police that his brakes failed. police are investigateing. >> a new video of the drive involved in the deadly spanish plane crash arriving at a courthouse to testify before a judge today. police are hoping him and considering charges of negligent homicide. officials are trying to determine if he is responsible for the crash that killed at least 79 people and injured many more. investigators believe the train was going more than twice the speed limit at the time.

>> rick warren returns to the pulpit after his son's suicide, thanking the congregation before delivering an emotional. sermon in california yesterday. the message was, how to get through what you going through. his 27-year-old son, matthew, shot and killed himself back in april. warren said he struggled with depression for years and his siblings are heroes who "talked him off the ledge time after time." >> a stop for flies after astronauts docked at the international space station, the unmanned space create arrived six hours after taking off from a launch facility in kazakhstan and stopped with supplies including food, fuel, and oxygen with two americans, an italian and three russians. next, a new way to look at the

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>> now a quick check of the headlines, two bodies have now been pulled from new york hudson river after a boat crash. a bride-to-be and her fiance's best man both among the missing. the identities of the bodies have not been determined or confirmed yet but four others including the group were injured. the driver of boat was intoxicated. democrat anthony weiner's bid to become new york city takes another hit, the campaign manager quit amid revelations of new sexting scandal. investigators in illinois are look, into the death of a 95-year-old man. police used a stun gun to subdue the man after an ambulance service transporting him described him as being combative. >> america's economic output is

getting a super-sized makeover. the commerce department is unveiling the results of an immense reevaluation of the economy from the great depression to the present having to do with our growing idea economy. here to explain it is c.e.o. and founding part of lexicon capital management. explain to us, first, what, exactly, is the g.d.p.? >> guest: it stands for gross domestic product, the sum total of the goods and services produced in this country. it is one thing we look at. we also look at consumer confidence and the storm and what we certainly look at and keep track of is g.d.p. >> heather: what are the changes being proposed? >> guest: we are going do change how we calculate g.d.p. to reflect the 21st century. those changes primarily fall into two camps in arts and

technology. so this are a couple key things to remember before i explain how it affects both. that is, the new californias are going to be retrofit from the great depression to the present and americans will still be able to make apple to apple comparisons. >> heather: you are going to speak specifically how the changes affect both areas. >> guest: sure, so in terms of arts, it used to be that things like books and films were not included in g.d.p. but now under the new calculations they are seen as something that created lasting value. so, what we might enjoy like the daily news is considered only to have value the day it is produces which will not be included. a movie like star wars that was produced in the 1970's but still producing revenue, that will now be included. >> heather: that makes sense. >> guest: so that is that. now, technology, which is largely put into research and

development, with a company called r&d, used to be counted as an expense in g.d.p. calculations but under the new californias this research and development and innovations that lead us to the next ipad or great technological discoveries will be something that creates lasting value and calculated as such under the new g.d.p. rules. respected moves from an "expense" to something that is thought as lasting value. >> heather: how does that affect what i refer to as kitchen table economy? i'm sitting there with my husband, my kids, how does this affect me? >> guest: when we look at g.d.p. numbers, they will initially look very healthy. you can say, okay, this is one thing to talk about at the kitchen table but in comparison, a nice thing is they are going back and calculating all of the

g.d.p. from our country's inception of calculating it from the inexception based on the new formula. most kitchen tables do not talk about g.d.p. >> heather: because they do not understand how they are affected. by revising the way i is determined it will bolster optimism for the economy and that affected me? >> guest: the new numbers do reflect the 21st century and it is one way we can look at consumer confidence. we can also hook at employment numbers or the storm, so there are a number of things americans look at to say, how do i feel right now about our country and the path we are on and our growth. >> heather: thank you so much. we will see what happened next week when it starts, right? >> you may have noticed this, when you fill up recently the

price of gas has jumped, again, eight cents identify two weeks and the latest survey released today shows the average price for regular is now $3.63 and mid-grade is $3.85 and premium average is $3.95 gallon. chicago has the most expensive gas in the country right now at $4.10 a gallon. >> heather: a stomach bug is spreading across the country. find out what the virus is being linked to and how you can avoid it. a swarm of bees killing two horses and seriously injuring a couple. we will tell you where that happened. [ phil ] when you have joint pain and stiffness...

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>> heather: it is the bottom the hour so it is time for the top of the news.

rescue rescuers in north carolina searching for a man swept away in a rain swollen creek after crews yesterday recovered the bodies of a 10-year old girl swimming with him. >> a couple in north texas was attacked by a swam of bees that stung their miniature horses to death. the bees are tests to see if they are killer bees. >> a las vegas casino preparing to bulldoze 9/11 memorial that was outside the new york casino in the days after the terror attacks and now a multimillion dollar renovation plan is pushing it out and is working with the city to find a permanent home for the shrine. >> thanks, heather. president obama is sharpening his focus on the economy as the poll numbers are taking a summertime swoon. look at the latest "wall street

journal" and nbc poll finding 45 percent say he is doing good job and 50 percent say he is not. will the attention on the economy breathes life into the second term? bring in our political insiders to discuss this. john leboutillier, former republican congressman for new york, pat can pat can dallas former pollster for jimmy carter and doug schoen former pollster for bill clinton. we gentleman, before we get back to the polls let's talk about this new tact of talking about the economy, the president speaking just last week several times about the economy and i will show you the president speaking at university of missouri in this clip. >> an endless parade of distractions and political posturing and phony scandals cannot get in the way of what we need to do. >> that is the president speaking at the university of central missouri.

gentleman. what do you say about this? anything new? >> a couple of things, this is the start of the 2014 mid-term election campaign. the president is using the same themes he used in the 2012 campaign, redistribution, class warfare, demonizing the republicans. in that soundbite he spoke to the issues of scandal which i think are quite real -- i.r.s., benghazi, n.s.a. he calls them phony scandals. this was to lay down a marker on the most important issue facing the country, the economy and job creation but it is a reprieve of campaign 2012. >> he did this in 2011 when the numbers were down, the same approach. now this phony scandal.

this is outrageous, the democrats and the president who claim to take it seriously, have now said it is a funny scandal and the mess we have discovered, for a month, three national networks, nbc, abc and cbs had only one story last week on cbs, and not mentioned the i.r.s. we have no scandals being dealt with and today i watched jack lew and it and clear that his job is to cover up and stonewall. >> back in the time of next on when we were getting into watergate and the tapes came out, nixon was talking about using the i.r.s. to go after his political opponents. the democrats, running the house of representatives al qaeda put an article of impeachment to nail him for that for thinking about using the i.r.s. now we have in 2010, 2011 and

2013, the i.r.s. targeting the president's opponents. this is a scandal of nixonian proportions. i am not saying obama was in on it. >> he met with the general counsel of the i.r.s. the day before they tightened up the criteria and he melt with the head of the i.r.s. workers union the day before they started the targeting. >> the 159 visits --. >> guys, i blame the republicans, not the media, not obama, i blame the republicans. they run the house of representatives, they should have a select committee with a big time lawyer maybe ted olson, elevate this thing to a major investigation. we. >> the american people care a great deal about that and benghazi and all of these scandals and the n.s.a. but as you said, the republicans are absent. >> there is no republican agenda. i defy anyone watching or

thinking to articulate what the republicans stand for. they don't stand for tax reform. they don't stand for investigations. they don't stand for an alternative set of health care policies. bottom line, the republicans are missing in action. >> you unpacked a lot this this short amount of time from president obama launching into a 2013 campaign mode and we talked about the scandals and the fact that the president has alluded to the scandaled. actually, not alluded to them but has said they are phony scandals. let's get back to why you say this is a campaign issue he is raising. >> there was no serious attempt to talk about economic growth we, no serious attempt to put forward a bipartisan plan that the republicans could agree to, to create jobs, it was rhetoric, the same themes from the 2012 election. bottom line, nothing new, nothing to act on.

>> why is he going in this direction? >> okay, they are in trouble and they don't know what they are gasoline to do and the republicans are stupid enough to fall for it again and that is what he does. he has a default position because that is all they know. >> we had the number unfortunately that was flipped around, his number is actually in the "wall street journal" poll 45 percent approve and 50 percent diagnosis approve and there it is, that is the second worst rating the "wall street journal" has ever had on president obama. >> the last one, august of 2011, after the disaster on the budget. >> how does this, as you see it, how does this resonate with the american people? especially getting ready to go into the august recess. >> hear me out, we are ready for the august recess. what will the american people do? >> pat is right, this is not going to change minds. what the obama campaign and it

is a campaign, trying to do, through the white house, is to divide the country, to polarize, and make the argument that only by supporting class-based politics will the democratic base get mobilized and energized for the incoming election. >> can we put up the one from the "wall street journal" poll and nbc, the one about what do you think of your congress, would you throw every member of congress out including your own, right it is the highest ever recorded, the three of us believe, six out of ten said they would throw out my guy who helped my kid get in west point. >> we are seeing the cracks in

the political class buttoning down the system so that sentiment we see cannot be copied politically. the people have in vis to do that but we saw in the n.s.a. vote in congress, we had a coalition of liberal democrats and libertarian conservative republicans would almost beat back the president we and the republican leadership on the question of the n.s.a. >> we will come back to that but we are drifting from john was talking about, the poll. there is an anti-incumbent fervor. >> that is right. i want to return to what pat was saying because bottom line, the system is now existing and operating to anticipate and bottle up the anger and is why wen so you do not have have a system that is about ready to implode. the air is coming out of the

balloon. >> the men and women, we have seen that graph, the american people, find this stunning, we are ready to kick people to the curb because they are going to washington and not representing us or doing their job. not republicans are not doing their job and democrats are not, and you are saying the president is not, so, who is minding the shops? >> one of the hot items politically over the last 30 years has been this issue of term limits. right in we never really had these because the guy would vote in the term limits are members of congress themselves. the best term limits is that poll. if they really felt they were going to be removed a year from november, they are going to start listening. the power of the ballot. >> absolutely. the system has redistributed and worked things and made it financially -- doug has a book

on this -- made it impossible for ordinary people to be heard. look at ridiculous debate we will have on the budget. >> hold that thought, don't let go of that, we will be right back. >> two political come backs are dominating about that, spitzer and anthony weiner looking scandals in the face. how are they doing in our political insiders are back with more after the break. weekdays are for rising to the challenge. they're the days to take care of business. when possibilities become reality. with centurylink as your trusted partner, our visionary cloud infrastructure and global broadband network free you to focus on what matters. with custom communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. every day of the week. centurylink® your link to what's next.

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>> heather: thousands of protesters in egypts are facing possible arrest after defying the government order to disperse from the massive it is in until ousted president morsi is re-instated. police in indiana are investigating the cause of a crash that left three dead this

weekend including a youth pastor and his pregnant wife. the bus was on the way back from a youth camping trip. pope francis gives final mass in brazil drawing 3,000 worshippers in rio de janeiro with the biggest turnouts for a papal mass in recent history. >> now bringing our guests back. pat, you were talking about obamacare. >> it is becoming unpopular and we talked about that last week and recommended -- now watch the decision in the republican party, the wandering base and, again, wanting to go a bridge too far. rather than stopping to say to the individual mandate should be stopped and the i.r.s. should be taken up, they are talking about not allowing the government to

go into default over the issue of de-funding obamacare which they cannot do. meanwhile we have the established republicans cross road, karl rove people, all these people screaming at the republicans, don't do anything to try to stop obamacare, where is there a sensible middle? >> you have the president of the united states stating he will not negotiate. what does that say? >> pat is right: you can try to change, you can try to repeal or delay parts of obamacare, but you cannot decide you don't like legislation and not fund this. let me focus on the democrats, too, because we are people who see it from both sides. we have an entitlement crisis this this country, the deficit has been reduced this year, and long term entitlements are a huge problem for medicare and medicaid and social security. harry reid has said he will do

tax reform if and only if the democrats are prepared we and the congress, to raise $3 trillion. that's dead on arrival. that silly. an insult to the american people. >> speaking of an insult to the american people, doug, his fellow senior democrat max baucus who runs the senate finance committee, they did something no one has heard of before, they had a closed door meeting on tax reform where the rules were, any member who came in there and they could bring whatever they wanted to talk about in the room and it would be sealed foe 50 years. it would never be revealed while any of these people were alive. so the american people do not have a right to know apparently, the dirty deals these guys are cutting. >> a banana republic. >> what happens to the transparency of government? >> it is gone. it is all politics. all elections.

all soundbites. it is all attack ads which is why they want to hide real deliberations no 50 years. >> it is contempt for the american people. >> if we had an aggressive media and really went after them, it would change. >> but it is not changing. they have a better story. >> you are really, really, chewing to talk about there and that is anthony weiner and what going on here in new york. i talked to form senator damato and he said it is time for this guy to go. >> it is time to go. looks though, at he and spitzer. both did well in the polls to start. this is a bottled up system here and they were getting support from outsiders and their behavior particularly former congressman wine ween is beyond the pale. we do not need to turn new york into a circus but talk about our

real fiscal issues, education, housing, not these issues. >> you can see how he has dipped quite a bit. >> he is gone. >> he will be gone. spitzer is there. same thing. elsewhere. he was the frontrunner and raised more money because he is enabled to do this. he is pathological. the clinton donor base, the $900,000 contribution, they are enabling. everyone is enabling him whether it is here, in san diego with the mayor who is groping everyone, these politicians are out of control. >> in the last 90 seconds, at crux of the matter is leadership, where is the moral and strong leadership that americans deserve and desire and should have? >> you are not going to find it in a political class. this isn't new. i studied history.

you get a guy like roosevelt coming along 100-plus years ago and his social peers, said why are you going into dirty politics what are you doing in that filthy business and he raised it up. he was better than most of them. we will get new leaders. >> i am pessimistic. >> i think the system bottles up political change and we are getting politicians who go into it to get re-elected. >> john and i, we cannot agree with being pest miss tick for our future. >> we need a country that takes its democracy back. >> my line about america, america is such a great country that it fives despite the government. >> never has the american people had to fight so hard to take their government back. i agree with doug that is where the system is failing and i agree with you and john, and that is that the country will not go gently into the good

night. >> gentleman, thank you. we thank you. we will continue that discussion behind the cameras. you request get more from political insiders on monday at 10:30 a.m. eastern and they will be back here next sunday. you can also follow them on twitter. >> heather: you can choose not to enable, and that would be the american voter so make your choice carefully. >> a nasty stomach virus is making hundreds of people sick across the country and no one seems to know where it is coming from. ways to keep your family healthy is next. [ jackie ] its just so frustrating...

♪ the middle of this special moment and i need to run off to the bathroom. ♪ i'm fed up with always having to put my bladder's needs ahead of my daughter. ♪ so today, i'm finally talking to my doctor about overactive bladder symptoms. [ female announcer ] know that gotta go feeling? ask your doctor about prescription toviaz. one toviaz pill a day significantly reduces sudden urges and accidents, for 24 hours. if you have certain stomach problems or glaoma, or can not empty your bladd, you should not take toviaz. get emergency medical help right away if your face, lips, throat or tongue swells.

toviaz can cause blurred vision, dizziness, drowsiness and decreased sweating. do not drive,perate machinery or do unsafe tasks until you ow how toviaz affects you. the most common side effects are dry mouth and constipation. talk to your doctor about toviaz.

>> a nasty stomach bug spreading across the country in 15 states and sending 18 people to the hospital. the centers for disease control is trying to track down the source of the outbreak, and possibly it is linked to a small parasite. we have senior attending physician of the emergency medicine at st. barnabas in the bronx and joins us now.

doctor, this is disturbing trend. we are talking about this parasite that causes terrible symptoms. >> guest: yes, people are fatigued and they almost look like flu symptoms but you have decrease in appetite and you can have weight loss because you take in less because it is coming out way too quickly and these people wind up very, very ill and we have had 18 deaths throughout 15 states. >> heather: when you mention the deaths, how do you know if you have just a bake stomach flu or stomach issue or you have this? it sounds like you need to be treated by a doctor or go to a hospital. >> guest: it is tough to tell the difference. with this infection we do stool specimens and you have to be tested in a particular laboratory. it is easy to test.

but, like any other stomach bug if you get dehydrated and run high fevers and so you are so weak you do your normal activities you should seek health. if you have been to areas where this is endemic, tropical or foreign countries those are highlights. >> 18 people have been hospitalized so far that we know of, not that have died, if the symptoms are not treated it can lead to fatality. >> guest: yes if you have a weakened immune system and other problems such as diabetes or on chemo, they could be profoundly il almost. >> heather: what precautions can you take to avoid this. >> guest: the most important thing is common sense issues such as eating produce. they think it is limped to

produce imported into this country. that is what the previous outbreaks have shown. the best thing is, proper handle, of your fruits and vegetables. proper washing of them. also, remember, when you are eating out you want to eat at reputable establishments. >> when i travel in the u.s. i do not always enjoy drinking something cold with ice in it because i'm not aware of what could be on the ice. >> guest: great point. the ice is probably made from water that is holly obtained and it is not going to be bottled water. we occasionally that water could be contaminated with any pathogens that can cause a disturbance. >> just get your drink without the ice. >> heather: i did not think of that, but thank you. is it possible to have this without symptoms? >> guest: some people do not, they do not know why. the majority of people will get symptoms and they do not occur

right away usually it takes a week to develop symptoms. if you feel fatigue with gas tremendous problems see your doctor and go to the emergency room. it can be cured with a simple antibiotic. >> always good of you to join us. thank you. >> fox news sunday with chris wallace is next. health i will see you tomorrow at 5:00 a.m. eastern. >> and i am at "fox & friends" right after you. [ male announcer ] research suggests cell health plays a key role throughout our lives.

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i'm chris wallace. the president tries to change the subject back to the economy. >> an endless parade of distractions and political posturing and phony scandals can't get in the way of what we need to do. >> that's assuming there is any sizzle left after you've reheated this so many times. >> we'll talk with jack lew about the president's plan to help the middle class. and we'll discuss the budget battles ahead with republican senator mike lee. plus anthony weiner admits old habits are tough to break. >> i have said that other texts and