i don't want you to get addicted to the e-mail but use it for the purpose of good. again, thank you for joining us tonight. ms. megyn is next, i'm bill o'reilly, please remember the spin stops here, we're definitely looking out. i'm megyn kelly live in new york city. and tonight. the "the washington post" hits the president again. see what earned him the dread e by nnokno pinoccios this time. and see how this fight with the doctors ended with mom literally on the stretcher. and then? >> my insurance was cancelled because of obamacare. >> we showed you the political ad and we talked with the patients. >> i thought obamacare was supposed to help me. it is not helping me. >> now, a new twist as the

democratic congressman tries to bury this thing forever on "the kelly file" right now. on the day the administration announces dramatic cuts to america's military we get a gallup poll revealing a stunning shift and how americans feel about this president on the world stage, good evening, everyone, i'm megyn kelly, welcome to "the kelly file." when he ran for office he promised to restore america standing on the world and america believed him. 67 percent of the public thought the world leaders respected our president back in 2008. just 20% disagreed with that. even when the president went on what critics called his apology tour, a majority offer the apologies for the mea culpa. in recent months our troops have had to watch as al-qaeda hoisted

its flag over cities that americans died to liberate. in afghanistan, we have learned the president did not listen to the generals after the successful troop surge, and the former press secretary recently revealed how he thought that mr. obama never believed in the mission there. remember, too, the white house cheered when the fever of the arab spring reached libya but then failed to see the terror attack coming on our consulate in benghazi. and to this day, no one is in custody for that. and that is not to mention the ongoing nightmare that is syria, the stale mate that is iran, or the so-called reset with iran and five years later look at the shift. 53% feel that world leaders do not respect our president. only 41% still believe a huge swing from where we were when he took office. and in the face of that, this

announcement today. america is now cutting the military, he is proposing the administration is, to help make us a super power since levels not seen before world war ii. joining me now, chairman of the house armed services committee. mr. chairman, good to see you. and so your reaction to the announcement. we're about 570,000 wartime troops we had at its peak. we were expected to take a cut down to about 490,000. and now chuck hagel announcing today it will be more like 440 to 450,000 in terms of the level. >> thank you for having me on, megyn, you know, this is not news. i've been saying this for three years, the cuts that we establish and the budget agreement act we cut $487 billion out of defense. sequestration cut another $5 billion out. we knew it was coming. it was just a matter of time. this was the result of cutting a

trillion dollars out of our defense. we've done this before, never as steep and never during wartime. what we're asking of our military, the things that they have done in afghanistan, the victories that they have won. we won the victory in iraq. and then lost the peace. and i'm afraid if we don't really watch it in the next few months we could have the same identical thing happen in afghanistan. this -- i can't even imagine, imagine the commander-in-chief squandering this opportunity to let the american people know the great things that we have accomplished in afghanistan. he has given a handful of speeches in the last five years. never really lets the american people know what -- what we've done over there. you know, we have -- when we went there, there were a million young people in school. it is now over 8 million. and about 3 million of those are

girls who could not go to school before. >> well, but this is not just about afghanistan for the pentagon. i mean, they're going to reduce certain pay increases, certain retirement benefits. i mean, you know, the troops -- there is no question they're going to feel this reduction in a very real way. and yet the defenders of the cuts say they have to happen somewhe somewhere. we have to find some cuts. there is no courage in washington to touch entitlement spending so this is where it is going to have to be. >> we could eliminate the whole defense budget. we could eliminate the whole discretionary budget. close down all the buildings here in washington. and we would still be running a deficit of a half a trillion dollars a year because of mandatory spending. and that is where the problem is. but what we've tried to do, what the president has tried to do. the budgets that they send up to us is lay this all on the backs of our military. and the war funding has come out

of separate funding that we voted for each year. this budget that we're talking about is our base budget. that is the troops, the navy, the air force that has been protecting us since world war ii. they kept the sea lanes open around the world. they're just taken for granted. and enough is enough. >> well, they say that the army chief of staff, the general said he would be okay with a force of 450. so that is about where we're going. but on the other hand, our old defense secretary bob gates said these levels would be catastrophic. so we shall see. thank you for being with us. >> thank you for having me. breaking tonight, new developments in a battle now getting national attention. justi justina pelletier was taken away from her parent's custody, she was originally diagnosed with

mitochondrial disease, that was at tufts. then she wound up at boston's children. and that staff disagreed with the original diagnoses and then decided she did not need the treatment. the doctors at tufts thought she needed them. the massachusetts department of family services stepped in and got a judge to revoke custody from the family. and now, one year after they deprived the family of custody of this daughter, seen once a week only on supervision, now they want to place justina in a foster care facility. the parents want her back, after hearing all of this in the courtroom, her mother collapsed. this was videotape of that and was taken to a local hospital by a stretcher. we had a father who defied a gag order to talk to us.

trace gallagher has more. >> and when the judge ruled that justina plenty eti was not alloo their custody, on top of the family being under a gag order that as you said they have violated, including on "the kelly file." listen to this. >> all her medical situations have been totally ignored. medicine she was on, treatments that she has been dealing with, she is at her breaking point. and we can't stand by anymore and allow this to happen. >> and remember, it was four years ago when justina was diagnosed at tufts medical center with a diagnoses called

mitochondrial disease, they said no, she did not have mito, she had a mental disorder. the symptoms were all in her head. the family was accused of medical abuse for allowing needless medications and surgery. the dcf does not have medical expertise so they rely on the doctors at children's hospital. they took custody of justina, the doctor at tufts who at first diagnosed her said they wanted to meet to talk about the case. now you have rights groups and religious groups getting involved. listen. >> we are going to bring people of faith, of good will, who believe in this. the millions across the country, to be engaged with this. we are announcing the campaign,

free justina, that is the name of the campaign, you can go to freejustina.com, we're going to use every resource we have. >> a hearing on the gag order is set for february 28th. a hearing on custody set for st. patrick's day, march 17th. the governor of boston we contacted today they are not contacting on this case. of massachusetts. >> okay, of massachusetts, the commonwealth, trace, good to see you. imagine that, they take away your child. because you followed doctor's orders at another hospital. and then when you want to speak out about it they gag you. they issue a gag order. you can't even say anything about it. you can't get public attention or generate a national outcry. you keep your mouth shut. that is what the judge said to this family. that is why the father came on this program friday night and broke the orders, decisiisobeye orders. coming up, this man's team is

furious about this gag order in this case. and he was in this courtroom today, what about your first amendment rights? this is a government shutting them down over an issue with custody for your child. and what did the parents do? follow the orders of another doctor. could this happen to you? also coming up tonight. this marine fell on a grenade and lives were saved. so why did secretary hagel just decide he does not deserve a medal of honor? we'll investigate. i credit my being here to my specialist. the star of a new obama care ad told us last week about fighting leukemia. but now she is fighting her critics after a democratic congressman sends his lawyers to attack. plus, see what we learned now about the man in charge of prosecuting one of the president's biggest critics. >> so i think there is the offense here that obama treats his critics not merely as people

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now, the out of pocket costs are so high that it is unaffordable. if i do not receive my medication i will die. >> well, that was jewulie boonstra, a michigan mother who lost her health insurance

because of obamacare. she calls out a democratic representative for voting for the law. julie joined us last week on "the kelly file" and said this. >> when i received the letter stating my plan was dissolving, it was crushing to me. i was raised to respect the president. and you may not disagree with their decisions but you single have a certain amount of respect. and receiving this letter, hearing him lie to me and to the rest of the american public has been crushing for me. and i can't honor the way that i was raised. >> the day after julie appeared on our show, democratic representative gary peters sent lawyers to at least one of the television stations running that ad, demanding that they pull it until julie provided them with more information to prove her claim. we have invited congressman peters repeatedly to join us on the program so that he can have the voice he clearly wants to have on the story. he has declined repeatedly to

come on. instead he wants to go through the lawyers. joining me now, ellison barber with the free beacon. i get that he doesn't like the ad, and that the ad got three pinocchios. so i asked her about that, and she defended her case, isn't that how it is done? why didn't he come on or go wherever he is comfortable and defend his case? why get the lawyers and start to attack the leukemia patient? >> they were not attacking her, what they were doing was attacking the asp and the koch brothers who spent a million dollars to put this ad out there to defend the facts that are in this case, which are clearly not factual. which is why they're not standing up. there was no cease and desist,

they just asked that the facts be substantiating. that is where we're falling down on the reporting. >> no we're not falling down on the reporting. because i did report it. in is n it is not the koch brother's testimony, it is hers. >> free fspeech, the issue of what you guys were addressing as what was factually incorrect, it is not actually what she said in the ad. she said i lost insurance because of the provisions in the affordable care act. who is anyone to say what someone can or can't afford. >> let me tell the audience, they may not be up to speed. "the washington post" said you wound up breaking even. you used to pay $1100 a month, you may have to pay about that, it will sort of come in spurts, but it comes in fits and spurts

where she may have a $3,000 bill in january and very low bills the next time. what julie said, i don't like that plan, i like my old plan. i may not have the 3 grand in the bank to pay the fee. so i get why they say it was not exactly right. but it is not a whopper, she lied -- >> i think that is a fair point to argue on and for people like us to say was this accurate? i think it was factually accurate, it is a fair debate to have. he is addressing the issues of the ad, it goes to free speech, there is nothing wrong with somebody coming out and saying this is how i feel, what i believe, it is not an issue of politics but free speech and whether or not this person who feels -- >> this is a u.s. congressman going after a leukemia patient. >> no this is about the facts, trying to make sure, it is not

just about free speech. i see this as he is running for congress. we have ads out there that are trying to characterize his vote for obamacare as something that has -- >> that happens all the time. >> i'm going to give you the floor, but it happens that inaccurate has come out. and you can argue about whether this is one or not. let's assume it is for the purpose of this discussion, is it a good idea for a democratic congressman on the issue like obamacare to be running to the lawyers and shut down this woman's voice? she went to his house to try to confront him with this. he is basically hiding inside, she said he was in there, you got a cancer patient -- >> what he did with his lawyers is actually very classic. even the republican governor in michigan did the same thing. it is very typical for a campaign to go to the tv station and make sure the facts are being reported accurately. i think it is very fair, fair to the american voter and viewer. i think the challenge that the afp has is that they won't stand up and defend the fact that ms.

boonstra actually did get coverage from her doctor. >> she came on the program -- >> $6300. >> you're -- blaming afp, it is her claim, no, no. >> they're the ones -- >> you are hiding behind that, because she is the one making the claims. she came on the program and i pushed her on this, respectfully, and i did. she had answers to all of these claims. they're just afraid to say we take issue with this woman who is suffering from cancer. >> right, i understand that her challenge as you articulated is the fact her payments are unpredictable at this point. but she has not proven the fact they're unpredictable. >> she doesn't have to. she is not in a court of law. she is criticizing obamacare because she lost her plan she liked that the president said she could keep. >> not because of obamacare. >> that is not what she said, you're wrong. >> if it had not been for obamacare, if she had lost her insurance under regular

conditions. >> julie -- >> the re-existing conditions wouldn't have allowed her to get another plan. >> if mr. peters would come on the show and he is more than welcome to come back any time to come on any time to talk about this then he can have the forum he so desperately wants. if he wants to send his lawyers on, talk to them too. we'll be right back. [ male announcer ] staples has everything you need to help you keep a germ-free office. from latex gloves and antibacterial wipes to steam cleaners and keyboard vacuums. to microfiber cloths that leave no speck behind. yes, staples has everything you need for a germaphobe-friendly office... [ sneezes, coughs ] except germ-free coworkers. [ retches ] thousands of products added online every day... [ click ] even protective suits. [ sneezes ] staples. make more happen.

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men and women do extraordinary things in times of combat and in times where their life is in danger. you can't sit back here in the united states safe and sound in the pentagon and say that that young marine did not do what he did. >> well, that was congressman duncan hunter on our air back in december as he pushed to have the medal of honor awarded to a

marine back in the iraq war and he may have saved others. the sergeant and others came under fire when a grenade was thrown their way. some of peralta's comrades were saved because of his work. he was denied the honor, that is the third time this has come up and the third time it has come back. sergeant ricardo peralta is joining us. thank you for your service and for your brother's, as well. i know there are now conflicting stories among the guys who were there that day. "the washington post" is reporting this, i know you're not happy with them, that some of the guys talked about how he originally fell on the grenade, said it did not happen. he was killed by friendly fire and we made up a story to try to make it seem like he was more

heroic than he was. do you think it played into the decision and do you think these guys are telling the truth? >> i believe that these statements that these people are making are completely inaccurate. and you know, the facts are there. the facts do not lie. for example, there were two gentlemen there that are claiming these accounts by the names of brown and gonzales, those people were not in the room even when the grenade actually went off. so i personally don't think they have a say. also, allen, davy allen states he personally saw, he witnessed the grenade go off firsthand, but that actually did not happen. he took damage -- there was no way for him to have witnessed it himself when he was turned away.

also this report did not mention in the evidence of the report, the obvious facts of how it happened. there was a grenade fuse that was pulled out from his flflac k.so we have enough evidence to prove that these allegations are not correct. >> two other marines are standing by the story of your brother's heroism. it happened exactly as they say it did and he should be awarded the medal of honor. it doesn't look like it is going to happen. this is sort of the last chance. why is it important to you? i know your brother wrote you a letter a few days before he was killed. and you shared it with us, he said you should be happy fighting for the u.s. constitution and freedom and that he was going to be a part of history. why is it important for you to have this medal? >> it is not really the importance of the medal. we have had caucuses, congressmen all fighting for

this. the family supported it 100%. you know? these new allegations, they do not bother us whatsoever. we know what had happened. we were just fighting for the actual facts with all of this. it's sad that this decision had had happened. and is happening, but you know, the family from the first few years that this has happened, we always thought to ourselves that there is not a medal out there that they can give him. there is not a decoration or any sort of physical award that -- to be offered to him, we'll always be proud to the fullest of that. whether they decide to change their minds, give him the medal of honor tomorrow. that wouldn't change how we feel. we're proud to the fullest. >> yeah, and your country is proud of him, too. there is no question about his

bravery and his courage out there. and he has had a navy cross awarded to him, a navy destroyer named after him. and his service is honored. thank you sir, for being here. >> thank you. up next, see what we learn about the man now in charge of prosecuting one of the president's biggest critics as we investigate claims that the case against dineuinesh d'souza be one of political payback. >> helps you be ready anytime the moment is right. cialis is also the only daily ed tablet helpsapproved to treattime the msymptoms of bph, like needing to go freently. tell yr doctor about all your medical conditions and medicines, and ask if your heart is healthenough for sex. do not take cialis if youtake , as it may cause an unsafe drop in blood pressure. do not drinklcohol in excess. side effects may include headac, upset stomach, delayed baache or muscle ache. to avoid long-term injury,gety if you have any sudden decrease or loss in hearing or vision,

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overseeing southern new york, which of course includes wall street. he just hit j.p. morgan with a nearly $2 billion penalty for turning a blind eye to the -- madoff scheme.

he is said to be on the short list to replace eric holder. he is also going after the man who made "2016 obama's america." he alleged they violated the campaign laws by giving $20,000 to a failed senate campaign. berrara said it was uncovered in a routine review. the critics highly doubt the with money stuck out and said it was politically motivated. d'souza says the president is vindictive. >> he treats his critics as enemies. by the way, he said in his books that you should treat your opponents not as well-meaning people who disagree with you but as bad guys. >> if he is convicted on both counts, megyn, he is facing

seven years in prison and a one million dollar fine. >> all right, trace, thank you. joining me now, judge napolitano who is a fox senior news contributor, judge, there is only so much he can say, but when you have "the new york times" saying this is a relatively small financial amount. the question is why this guy, why this politician? >> well, these are questions the government is going to have to answer. and they have not answered them yet. they can't commence a criminal investigation by going after darts on a board and pick one out, and pick one out of files and say let's look at this one. there has to be a reason why they're going after it, unless they're told to go after it. >> let's assume he did it, because what i read in the denials is the facts don't seem that much in dispute. what is in dispute is why are they making a federal case out

of it? >> well, that is the case, the standard definition of crime is harm. no warmone, i emphasize, no one harmed here. she lost overwhelmingly. $20,000 in the campaign. >> but if you break the law you break the law, doesn't matter there is no victim. >> but the punishment must be commensurate with the harm. now, the reporting of $20,000 is not in link with the amount of harm, that is close to zero. >> you have the southern district of new york attorney, this obama donor, the chuck schumer protege here -- >> the fellow that is the u.s. attorney here about trace who gave background has a very good reputation as a very honest guy who goes after big-time criminals, not small potatoes. i don't think this was his call.

i think this came from somebody in washington for a reason probably connected with the veracity of dinesh d'souza's criticisms of the president. if that is true, it is a hunch after living in this community, a little longer than you have, it is dastardly that a person could be pursued because of his views. >> and the chilling effect that that would have or could have on other right-leaning movie-makers or pundits. it is similar to what we saw in the irs. >> the government would have been much better if they had said we want this sort of fine. >> there is a way of getting rid of him. >> exactly, not we're going to ruin you, expose you to seven years in jail or expose you to a million dollar mine over a lousy misreporting of a $20,000, he didn't steal it. he misrepresented the origin,

that is wrong, if he did that, but the punishment has to meet the crime. and the government's resources have to be appropriately spent. >> and he says he will not be deterred on his next film, judge, good to see you. also, the white house called out again for misleading obamacare. in december, the pledge if you like your plan you can keep it was named lie of the year by for liti fact. last month, the white house got three pinocchios, the paper warns ignore the claims being made, because of obamacare, and the president went out and said it again. despite that specific warning which we covered extensively, today, another pinocchio reporting, by the president himself under the medicaid

numbers under his signature health care law. a former speech writer for president bush, why does he keep saying this? he said it in the interview with o'reilly, prior to, after that how many pinocchios can they give him to make him stop saying this? >> in the words of ronald reagan, there he goes again. how many times is this president going to lie to us about obamacare. what he said to us, claiming 7 million people are newly eligible for medicaid because of obamacare is just not true. it is made up. his own department, what he is doing is taking all the people who signed up for medicaid since the law took effect and saying it is all because of obamacare. but his own department of health and human services says a lot of the people were previously enrolled and eligible for another year. you have millions of people who join medicaid every few months just as the natural extension of the program. >> he started with the $7 million number, figures say as

low as 1.1 million, we don't know right now but he continues to say it. and the reason they're saying it is because they want to build up the numbers so they can say see how many people we've helped. for me, i think for a lot of viewers it is a question of honesty. right or wrong, good or bad, we expect the president to be honest with us. >> that is right, as a former white house speech writer, i'm shocked how the stuff gets into his speeches. don't they have a fact checker there? either they're not calling hhs and don't like the answers or they're calling and saying it anyway. regardless, they're either incompetent or dishonest. he got the lie of the last year, and now he lied again on the obamacare. this is a guy who has lost the trust of american people and another obamacare lie continues. >> it reminds me of a certain person. >> you see, pinocchio, a lie

keeps growing and growing until it is as plain as the nose on your face. >> she is right, pinocchio, you better come clean. >> i will never lie again, honest, i wouldn't. >> please, your honor, give him another chance for my sake, will you? >> give him another chance of the -- the president asked for us to trust him after the lie of the year. and even when it comes to something as near and dear as the health care. but how can we do that when over and over he is repeating these discredited claims? >> yes, he keeps doing it over and over again, we keep giving hip another chance, it is an act of desperation. if they don't have good news they make it occupy. >> apparently they don't realize

that the data is inadequate. >> he is making stuff up. there is no good news about obamacare, so they have to say something. the problem is when you have the majority of the american people who now say he is not honest, or trustworthy, they would have scrubbed everything he says carefully to make sure there is nothing seemingly questionable or dishonest, and they're nort doing that. they're telling lies. and dramatic developments in the case of 15-year-old justina pelletier. and why this man believes the family is getting a raw deal. >> every time i see her, my knees buckle. it is just teari ining apart ot family. but not energy or even my mood. that's when i talked with my doctor. he gave me some blood tests... showed it was low t. that's it. it was a number.

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. breaking tonight, more on a story we have been following closely here, the case of 15-year-old justina pelletier, taken into massachusetts state custody after her parents disagreed with doctors at boston children's hospital over her treatment plan. they believed at tufts, and apparently the folks at boston didn't like it. the parents devastated. the mother being taken out on a stretcher, she was so upset after learning their daughter may not go home with them and could soon be placed in foster

care. justina's mother collapses there, and was brought to the hospital. he is currently working with the legal team, although legally on the case, you had the same reaction to this case as so many of us had initially, which is, there must be more going on here. what is the deal with these parents? because no court would just take custody of a 14-year-old child and deprive the parents for a year, and only being allowed supervised visits. >> megyn, it is a reaction that anybody would have when they see the story. they would say maybe something else is going on, something is going on with the parents. so before we got on and invested a lot of time in the case, we researched this. we found out more and more there is nothing going on with the parents that is an issue.

in fact what we have is boston children's hospital and the department of children's service, dcf, taking this child away from these parents who love this daughter and who want to care for this daughter and who simply disagree with the recent diagno diagnosis of a newly minted physician who zbaed with the physicians at tufts. he is a medical expert at tufts, and in january of 2013, justina was figure skating in ice competitions, as well. and in february she develops a bad flu, stomach problems, unable to eat. so the doctor at tufts recommends she goes to boston children's hospital and recommends she sees a specialist there. they check her in, they never get a chance to see the specialist, she got a brand-new doctor who changes the diagnosis. it is not what your expert doctor says, it is all in your mind and then calls in dcf, who

then interferes. >> and they get custody taken away from the parents. dcf basically deferred to boston childrens. they go in there, they don't have their own medical expert. they go to the judge and say the people at boston says they're abusing the girl. the judge says oh, that is bad, custody to dcf, but there is a whole team at tufts saying it is not abuse, it is based on a disease she has called mito. the folks at boston children's basically say mito is a crock. if it exists it doesn't exist in this case. and actually what happens is, it is not justina that has psychological issues, it is the parents. they used to call it munchausen by proxy, the child is not sick, but the parent is creating illnesses in the child and then getting unnecessary treatments and surgeries for the child. >> and here is the problem with

that. because if that were the case and you remove the parents from her, then her natural conditions should improve. they have been removed for 13 months, they only have one hour of supervised visitation. most recently were there was a security guard during that one-hour visitation with her. instead of getting better, she is now in a wheelchair. >> we're showing the pictures. the wheelchair pictures, this is her a year ago, and the split screen, look at how she is now. could that be psychological, depriving her of her parents? i don't know, they're downgrading the severity of her medical condition by shifting her out of the hospital to foster care, no? >> yes, where she doesn't get any medical treatment at all. that is even worse. on friday of last week, linda saw her with the five dcf workers in the room and a security officer. her stomach is now protruding,

she has bruises and a kind of blackening under one of her eyes. >> but they can't talk about it, or examine her. i want to carry this over, we have to talk about the gag order and how crazy it is next. no, that can't happen. that's the thing, you don't know how long it has to last. everyone has retirement questions. so ameriprise created the exclusive.. confident retirement approach. now you and your ameripise advisor can get the real answers you need. well, knowing gives you confidence. start building your confident retirement today. like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] ...office space. yes, we're loving this communal seating. oh, it's great. yeah. [ male announcer ] the best thing to share? a data plan. ♪ new at&t mobile share value plans for business. our best value plans ever.

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phone picture of their daughter, they can't even bring it out to show it to the public, with their one hour visitation. i have never seen a case like this. there was a case in the massachusetts supreme court that overturned a gag order when you had something similar to this situation. there is no reason whatsoever from preventing the case from the media other than wanting to cover it up and keeping it quiet. we only found out when it came out in the national media. and that is when we got involved. >> they have been doing great reporting it "the blaze" has done great reporting on it. >> and you've done great reporting on it. now it is growing. >> and the american public, they want answers. this goes beyond the pelletier family, the question is whether this can happen to any family like the pelletiers. this is boston harvard, next thing you know you lose custody of your kid for a year and you can't speak about it. >> that is right, and it is not

like they're refusing to follow medical treatment? they're following the medical treatment of the experts at tufts. they just don't agree with this newly minted idea that it is all in your head. >> i know they held them in contempt, do you think it will succeed? >> i don't think so, this gag order is blatantly unconstitutional. today it was heartbreaking to see linda collapse outside of the courtroom because of the stress. to see the three sibling sisters crying and just weeping over the fact they can't see the sister. this is just absolutely tearing the family apart. >> matt, we'll be right back, thank you for joining us. there's this kid.

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