thanks for the laugh. that does it for a monday. we're in august, august 1. off we roll, right? >> julie: i love this much as much as you. i look forward to it. gillian turner is in for harris on "the faulkner focus". sigh back here tomorrow, bill. >> bill: see you then. here is gillian. >> fox news alert now. west virginia senator joe manchin defended his decision to back the spending bill. it is $400 billion. he says it won't raise taxes on the average family and will reduce inflation. critics say he is flat out wrong. we'll get into it. this is "the faulkner focus" and i'm gillian turner in for harris today. senator manchin admits he was wrong about the impact the last spending bill had on inflation. he also says the new plan's corporate tax hike won't affect

everyday americans. listen. >> i didn't change my mind. i never changed at all. this is fighting inflation. we've closed loopholes and didn't raise taex. it doesn't raise taxes. it is an investment. i won't be responsible for inflaming the inflation rate. it is a red, white and blue deal. >> his colleagues in the senate disagree. pat toomey said manchin got duped. >> he got taken to the cleaners. the same gimmick he said he was opposed to. they claim the revenue over a 10-year window from the tax increase and price controls and then the expenditure they knowledge they pretend it will only be three years. these numbers are very dubious. >> the "new york post" editorial board call it joe manchin's anti-made in america bill.

sinema was absent from the recent round of talks. silence is stressing out democrats who desperately need her vote. we got art laffer, economic advise hor to former president reagan in focus today but first edward lawrence joins us from the white house. >> the renamed inflation reduction act is adding $433 billion in new spending. to pay for that spending the white house and democrats are saying they will increase taxes to make up the difference. when you look in where those taxes are coming from, the bulk from the corporate minimum tax going up to 15%. allowing medicare and medicaid to negotiate for prescription drugs. adding i.r.s. agents and increasing tax enforcement and eliminating the carried interest loophole. when you look inside the tax increases it won't only affect the people making more than $400,000 a year. the joint committee on taxation

says the tax collection by 2023 would come from people making less than $200,000 a year and people making between $200,000 and $500,000 a year. senator manchin argues it is a good bill now. >> this is a piece of legislation that's an investment. we have taken 3.5 trillion in spending that was aspirational spengd my colleagues wanted to do on the democrat side and taken it down to a $400 billion investment. we aren't sending a check to anybody. >> representative roger williams, a republican and car legalership owner says the bill would slow down an economy already in a recession. >> businesses don't say they spend and grow the economy. they will be saving money. they will eliminate payroll, save money to pay taxes and it's really going to destroy our economy and make it harder and harder to come back. >> talking about small businesses and large businesses

cutting back hiring in order to save money to pay those taxes. back to you. >> thanks. inflation and taxes are the two top issues of debate coming to the manchin-backed spending bill. op-ed says though it's called the inflation reduction act it doesn't actually reduce inflation. "wall street journal" editorial board dubs it the increase on everyone saying the bill hits u.s. manufacturing especially hard and raises taxes on americans who make less than $400,000 a year. i'm sure that's mostly everybody in america. let's bring in art laffer former advisor to president reagan and a new book called taxes have consequences out next month. penn business school looked at this and said the bill increases inflation through 2024 and moving forward will begin to reduce it, maybe not a

winning political message. >> may not be a good political message but surely not a good economic message. literally, gillian, you can't tax an economy into prosperity, you can't. if you reduce the supply of goods and services through taxes, that's only going to lead to higher inflation, not less. so government spending and tax increases is the exact wrong thing to do right now. i'm really pleased that the original build back better bill has been pared down but should be taken to zero and manchin did a great job in paring the first bill down but this time he stopped short of doing the complete job. he should have killed the bill completely, totally and we did have a chance of bringing that inflation under control without destroying the economy. this makes those chances much, much less likely. >> let's get the spifs i can. republicans say what the bill does do is give billions to the wealthy to help buy electric

cars, raises taxes on energy companies producing on federal lands and tens of billions to health insurance companies. that fair? >> it doesn't matter what they are spending this on. it's government spengd and you know it is spending inefficiently and against markets. so that spending in this case we don't need more spending, gillian. we have a total debt to gdp of 125%. the highest since right after world war ii and wasted that money on producing bad stuff. paying people to leave the labor force, all of that. this spending in aggregate is the wrong way to go. it doesn't matter where it occurs this time. they are occurring and it is not the right thing to do. >> the white house has denied repeatedly we're in a recession. while inflation is high, american households are really doing just fine. the "wall street journal" is out with this today. consumers have powered through the pandemic and inflation

until now. families are paring back purchases of items such as electronics and furniture and prices for -- many consumers who weathered the pandemic are running out of steam. >> the unemployment rate is very, very low. it is truly low. it is showing some signs of going up but it is very low. really more, gillian. it's good. it's good if you are in that area. let me tell you what is not good. we have 525,000 people less employed than we did in february of 2020. we have not even caught back up to where we were prior to the pandemic on total employment. we are 6.1 million jobs short of the trend line from that. so this is -- people are leaving the labor force like mad and part of that leaving is reducing the unemployment rate but part of it is also reducing

the employment rate. we have a really serious problem and people not wanting to work and not being in the labor force. that's our serious problem. there is no unemployment rate low that offsets the huge drop in total employment. that's the big number here. >> take a listen to this economist at the "new york times." what he said on cnn over the weekend. >> i know him. >> none of the usual criteria that real expert use says we're in recession right now. and what does it matter? the state of the economy is what it is. people want -- it's a biden recession. they want their biden recession they'll have it. never mind the fact that, you know, it is not a recession in any technical sense. >> critics say that whether we're in a recession, not in a recession, about to be in a recession, the point is that the white house is on defense. they are arguing about

semantics right now defending their policies so they are automatically on the losing side. >> they are. but the truth of the matter is, gillian, we had a drop in total production of goods and services in the first quarter of this year at an annual rate of 1.6%. that's a huge drop. very rarely -- then in the second quarter we had a drop of .9%. that's two quarters down and it is a very serious decline and it is the end of the recovery for sure. if the economist wants to call it -- under jimmy carter they called it a big banana. he outlawed the use of the word recession. if you want to call it a big banana, that's fine. two quarters down in real gdp. the common phrase, the common definition is that is what they call a recession. change the dmaim, -- name we

have had two down quarters in gdp. a tragedy in this economy. >> the common man's recession, recession for folks making less than $400,000 a year. call it any of those things. we have to leave it there. thank you for joining us this morning. >> thank you, gillian. >> now this a deadly wildfire in california ballooning in size showing no signs of slowing down. thousands are under evacuation orders. also this. critics criticizing president biden for not having house speaker nancy pelosi's back over her possible taiwan vits. we'll get into it next. >> she should absolutely go. you can't pull that trip down because the chinese communist party sends out third rate propaganda to threaten her or the united states of america. >> china, though, is now warning it will take military action in response to a pelosi touchdown in taiwan. live to capitol hill next. reporters getting breaking

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>> gillian: president biden has tested positive for covid against this morning. a rebound case first on saturday after being treated with packs -- paxlovid. we'll bring you updates as they come. two people are now dead as a state's worst wildfire of the year rips through northern california. the mckinney fire exploded in size this weekend, the stateest largest so far. two victims were found dead

inside a car that burned in the fire's path according to police. the fire broke out friday afternoon near the california/oregon border and it has torn through over 52,000 acres. governor newsom says nearly 3,000 people are under evacuation orders. the fire was zero percent contained as of last night. another fox news alert now. house speaker nancy pelosi is in singapore, taiwan not officially on her asia trip itinerary. china is ramping up threats including from shooting down plane to taking military action. pelosi faces pressure from the white house not to make the visit. republicans say she shouldn't back down now including president trump's former top spy chief. take a listen. >> it has been mismanaged by the biden administration. she needs to go for the sake of our national security so the american people see the chinese communist party is not the one dictating american foreign

policy. >> gillian: new details now. >> you're right. the pressure is on the speaker. according to multiple reports this morning, it appears that she will indeed travel to taiwan even as beijing warns about the seriousness of the situation. take a look. these are images that the speaker tweeted just this morning of her visit to singapore where she greeted u.s. marines and met with the president of singapore. over the weekend, pelosi released her official itinerary and you will see that taiwan is missing from this list. that doesn't necessarily mean that there wouldn't be an effort for an off the radar visit for security purposes, of course, leading up to the trip she faced pressure from not only china but also the white house to not visit the island. president biden said the u.s. military thought it was not a good idea. in a china state media commentator warned her plane might be shot down if it was

accompanied by u.s. military je.s over the weekend china said it would conduct a military exercise off its coast near taiwan and that's raising concerns about the safety of the airspace that the speaker would have to travel through to visit taiwan. this morning the white house notably more supportive of a potential visit. >> think it's an unnecessarily provocative move? >> for the speaker to go to taiwan? no, it wouldn't be. in anything, you would think the chinese would welcome it. it shows consistency. it shows that nothing has changed about america's one china policy. >> if the speaker decides last minute not to go to taiwan, some critics out there, like senate minority gop leader mitch mcconnell said it would be as if we're handing the chinese a victory. gillian. >> gillian: aishah hosni for us this morning.

thank you. let's bring in retired lieutenant general keith kellogg, fox news contributor. general, it's not entirely inusual for congressional leaders to try to subvert the president or at least work around them to try to carry out their own foreign policy. back when i worked at the white house in the bush administration, nancy pelosi traveled to syria above the president's objections. i guess what's unusual about this trip if she does go to taiwan is that she is working around a president in the white house who is leading her own party. i don't know we've seen this before, have we? >> no, we haven't, gillian. thanks for having me. the last time we had a speaker visit taiwan was 1997 when newt gingrich went and took a bipartisan group with him. i think she should go and announce it, not keep it low key. it is very smart.

we need to acknowledge that china is an emerging power that threatens us economic,, militarily and politically. for her to go is only right. once her office made the announcement she was going she has to go. where she ranks in the u.s. government is very critical. third in line of succession of the president united states. speaker of the house. carries great importance and we shouldn't back down from it. for president xi to talk to president biden saying she shouldn't come, president biden should have said quickly in 30 seconds, she is coming and going to taiwan and visit taipei. she will do it in the mill of the day. it is an am cash issue not a chinese issue. it goes back to 1972 after nixon visited china and came up with the shanghai communique that said there was one china. taiwan was part of china. 50 years later we look at the country of taiwan, 23 million people.

democratically elected government. maybe we ought to start thinking hard. maybe there really isn't a one china policy anymore. maybe there should be a two china policy and bring taiwan back into the u.n. we abrogateed our defense treaty in 1976. jimmy carter did it on his own. think hard how to defend taiwan and the entire region. everybody is looking at us right now. japanese are looking, indonesians, philippines are looking. vietnam is looking. this is a critical moment in time and we need to stand very firm. nancy pelosi needs to go to taiwan. >> there is the one china policy you mentioned. the other aspect of all this, the controversy surrounding this potential stop is the messaging. i would ask you, general. sort of what the chinese government says at this point really even matters. all the china experts say she is gearing up to make this bid next month for an unprecedented

third team leading his country. a whole series of communist party meetings coming up and focused on messaging them, sounding and acting tough. so basically what he is saying when he threatens to is shoot down pelosi's plane or has the media do it for him is bluster. do you agree? >> it's a dangerous moment. everybody thinks about ukraine and russia and putin was making the comments about ukraine and everybody said he wouldn't invade even though putin said he would invade. a lot of people didn't believe him. we're reaching a point now where you need to start thinking hard what china will do. the reason for that i really believe this, gillian, the fact they believe they can take the measure of this president and say we may have to get something done in the next 2 1/2 years because we don't know who will occupy the white house after his first term and believe his only term happens. so i think we should be very concerned. i think it is reaching a very dangerous moment. i think they are very serious

about it and may realize this may be the last best chance of doing something about taiwan bringing it under china. >> gillian: given the security sensitivities you laid out for us, what would you tell speaker pelosi to do right now if you were advising her. >> land in the middle of the day. land at noontime and have a parade in taipei. you have to go there. you represent the united states of america and i would remind president xi do not even think about harming her or even think about harassing her aircraft as she goes in there. you can almost take it to a state of war. just leave this official alone. we have done it before and i think he is blustering and i think biden needs to push back really, really hard. she needs to land in daylight in taipei. >> gillian: general kellogg we'll leave it there. thanks so much. >> thanks, gillian. >> gillian: you bet. a key election tracker is out

with new numbers. what it shows about which party will control the white house after november's election. members of the president's own party they aren't -- >> i think the only place that joe biden's approval numbers is lower than with the american people is democrats in the senate and house. we're in shambles as a country and it is under joe biden. >> gillian: not just republicans. a democratic member of congress said he won't back him for 2024. we have the power panel to debate that coming up next.

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>> gillian: kentucky's governor says the death toll from last week's devastating flooding a has grown to at least 30 people. the news is getting tougher among those killed are four young siblings from 2 to 8 years old and more heart act

-- heartache exelby pekted. >> one of the most deadly flood we've seen in our history with the level of water. we'll be finding bodies for weeks, many swept hundreds of yards or a quarter mile plus from where they were lost. >> rescue crews are continuing their work as more rain threatens some of the hardest hit areas by this flooding. >> you hope democrats keep control of the house and senate? >> i think people are sick and tired of politics, chuck. but i'm not going to predict what will happen. we need to do something good. >> what result do you want? do you want the democrats to keep control of the united states senate and the house of representatives? >> i'm not making the decisions on that. i will work with whatever i have. >> dount care about the outcome this year? >> whatever the voters choose. i can't decide what will happen. >> gillian: senator joe manchin

failing to say he wants his own party to keep control in the mid-terms. after he signed onto the new $442 billion spendsing bill with colleague chuck schumer. the cbs news tracker, republicans are leading for the house. the party with 218 controls the house. steve scalise writes. we have 100 days to election when america can reject democrats' insane far left policies. let's bring in the power panel. david avella as well as laura fink, ceo and founder of a communications company and democratic campaign consultant. david, let's start here. manchin and schumer signed onto the bill assuming the party would fall in line behind them. that is now not looking like a sure bet if sinema has anything to say about it. >> reality is manchin is

yesterday's news and now the focus is on whether senator sinema of arizona is going to make it harder for her arizona colleague, mark kelly, to win reelection. if she votes for it and this bill passes as voters learn about the tax increases that are in it and how the energy sources that they depend on are under attack, it will make it a lot harder for mark kelly as he will get swept up in the wave that is coming. let's keep in mind, gillian, in wave elections it is not one race that the party out of power against the president wins. they win them all. so republicans are positioned particularly now with this bill that manchin has put on the senate's door steps that republicans could pick up not one or two seats but three, four, maybe five u.s. senate seats this cycle. >> gillian: laura, the democrats say look, we're about to hand the president a china

competition bill and about to hand them major victories. republicans just can't handle it. >> that's right. joe biden putting ws on the board. the microchip >> bill: partisan. 24 republicans in the house and handful in the saent voting for it. that will make us more competitive in china and increase jobs and lower the companies of things like automobiles and microwaves and cell phones. huge win for him there. now we've teed up success with joe manchin carrying the ball across the touchdown line talking about energy independence. also talking about investing in traditional energy as well and not to mention lowering healthcare costs that david didn't mention for seniors and all americans. how do we pay for it? we lower the debt by policing it and making corporations pair their fair share. popular. while his senate predictions

are rather optimistic with republicans almost pulling out of oz's race in pennsylvania, it looks -- things are looking up for democrats because we put ws on the board and doing things that democrats, republicans and independents all agree on. >> gillian: david, i know you don't agree. something that's definitely not wildly popular is the dirty dealing. take a listen to democratic stage gift james carville defending his party's political strategy of propping up folks who they call extremist or maga republicans. listen. >> i don't see any ethical or moral problem with doing this. i think most of the opposition to this is from the pontifical class on the coast. i don't see anything wrong with this. you try to do everything you can to help your candidate or your party win an election. that is pretty simple. >> gillian: panel on abc over the weekend argued the opposite.

listen. >> it's risky and hypocritical. you will go out and in effect campaign for an election denier because you made a political calculation that it might serve your interests? i think it means democrats crede the high ground on this. >> very hypocritical. in politics when you try to be too cute and clever it often backfires. >> gillian: will it backfire? >> the republican national committee ought to buy james carville tickets to the victory parties of these republicans that democrats are helping to nominate. but let's keep in mind that ultimately voters have a say. on that count, where are voters going? you see the independents are voting in republican primaries this cycle. you have hispanic voters voting

republican. 54% of those casting votes in primaries are republicans versus four years ago last mid-term election 53% of voters were democrats. so james carville won't have to stay in louisiana. he can go to some good republican victory parties who he helped republicans nominate. >> gillian: what say you, laura? >> i say that republicans may not need help electing the most extreme candidates in their primaries. they are doing it over and over again. the maga stamp of approval and donald trump endorsement remains the coin of the realm. they have are sending extreme candidates to general elections which helps democrats. while the numbers may not be perfect for democrats mid-term elections when your power is in power are never easy, the positions of these politicians from choice and healthcare and lgbtq rights and all of the

things that are on voter's minds, the republicans are simply too extreme, you know? too extreme. they are doing it on their own. they don't need james carville or anybody else's help. we have primaries tuesday. look forward to those results. we'll see if they turn out all right. >> gillian: we have to look past the mid-terms to 2024. more democrats are saying no to joe. there is disagreement whether his making a one-term pledge would help. dean phillips is the first member of his party to sait out loud. >> the country would be well served bay new generation of compelling, well-prepared, dynamic democrats. i think it is time for a generational change. i am not shy to say that. i do believe that most of my colleagues feel the same way. >> gillian: the president notched some legislative wins last week. recent polling shows the majority of democratic voters

want the party to nominate someone not named biden. >> let's keep in mind you have democrats not showing up with joe biden when he is going into a state who don't want to be seen with him. and as you referenced 2024 never historically has a president not been challenged by his party when his approval rating is in the 30s. so as you get past 2022, the question is what democrat will take on joe biden in the primary? history is there. who will step up to take him on in 2024? >> gillian: there is always somebody. i've been in washington a while and learned not a lot but i have learned that. you are always replaceable as a politician. even if the president was 110% sure now today that he is not going to run for reelection there is no incentive for him to announce that now, right? he is just sort of lame ducking not only himself but then his entire party ahead of the mid-terms.

>> i think that these parlor games are cute but not particularly relevant two years before a presidential. you go back to the 80s when reagan's poll numbers were low. inflation was high. he had similar winds to contend with like joe biden and you saw that circumstance change markedly in those two years. i think it's interesting this conversation comes up the week that joe biden is putting ws on the board. is giving gifts to all of those swing state democrats and those swing district democrats that are looking to have wins to talk about. >> gillian: the polling has tanked for a month straight and why it is coming up today. >> i don't think it has tanked. it is not particular news this week. those wins are news, the wins are news for americans who want to lower healthcare costs who want long-term energy investment in climate and lower the gas prices which has

already started. let's give joe biden credit since we gave him all the blame. >> before we talk about wins can the senate pass the bill yet? last time i checked senator sinema hasn't announced how she will vote on this and she has to decide whether she will make it easy for her fellow colleague, mark kelly, this november or not. >> gillian: we've got to go. thanks for joining us. nfl is deciding deshaun watson's fate since many sexual allegation against him. >> today we're joined by john kirby. i would like to welcome matthew and camilla mcconaughey and excited to welcome special guests to the room today. >> gillian: the white house

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>> gillian: fox news alert now. bad news for browns fans. the league suspending

cleveland's new superstar quarterback for six games. a judge finding that he violated the league's personal conduct policy. the decision comes after the nfl's investigation of multiple women who filed civil lawsuits accusing him of sexual assault. he has settled 23 of those suits. the browns signed him to a massive five year $230 million contract that's fully guaranteed. turbulent race in michigan coming down to the wire. still no cut and dried frontrunner in the gop primary for governor there. a host of candidates are hoping to take on incumbent democrat gretchen whitmer. another test of trump's influence within his party. let's bring in bryan llenas joining us from lansing this morning. >> michigan's republican gubernatorial primary has been described as a messy, complete toss-up among the four top

contenders as they all vied for former president trump's endorsement. in the end it was tutor dickson who received the endorsement from president trump friday night. he is backed by the devos family, the most powerful family in michigan politics. trump had a falling out with betsy devos after she resigned following the january 6th capitol riot. devos wrote a handwritten letter urging trump to back dixon. she said she believed trump won the 2020 election in michigan which trump lost by 154,000 votes. when asked on "fox news sunday" if the election was stolen, she was less definitive and her opponent businessman spoend. >> there were definitely things in the 2020 election that left us concerned how it was operated. >> within 48 hours after being endorsed by the president now

she is flopping? this is what the people of michigan don't want. this is what we don't like about politicians. it's wrong. >> he is the only candidate who acknowledges trump lost michigan. other candidates include real estate broker ryan kelly, arrested for participating in the capitol riot and a -- democrats have paid over $2 million in ads against dixon. she says that only proves that dems think she is the most formidable opponent against governor gretchen whitmer. democrats have spent money in the michigan third congressional district primary race bolstered john gibbs, the trump backed candidate against the incumbent peter meyer in that race. they continue to intervene in races all over the country

backing far right candidates they deem are beatable. gillian. >> gillian: thanks. the state board of education is warning two oklahoma school districts officials there appear to have violated a new state law that prevents critical race theory from being taught in public schools. one of those complaints was against tulsa public skoo. accused of holding a training sessions for teachers elements shaming white people for past offenses in history. in the state's education secretary blasted tulsa school officials. it was over two library books titled gender queer and the other flameer. they were available to middle school students but have since been pulled from shelves. >> this is a tactic we've seen of the far left. they are pushing critical race theory schools and sexualization of kids and one of their end goes is to teach kids to hate america.

>> gillian: let's bring in joe concha, media and politics poll umist for the hill. is this a case of everybody has gone crazy and lost their minds or school district following through on these policies and processes that they have put in place? >> there is accountability now, gillian. one would think that school distrukts would have learned the lesson that terry mccaul i have learned in virginia when he was a solid favorite over republican youngkin until he decided to declare parents shouldn't have a say in their child's education. it changed the race. too many parents are paying attention to what their kids are being taught or what books they are offered. i'm the parent of two children. first and third grade. i am not happy with the fact that the u.s. is ranked 25th in the world on the education front pertaining to math, reading, writing and signs. china is number one.

perhaps we try to prepare our kids to the future instead of gender identification and race shaming. >> gillian: when the white house press secretary speaks at the podium she is rarely alone. held 38 press briefings since taking over in may. that's less than three months ago. 25 of those briefings have included other briefers and special celebrity guests. 66% of the time. during psaki's tenure she was joined only 25% of the breefmgts what do you make? >> i said it a week or two after she began this job, gillian. you want my pulse on this? i have to be blunt. we're witnessing perhaps the most ill-prepared, unsteady unconvincing press secretary of

our lifetime. anyone watching her performance on a daily basis she is reading directly from her notes and sometimes she is reading answers that have little to do with the question asked. so her predecessor psaki give her credit. she was profoundly dishonest but at least she could think on her feet when misleading the american people. the press secretary job should have gone to john kirby, relatively credible and steady at the podium and in interviews. it went to karine jean-pierre and she is getting on the job training. >> gillian: they have brought kirby in to handle the national security briefings to make sure that every line item delivered to the press is 100% correct, verifiable, fact checkable. do you think the issue with carine is more about the substance or more about the delivery?

something that maybe some media training could help iron out. >> i think it is both. the old navy seal saying, gillian, is the more we sweat in training the less we bleed in war. it seems that she comes to the podium not as prepared as she should be. there is some questions that are very obviously going to be asked given the current state of affairs in this country and seems like half the time she is blind-sided by it. media training would help. talking to some other former press secretaries. give robert gibbs a call and say what can i be doing better? how did you do your job? ask jen psaki and learn from those who have succeeded. instead of just doing the same thing over and over again and expecting a different result. >> gillian: a couple seconds left, joe, it is often the case these press secretaries come out of the gate not fully formed. it takes a while to adjust to the chaos and presser of the beat, right? >> sure. ist is -- it is one of the

hardest jobs. when inflation is approaching 10% and, it is a hard job. she could be doing it better. >> gillian: joe, thanks so much for joining us and thank you for everybody watching "the faulkner focus". stand by for "outnumbered" coming up next. it followed me everywhere. so i consolidated it into a low-rate personal loan from sofi. get a personal loan with no fees, low fixed rates, and borrow up to $100k. sofi. get your money right.

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no one knows veterans like newday usa. >> chinese military releasing a new video of missile strikes and ground invasion and another thinly veiled threat announcing nancy pelosi's tour of asia. this is "outnumbered" hello, everyone, i'm kayleigh mcenany. corp. try to today carley shimkus, kat timpf and david osmond. the house speakers in singapore today and while her official itinerary does not include