and she said that you were the father of her child? sean: no, she said you first. let not your heart be troubled. greta is coming up next. back here tomorrow night. thanks for being with us. greta: is somebody trying to blackmail senator john kyl, trying to shut him up? he goes on the record next, and we have a video we guarantee will let you on fire. it proves an over-the-top, fancy government party at a ritzy resort costing unbelievable amounts of cash, your tax dollars. look at this video. we are showing you because you would not believe this could happen during this recession, unless you see it with your own eyes. plus, the soon-to-be ex governor of alaska at just got hit with the ethics loss to no. 20. her lawyer is european and north korea just released pictures -- ethics lawsuit number 20.

dear leader kim jong il. is he dying? we will show you the pictures. is arizona senator john kyl being blackmailed? moments ago, he went on the record. senator, nice to see you, sir. >> good to see you, greta. greta: correct me if i am wrong, but you have said that we should stop the stimulus, and that has created a series of events. what has happened? >> we were right about what we said. it would not do what it was advertised to do. it would not create the 4 million jobs a. the money would not be spent very rapidly. there would be a lot of fraud and a lot of waste, and in the end, we would end up with unemployment, which is what has happened, and several of us that after the money in the pipeline now which has been spent, about the first half of the money, let's cut it off and use the

other half of the money for things we do need. for example, spending for health care, putting it into the transportation trust fund, to fund the highway construction projects, or just apply it to reducing the deficit. many of them, alternative ideas for doing more good with the money than continuing to spend it out over the next eight years. greta: you made those statements, and that started a series of events, and, in fact, a letter was written. >> yes, it was said that if you agree with jon kyl, then do you still want the money, or should we not send it to you? it was a threat, but, frankly, it was silly, and they combined that with some advertisements and a website and so on, and, obviously, the effort is to shut us up, but we are going to continue to oppose it. greta: i think on sunday is when you first made the statement

about backing off of the stimulus. when did the letters go out? >> i believe within a matter of days. we first learned about it yesterday. greta: it is retaliation, sort of schoolyardish. >> yes, it is not big leagues. greta: as your governor received any other letters from other senators with regard to the stimulus plan? saying if you do not want the money, we will take it back? >> not to my knowledge. i have spoken to her not since this little dustup, but she was nice enough to issue a statement tuesday to get off of kyl's back. we put out a statement yesterday. they want to engage a debate on stimulus, and i would love to have that debate with them, but do not resort to these silly tactics. greta: they are threatening to take your money away. >> first of all, they cannot do that. it is all for show.

there is no reality to it. that is why our constituents get tired of politics and the sort of got you kind of things that are not serious, and i am a little surprised with this administration, but not totally, when there is so much going on and so important, why results to -- resort to political games like this? greta: and you think they got it from the white house? "klealean on kyl"? >> i suspect somebody from the white house said, "we have written a letter. we want you to sign it." it was just a job, i am sure, from the white house, but it is not the way to do business. greta: how about your colleague from arizona in the senate, senator mccain? >> john and i both opposed to

the stimulus, and senator mccain had a couple of really good alternatives to the stimulus that he offered on the floor of the senate at that time. so when he heard about this, he obviously fired off a letter a comics letter for john mccain in support of my position. -- a calm letter for john mccain. greta: it does sound like blackmail. we are going to put some money from his state so you expect with constituents, and the best way to do that is to fire off a letter to the governor and put him in the corner. is it blackmail? >> if i were susceptible to that, i might reach that conclusion. i am not. i just attribute it to a very silly, ill considered decisions, probably from lower level people who did not explain it to their higher level of losses. greta: -- to their higher level bosses.

greta: how about the president? >> no need to talk to him about it. he is probably not even aware of it. greta: ok, the second thing to talk about is that we may have a new supreme court justice, judge sotomayor. are you going to vote for her? >> i made the decision to not decide prematurely. we ask her to not decide cases with preconceived notions, so it is only fair that i make my decision based on what i hear her say, and i do want to also listen to the other witnesses who are going to testify, probably on thursday. sometime after that, i will make a comment. greta: voting on a supreme court justice, whether it is a democratic president appointed or a republican? >> you know all of the complications involved in this. it is a serious proposition. the president has the right to

nominate because he won. my democratic colleagues senator durbin said that the nominee has the burden of proof. this nominee prima facia, that is to sit on the face, meets the test. she is a qualified judge, all of those kinds of things, so then the question is, what is your approach to judging that she thinks would be fair -- what is her approach? on that, the record is mixed. we are aware of all the things that she has written and has published, where she seems to think it is fine to use foreign law, that is fine for gender and optimistic ethnicity to have a role in judging, and when she has been asked about the -- is fine for gender and ethnicity to have a role in judging. "oh, i was misunderstood" or "it

was a bad choice of words," but i have not heard her repudiate the clear themes in those words. greta: what is her weakest qualification for the supreme court, and what is your strongest qualification, in your mind? >> her strong disqualification is the fact that she has an extensive background. she has been a district court judge, a circuit court judge, 8/10 of her judgments vacated by the supreme court. that is not good, but she has and least have a lot of experience. i think that the biggest question people have about per is how she would approach to judging. -- about her is how she would approach to judging and some of her writings, and it is just a question, because you do not know until she actually sits on the court. as a member of the court of appeals, she could always be reviewed by the supreme court, but once she is there on the supreme court, there is no more

check and balance, on her decisions, so we have to decide whether what she said in the hearings is the way she would approach it, where it's what she said when she was riding his what she believes, and that would not be so good -- or if what she said when she was writing is what she believes. greta: thank you. this happened in the middle of this horrible recession. this video. you might want to be sitting down when you see it. and governor palin may be resigning, but she is still under attack, blasted with a brand new ethics complaint. we report, you decide. and there is a new situation. it appears that vice-president biden may be trying to move in on the president. we will explain. actually, we will let conan o'brien tell you all about it, coming up. weekendville,

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greta: get ready.

here it is. the story that will unglue you. at a posh resort for about 700 executives for the social security and administration. joining us is a man who was inside the party. josh, was this? >> well, it was a manager's conference to help alleviate stress and deal with the multi generational staff for the social security administration. we took our cameras undercover and went inside. the video shows what we saw. for a good 20 or 30 minutes, it was more like a dance party than it was any type of managerial training conference. they had people up on stage. they had these huge screens, two or three of these huge screens, projecting, and four cameras covering it, and they were teaching them how to dance, duty sprinkler, the lawn mower -- do the sprinkler.

my view, this is a government agency -- mind you, this is a government agency that is on the brink of bankruptcy. it is near broke according to congress. congress had to recently lend them money. go ahead. i am sorry, greta. greta: two quick questions. where was this? how fancy a place? where they flown in from someplace else? >> they were flown in from all around the country, including the commissioner for social security and self, and thisç ws at a four-star resort here at phoenix, a very nice resort, a separate high-end rooms. -- a very nice resorts, with separate high-anend rooms, at te biltmore.

theyç were $90 a night, but thy still say they did not have to do this, that they could have had this at their regional offices and had a teleconference. greta: thank you, josh. >> you are welcome. any time, greta. greta: joining us is steve moore, an op-ed writer for "the wall street journal." even a motivational dance because they are stressed. oh, my -- i mean, who came up with this idea? is really bad. >> i am under a lot of stress, greta -- it is really bad. i could use a nice trip to the biltmore in phoenix. it is so outrageous. it is such a misusing and misappropriation of taxpayer dollars. -- is such a misuse. the report just told us that this is an agency that is

bankrupt. this is an agency that is $10 trillion in debt. remember, greta, we talked a few weeks ago about the store you uncovered about the fact that there were thousands of people -- the store you uncovered that there were thousands of dead people who got checks from the social security administration -- the story you uncovered. greta: in a recession, government employees, at a ritzy place, being flown in, and my favorite, the motivational dance to relieve distress. i would find out who made that decision, and i would fire that person at 8:00 tomorrow morning. it is so bad. >> i could not agree with you more. the social security commissioner was there. so, obviously, he knew about this resort, and think about this, greta. think about this, if this was çaig or chrysler or citibank, e of these companies that was getting funds, and they did

this. people would be totally outraged by it. the government would hold all sorts of hearings. i hope the congress holds hearings about how something like this gets done. these are supposed"*q public servants. this is not supposed to be people taking trips. by the way, there were 700 people who took this trip at public expense. greta: 700 -- the number is so amazing to me, $700,000 during a recession when we have the budget problems. you know, it really is, like, almost, like, i give up. is anyone is that profoundly stupid running an organization at this time -- if anyone is that propel the stupid, it is finished. >> it is also about how much money government has. they are so flush with cash right now, at these government agencies, and they think they can do this, and that is what

this was such a mistake. we just pour money into them. they are having an unbelievable kind of boondoggle tip. greta:-- trip. greta: thank you, steve, and you can go to gretawire.com for more. governor palin. another ethics complaint, no. 20. what is up with that? her lawyer goes on the record, next. and later, we got pictures that are new just released from north korea itself. these are of their dear leader kim jong il. is he close to death? they may be clues. so, what's the problem? these are hot. we're shipping 'em everywhere. but we can't predict our shipping costs.

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[captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- greta: governor sarah palin got another ethics complaint today. this is the 20th. the newest employee alleges that governor palin abused the office water except the money while campaigning as the vice presidential qaeda. -- abuse of office while acceptingç money -- abused her

office while accepting money while campaigning as the vice- presidential candidate. >> what really happened is that the governor went on the campaign trail. all expenses were paid while on the campaign by the campaign itself, so there are the official travel documents, and the complaint and thinks that the governor went off duty on august 27, and that is not true -- the complainant thinks that. there was a separate complaint which was thrown out, and it was concluded it was serious ethical and saved the state money to have a staff member with her. -- concluded that it was ethical and save the state money. -- and saved the state money.

i am not aware that they did anything differently. they kept in touch with their staff members. they kept in touch with their advisers, and they kept in touch, with their constituents, and sarah palin did the same thing. she always has with their a blackberry, sometimes two blackberrys -- she always has with her a blackberry. she is a good communicator, so to the extent that they say she left the state and was temporarily off duty, and that is simply false. the governor was on duty 24/7 and conducting business when she was not given a campaign speech, or doing something else, like involved in a debate. she was doing state business. greta: do you know anything about the person filing the complaint? has that person ever filed a complaint before? what is his relationship, or what is her relationship, to this?

>> theç complainant filed one- fourth of the complaints so far, by this one individual. there is also a lawsuit regarding certain documents, and they have filed multiple freedom of information act requests with the office of governor, so it is a persistent critic of the governor who has caused a lot of this. greta: all right, i noticed, in çdoing some research on this, d jack cargill, a member of the same party as the governor, he was critical of her. who is he? >> well, he is an elder statesman here in the state of alaska, and he was a member early on of the alaskan constitutional convention, which was drafted in 1955, and he made the comment that he thought she should have turned her powers over to the lieutenant governor, under the state constitution when she was on the campaign

trail, rich refers to, quote, temporary absences -- which refers to that. it turns out the discussion is about when the governor is incapacitated due to illness or, or somehow not available. that is a temporary absence -- due to illness or to coma, and when that was written, we did not have satellites or other forms of communications, and then, they really were temporarily absent and turned it over to be attended governor. nobody does that. they traveled extensively -- and turned it over to the lieutenant governor. one spent several weeks in taiwan, and he did not turn it over to his lieutenant governor, so it is not the current practice. greta: how is sarah palin reacting to complete number 20? >> -- to complaint number 20?

>> she said this was just another player out of the playbook, attacking the incumbent, -- just another play out of the playbook. it is transparent what is going on. so far, these complaints are being thrown out. we had another one thrown out today, as a matter of fact. that complaint was just thrown out today. greta: is itç getting to virgo, or is it like water off of a duck's back -- is it getting to her? >> i think it is water off of a duck's back. all of this costs money in alaska. they have to hire state attorneys to look into it. sometimes, depositions are

taken, andç i have got to get involved and represent the governor, and this is the waste of resources that the governor was talking about that she did not want to be an issue anymore in the state. greta: good luck with number 20. up next, it is a flow chart. do you understand it? if you do not, it may cost you a lot of money. we are going to explain, coming up. plus, senator orrin hatch goes on the record. (announcer) this is nine generations of the world's most revered luxury sedan. this is a history of over 50,000 crash-tested cars... this is the world record for longevity and endurance. and one of the most technologically advanced automobiles on the planet. this is the 9th generation e-class. this is mercedes-benz.

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plus a1c was reduced .9%. choose from over 140 menu options, there is no counting carbs, calories or points. i lost 100 lbs. and lowered my blood sugar level. nutrisystem d changed my life. mike is one of many who have lost weight and controlled their diabetes with new nutrisystem d. backed by 35 years of research and low glycemic index science nutrisystem d works. satisfaction guaranteed or your money back! new! nutrisystem d. lose weight. live better. call or click today. greta: sometimes, a picture says it all. take a look at this flow chart. according to republicans, it shows how the bureaucracy would work with the democratic health care plan. but is there a better idea? senator orrin hatch went on the

record. senator, nice to see you, sir. this health-reform bill that is meandering its way around capitol hill. how do we pay for it? >> well, let me tell you. i do not think it will be paid for. they want to -- there is a good reason for that. they pass these bills before they have a chance. if they do not, that 30-day period, people will be examining it. we are talking about a deficit that is going to be for this year $1.80 trillion. we are talking about it dling with in the next five years and tripling within the next 10 years. we're talking about a $10 trillion deficit as early as 2014, and what they are going to do is that we already have the $2.50 trillion health care bill in this country. when you count every aspect of health care that the federal government is involved in.

and what they want to do is add $1.50 trillion to $2 trillion to it, and what the house will tell you is that there is is only $1.10 trillion, but that is a lot of money if that was all it is, but i guarantee you is not. and then, they have got their $600 plus billion, but what they do not tell you is that they his budget gimmicks satisfied. what they are really talking about -- they use budget gimmicks. do you know what they're going to do? they are going to extend medicaid, and even if they do that, and because go off the charts, -- and the costs go off the charts -- they are going to charge these kinds of costs to the american society. in the end, there will be at least 20 million people that are not covered.

they will not have any health insurance. to be honest with you, it is basically a moral dilemma. greta: when i hear these numbers, like $1 trillion of the deficit or more, you know, at first, they were, like, astounding. i thought $800 billion was a lot in february. we are getting used to these numbers. i think that at home, they are thinking, how much is it going to cause someone in my home town, -- someone in my hometown? >> we are living off ofç every dollar that we spend, 50% of it -- every dollar in the budget, 50% sign of it is for the deficit. now, they want to add these costs to it -- 50% of it is for the deficit. we know the best we can, through

the congressional budget office -- i just had a letter today. this letter is from the congressional budget office. çit is from our congressional budget director. this is really interesting. i will put my glasses on to read this, but this will blow your mind when you see it, because they have been telling the american people this will not cost much and that they have a way of doing it. the cbo has not had the ability of producing numbers. this is the committee legislation that we just passed this morning. greta: so we do not have time to do the research on the costs is what the cbo is saying. >> yes, they do not have the time. "such an expansion could be an amount that could range from $500 billion over 10 years.

along with that would come a substantial increase in medicaid enrollment, amounting to perhaps 15 million or 20 million people. such an expansion of medicaid would also have some impact on the number of people who obtain coverage from other sources, including employers. all told, the number of people who would remain uninsured would probably decline to somewhere between 15,000,020 million, but for comparison, the cbo analysis of the health committee report found that absent any expansion of medicaid, or other change in the legislation, about 33 million people would remain bolten and the uninsured if it were to be enacted" -- between 15 million and20 millionaand 20. if they expand medicaid, many of

theseç people -- many of these people are going to be 15 million or 20 million people. there are people who have private health insurance now, and they will be pushed into medicare. in other words, the government plan. greta: where do weç get this money? i am trying to figure out. whether it does what it says it is supposed to, and then there is how we would pay for it, and that is why ask the question, are our taxes going up, whose taxes, and how are we going to pay for it? >> one we would be to sock it to the so-called rich, and many of those are small business people who put the money back into their businesses and hire people and keep jobs going. some of them are very rich people. if you earn over $350,000 a year, you get socked 1% more. if it is over $1 million, it is

5.4% more. now, some people might say that is fine because there are rich. well, it may be fine except that the rich generally pass these costs along to the poor. in the case of small businesses, which produces about 70% of our jobs, that means if they pass those costs along or they reduce employment in order to be able to make the payments -- in the hospital, i believe they are going to give subsidies to people at the poverty level standards listed. in some instances, it means even more than that. people who could afford their own health-care coverage when the state's complaint, they say they will pay the difference -- their own health-care coverage. when the states complain, they will pay the difference. it is going to be a whopping

bill for the federal government, but then, after five years,ç ad guess whose responsibility it becomes? it will bankrupt the states. this is not the way to do health-care reform. greta: up next, listen to this. president obama has gone on several trips. he has gone around the world almost twice. is this smart international diplomacy? we report, you decide. çand some issues with the teleprompter. well, conan o'brien knows something about the vice president'teleprompters . -- the vice president's teleprompter. together two of the most powerful names in the industry. introducing morgan stanley smith barney. here to rethink wealth management. here to answer... your questions. morgan stanley smith barney.

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accu-chek® aviva. born in the u.s.a. >> i am ainsley earhardt, in here is a look at tomorrow's business headlines. -- and here is a look at explaining why the housing market is so dismal. they say the foreclosure prevention plans are not working. the white house is expected to unveil new steps to about the crisis, such as allowing the government had to temporarily make mortgage payments on behalf of the borrowers without bailout cash. some 25 top firms announced their latest quarter earnings. one to watch closely,ç apparently, is harley-davidson. they have been struggling for the past four quarters, and analysts say when recreational

products begin to sell once again, they could signal the return of consumer confidence. i am ainsley earhardt. we now return to "on the record greta van susteren." thanks for watching the fox news network. greta: is president obama spending way too much time on foreign travel, or is he making smart diplomatic moves? the president has been in office for 177 days, and he has spent 40% of his term overseas. he has taken five foreign trips to 14 countries, traveling 50,000 miles, the total distance around the earth, and that means that if president obama keeps up this pace, he will go to more foreign countries during his term than any president in history. joining us is a correspondent. so he has done a lot of traveling. >> i think his passport is pretty fall. he may need a new one at this

point. -- i think his passport is pretty full. he made up for it with trips to michigan and the all-star game, and he is in new york and new jersey tomorrow, so he is keeping at least some disparity in the margin. greta: is he getting criticism or praise for these trips? >> i think when the national unemployment rate is reaching 10%, i think people are going to say, "why is he gallivanting around the globe the way he is?" he has got to go to uxe g-20 and g-8 and search for solutions to these economic problems. greta: when the president's travel, or when president bush was traveling or down in crawford -- but the president's -- when the presidents travel

-- %uju)qq't is very different from clinton, for example. clinton was famous for taking in these sites. president obama has been very much business oriented on the strips. -- on these trips. greta: it was such a rush, rush, rush, but instead of signing it in the rose garden, he waited about four days and signed in denver with pomp and circumstance. it was hard to justify that one in my mind. >> then there is the criticism about the white house website have been the information before he cited for five days. -- before he signs it, for five days. greta: you are traveling. >> yes, we are going to be 100 anniversary of the naacp, which should be a very emotional

homecoming for the president. greta: any other fundraisers? >> there is another one at the waldorf after the naacp event, but the details are pretty sketchy on that, and it is a close event, unfortunately. -- is a closed event. if you look at press secretary robert gibbs in russia, i think he looked a little worse for the wer. -- wear. if you see pictures of me in new jersey, i will look the same, and that is not even a time zone change. greta: nice to see you. up next, the best of the rest. north korea releases pictures of the dear leader kim jong il. weç will show you the pictures. you will have to look closely. plus, careful the next time you seipe youwipe your visa charge.

we will explain. and two playboy playmate's taking a stroll around d.c. today, wearing strategically placed lettuce leavesç -- two playboy playmates. i took a bayer aspirin out of my purse and chewed it. my doctor said the bayer aspirin saved my life. please talk to your doctor about aspirin and your heart. i'm going to be grandma for a long time. [ door closes ] [ footsteps ]

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greta: well, you have seen our top stories, but here is the best of the rest. shocking, and never seen before. michael jackson getting into a car during a pepsi commercial in 1984. 1984. ç ç

greta: you can read more about the accident on the next issue of "us weekly." we know economic times are tough, but this is ridiculous. a man almost found himself with a debt above the gdp of the planet earth. that would be a very bad thing. here is what happened.

he swiped his debit card for a pack of cigarettes and was charged 23 quadrillion dollars. he checked his account two hours after the purchase and saw the enormous transaction, a 17-digit number. he was also slapped with a $15 service charge, adding insult to injury. he had to sort out the problem with bank of america. according to visa, it was a technical mistake, and the problem has been fixed. they should pay him for his two hours. what do you think? not the lincoln memorial, not the washington monument, but two playboy playmates. they were sent to the capital by the people for the ethical treatment of animals for a national veggy day. they were wearing strategically placed lettuce leaves. needless to say, it was a

monumental day. and kim jong-il, the north korean leader. a news station reports that the dear leader has pancreatic cancer and could be close to dying. he reportedly also suffered a stroke last year, and tonight, we have new pictures released by north korea that were supposedly taken recently of kim jong il. in some of the pictures, he is touring a newly built plant. in other pictures, he is sitting down at an outdoor briefing, and according to news agency, this kind of picture is rare and suggests that he may be very sick. we will keep you updated on his health. and finally, it is always a breathtaking. what a sight. >> çfour, three, two, own, the

lift off of endeavour. the hope for an out of this world space laboratory. >> greta: they launched earlier today in florida. it took several times before they were able to take off. and there you ha)e it, the best of the rest, but we have a special programming note. tomorrow is the 40th anniversary of the apollo moon landing. friday night, 10:00 p.m., we have a special. yes, we did it first. we put a man on the moon, and we have none other than current buzz aldrin with us. >> the most critical part of that mission certainly was not kicking up dust, walking around on the moon. that was relatively easy to do. the most critical thing is to take a spacecraft from orbit and put it on the surface. that is a significant task.

greta: upon the 11, one small step to our future, airs 10:00 p.m. on friday. and one last call before we turn off the lights. apparently, vice president joe biden has an issue with a teleprompter, too, at least according to conan o'brien. togetherville, tastyville, feed your summer fun with the full, juicy flavor of johnsonville sausage. johnsonville. sausage is all we do.

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greta: well, 11:00 is almost here. flash the studio lights. it sounds like conan o'brien agrees. >> president obama was in the middle of giving a speech when xis teleprompter fell to the floor and shattered. yes. yes. meanwhile, joe biden's teleprompter had been treated for exhaustion. greta: that is your last call. we are closing down shop. we are closing down shop.