being with austria that is all the time we have this evening. -- all right, guys, thank you all for being with us. that is all the time we have this evening. greta is standing by to go on the record. greta, take it away. greta: tonight, does the health- care bill -- governor tim pawlenty. just throw it out. governor pawlenty is here. plus, one democratic congressman says he may have to hire two lawyers to help him read and understand his own party's health-care bill. that is not a good story. you will hear from the congressman himself. and you know about the g-8 and the g-20, but have you heard about the b-3? tehe "b" stands for "beer,"

and it involves president obama, professor gates, and the officer corps arrested him, officer -- and the officer who arrested him, officer crowley. governor pawlenty is here. the evening, governor. >> good evening, greta. greta: governor, so you have written a letter dated july 27 to the entire minnesota delegation. what have you told them to do or asking them not to do? >> well, greta, i said we should set aside as health-care legislation in congress and work together on those things that are common sense and bipartisan and move the nation forward. we need it. the fundamental promise is that we are going to save money by expanding access to current interos programs, that are bankrupt and are not able to be sustained going forward -- by

expanding access to current programs. greta: at the current rate, it is growing by 20% every two years, and is likely to bankrupt minnesota. is that right -- and it is likely to bankrupt minnesota. is that right? >> it is similar to other states, but our federal government, our state governments, our families and businesses are having their financial backs broken. that is what needs to be addressed, but instead, president obama and the democrats are now looking at expanding access to a broken system rather than creating a new system and containing costs. greta: in your letter to the minnesota delegation is your reference to massachusetts and that program, in which, at least as far i can see, you see it as a failure, and that is the one that your colleague in the

republican party, mitt romney, was essentially overseeing or behind, so tell me. are you taking issue with what governor romney did in his state? >> well, the letter does not reference my fred mitt romney. he is a friend, and he has been an effective leader. he has not been governor in effort -- for four years, so a lot has happened. they did succeed in expanding access to healthcare, but the cost of that health care is now out of control -- the letter does not reference my friend mitt romney. it makes costs or worse, so that is a model we do not want to follow, but i want to make it clear that mitt romney is a friend, and he has not been involved in that for four years, and the letter does not reference in. it just talks about their failure to control costs.

greta: it certainly does not mention his name. you're absolutely right, but correct me if i am wrong, but did not mitt romney braque about massachusetts? you are saying is essentially in the letter that the borrowing out of control is not a model you would want for your own state -- you are saying essentially in the letter that. >> in the massachusetts plan, the initial costs will have tripled under that plan in just about 36 months. they have had to cut benefits, and now are potentially seeking a federal bailout because the costs of of that have risen so wildly. if it is not a model and that we should follow. it is a model that the united states congress should abandon. greta, so you will tell congress, "dump this one." -- greta: so you will tell congress that. >> there are a number of things that we could do, and they

include these things. first of all, let's get rid of junk lawsuits and make sure we of medical malpractice reform. that will save some money. then -- make sure we have medical malpractice reform the and let's make sure we have medical insurance that is portable. let's have e medical records and get paid for performance rather than paying for volumes of procedure -- records and get paid for performance -- get pay for performance. let's allow people to buy insurance across state lines or former pool -- forme risk pools. greta: save a lot of money. will it pay for it? it is not so much to improve services, and we do want that, but you're suggestions, are they

self-financing, or will you have to go out and get money from somewhere, like taxes? >> what i have described would be self-financing, and we had used them in minnesota. we have pay-for-performance plans, and and you can go anywhere you want, but if you choose to go to an expensive place -- , and you can go anywhere you want. in three of the last five years, the premium increase in those programs has been 0%, almost unheard of in the health-care marketplace. greta: governor, thank you, and let us know when you get a response from the minnesota delegation. >> all right, greta, thank you. greta: do you want your senators and congressmen voting blindly and simply hoping for the best proved to be more specific, is it too much to ask that members of congress, who you sent to congress to represent you, read the bills

before they vote on them? apparently, for some, yes. listen to john conyers. >> i love listening to these people that say, "read the bill." what good is reading the bill if it is 1000 pages, and you do not have two days and two lawyers to find out what it means after you have read the bill? greta: congressman conyers refused our offer to go on the air. there is not a pledge to read the health-care bill, and one of them is congressman mike pence. he joins us. congressman, when you hear congressman conyers say that, " and unique two days and two lawyers, " and we can find -- "you need two days and two lawyers," -- this is not renaming a park. this is a very important issue

to the american people. >> that is exactly right, and we are talking about the fundamental transformation of about 20% of the american economy, and, in fact, i brought a copy of the bill for you tonight. i know you are not here with me, greta, but i brought a copy of the bill with media is 1017 pages, and it includes many a time and programs, 53 additional offices, bureaus -- and includes many entitlement programs. you like this from the perspective of an attorney. it uses the word "shell" over 1000 times. this is an increase in mandates. you bet every member of congress votes for this bill ought to read it, read it thoroughly, and understands that what we are looking at amounts to nothing more than an government takeover of our health care economy, and

-- more than a government takeover of our health-care economy, and it must be opposed. greta: all right, it is interesting real we have got several of the numbers. -- it is interesting. we have got several of the numbers. in the house, 435 members in the house, only six -- only 86 have signed to read it. none of which is a democrat, no democrats are agreeing to read this, and, of course, we just heard a democratic congressman saying it would take two days and two lawyers. i do not know if it is a good bill or a bad bill. i do not know if it is good or bad, but it is deceitful to vote for something when you have no clear up what it really means to the american people when it is so important.

this is not naming a park. >> you are right, greta, it is not naming a park. you just heard representative conyers. this is more time than we had to talk about the cap and trade bill, which was amended 3:00 in the morning the day they brought that national energy tax to the floor of the congress, the same thing with the stimulus bill, rust through congress. there is some talk on capitol hill that we may have a reprieve be a and there are rumors that the democratic majority actually delay consideration of this bill until after the august recess -- that we may have a reprieve. there are rumors that the democratic majority may actually delay consideration of this bill. this would be on behalf of the american taxpayers, but the american people deserve time to read this.

every member of congress should sign that let freedom ring pledge, commit to read this bill before they sign it, given the magnitude of what this would mean to our health-care economy and to every american. greta: i do not know about other americans, but i feel a little bit had hit somebody does not want to read something so important and is voting for me. i am curious what is sort of being said behind-the-scenes in the hall. like, is it, "oh, my god, the american people haar learning we do not read this stuff -- are learning we do not read this stuff"? >> democrats are worried that voters are going to understand what they are trying to do, and i do not know what the reason for the russia is right now. -- for the rauch -- rush is right now. greta: i am in favor of a rush

if everybody actually stays and does their homework first. i do not mind the rush. you have got to do the homework and read the thing. >> look, we can do the work and do it quickly. we have got to do health-care reform in this country. you have just heard governor pawlenty talk about several free-market ideas that would do a lot to reduce the cost of health insurance to small businesses and family farms and would reduce the cost of health care, but what the democrats are insisting on a pile driving through a 1117 page bill -- republicans are doing their best to read through it and keep their pledge. we need more republicans to sign the pledge -- a 1,017-page bill. greta: do leave that right on the set there for me, and i will get it when i get back to washington.

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greta: a health-care meeting morphed into a tea party last night. the plan was health-care reform, but it did not exactly turn out that way. members of the local tea party coalition decided to drop by. >> nancy pelosi, harry reid, and the rest of the people in the congress and the senate, are

they willing to be on the same plant are asking us to be on? [cheers and applause] -- the same plan? greta: joining us live is a radio host who was at the event last night. good evening. i understand that senator kasko did not make the forum. she had to go back -- senator mack kasko -- mccaskall? >> that is correct. she had two of representatives present, and it is interesting, because the forum came about because of a botched protest from two weeks ago when two- party participants tasering gathered in front of for office in university city -- tastefully gathered in front of her office. they were pulling the blinds and calling the cops because some women and their kids were

intimidating, i guess. in response to that, she arranged this health-care reform along with americans for prosperity, and d.t. party coalition kind of help and out and got the word out. -- and the tea party coalition kind of helped out. this health care legislation is a concern. i think everyone, regardless of whether they are conservative or liberal or a member of any party. >greta: was anybody arrested when the police were called. >> we have multiple videographers at every event. they were say that we were beating on the windows and all of that stuff, and we were doing no such thing. it was kind of aedgar allan poe, "gently rapping at the windows."

i do wish, however, that she herself would have been there in person, and i understand that she had business to take care of. she is arranging a couple of other events. she will actually be physically present at them. i think it would have gone over better last night had her representatives had had some answers for some people, because they were lined up and asking questions. greta: how many people showed up last night? >> we had anywhere from 1000 to 12 letter people there, and they were expecting about 100, 150 people there -- anywhere from 1000 to 1200 people there. it was just passed. greta: was there a cross-section of people by nature? or did it seem to be sort of a monolithic group of >> no, no, no. -- monolithic group?

>> no, no, no. college students, stay at home moms, grandmothers, grandfathers, career people. it was a whole variety of people who were present, and all of them had concerns. it was interesting, because even the people -- i guess you could type cast them as being adamantly for the health-care legislation, they even had some concerns for it, so it was really interesting. i just wish there had been some answers to placate people. greta: a atwell, apparently, you will have another shot -- greta: well, apparently, you will have another shot. thank you. china is worried about our economy. what did they say? and we have the inside scoop about what will go on at the white house when president obama will sit down with

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[captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- greta: if you are worried about our country's exploding deficits, you are not alone. someone else is. china.

treasury secretary timothy geithner assured worried chinese investors that the economy will begin to recover. so what are the chinese so worried about asking what that means for all of us? joining us is a senior economics writer for "the wall street journal." it is not a particularly good sign when china is worried about our economy so much. what are they so worried about our economy, our debt? >> you know, greta, i am getting tired, too, of all of these boring countries, like germany, france, switzerland, and now you have communist china lecturing the united states about spending too much money in terms of government, too much debt, deficit. the chinese own billions of dollars in our debt, and they are getting worried we will not be able to pay that back because we are taking on such enormous deficits. this year alone, greta, i am estimating $2 trillion in

deficits for one single year. it is unthinkable. greta: one year ago, and held about $506 billion of our debt, and it has now balloons by $300 billion. one year ago, it was actually japan that was number one in holding the debt, and they have sort of jumped a a little bit but not to the extent that china has. -- jumped up a little bit, but not to the extent that china has. why did china so eagerly by $300 billion more of our debt proved i do not think i would have. >> -- buy $300 billion more of our debt? i do not think i would have. >> they are asking themselves that question. we are going to be borrowing something in the neighborhood of $12 trillion more money in the next decade, which is what will happen under obama. this is going to buy up that

debt? the chinese are already saber rattling, saying, "if we do not know if we want to stock up on all of this debt -- setting "we do not want to stock up on all of this debt -- saying, "we do not want to." it is the reason why these members of congress do not want to read these bills, and they want to pass them so quickly while they are in their offices. the members of congress do not want to face this rage that the american people are feeling right now. greta: from a purely nuts and bolts, economic standpoint, if we have all of these huge expenses, we will have to start printing money to pay for it. that then causes inflation and makes the dollar not go very far, and that is why the chinese would be upset, because of the dollar they thought they would get back on their debt suddenly is not worth as much because it is inflated because we had to

print so much money to pay for all of our spending. that is why the chinese think this is a bum deal. they are not worried about us going under. if they just think they are getting a bum deal. >> greta, you get an a in economics today. the way they get out of a situation where their debt simply starts running away is they adapt adopt a model where they devalue the currency and pay back their debtors with cheaper dollars, and that is a real concern. if we have inflation, how in the world will we have an economic recovery? we should start paying our bills, and what was laughable about timothy geithner's statement is in saying that we will get back to fiscal responsibility. when? we have got in over $1 trillion health-care bill they are trying to pass, and they just passed a $4 trillion budget. when are we going to see fiscal

responsibility from these people? greta: we are out of time, steve, and i wanted to come back and tell us what we say to the chinese to reassure them, because they need to buy the debt. >> ok. see you. greta: somebody has got to buy it. up next, vice-president biden wants to know -- one of the critics is here. plus, huge news about brett favfre. --cp

greta: vice-president biden has a challenge for the critics of the president. >> in four months, we have not remade the world and corrected this recession, which was eight years in the making or maybe longer. i asked them, "what would you do? what would you do, those of you who do not thathat? would you not find unemployment insurance? when you're not build these roads and highways and bridges and sewer systems -- would you not fund unemployment

insurance? would you nonbill these roads? would you walk away? -- would you not to build these roads? -- not build these roads? would you sit back and do nothing, watch this economy continued to collapse?" what would they do? -- watch this economy continue to collapse?" greta: joining me now is a senator, who is author of the book "saving freedom, " jim demint. whether or not it has been implemented at the speed or pace as was promised. the vice president asks, "what would you do, " so what would

you do, senator? -- what would you do," so what would you do? >> there are a number of options that would leave more money in the economy. basically, you keep the tax rates the same, make the current tax rates in the same, reduce them to businesses and workers be and that is a way to keep money in the economy rather than taking it out and saying who is going to get it. there were promises that unemployment would never go above 8% if we passed it. they wanted it passed in m&a. it has not worked. it is time to let the economy work the way it should -- they wanted it passed in one day. greta: the housing starts, there was a really favorable number yesterday that was, i think, the highest in eight years. that was a good sign. are there any signs either way to support or defeat whether or

not the recovery act as passed in february is a good idea? >> well, greta, earlier in the year, even in january, when we were predicting that even in the summer or fall, we would begin to see our economy to come back. we expected to see housing get better. frankly, it is difficult to connect the government spending with the upturn in housing. the obama plan was supposed to improve employment, and we are not seeing that. we introduced real options to this, and those options are still on the table. we have one of the highest tax rates in the world. the president is talking about increasing those taxes to pay for increased government spending. that is only going to cost us more jobs. we hope we do not go down the road of bigger government and more debt, as steve moore was just talking about. let's leave the money in the economy, and let's let the people who create jobs create more jobs for us.

greta: there is a profound difference between making payroll and making jobs, and i think that is probably a concern, simply money now to make a world, and, eventually, we will run into problems where we cannot make payroll anymore. are we creating jobs? we're going to throw in this whole job-creation figure saving jobs. i do not know how you can determine that you are saving jobs. >> we have learned to do not believe what they're talking about, but i was a small businessman for many years before i ran for congress when it 10 or 20 employees, and just the taxes themselves, greta, if i was able to keep a little more money, that makes it easier to hire or keep a person, but if you keep my taxes at a high rate, or even plan to increase them, as the obama administration is talking about, it is hard to plan to expand your business to buy new equipment, so most of the small

businesses right now do not know what our tax rates are going to be next year. we do not know what the new government plan will be for penalizing us for health care. i think what we're talking about now in washington is his creating so much unpredictability that people are not taking the risks and making the investments they need to make our economy grow, but the american economy is resilience. americans are out there trying to get the economy going again -- the american economy is resilient. greta: all right, this is random. maybe everybody knows, but i do not. what was your small business? >> marketing and strategic planning for a lot of companies, hospitals and doctors' groups, nurses. healthcare has been one of my passions, and i have been working on health-care reform since i got into congress, so it is really frustrating for me to see the obama administration block all of the real reforms

and then say we need the government to take it over. that really makes me want to pull my hair out. greta: if you pull your hair out, see if you can get everybody to read what they are voting on. anyway, we have got to go, senator. thank you, sir. >> thanks, greta. greta: here is what is coming up after the show on "the o'reilly factor." bill: this glenn beck guy, we want to know why he is wearing leader rosen. he will be here. and kids stripping in bars. -- he was wearing a german outfit. greta: 11:00 p.m. eastern time. up next, and report on the budget battle in california. some big is happening here that will affect you directly -- up next, a report on the budget battle. and teh beehe beer

>> the hunt is on for a cold- blooded killer in massachusetts. a pregnant woman has been found murdered in her apartment yesterday. the baby was removed from our will. they believe the mother was killed days ago. -- the baby was removed from her. womb. they believe the mother was killed days ago. police have and raided the home of dr. murray who gave michael jackson a powerful anesthetic that may have killed him. and sonia sotomayor is getting

closer to becoming the first hispanic justice on the u.s. supreme court. now back to "the record. ." make a deal. we are live in los angeles, california, and today, in a sacramento, governor arnold schwarzenegger signed the $24 billion budget. >> this budget is kind of like the good, the bad, and the ugly -- in sacramento. the good because great things were done. we did not raise taxes. we made government live within its means. we made the necessary cuts to be responsible. the bad it is simply because we had to make some real cuts. i think the democrats and republicans alike hated to make cuts in education and health care, in human services, and in services to be vulnerable citizens, law enforcement. all of those things. i think that is what you do not

see a celebrating like we usually have when we have the budget-citing celebration. we are not celebrating because these cuts are nothing to celebrate about, and the ugly of course is the legislature is giving you a budget with a negative reserve, so now, i have to go in and over this weekend and work with my team to make additional cuts in parks, child services, healthy family, the office of aids prevention and treatment, and the list goes on and on. greta: so what was cut, and what does it stay? joining us live is a sacramento bureau chief for "the l.a. times." what are the major things that got cut here, and what does that say? >> well, almost everything got cut to a certain extent, but some of the programs the government was talking about eliminating altogether, like the

state's welfare program, for example, that did not get eliminated. the state healthy families program, health insurance for kids, a lot of kids will lose their insurance, but they did not eliminate the program. there was a push to really redo all of these services that are providing californians -- it is turned into one of the least generous, but we landed somewhere in the middle. greta: so what happened? we are at a certain point in california's economic history. what do people say is going to happen here? >> well, right now, we are still in shrink iou's -- issuing them. they are looking for a loan from wall street. in the next couple of weeks, they have to issue kind of a disclosure, disclosing all of the things in the budget and why they will have the money to

repay the loans later on in the budget year if wall street were to give one to us. it will be very ugly, because there are a lot of accounting tricks and schemes and ships and deferrals in the budget, and all of those will have to be disclosed when the state goes to get the money -- schemes and shifts. greta: the income has gone down, so you do not have the funds to pay for the thing she may have enjoyed in the past. is there anything california is doing to attract businesses? even ibusinesses that are relocating? is this a business-friendly state? >> well, the last budget that was passed in february, which was supposed to take us long passed this summer and did not make it that far, and there were some tax breaks for businesses, $1 billion 5, -- $1.50 billion. there weren't some cuts asked for by businesses -- there were

some. this is not an easy state for businesses to operate in. there are other states that do not even have income taxes that offer all sorts of incentives that california does not offer. greta: what about people who are not here legally? i know there is a sizable number. how does this budget affect that? >> it will affect them just as it affects everyone else in california. there are services that are available to them now that will not be available. it is estimated that the undocumented workers cost the state budget somewhere in the range of $4 billion. every program that is available to them was not cut. in the budget, there are some things that the governor and legislature did do to try to shift the costs of keeping some of the illegal immigrants in jail, thousands of them in fact, over to the federal government, for example. greta: well, evan, we are

watching your state very carefully, and thank you for joining us. we have a special programming note, as we noted earlier. governor arnold schwarzenegger will go on the record tomorrow about the budget battle in california tomorrow. governor arnold schwarzenegger tomorrow, 10:00 p.m. eastern, "on the record." do not miss it. up next, the best of the rest. beers at the white house. can president obama bring peace between professor henry gates and officer crowley? limb: dude that was sick! i've been hangin' up there for, what, like, forty years? and then - wham -

here i am smacking the pretty off that windshield of yours. oh, what you're looking for an apology? well, toss another coin in the wishing well, pal. it's not happenin'. limb: hey, what's up, donnie? how you been? anncr: accidents are bad. anncr:but geico's good ding! with onsite windshield replacement.

greta: well, you have seen our

top stories, but here is the best of the rest. for all of you brett favre fans, it looks like he will not be making another comeback to the nfl. there was a roller-coaster in 2008 when he retired from the green bay packers, only to come out of retirement a few months later and joined the new york jets. he was thinking about another comeback with the vikings but has apparently decided against it. favre fans, do not paint those yellow cheese heads purple. well, this is a really ought fetish. an illinois man is accused of stealing more than $45,000 worth of eyeglasses. -- this is a really odd fetish. he likes to stay in front of the mirror before throwing the glasses away. he could spend more than 120 years in prison being charged with robbery. no word on whether or not he

will be given shades behind bars. we know you all read gretawire, so for all of you bloggers, go and then pick up a meal at stake and shake. one woman who worked there lost her health insurance after 25 years at the company. well, after all of the attention the story got on gretawire.com, the ceo of steak 'n shake is concerned about the loyal employee. now, she will not be losing her health insurance, so you just have to someone who needed help, and for doing the right thing, we should maybe celebrate with the company, and the next time, you should stop and have a meal. and finally, the beer summit, or , as we like to call in here,

and the -- call it here, the b-3 summit. president obama is going to try to broker some peace. press secretary robert gibbs fielded questions about it today. do not feel too bad for him. remember, this is what he gets paid for. >> i think this will be a very casual affair. i think the details i have thus far is 6:00 p.m., and the location is the picnic table outback. i think as the president discussed last friday, offering an opportunity to have a greater communication, get to know each other, and step back from the circumstances that brought everybody together over the past many days, but there is no

formal agenda other than cold beer. >> you said there is no agenda for the beer fest. >> i did not call it the "beerfest." that is short-term. >> the beer picnic -- that is your turn. -- term. >> that is your characteristic, not mine. >> the picnic table. and there is a winning pitcher. >> surely, there is a question in here? >> yes, there is. >> no, no, no, and i hate to

interrupt, because i thought there was a question. >> and he made a call to gates, and then you dial it back to say it is not going to be that formal. there is still a problem, overcoming the problem that is still there. >> well, i never suggested, and i do not think the white house suggested that one meeting was called to solve this -- was going to solve this. >> is it coming out of their pocket? >> the transportation costs have not been something that has been brought up by professor gates or sgt. crowley, so at this time, i think it is out of pocket expenses. >> this is the bench that e3 will sit on when they crack

their brews -- that the three will sit on. guess who else? conan o'brien. he knows.

greta: 11:00 is almost here. last call. conan o'brien. >> to ease tension, president obama has invited harvard professor henry gates and the police officer who arrested him to join him for a year at the white house. -- a beer. if that works out, obama is going to have ahmadinejad and netanyahu over for yager b ombs. "what did we agree on?" greta: do not hold your breath on that one. that is our last call. we are closing down shop. thanks for joining us. do not forget to join us tomorrow night at 10:00 p.m. eastern for our very special interview with california