the program. as always, thank you for being with us. we toss it out to greta van susteren, who is standing by to go on the record. -- we toss it out to greta van susteren. greta kreuz -- we toss it now to greta van susteren. greta: on the telephone. >> a deal has already been worked out to release the two american journalists who were taken on march 17 on the border between north korea and china. the deal has essentially been worked out, i am being told from a senior u.s. official, and bill clinton is simply going there to put the final touches on it, to shake hands, and we understand there will be a fun opportunity. greta: it is extraordinary that the -- there will be a photo opportunity. greta: it is extraordinary that

the former president is going there. >> i cannot remember, in fact, if jimmy carter has ever been or any former president, but what is extraordinary about this story is for bill clinton to go, we always assumed it would be governor bill richardson. he has a long history with the north koreans. it seemed that he leaked out at one point that al gore had approached him because these two women were working for al gore's currenttv, but as you know, he has a history with the clintons. it is interesting that the secretary of state said her husband on this mission. we are told that the deal has essentially been worked out, and the two women are slated to be released. bill clinton is simply going

there to put the final touches on the bill. greta: the north koreans said they crossed their border, and they tried them, and it has been reported that they have been in north korean camps. at least one of them got a telephone call to her sister a few weeks ago and said she was fine, but extraordinary news if, indeed, former president bill clinton can return with these two journalists. jennifer, thank you. tonight, will president obama raise taxes on the middle class? now, that depends on who you ask. president obama says no. >> i can make a firm pledge under my plan, no family making less than 250 thousand dollars a year -- which includes a 98% of small-business owners. you will not see your taxes increase one single dime under my plan. not your income tax, not your payroll tax, not your capital-

gains tax, no tax. we do not need to raise taxes on the middle class. >you will not see your taxes raise one single dime. i repeat, not one single dime. greta: that was the president, and over the weekend, treasury secretary geithner was far less concrete. >> he said the taxes would not go up for any american who makes less than 250 thousand dollars per year. >> we cannot make these judgments yet about what it will take and how we are going to get there, but the very important thing is, and no one is going to care about this more than the president of the united states -- greta: right now, larry summers was asked about the comments by treasury secretary geithner. does larry summers think a new round of taxes are coming? >> a lot can hopp and over time, but the priority right now -- a

lot can happen over time. greta: today, press secretary robert gibbs tried to cleanup's -- clear up the situation. >> the president's goal is not to raise taxes on those making more than $250,000 a year. greta: so is the middle class going to get a tax hike, or not? governor mike huckabee joins us. they are saying no to taxes on the middle class, but just yesterday, two of his cabinet secretaries, are saying something very different. any idea what is going on? >> well, robert gibbs had to dive on top of that grenade today, because it was going off, and larry summers and timothy geithner spoke the truth. you cannot keep spending money like this and run up the deficits without at some point having to pay for them.

tax revenues are down. the economy is hurting. people do not have jobs, and when they do not have jobs, they cannot pay taxes. the president has to do what he has been doing a lot lady, and that is breaking promises, or he is going to have to tank the u.s. economy -- has to do what he has been doing a lot of lately. greta: the associated press is reporting that we are in the biggest tax revenue drop since 1932, that individual income-tax receipts are down essentially 22%. corporate income taxes are down 57%, and we are spending like drunken sailors. that is not a very good recipe. >> drunken sailors do not spend more than they have in their pocket. we are spending out into the

next millennium. and even the health-care proposal, when you hear how much of this is going to cost, while they are not telling you is that the real cost factors come in years in the future. the debt is piling up, and barack obama's -- that is let's pull out our wallets and spend some more money. greta: what do you think the conversation has been in the last 24 hours between the white house and treasury secretary and larry summers? >> my guess is that there was some would shedding rigidwood -- woodshedding going on. every time they show up at a town meeting, they are getting an earful. they do not work for harry reid. they do not work for nancy pelosi. they do not work for barack obama.

they work for the taxpayers, and the taxpayers are infuriated because they have enough -- they know enough to know that more americans are out of jobs, and, greta, at some point, if you are really strapped for cash, the first thing you do is you stop spending what you do not have. greta: well, what people have to realize, too, if we end up having to print more money, we will end up with inflation, and some people think as long as they are working, their wages will go up with the inflationary prices, but now that we are part of the global economy, the rest of the world is not going to want to buy our products at these higher prices, so it is a much more serious problem now with inflation than it was years ago. >> it is a serious problem. the chinese are talking about a new monetary standard and not the u.s. dollar. these are unprecedented types of conversations taking place

because people simply do not have confidence. geithner went to asia, trying to tell them that everything was fine, and they literally laughed at him when he was trying to tell them everything was great with the american economy. that is a horrible situation for us. greta: do not forget to watch him with his program, "huckabee." anyway, does president obama when a single-payer health plan that eliminates types of coverage? the president in his own words. >> i do not think we can eliminate employer coverage immediately. there will be a transition process. i can imagine one decade out or 20 years out. single-payer health-care plans. a universal health-care plan. that is what i would like to see. greta: some people are angry about the president's plan. others are taking to the street.

they are trying to sell the health-care plan to voters. >> i am not a member of congress, have never been. >> and you want us to believe that a government that cannot even run a cash for clunkers program is going to run 1/7 of our u.s. economy. no, sir, no. >> i have never seen members of congress work harder. it is unacceptable to me. hours and hours and hours have been spent. they should go back and read it. >> when you have a bill, and we have a lot of them, that are 1000 pages, it would take my

entire staff, and we divide up the bill, we have to make judgments very fast. we give about -- >> and the senate bill is not written, so do not boo the senator for not reading a bill that is not written. greta: so will the president did the plan he wants? joining us is senator jim demint, an author of a book. those are rock videos. i do not know if ithere is a video showing people singing his praises. >> many congressmen and senators know what they think, because i know they are outraged. i have never seen more people

more panicked about what we are doing here in washington. greta: the issue of health care, whether there should be a single payer, or not. >> right. greta: i guess listening to those clips of the president, when you really should know what the president wants. he says he once a single payer -- what you really should know is what the president wants. he says he wants a single payer. >> barney frank. people should not be confused. what we are talking about here is not affecting health care are not fixing health insurance. it is a government-run health system. i and republicans have been working on reforms to make it better and cost less, but we cannot even get the democrats to talk to us about making the system work better. greta: you agree that there has got to be something done. >> oh, yes, and i have got a bill that i think would do a lot. greta: like what?

>> this bill will give people fair treatment. we will give tax breaks. we can give every american who does not get insurance at work $5,000 a year to buy their health insurance. the average cost of an individual family policy is $4,400. we can do it, and we can do it by just using the tarp money as it comes back in. no new spending. greta: i work for a big corporation, so i get health insurance. somebody who works for a mom and pop store, they get the same thing i get. >> the other problem is cost. right now, if federal government does not allow interstate competition between insurance companies. if i am in south carolina, i have to buy from a company that is registered there, instead of being able to buy from somewhere else where it is cheaper or a better product. greta: we have seen wall street, where the ceo's make a bloody

fortune, some of them, not all of them. >> if there were dozens of companies competing for my business instead of two or three, which could have a lot more transparency, a lot more cost, and every state regulates their insurance market, so it is not like we are letting them operate without regulation, but we would make them a lot more accountable if we had this done federally rather than state by state monopolies. we could fix the pre-existing conditions that people have. my bill provides $25 billion to set up a system so if you have a high-risk condition and are uninsurable, you can get an affordable policy. if we did those three things, we can get most of the uninsured injured. the heritage plans a week to get many people injured -- we can get most of the uninsured in shirt. the heritage plan says my plan will get many people injured --

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[captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- greta: a tea party protests erupted in columbus, ohio, mini protestors gathering at the ohio state house, -- many protesters gathering. they were talking about many issues. the protests were organized by the all-liberty counsel. jason is a member of the liberty counsel -- by the all-liberty counsel -- the ohio liberty counsecil. jason is a member. >> they want to start doing something about what we see ron in this country. greta: how many people showed up, do you estimate? -- about

what we see wrong in this country. >> it was a great turnout. families came out with kids. it was a great time. we had a lot of great speakers, including judge andrew napolitano. many from organizations or as part of it, and the ohio liberty counsecil is about holding our people responsible. greta: do you have a job, sir? >> i do have a job. i am trying to make a living in this economy like everybody else. greta: what do you do? >> i would rather not say. i am just working in the financial world, and i do this organization on this side. it is something i do because i want to preserve america. something happened to three years ago to me. i read the constitution, something i would recommend that our representatives do, because

they vowed to upfolded. in my spare time, i go out there, -- because they vowed to uphold it. we are getting ready to do another event on september 5 in cincinnati, and we are already in the works try to double the number of attendees. this is not an anti-obama rally. this is not an anti-tax rally. it is a pro liberty rally. greta: judge napolitano is there. that is interesting, because he is a colleague here. who else showed up? community leaders, citizens who were interested? how do you describe the crowd that showed up? >> we have libertarians, republicans, independents, democrats, and we had a senator from the ohio assembly, there. we also had a ohio representative. there are republicans to violate

the constitution. it was president bush who got the first bailout pushed through -- there are republicans who violate the constitution. it is not just the democrats. we want to unify the people. the american people, we are the ones paying the price, and we just have to bring a representatives back in line with the constitution. that is what we are about -- bring our representatives back in line. greta: people come with different interests, so i did not mean to put you in the hot spot. thank you. >> no problem. please visit the ohio freedom website. greta: i am going to ohio sooner than you think but for different reasons. coming up, the arizona senator is saying exactly what he thinks about his former running mate. what senator mccain says about sarah palin, next.

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greta: senator john mccain is making headlines, saying exactly what he thinks about sarah palin and whether she helped or hurt

during the 2008 campaign. senator mccain just sat down with steve moore, a senior economics writer for the editorial page of "the wall street journal." starting with governor palin, what about it? >> first of all, he loves her. he thinks she was a total asset to the ticket, and taking on the people who think she was a mistake. he said the highlight of the campaign was right after she was chosen and at the convention when she gave that incredible convention speech, so he thinks she is a rock star in a real plus for the ticket. greta: why does he think that she left the governor's? >> he said that the one mistake he made with sarah palin is that nobody was prepared for the media's savage treatment of her, and he thinks it has continued to nonstop now for 6 to 9 months, and she and her family -- you know, you have talked about it many times.

a family has been under attack, and she is so wounded by that that she did not want to be governor anymore. greta: when did? or does he think that she will be back -- wounded? >> the genuine affection he has for sarah palin and her whole family. greta: what about the economic policies? they were opponents, but even in terms of things, like, he suggested that people be taxed on their health-care benefits, something that the now-current president agrees with him on that. >> you know, i asked him about his relationship with barack obama, and he says is cordial. he has not gone out of his way to be highly critical of he thinks he is an incredible politician and so on, -- he has

not gone out of his way to be highly critical of him. he thinks he is an incredible politician. look, "i think global warming is a big problem, but i've never vote for this cap and trade bill." -- i would never vote for this cap and trade bill." , a lot of people thought he would move to the middle, be the ambassador to the republican party for obama, and that has not been the case. greta: what does the admire now-president obama about? not being a great politician. are there any policies that he admires? >> he did not mention any policies, but he did say, stylistically, look. i think john mccain is jealous. he plotted for 10 years how he was going to be president, and a guide and nobody heard of 10 years ago became president, -- a guy nobody had heard of 10 years

ago became president, because he is a charismatic personality. i think john mccain wishes he had that type of charisma. when talking about charisma, and sarah palin, he was acknowledging that she was the one with the charisma and that got the standing ovations. he said he was charismatic unchallenged. he has moved on. he has -- is happy. rather than being the rebels, he is really leading the charge of the republicans against a lot of these economic policies. greta: a lot are very hostile and critical towards him. was he aware that he had a lot within his own party? >> oh, yes, and that was another area where he thought sarah palin was such an asset. she brought those conservatives into the party who had? said about him. i have known john mccain for 20 years. -- who had question marks

about him. i feel sad that he is not in the white house, because he is such an american hero. greta: i guess you can google the article with your long sit down with senator mccain. thank you. up next, ambassador john bolton goes on the record. is israel about to attack iran? and cracking down on pet projects. is obama going to sign the military spending bill that is coming to his desk? it had 1100 earmarks. we report, you decide. can your body wash nourish this deeply? the moisturizer in other body washes sits on top of skin. only new dove has nutriummoisture... which can nourish deep down.

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this is rick with broadview security. is everything all right? no, my ex-boyfriend just kicked in the front door. i'm sending help right now. thank you. (announcer) brink's home security is now broadview security. call now to install the standard system for just $99. the proven technology of a broadview security system delivers rapid response from highly-trained professionals, 24 hours a day. call now to get the $99 installation, plus a second keypad installed free. and, you could save up to 20% on your homeowner's insurance. call now-- and get the system installed for just $99. broadview security for your home or business - the next generation of brink's home security. call now. greta: there is breaking news tonight involving bill clinton.

president clinton is going to north korea or may already be there at this moment to finalize the details. two journalists were sentenced to hard labor after being convicted for what north korea called "grave crimes per " they were arrested on the border between north korea -- grave crimes." is israel about to launch an attack on iran? and is the u.s. going to try to stop them? ambassador john bolton joins us. ambassador, we want to talk about iran, but first, senator clinton and securing the release of these journalists? >> jimy carter's suddenly showed up in north korea during some very difficult negotiations over the weapons program with the north and came out with something very different than what president clinton wanted, and i had visions of the same thing, but given that mrs.

clinton is secretary of state, at this and maybe was better coordinator. -- and this was maybe better coordinated. gravelle i forgot that jimmy carter had been there when i spoke to jennifer griffin -- greta: i forgot that jimmy carter had been there when i spoke to jennifer griffin. all right, iran and israel. is israel likely, in your view, to take some of unilateral steps against iran? >> i do not think israel has really made a decision, but i think if you look at history, israel has not been afraid to take pre-emptive military action when it has seen an existential threat to the state of israel. they destroyed the reactor outside baghdad in 1981. they destroyed a north korean reactor in syria in 2007. if anything, the threat posed by iran's nuclear program is even graver, so based on that, you would have to think they

probably would. greta: they have given iran until september as to whether they will have discussions about nuclear weapons. what happens after the date passes, if iran just basically blows us off? >> well, the theory then, at least as articulated by the administration, is that we then turn to sanctions, perhaps against refined gasoline being imported into iran, perhaps others. all of that is very interesting and, in fact, when have been a great idea years ago. whether those sanctions can be put in place and have any impact on iran's nuclear program today is a very different story, but the administration is running out of time, and i think they are aware of that, but the israelis who are running out of time, too, because the military option with iran is declining over time. greta: they have enough uranium enriched within six months and a nuclear weapon within one year

and a delivery system, which is a key thing, and they can actually deliver it. is there any way to know whether these are realistic timetables? >> first of all, these reports are based on what we think we know as opposed to what we do not know, and what we do not know about iran really bothers me, but one interesting thing about this article in "the times of london" was this research that iran has been doing. this was reported as far back as the fall of 2004 by jonathan on abc news, and there was the 2007 national intelligence estimates that said that iran had stopped work on that in the fall of 2003. i think that iran is very close to actually being able to produce a weapon. i think they have mastered all of the science and technology that they need, so the notion that they are close is, i think, accurate, and the notion is building on israel about whether or not to use military force.

greta: and are we putting pressure on israel to put the brakes on this? or are we hands off, letting israel do what they what? >> there is a lot of pressure. defense secretary gates was there along with the national security adviser jim jones. there was a traffic jam of american convoys in jerusalem on the subject. i think the obama administration understands that if israel uses military force, the chances of negotiation with the regime and iran are pretty thin, and i think their view is that they want to do what they can to have these negotiations. i must say that the israelis have no reason to believe that negotiations are going to change the determination on the part of iran to get nuclear weapons. greta: israel is in a horrible place geographically. they are very close to iran, and iran can reach them. we have been so supportive of them. on the other hand, i do not get the sense that israel thinks

that negotiation is an option between the united states and iran. is that about right? am i about right on that? >> i think that is correct. i think from israel's point of view, what makes it hard is that they know iran is trying to increase their air defense capability to add that there are likely to be dispensing and further hardening his their nuclear program, which means even if they successfully, let's say, destroyed their uranium enrichment facility, iran could be building a duca facility, a couple hundred miles away, and that is what a military strike is not a complete solution to iran's situation -- iran could be building a duplicate facilities. if you miscalculate where iran is in their nuclear program, you could find out six months from now that things are different. greta: they can either build it and have it done with in one year, or they can at negotiations, not build it, where they can have negotiations

and lied and build it while we think that they are not. are those the three choices? >> i think those are the three choices. >greta: the one where we sit and talk to them and they lie to us is the most terrifying, i think, to me. >> desperate to find somebody in iran to sit down and negotiate with. inconveniently, they are having a political crisis in iran. i think it is very difficult to formulate a negotiating position. that is another reason why do not think we will see negotiation by year's end and where israel comes closer to that decision on whether or not to use force. greta does iran worry enough about those sanctions -- greta: does iran were enough? >> there are not sanctions in place right and now -- right now that have any severe effect. what is there is too little, too late. you need widespread compliance.

you need russia and china on board. there is a zero evidence that that will happen. greta: who is on board? the french? >> the french, the germans, and the british. i have seen them say, "yes, we are with you," right up until they tell you that they are not with you, and then you have them try and negotiate on the one side with the u.s. on the other. this is why the negotiations are isner for the obama administration and why there is skepticism that there will be enough progress to keep iran from getting the bomb. greta: any theory on who is the tougher one, on iran, the president or the secretary of state? >> the speculation is that secretary clinton is tougher, but we are so close to iran actually getting a weapon that these fine calibrations that we have got, six months or eight months or 10 months, all to have to do is be wrong by one day, he and once iran has nuclear

capability, everything changes -- by one day, and once iran has nuclear capability, everything changes. saudi arabia, egypt, turkey, they will then go on and get nuclear-weapons themselves. greta: china was not very helpful. if we cannot get john onboard on this, it seems like the sanctions will have virtually no affect -- if we cannot get china on board. >> that is right -- the sanctions will of virtually no effect. greta: ambassador, thank you. here is what is coming up after the show on "the o'reilly factor." bill: a teacher will be year, and the culture warrior is checking out some craziness, on "the factor." greta: up next, president obama says he is going to crack down on your marks. well, here is his chance. a bill was over 1000 earmarks is heading to his desk.

will he sign it? we report, you decide. plus, are the rumors true? our governor sarah palin and the firstdude getting a divorce -- and the first dude? the answer may make a lot of women cry. ambalaya. for a limited time. at red lobster. supports your health in 4 ways. it helps your natural cleansing process. helps lower cholesterol. promotes overall well-being. and provides a good source of natural fiber. try metamucil today, in capsules and powders. to being able to manage your diabetes properly. it's very important for me to uh check my blood sugar before i go on stage. being on when i'm feeling low can be like a rollercoaster. it does at times feel like my body is telling me to do one thing... and, my mind, my heart

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let's go to ainsley earhardt in our new york newsroom. >> the cats for clunkers program may not survive the week unless congress puts in more cash -- the cash for clunkers program. they must approve the money before leaving for the summer on friday. this comes as chrysler and ford announced a boost in car sales during the month of july, and both credited the cash for clunkers program. severe turbulence is being blamed for a landing due to severe turbulence. they were carrying people from brazil to texas when that turbulence hit. some passengers were even slammed inside the roof of the airplane, an airplane executives for saying that the seat belt sign was on. four people were injured, but most of the other injuries were just bombs. greta: we are live in washington, where the smell of pork fills the air.

president obama pledged to crack down on your marks when he came to washington. what is happening? joining us is jonathan allen, a reporter for cq politics. this military spending bill, how much is that? >> $1 billion with a b plus. greta: and how about earmarks? >> $2.70 billion. in context, it is a small piece. >greta: ok, for the viewer out there, what is an earmarked? >> spending money to edit entity, usually in their district, saying that these of the people who are going to get it -- what is an earmark? you want to get money for your school district or to make missiles in your district, that is an earmark. greta: if you want to get

somebody for your shock trauma, that seems to be important. they are not going to be sitting there lobbying you, but a lot of these earmarks are not. >> you'll be surprised. shock trauma will lobby. there are different ways where those earmarks, about, so it is hard to look at them as a monolith to say that they are all good, or that they are all bad. it has gotten a little better over the years for those who think that there is someplace for congress to be directing a little bit of the money somewhere. greta: 1100 of them are going to the president in this bill. it is the president likely to sign it with 1100 progress i think he is likely to sign it with 1100. he has a couple of veto threats out there, and it has something to do with presidential helicopters. congress wants to stop him from opening that to competition and a few other things. greta: there is a congresswoman

in florida kickapoo's stecker money in it for general dynamics. general dynamics -- there is a congresswoman in florida it to stop somebody in there for general dynamics. general dynamics gave her some money. >> providing better communication fortress fighting the war. greta: that sounds like a great idea, but it is such a great idea, what are they relying on a congresswoman to do it? >> the pentagon comes up with a budget for the year, and it has to put certain priorities in, and this is one of the parties that did not make the cut for some of the top things that they want, and sometimes, they will leave things out of the bill, because they know congress is going to come in and changed their mind, because they care about their own districts, so what happened is that these earmarks just in this particular bill, they have to have a program officer at the pentagon who wants it, so even if it were not in the official request,

they have to provide somebody in the army, who wants this thing to go through. the defense earmarks are actually much better vetted and because of that process. there are dozens of appropriations bills, transportation and agriculture. greta: 15 seconds left. the congresswoman gets to stick it in, right? these are debated? >> well, some of them are. nine of them. greta: 9 out of 11. all right, there you go. nine out of 11. >> it is a small group. that is one of the weaknesses in the system. but they are transparent, and the numbers, they did not have to use to put their numbers on them. greta: jonathan, thank you. coming up, are the restrictions are former governor sarah palin and her husband todd getting a divorce? -- are the rumors true? plus, what is that a woman so

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greta: u.s. seen our top stories, but here is the best of the rest. in fact, this one is a screen --

you have seen our top stories. >> ahhhhhhh! ahhhhh! >> [speaking foreign language] >> ahhhhh! >> ahhhhh! greta: no, these people did not just look at their bank accounts. they were trying to break the world record for the loudness screame, and the winner had won over 116 decibels. their record was 129 decibels. the winner says he was just getting warmed up, and he will be back for next year's competition, and we can hardly wait. and file this one under no good deed goes unpunished.

a would-be robber came into the bank and demanded cash. he confronted the robber, demanding to see a weapon. when the robber bolted from the bank, he chased him down the street, took him down, and held him until police arrived. two days later, the bank teller was fired for what he did. there is a strict policy at the bank to comply with the robbers demand and hand over the cash. -- the robber's demand. you decide whether or not he should be fired. and a woman who cannot find a job is suing the college where she earned a bachelor's degree. she says she wants a $70,000 in tuition money back from monroe college in the bronx. she earned an information technology degree in april and says she has not been able to find a job with that degree since she graduated. a spokesperson for the college says the lawsuit is without

merit and that the school tries to all graduates find jobs. if she cannot find a job, who knows? she may end up in moscow, and that may be even worse for the school. -- she may end up in moscow. one last call before we turn down the lights -- she may end up in a lot school. -- in law school. our former governor sarah palin and her husband getting a divorce? i'm not sure what i need. tom showed me how to use mifi to get my whole team working online, on location. i was like, "woah". woah ! only verizon wireless has small business specialists in every store to help you do business better. you're like my secret ingredient. come in today and connect up to five devices on one 3g connection. now only $99.99 most people try to get rid of algae, and we're trying to grow it. the algae are very beautiful.

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