compensated. thank you. jon:"the live desk" is next. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- martha: we are live inside of the fox news room. trace: this is where the news begins. covering america for the fox news channel, every single picture that comes into fox news, and here. we have called this the media desk. of the live desk, brand new pictures on the right-hand side of the screen. megyn: if you believe that there is truth in numbers, the latest are not good news for the president. they show that the more the president sells his health-care plan, the less americans are willing to buy it. the numbers that could change

this debate. in the middle, breaking news in the middle east. violent clashes on the streets of iran between those that support ahmadinejad and those that do not. iran has the goods in and knowledge to build new. in the bottom, she claims she was tied up in gang raped by five male college students. police arrested them, made their names public, put them in jail. then there was the videotape. that is coming up live. trace: we have breaking news coming from the world's nuclear watchdog. the iaea is saying that iran has sufficient information to build a nuclear weapon and that they have made significant progress in developing their way to deliver a nuclear payload. in other words, a missile.

there is new -- there is a new accusation that the iaea is withholding crucial information from the united states and its allies. jennifer, what does the latest reports say, exactly? >> this is significant because essentially it is a secret and acts that the french foreign minister has asked that the iaea to release. it leaked out yesterday, embarrassing to the obama administration. listen to what we got from the amex. iran has worked on developing a chamber inside of a ballistic missile. it says that they engaged in probable testing of explosives. the agency assesses that iran has sufficient information to be

able design and produce half a workable implosion nuclear device based on highly enriched uranium. this is explosive stuff. essentially it is the assessment that we are being told of, a working assumption containment acts. in stark contrast with what they have been saying publicly about the program. trace: stark contrast to what the administration is saying publicly, right? >> exactly. yesterday came out and essentially said get rid of, shift the focus on long-range ballistic missiles. this comes on the same day that they are saying that iran is not making as much progress on their long-range missiles. it has some people scratching their heads. listen to what joe biden said from iraq yesterday.

>> we are much less concerned with the iranian potential that couto strike the united states f america. >> the vice-president has downplayed fears that iran could launch a weapon at the u.s. served me they do not have that ability at this point in time -- certainly they do not have that ability at this point in time. but this new report is creating some difficulty for the obama administration and the head of the iaea. trace: is there any more in this shift of intelligence? suggesting that iran has made less progress than we previously believed? >> that is what they used yesterday to justify the cancellation of this ground- based interceptor program in

poland. in may of 2009 there was an estimate that estimated that iran would be three to five years later in creating an intercontinental ballistic missile. that was the shift in intelligence that they used to say why they could take this chance to focus more on short- range missiles. if you look at the tests that they carried out, on may 20 these two stage solid rocket fuel tests, those are indications to some that while they have not succeeded, they certainly are attempting to. it is a question of how accurate this intelligence is. trace: conflicting information, thank you.

martha: a huge controversy surrounding acorn. you have seen the videos showing acorn workers coaching a prostitute around the tax laws. they have denied federal funding to this group, which has already received tens of millions of dollars. now we are getting a better idea of how people in this country feel about all of this and all of their tax dollars that went to this group. 51% say that congress should end all funding to acorn. 32% still trying to figure out what they think about all of this. when it comes to criminal investigations, 20 states are now investigating. 57% believe that they are primarily the result of the illegal behavior on the part of the organization, 23% are undecided. what happens now?

steve is live in washington. there seems to be a very strong bipartisan groundswell, as you can see on that map. is this group close to reaching its last breath? >> senator mike keogh hand of nebraska wanted to introduce a sweeping measure that would bar acorn from receiving any federal funds whatsoever from any program. we have not seen the end of it. this would be similar to the ban passed yesterday in the house. it is the broadest anti-acorn measure passed by congress yet. passed earlier this week, acorn was prohibited only from getting specific housing and transportation programs. this new bill they are planning to introduce will be much broader. martha: is there still a chance that they could get federal

funding in the future? >> and nothing is guaranteed just yet. anything could happen. the chances are not looking good. there is a lot of sentiment against acorn after those undercover videos showing acorn workers showing a man and woman posing as a pimp and prostitute out to skirt the law. -- how to skirt the law. then there is a question of president obama, a former community organizer himself. he has not said whether he would veto any of these bills. trace: -- martha: thank you very much. chris wallace this weekend is going to be speaking to the ceo of acorn. we will also hear from rep. darrell ease l issa.

trace: cadaver dogs have picked up the scent on the property of where accused kidnappers, phillip garrido and his wife live. investigators say that they're bringing in other dogs to make sure that those hits are not coming from native american remains, which have been found in the area before. the police are looking to see if phillip garrido is linked to two different children other than the 11-year-old jaycee dugard whom he kidnapped and raped back in 1988. this is our first look inside of the house. the building inspector says that it was filthy and not fit to live in. we are talking about piles of garbage, dirty dishes, even an

open septic cold. we will go back to that search as the news comes in. martha: we are able to tell you a little bit more about the man that was arrested for the murder of a yale graduate student. there are reports that he may have had an accomplice. law-enforcement officials say that his co-workers described him as a control freak, he often clashed with scientists and with students. he has been charged in the killing of 44-year-old annie le. she had been conducting research, her body was found stuffed into a wall. the police are looking at an accomplice that may have helped him to hide the body. keep in mind, her fiancee worked at the lab as well. no one has said whether the police is investigating anyone else.

trace: nancy pelosi, upset over the heated rhetoric. listen. >> i saw this myself in the late 1970's in san francisco. this kind of rhetoric was very frightening. trace: what is behind nancy pelosi's tears? we will show you the rest. could the health insurance co. wind of taxing you? next. pared to aleve. choose aleve and you could start taking fewer pills. just 2 aleve have the strength... to relieve arthritis pain all day.

@ i heard about him from all the other girls. we were working at the same company. and she was something else. announcer: take care of each other, and your health. with nature made cholestoff. cholestoff helps lower ldl cholesterol, the bad kind, naturally, by using the same types of phytonutrients found in nuts, grains, fruits, and vegetables. he makes me laugh. he still does, but it's nice.

announcer: learn how to lower your cholesterol, naturally, at cholestoff.com. nature made. fuel your greatness.

trace: breaking news coming out of chicago. that manhunt in illinois that we have been telling you about, focusing on this guy, it appears that it might be over. he is escaped fugitive that hijacked a car, overpower the cops, and police apparently were very concerned about this guy. harris faulkner has been monitoring the action. >> two carjackings in the last hour or so, cops say that they have their man. this bank robber, the one all over the news, he called in to say that he is never going back to jail. nearby to where the whole thing started, the u.s. market -- marshalls, fbi, and local authorities have caught him. he was at in a car accident at

an intersection. we are just now getting details. we are expecting the police chief of bloomingdale to give us more details. they had just wrapped up a news conference a few minutes ago, now they are having another one saying that they have their man. he was considered extremely dangerous, especially after he uttered the words that he is never right back to jail. we will see about that. trace: thank you. martha: nancy pelosi is that -- on the verge of tears, asking that people tone down the rhetoric when it comes to health care reform. watch this. >> i have concerns over some of the language being used. i saw this myself in the late 1970's in san francisco.

this kind of rhetoric was frightening. violence took place. martha: he was taught -- she was talking about the assassination of harvey milk. republicans are not happy with her remarks. "no longer with content -- no longer content with criticizing concerned citizens, the speaker is likening genuine opposition to assassination." look at this, folks. our fox poll says that congress does not pay much attention to regular folks. we welcome our panel today. tucker, you say that this is a mischaracterization of what happened then? >> entirely.

all of the violence in california in the 1970's was on the left, she is making reference to the murder of harvey milk. dan white was not a right-wing activist. he said he was motivated over a dispute over a job he had been promised. the idea that she witnessed some right-wing militia in san francisco is a lie. historically speaking it is a misrepresentation. martha: julian, this came out shortly after the emotion that you just saw. she sent a letter to reporters. she went on after words -- after wards.

julien, is this a way to whip up enthusiasm for health care reform? >> it happens on both sides, and it is beside the point. tucker missed the point. the point is that democrats are out trying to stomp of legitimate opposition. the point is that much of the rhetoric is done out of bounds. the head of the tea party movement said last night that president obama had become an indonesian moslem welfare thawed. that is an example of the type of rhetoric that many are using. martha: that group, they -- go ahead. >> regular criticism is fine. the point is that republican leaders are not condemning that kind of hateful speech. when president bush was in office and critics on the other side said obnoxious things,

democrats denounced those statements. what is happening now is that out of bounds statements are being made on the other side. responsible republicans are not condemning them. [arguing] martha: nina, your thoughts about this? >> i cannot create tears like nancy pelosi. i recall a lot of stuff coming from the left during the bush years. he was called a liar by harry reid and nancy pelosi. let's not forget the moveo n.org video contest, in which george bush was compared to hitler. it cuts both ways. she should take responsibility for people on the left. we just saw the murder of a pro- abortion doctor. we have also seen a violence against anti-abortion activist.

interestingly, i just saw a bumper sticker on a car that said that the sense is patriotic. came from the left, clearly on the car of a liberal. it would be interesting to move that to a conservative car. >> i think that this and other health care is totally patriotic, lots of good reasons to question it. but there are a lot of outrageous things we are seeing. [everyone talking at once] >> to compare speech to violence is false, it is an attempt to get people to shut up. martha: also an attempt to get $10 donations as well. >> white democrats when bush was in office.

martha: thank you very much, guys. trace: we want to know what you think. logon to foxnews.com and click on the you decide link. the you think that nancy pelosi cross the line? so far nearly 48,000 of view have voted tell of 97% say yes. 1% think that she crossed the line but opponents need to tone down. 1% say that she was in the right. two -- more turmoil on the streets of iran. lusk, the rodney leaders, verbally attacking israel. all discovering that the world's nuclear watchdog told us that iran may have nuclear material and the know-how to build a

nuclear bomb. what i need

to control my diabetes, to stay healthy - and get on with my life. it comes from liberty medical. and now, it's not only where i get my diabetes testing supplies - but it's where i get my prescription drugs as well. see if you're on medicare, the cost of your diabetes testing supplies as well as your prescription drugs may be covered. liberty takes care of all the paperwork with medicare and sends the prescription forms directly to your doctor for approval. then, on your schedule, packs up this box and sends it right to your door with no charge for shipping. and liberty assures you have everything you need to manage your diabetes, including most brand name meters. call now and we'll send you a free meter. plus, a free cookbook when you join. call liberty.

they can help you live a better life.

trace: he is at it again. mahmoud ahmadinejad, lashing out at israel and the west, questioning whether the holocaust even happen, that it was a pretext for occupying palestinian land. the wire just called a ahmadinejad a disgrace. government activists took to the streets of tehran, similar to those that happened after the disputed election of ahmadinejad in june. why is the lashing out at israel again today, amy? >> as you alluded to, it is

nothing new. he has been making these comments since he to office in 2005. this is a day when many people come out to protest the existence of israel, chant anti- israel slogans. mostly the people that come to these tharally is far with a pr- government demonstration. on top of criticizing israel and the denying the holocaust, saying that western countries are complaining and no one is looking after the rights of the palestinians. trace: but we are seeing these protesters lashing out? >> what was different was that according to the witnesses there were more opposition protesters

then jerusalem day protesters. these opposition protesters, the crackdown against them has been so brutal, used this day when there was a publicly sanctioned rally to promote their own cause. there is another thing going on. iranians, many of them, are increasingly irritated by the fact that their government spends a lot of money and gives a lot of that service to groups like iran and hezbollah when iran aeons, in dire straits, would like to see -- when iranians, in dire straits, but like to see the government looking out for them. -- would like to see the government looking out for them. there were tens of thousands of day that probably energize that movement. -- there were tens of thousands

today that probably energize d that movement. martha: new information on the former high-school football coach that was acquitted yesterday in this dramatic moment. he was acquitted of the he related death of one of his players. will he be back on the field coaching? he could make a statement any time now. we will bring that to you as soon as it happens. philippe paul is criminally insane. why would mental health workers allow him to go on a field trip to a county fair? you know why people are asking? because he just a skate, he got away. there is a desperate manhunt in the community.

what's fresh from ziploc? you know all the little things you do to help the environment?

here's one more... ziploc evolve. ♪ an ultra-light bag designed to keep food fresh... made with 25% less plastic. and made with wind energy. ♪ ziploc evolve. better for the environment. still ziploc fresh. all at no extra cost. designed with you in mind. s.c. johnson. a family company. announcer: say hello to the can-doers. - the budget masters. - ♪ yeah yeah the knock-out artists who are finding more ways to spread their dollar further. - to bolder color in less time. - ♪ are you feeling it? say hello to newer ideas and lowered prices, enabling more people to turn more saving into more doing. - that's the power of the home depot. - ♪ are you feeling it? try out different colors with new 8-ounce paint samples at a new lower price of only $2.94.

from brink's home security... you can now expect from broadview security - for home and business. call now to get the proven technology of a broadview security system installed for just $99. day or night, broadview is on the job, ready to respond when trouble strikes. i'm sending help right now. (announcer) the same professional monitoring you expect from brink's home security, you can now expect from broadview security - for home and business. broadview security - the next generation of brink's home security. call now.

and an environment in balance. between consuming less and conserving more. there is one important word: how. and it is the how that makes all the difference. to the planet we all share. trace: we are back live in the newsroom. we have brand new informations on 3 new stories. first, following the acquittal of the football coach accused of killing a player. >> that coach was acquitted after only 90 minutes of the liberation. the school superintendent would likely get his old teaching job back.

in 2008 a 15-year-old collapsed on the football field during practice, he later died of heat stroke. the defense argued that a number of factors contributed to his death, including his youth of -- his use of adhd medication. trace: we have been freaking out for months, now h1n1 is no big deal? what are they saying about that? >> a harvard epidemiologist is about to publish a study predicting that death rates from h1n1 will be no worse than a moderate year of seasonal flu. while this is welcome news, they urged americans not to become complacent. even a typical year's seasonal flu claims as many as 36,000 in the u.s.. trace: jonathan is live in

atlanta where the stars are shining brightly. let's get to the event with james. >> from the values of voters summit, in a lunch recess right now, 2003 thousand faith-based activists came to listen to like -- mike huckabee and carrie prejean. we will also hear from mitt romney tomorrow. skipping the event is sarah palin. the results of the straw poll will be here on fox tomorrow afternoon. trace: that is the big news at the bottom of the hour. martha: president obama aggressively tries to sell his plan, but a brand new poll shows that a majority of americans are not buying into the plan. according to the latest numbers, 56% oppose the

president's health-care plan. the highest number we have seen yet. 43% say they favor the proposal, these numbers coming just one day after their version was released. a version that has virtually no support from republicans. it is a tough row to hoe. it appears that the two chambers of congress are split on the government run public option, right? blacks something that is interesting to watch, because nancy pelosi reiterated yesterday that the house bill will include a government-run health insurance plan or a public option. she is hoping that her democratic colleagues will lean in their colleagues in the senate and persuade them to their point of view.

the most recent bill from the senate, the bill out of that committee does not include a government run health insurance plan. martha: secretary clinton was asked about health care reform today, she said that those opposed to the reform needed to allow. >> that the process is not pretty, but that she is confident congress will produce a bill. she is confident that what the president proposes is not radical. >> what we are proposing is, fundamentally, so conservative compared with so many of our friends and allies about the world that do a much better job that we do -- and we do i am covering everyone in keeping costs down. some of the political opposition is overheated. we have to take some aspirin and calm down. >> republicans did not agree.

they said that this is a government takeover that would put private insurers out of business. martha: thank you, molly. trace: a college student goes to the police and claims that she was gang raped in a bathroom by five men. four of them spend four days in jail as accused rapists with their names and faces plastered all over the country. then she takes a back, admits she made the whole thing out. for the first time on television, one of those accused is speaking out. we will ask him what happened that night, next. hey, has anybody seen barney? he better not be on the bed. you know you're gonna need it.

why not stock up now? get everything you need for fall cleaning and fall allergies at an unbeatable price. save money. live better. walmart. people notice my devotion to family. people notice my love for animals. my smile. my passion for teaching. my cool car. people notice i'm a good friend and a good listener. people notice that i'm a good boss. people notice my love of nature. people notice i can fix anything.

(announcer) thanks to miracle-ear what people don't notice about you is your hearing aid because, look closely, our hearing aids are nearly invisible. our exclusive line of open fit products are so lightweight, so small and so natural sounding even you won't know you're wearing one. you know, most people don't know how good or bad their hearing is... they just know when they're missing things or hearing words incorrectly. miracle-ear can help. with a quick, free hearing test. miracle-ear has been helping folks for nearly 60 years. we're the number one choice in hearing aids. get your free hearing test today. it can change your hearing-- and your life-- for the better. (announcer) call now. our simple process can have you hearing better than you ever thought possible. and our full range of products are designed to suit your needs and your budget. people notice my zest for life. my great sense of humor. what sense of humor? people notice my beautiful wife! (announcer) let people see the best in you, nothing more nothing less.

try the nearly invisible hearing aid at a nearby miracle-ear location. every miracle-ear hearing aid is backed by a risk-free 30-day money-back guarantee. find out for yourself what has made miracle-ear a household name for better hearing, miracle-ear. what will your miracle sound like? call 1-866-491-4327 to schedule your free hearing test or for a free information kit with complete details about hearing loss and how we can help you. call 1-866-491-hear to take one of these easy steps toward better hearing. that's 1-866-491-4327 call now! trace: in the top box, police in dallas searching for a gunman that allegedly shot and killed a security guard at a drive- through. the guard was getting ready to load his machine with cash when

he was shot. cornell is on high alert after reporting 600 students feeling ill with flu-like system -- symptoms. universities across the nation are taking precautions to prevent the spread of h1n1. in the bottom, dozens of dead after a car bomb destroys a two story building in pakistan. 50 were hurt. martha: there is the shocking story of gang rape at a new york college. then it took a u-turn. the accuser reverse her story. it remains to be discovered what the details were that night. last week a freshman at hofstra university told police that five men tied her up and brutally beat her and raped her. they were quickly arrested. they were all good friends,

these four men. they spent four nights in jail as a great suspects. -- as rape suspects. arrested, facing suspension, and up to 25 years in prison. then she finally admits that she was not raped. she did not want it to appear that she was doing anything untoward, so she told her boyfriend and the police -- there is actually a video of this whole thing proving that the sex was consensual. you never knew this girl? >> and never before that night. martha: what was your first

understanding of what you were being charged with? >> i did not even know what was happening. i got picked up at home. i did not say much, neither did they. i did not want to say too much, i did not do anything. martha: one of your friends took a cell phone account of what happened? did you have sex with this girl? >> no, i did not. martha: did you touch her? >> no. martha: what remains to be seen is how this will play out. were you surprised at how quickly they rested you? >> of course. the media has flipped everything. when they have suspects or alleged rapists, they never get

the benefit of the doubt. innocent until proven guilty, i thought it was more the other way. martha: at what point did the police get their hands on the video. >> they told the girl that there might be a video. that is when she panicked and confessed. martha: you know that there is a video? >> yes. martha: are you in it? >> no. martha: because you were out there? >> i cannot go into depth about that. my lawyer said that they are still conducting an investigation. martha: the attorneys are saying that it is just like a sex video. if you could change anything

about that night? >> i would not go to the party. it was no fun. martha: as a mother with two sons, why did jintao leave once you solace happening in the bathroom? -- once you saw what was happening in the bathroom? >> it is a kind of thing that goes on at a college party. we are all young. martha: wrongly accused of rape , are you going to take legal action against this woman that accused you of these things? >> i will have to talk to my lawyer about that. martha: de you feel angry towards her? >> not so much. the way that i was raised, i do not wish any wrongdoing of any

one. martha: de you think that the police mistreated you? >> a little bit. guilty right off that. they did that even ask me. they may be feel so bad, i felt i was guilty. i ask myself -- did i really do this? martha: good luck with your head -- education and your life. thank you for being with us today. trace: aside from being kicked out of school, the accuser is facing something more serious, possible criminal charges. here is a part of the statement released by the nassaud county district attorney's office. with us now, two criminal defense attorneys. jennifer, we must have learned something from the duke case,

right? these young men were arrested, their names were plastered all over the country and there was no investigation. >> you would have thought that we would have learned something. that maybe they would have done some old-fashioned police work. talk to the boyfriend. collaborate on some things. investigate. make sure that you have the right guy instead of arresting them and seeing if it comes out in the end as to whether they are innocent or guilty. trace: we have had these high- profile cases before. david copperfield, his name came out and he was not called into jail. clearly they should be saying that they are crossing the i's and dotting the t's. >> why not afford these young

boys the same benefit they are giving this young woman? why were they not afforded the opportunity to have the case thoroughly investigated, before they were sent to jail? for this videotape, -- but for this videotape they would still -- they would still be there. trace: there it is. without the video tape it goes the way of the duke scandal. these guys lives -- >> it could have gone to a jury, a jury could have said that it seemed like they were telling the truth. >> that is where it would have went because these boys would not have been able to afford do defense attorneys. shepard: should she be prosecuted -- trace: should she be prosecuted? >> i can tell you, this kind of thing happens a lot more often than we would like to admit.

there needs to be consequences for this kind of action. >> prosecuting her -- trace: a lot of people care. >> the problem is in the investigation. people lie all the time. there needs to be a system. trace: they should be punished for doing it. >> there is no deterrent if you do not punish her. by the way, these young men, their identity was not protected. trace: you have both been great. thank you both very much. it is the stuff of sweet childhood memory. now, a bitter lawsuit. why the makers of pez going after a museum. .

pothole:h no...your tire's all flat and junk. oh, did i do that? here, let me get my cellular out - call ya a wrecker. ...oh shoot...i got no phone ...cuz i'm a pothole...so....k, bye!

trace: a stunning letter to president obama written by the heads of the cia for the past 35 years. they're asking the president to reverse attorney general eric holder's decision to investigate the cia interrogations' held after 9/11. we will talk to catherine herridge more about this. going back 35 years, we are talking about george tenet, michael hayden, william webster, and others signed this letter asking the president to reverse eric holder's decision.

catherine herridge has more information. martha: this is a major news item. if you ever had a pez dispenser. they have been around for 60 years. now it is at the center of a huge lawsuit between the candy maker and the owner of the pez museum in california. we will get the latest on the pez story. >> a bay area museum is dedicated to the iconic candy dispenser of is at the center of a bitter lawsuits. >> the museum is a roadside attraction that sells the beloved candy and houses the owner's personal collection of 550 dispensers. the problem is, there's more than a few pez never made,

including this giant snowman that is recognized as the world's biggest. >> we do not know how it was produced, but he used the pez trademark. >> baseline clearly states that the snowman is just for disl play. >> as a work of art, i think i have the right to call it what i want and make it. >> the lawsuit also takes aim at his obama dispensers, or replacing this smiley face with an advertisement for the museum. he says he gets around copyright rules by putting full disclosure on the packages. pez does not buy any of. >> the candy company wants all of the profits that the museum

has ever made. the curator of the museum says he will fight the lawsuit. he says he is convinced that the company wants him out of their way so they can open their own pez museum. martha: thank you very much. trace: is drinking soda like smoking? that's the argument behind the so-called so thda tax. we will dig into both sides of the story with a medical expert. ún

what do you say to a spin around the color wheel? - to paint with primer already mixed in? - ♪ yeah yeah yeah... - test samples instead of can commitments? - ♪ whoo! - what do you say we dip into our wallets less... - ♪ are you feeling it? - ...and grab ahold of the latest tools out there... - ♪ oh! ...so we can quit all that messing around with extra steps - and get busy turning our doing dials up a notch? - ♪ whoo! ♪ oh! more saving. more doing. - that's the power of the home depot. - ♪ yeah yeah yeah.

are more than words here. it's personal. i have diabetes. rodney's kid too. so we're so proud to manufacture... the accu-chek® aviva meters and test strips... here in the u.s.a. plus, we've proven you'll waste 50% fewer strips... when you use our meter, which means greater savings... for people with diabetes, like me. now that's a true american value. accu-chek® aviva. born in the u.s.a.

it's what doctors recommend most for headaches. for arthritis pain... in your hands... knees... and back. for little bodies with fevers.. and big bodies on high blood pressure medicine. tylenol works with your body... in a way other pain relievers don't... so you feel better... knowing doctors recommend tylenol... more than any other brand of pain reliever.

[captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- trace: police search far and wide for this man, philip arnold hall, the killer committed to the hospital for the criminally insane. he disappeared during an outing with fellow mental patients at a county fair. he was last seen with a group of 30 others at these c spokane county fair. hospital staff waited two hours to notify authorities paul was missing. this is not his first escape from custody. he has brown hair and blue eyes. he was last seen wearing a red

windbreaker. police are concerned that the longer he goes without medication, the more dangerous he could be. if you have information, contact the number on the screen. martha: a very important letter arrived at the white house for president obama from seven prior cia directors. it is urging the president of the united states to use his authority over the department of justice and the attorney general. they say, let's close the investigation that eric holder reopened as to whether or not there was anything done in the cia investigations right after 9/11, the way the suspected terrorists were treated during that period. bill sammon joins us. is this letter a big deal?

>> i think it is. it reopens backstthat scab. at the time, people said, these cases have already been looked at by career prosecutors in the justice department. if you read through the letter today, the former spy chiefs essentially said, if career lawyers in the government made to the informed decisions and declined to prosecute somebody, and then they have to worry about some future administration reversing those decisions, that is going to create an atmosphere of fear and hesitancy within the justice department that no one is ever going to want to make a decision on anything. martha: the president distanced himself from this decision by eric holder. he said, if the attorney general wants to look into this, that is

his right. this letter squarely says use this authority over york attorney general. -- over your attorney general. >> they do not buy into the spin that somehow eric holder was acting on his own. we all know that eric holder is the president's employee. one of the interest in things they point out is they worry this will go in unexpected directions. that is always the danger when the president appoints a special prosecutor or opens a prosecution into a certain area. these things can come around and bite you in ways you did not expect. it could end up reflecting partly on the democrats, as well as the republican era cia. martha: we have seen letters

like this before. do they ever really get a response from the president of the united states? do you expect that he will respond to this letter? >> if he does not respond directly, i think the white house will be asked about this. there will have to be a response. these kind of letters carry weight because they're not written by lawmakers to their written by a career intelligence officials. they're written by people who were supposed to be above politics. and especially when you have a whole bunch of them together, putting their names on the line, it carries a lot of significant weight. martha: a big development back on the front burner. bill sammon, thank you. trace: good news, bad news about

the h1n1 virus. the centers for disease control says the flu season has begun earlier than normal, but the current vaccine and treatments already available will make it hurt a lot less. a new fox poll shows more than half of americans are somewhat or very concerned about the spread of the swine flu. jonathan, there's a new study that says h1n1 may not be as fatal as we originally thought. that is comforting. what do the experts say? >> an epidemiologist at harvard is about to publish that study, a study suggesting that h1n1 will have a mortality rate more or less equivalent to that of a moderate year of seasonal flu. we asked cdc officials what they thought of that study. they said it was welcomed the

news, but they also said it was no reason for americans to become complacent. >> it does not minimize the fact that influence the killza killss disease. >> to put this in perspective, seasonal flu has a mortality rate of 1/10th of 1%, or even less than that, but it affects so many people that each year in the u.s. an average of 36,000 people die. trace: any update on the vaccine and when the first doses will be available? >> yes, the vaccine is ahead of schedule. the first few million doses will be out in early october. after that, the vaccine makers will continue churning out more and more vaccines each week well into december. they are not worried about any

shortages. trace: if you already get the flu, do you still need to be vaccinated? >> i am not a doctor, but the cdc answered that question today. they say that if you have had h1n1, you probably have built up communitimmunity to it, but thee urging people to get vaccinated. they say there are other viruses circulating that may develop similar symptoms, so you may think you are protected and you are not. to be saved, get vaccinated both against h1n1 and seasonal flu. most people do not know what they have. it is impractical to perform tests on every single person who complained of flu symptoms. trace: thank you.

martha: the fbi is questioning a cold autumn and for a third day. officials say he may have possible links to eliot al-qaeda plot. -- officials say he may have possible links to an al-qaeda plot. they searched his apartment and rated three new york apartment where he state earlier this month. the 24-year-old afghan native grew up in pakistan. he has a wife there. zazi's attorney says he is not involved in terrorism in any way. there was an intermission on a computer that is being looked at. police are reportedly watching another suspect in the murder ofa annie a yale graduate stud. another report says police found annie le's blood on raymond

clark's boots. there is annie le with her fiancee. he was charged with the 24-year- old's murder. former co-workers described raymond clark as a control freak. he is apparently not speaking to the investigators in this case. trace: has the time, pretax on soda? some say it could even help pay for health care reform. but will it really change behavior or simply give the government a little more oversight? the debate 4 times the number... of pills compared to aleve. choose aleve and you could start taking fewer pills. just 2 aleve have the strength... to relieve arthritis pain all day.

martha: in the top box, michele obama delivered a health care speech at the white house to a group of the mill advocacy leaders, calling it a woman's issue. in the middle box, the testimony in the trial of an american charged with murder and italy. forensic experts say a bloody footprint at the crime scene was wrongly linked to knox's boyfriend. they are charged with killing her roommate. in bottom box, investigators say the accused kidnappers of jaycee dugard lived in absolute squalor.

they are clearing out years of filth and debris from the garrido home. spinach recalls affecting 12 states and canada. a distributor in california is issuing a recall after routine testing it picked up some and a love. most were packed under the queen victoria label. no related illnesses have been reported. some of the spinach also went to british columbia, ontario, and manitoba. trace: support for a national sugar tax seems to be gaining steam. some health experts think it will be a great weapon in the fight against obesity. anti-tax advocates are having none of it. listen to this spot airing from

all americans against food taxes. >> families around here are counting pennies to get through this economy, so when we hear about another tax, it gets our attention. washington is talking about a new tax on soda. they say it is only pennies. those pennies add up when you're trying to feed a family. washington, if you are listening, it does not seem like much to you, but it can be a lot to us. >> tell congress no taxes on juice drinks and sugar taxodas. trace: they are trying to link these things to cigarettes. >> it is a fallacy. cigarettes are to electridirectd to lung cancer. soda is a small part of obesity.

let's worry about people's lifestyles. they stop drinking soda and they keep eating the big mac, nothing is going to be happening. it is different from cigarettes. trace: people say it is a fat tax. even skinny people drink soda. are you going to penalize everybody? >> let them drink diet soda. it is not better for you. trace: but our kids are too fat. obesity rates are skyrocketing. >> watching tv, the inactive. and watching the commercials. trace: these groups say it is only a little tax, and if it would help and it would dissuade

anyone from having an extra soda a day, it is just a few pennies and it might do some good. what is the counter argument? >> next week is ice cream and the next week is the hershey's bar. if you're going to be obese, it has to do with your lifestyle and heredity. it is much more complex than a can of soda. trace: some people say this tax on cigarettes is killing me. would a tax on soda made people drink less? >> no way. it is not going to deter anybody. trace: and you get your calories wherever you get them, if you need them, if you want them, if you crave them. >> your boy decide, on not drinking soda, so i can eat some extra stuff. pop or soda?

trace: in the midwest, the cy call it pop. in california, they call everything coke. martha: in jersey, we calle it soda. money makes the world go round, but this is a very good development for our greenback. the united nations wants to get rid of the u.s. dollar as the main global currency. they want to replace the u.s. dollar with a new form of something called the international currency. it ñññññññññññññññ

trace: in the top box, massachusetts republicans temporarily blocking senate debate on a bill that would allow governor patrick to name an interim appointment to fill senator kennedy's seat. in the middle box, a british medical journal suggesting birth control could help climate control. according to the report, giving contraceptives in developing countries could help population growth. in bottom box, violent clashes in iran as ahmadinejad verbally attacked israel again. martha: in northwest pakistan, the death toll from a homicide car bombing now stands at 33.

carr was packed with explosives. it blew up 100 miles from the capital. people crowded in the area to prepare for the end of the holy month. some were crushed to death through the building's collapsed after that blast. the bombing is the latest in the violence. trace: the u.s. dollar is under attack. some countries are pushing to get rid of the dollar as the world's international reserve currency. now the u.s. is joining in calling for a one world currency. david lee miller, what does this mean for the united states? >> it is certainly not good news for the united states. let me give you a little context. who does not love the u.s. dollar? it does appear that some at the united nations to not want to keep the u.s. dollar as the global currency. right now, commodities are traded using the u.s. dollar.

if there is a commodities dealer in thailand that wants to sell rice to south africa, the currency he will trade that in will be the u.s. dollar, not local currency. just about every country keeps reserves in u.s. dollars. that is because it is a very stable currency. a report just released by the united nations commission on trade and development is now arguing that a better alternative would be to have another currency replace the dollar, something that would be more easily managed, something that would be more stable. bad news for the united states because it would hurt u.s. prestige and the market could possibly be flooded with trillions of dollars. critics say the u.n. is just trying to undermine the united states. trace: if you get rid of the dollar, what do you replace it with? >> russia and china have come up with similar proposals. this is not a new idea. the u.s. is proposing that they come up with a synthetic

currency, something that would be managed by the international monetary fund that would be linked to other existing currencies. this is in the works. even this un report says the idea is possibly years off from getting implemented because in order to do this, you need to have a global consensus. at the un, they agree on just about nothing. trace: the question is, what is the u.s. reaction to the calls for a universal monetary? >> the treasury sector has not responded to this. in the past, he has said that the u.s. dollar will remain as the global currency and he is committed to keeping the dollar strong. if the u.s. deficit continues to grow, it could increase the growing chorus of those who say let's get rid of the dollar. trace: and that is why there

are so many concerned about the deficit. david lee miller, thank you. martha: thank you. president obama shelving a bush administration plan for a missile defense system that would have been built in poland and the czech republic. it was the third part of an ongoing system. neel reports say that there may be a little bit more to the developing story. according to one report, the polish prime minister refused to take a call from secretary of state clinton. he said he would only speak to president obama on this. the story is next exec: well, it's easy for him. he's a cute little lizard. gecko: ah, gecko, actually - exec: with all due respect, if i was tiny and green and had a british accent i'd have more folks paying attention to me too... i mean - (faux english accent) "save money! pip pip cheerio!" exec 2: british? i thought you were australian. gecko: well, it's funny you should ask. 'cause actually, i'm from - anncr: geico. fifteen minutes could save you fifteen percent or more on car insurance.

your hair mixes with pollen and dust. i get congested. but now with zyrtec-d®, i have the proven allergy relief of zyrtec®, plus a powerful decongestant. zyrtec-d® lets me breathe freer, so i can love the air™. (announcer) zyrtec-d®. behind the pharmacy counter. no prescription needed.

and we didn't find out until i was going to get... my driver's permit at fifteen, seven months. i think the stories that affect me the most... are the ones i hear from children. they go off to start off in life, and by no fault of their own, they're already in a hole. you're supposed to, uh, protect your children. it's hard to protect them from an identity theft when... you don't know who's out there doing it. so how do you protect them from an unknown source? i just couldn't believe it and i was really... frustrated and just... flabbergasted, i guess. security. peace of mind. protection. that's what lifelock provides. to this day we don't know the damage... that's been done to his credit. now we gotta go get my credit fixed... and get it back to where it's just nothing. i was told that i could write a letter... to the credit reporting bureau, or to write it to all three,

'cause some get it reported, some don't. the one thing i would tell you is take action. learn what you can do for yourself for free, or look at a service, in detail, like lifelock, who can be there for you, put that frontline of defense, and have a $1 million guarantee. parents need to realize that this can happen to you. it's my identity, and i don't like people... messing with my stuff. protect yourself, your family, and all you've worked hard for. take control of your identity. protect yourself with lifelock's... proactive protection and our $1 million... total service guarantee. security. peace of mind. protection. that's what lifelock provides. you can take control of your identity. call now for special savings and we'll also give you... 30 days to try lifelock absolutely free. call now and mention id. call now or go to lifelock.com. ♪

trace: there is word that iran has the knowledge and the materials to build a nuclear weapons. let's get to the pentagon and jennifer griffin. >> ap has been handed a secret document that the iaea had wanted to keep secret. trace: there's also word now that the iranian president ahmadinejad is saying the holocaust never happened. >> it is jerusalem day in iran. typically, people chant anti-

israel slogans. tens of thousands of demonstrators took to the streets today challenging their government this time. trace: thank you. the breaking news we told you about on "live desk" -- the president getting a letter today from cia directors going back 35 years, asking him to reverse eric holder. catherine herridge is in washington, d.c. >> i have a copy of the letter. a senior intelligence official tells me that the decision by this group of seven was very spontaneous. the question was really finding the right language. he said they needed language that was firm and clear but appropriately respectful and professional. the three made headlines in the letter is that they are asking the president to reverse the decision of the attorney general to launch the preliminary stages of an investigation into the cia's's enhanced interrogation program.

the letter says there's no way to know how far this investigation would ultimately reached. and that these cases had already been reviewed by professional prosecutors to found there was not enough evidence to find a criminal act. the second element of the letter, which is equally significant, it talks about the effect of allowing information about the cia's sources and methods to be released into the public domain. in august, an internal report reviewed the enhanced interrogation program. then it was released to the public. this letter says that kind of release has a chilling affect on those who are within the intelligence service. thirdly, it says that when we have these releases, some foreign countries, whose intelligence services we really rely upon to get inside of terrorists networks, they do not

have the same kind of trust in the united states that they would like to have with their own information, and it would make them reluctant to give us their sources and secrets in the future. it is a very loaded letter from a group of men who represent over three decades of intelligence service, asking the president to reverse a very significant decision by a senior member of his administration. trace: and the response will be fascinating. catherine herridge, thank you. martha: it is day two and this story is getting bigger. the president's decision to shelve the missile defense system planned for poland and the czech republic. the system was designed to protect yoeurope and the u.s. for missiles coming from iran. there are new reports that polish prime minister tusk felt snubbed by the way that he received the information. according to these new reports, he rejected a call from secretary of state hillary clinton on wednesday, a call

that would bear the details of the new defense plan. he chose to wait to hear the news directly from president obama on thursday. when he did speak to president obama, according to these reports, it said he was less than pleased with the decision. he said it was an autonomous decision made by president obama. we want to get to some of the other developments in all of this. welcome to both of you. i want to take a look at the quote from vladimir putin. i think it is very revealing.

martha: jim, putin is happy about this. why should we be? >> this is a decision taken by the obama administration that strengthens american national security. i understand there's a hesitancy in americans right now with what is going on with the health care debate and government spending and things of that nature. but this is one area where the obama administration has upgraded american national security by choosing to deploy a missile defense system that is better equipped, that can't be deployed faster, and that actually, combats the threats. martha: i do not think anybody would dispute we want the best defense system we can have.

do you agree that is what we are getting? >> we absolutely want the best defense for the united states. the idea that this adds to u.s. national security is absolute insanity. we're leaving the eastern seaboard and parts of the northeast vulnerable to long- range attack. in the united states, we can protect a lot of america, but we cannot protect it all. the eastern coast is vulnerable. american troops in europe are vulnerable, as are our nationa international allies. martha: russia was very unhappy about these installations. they do not like anything that makes us look cozy with any of their eastern bloc countries. they saw it as a defense against them. >> the only fantasy we're really talking about is that the long-

range missile defense actually worked. it did not. the obama administration has chosen to deploy a short to medium rage the issue that has a better kill ratio that any kind of drawing board idea we could come up with missile defense. we started out with a short to medium-range missile system that can really respond to the threat that iran poses to the united states. it will be decades before we have a missile system that capable of intercepting long- range intercontinental ballistic missiles. martha: defense secretary robert gates agrees with jim. he said he was in favor of the plan, but now that he has understanding the technology that we have now, he thinks this is better. >> secretary gates turnaround is absolutely remarkable. that is the value of serving in one administration and then moving to another administration. we only have ground-based interceptors. we do not have anything else.

martha: jim says that this defense system does not work well. do you disagree with that? >> it is a proven technology that works. we are far beyond trying to hit a bullet with a pull ibullet. >> that is absolutely incorrect. tests have proven that well under 50% of long-range missile defense systems have proven accurate. this idea only exist on the drawing board. the idea that suggests that robert gates has compromised because he switched his position is ludicrous. he has gone from understanding the threat better. we have had new intelligence estimates that have come out since his initial endorsement of the plan. >> this is entirely a political decision. >> it is strange that conservatives are willing to

challenge the obama administration on issues like the police sources -- issues like a plan of sources to afghanistan. yet we have secretary gates and the chairman of the joint chiefs of staff unambiguously endorsing this defense system. martha: it is an important argument. everybody wants the united states to do everything it can to be safe. we all hoped there would never be any political applications in these decisions and the way they were made. i think that is the message that is sent. thank you. trace: uncle sam could be visiting a sale miller yonear y. the government plans to crack down on the sale of secondhand items.

something in yourself or $1 to have the fed's finding new for 100 grand. it's no and it is next. walmart checks other stores' prices

so we can save on all our game time favorites. and if there is a better price out there, they'll even match it. which means come game time... ...i'm just as ready as he is. game time costs less at walmart. save money. live better. walmart. and my dog bailey and i love to hang out in the kitchen... so she can watch me cook. you just love the aromas of beef tenderloin...

and, ooh, rotisserie chicken. yes, you do. [ barks ] yeah. you're so special, you deserve a very special dog food. [ woman ] introducing chef michael's canine creations. the deliciously different way to serve up your love at mealtime. chef-inspired. dog-desired. chef michael's canine creations. n diabetics on medicare. hello, i'm john fox---you may know that i'm a professional bass fisherman. but you may not know that i have diabetes. and it's never slowed me down thanks to the good folks at liberty medical. i've been a liberty medical patient for years and have relied on them for all my diabetic needs. and, if you call now you'll receive a free meter. it's easy to use with fast results. even the shipping is free and medicare may cover the cost of your other supplies. liberty medical keeps you on track by delivering diabetic supplies right to your door. they even take care of the paperwork, file your

claims and send you a free meter. call right now and they'll also send you a free diabetic cookbook. diabetes doesn't have to slow you down. join me and over a million people who trust liberty medical. martha: tough talk from secretary of state hillary clinton she criticize. it passed -- criticized past administrations' approach on iran. she accused the iranian regime of standing in the way of justice. in the middle box, an airplane bound for boston forced to return to miami after a threatening note said explosives may be on board. it was a frightening day on the american airlines flight treated returned to the airport and

everybody was fine. there's an investigation under way. in bottom box, the unemployment rate in california is 12.2%. that is a new record. the number of unemployed is now at 2.2 million in the country. trace: in bottom box, where it says record numbers, we have a story you will be amazed about three of the government wants to get record numbers of dollars from new from your next career or sale -- from your next garage sale. i want to show you where we are. this is the war room. everyone makes the big decisions here. the story is that at your next yard sale, the government wants to go after you for selling second-hand items.

>> remember the high profile play recalls? government passed a strict law on selling children's products in the u.s. they set standards and hefty fines of up to $100,000 per item and up to $15 million for series of infractions. now they've decided that it applies to the sale of used items. on what to cause your -- i want to call your attention to the foxnews.com feature story. we also visited a yard sale in new jersey. you will see some interesting reactions. we put together a fund slide show of some controversial recalls. it may surprise you. cpsc says they're not really targeting yard sales. this is really geared toward the thrift store chains.

people should be on the safe side. trace: so the easy bake oven that martha has is recalled. martha: there's no better toy. i just news to wrong -- sneezed into my hands and everybody said i did it wrong. not worried. i wiped that on your chair. coming up, california's budget woes hitting its athletes hard. they have had cuts in financial reporbudgets from the college s. adam housley is live from cal state long beach. >> even private schools are having trouble could we are talking about state schools in this case.

state schools across the country are having to deal with the budget crisis. as state houses cut back, that hits every aspect of state spending, including college sports. the university of california irvine have cut five sports. other schools are cutting back, putting certain programs online. martha: that is incredible. what are the administrators saying about all this? >> we spoke to the president of this college and administrators across the state are having a hard time trying to balance. they have to cut across the board. here's what he had to senay. >> when fees go up, the athletic

department has to offset those fee increases. tuition and fees go up. the athletic department's get disproportionately impacted very negatively. >> when you talk about college sports, you think about football and basketball. there are thousands of athletes in a ton of other sports that men and women play. baseball, gymnastics, and all the other sports. martha: that is probably the tip of the iceberg. >> they are worried about what is coming down the pipeline. they say it could be even worse next year. most schools have been able to circumnavigate cutting certain programs. they say if it continues, that is the next thing on the chopping block. some of these smaller sports will be gone. martha: thank you very much, adam housley. trace: dissent in venezuela is never easy. now one by one, the government is shutting down the independent

voices on television. one lone station is trying to hold on, but its chances for survival are not good. we will get a live report 90s s. ♪ singer: buckle up, everybody 'cause we're taking a ride ♪ ♪ that can strain your relationships and hurt your pride ♪ ♪ it's the credit roller coaster ♪ ♪ and as you can see it kinda bites! ♪ ♪ so sing the lyrics with me: ♪ when your debt goes up your score goes down ♪ ♪ when you pay a little off it goes the other way 'round ♪ ♪ it's just the same for everybody, every boy and girl ♪ ♪ the credit roller coaster makes you wanna hurl ♪ ♪ so throw your hands in the air, and wave 'em around ♪ ♪ like a wanna-be frat boy trying to get down ♪ ♪ then bring 'em right back to where your laptop's at... ♪ ♪ log on to free credit report dot com - stat! ♪ vo: free credit score and report with enrollment in triple advantage. i heard about him from all the other girls. we were working at the same company. and she was something else. announcer: take care of each other, and your health. with nature made cholestoff. cholestoff helps lower

ldl cholesterol, the bad kind, naturally, by using the same types of phytonutrients found in nuts, grains, fruits, and vegetables. he makes me laugh. he still does, but it's nice.

trace: you know about the very cozy and scary relationship between the iranian president and the venezuelan president. hugo chavez's government is threatening to shut down the country's only remaining independent television station after 32 radio stations and a couple of small tv stations were closed down last month. >> there is only one television station left here that still bears to criticize the president, and that one is

hanging by a thread. for its employees, even going to the office can be dangerous. there is one television channel left in venezuela that criticizes the president. it is no easy place to work. a pro-government gang attacked the 24-hour news network. >> a small gain came inside the office. we were suffocating. it was horrible. >> hugo chavez, now in power to run for president indefinitely, is cracking down on the media. >> they are against the judges, public officials, they are against the state. they are against justice. we will not tolerate that anymore. >> 44 of radio stations were closed last month to get global vision it stands accused of inciting violence against the government. for now, their reporters are the

ones taking the be deemed. >> tv station says the government is indirectly responsible for the violence. trace: you spent a lot of time in venezuela and cuba. you saw what happened in cuba many years ago after the rise of fidel castro. is there a comparison to be made as to what is happening now in venezuela? >> there is a comparison. hugo chavez is an admirer of fidel castro. this carrier a thing is to see one man getting more and more powerful and nobody paid any attention to that. trace: thank you. martha: hunting for evidence in the kidnappings of other young girls at the home of an accused kidnapper and rapist. we will talk to an official who was out the home of phillip

garrido. investigators are now digging for answers. . complicated? shipping. shipping's complicated. not really. with priority mail flat rate boxes from the postal service shipping is easy. if it fits, it ships anywhere in the country for a low flat rate. that's not complicated. come on. how about...a handshake. alright. priority mail flat rate boxes only from the postal service. a simpler way to ship. i just want fewer pills and relief that lasts all day. take 2 extra strength tylenol every 4 to 6 hours?!? taking 8 pills a day... and if i take it for 10 days -- that's 80 pills. just 2 aleve can last all day. perfect. choose aleve and you can be taking four times... fewer pills than extra strength tylenol. just 2 aleve have the strength to relieve arthritis pain all day.

the amazing always infinity. ♪ it's astonishingly flexible. ♪ unbelievably soft. ♪ and has an amazing material... .bs making fluids seem to... poof... disappear. just like magic. ♪ always infinity. have a happy period.

are more than words here. it's personal. i have diabetes. rodney's kid too. so we're so proud to manufacture... the accu-chek® aviva meters and test strips... here in the u.s.a. plus, we've proven you'll waste 50% fewer strips... when you use our meter, which means greater savings... for people with diabetes, like me. now that's a true american value. accu-chek® aviva. born in the u.s.a.

trace: north korean leader kim jong-il is ready to engage in multilateral talks. in the middle, stocks are climbing ahead of the closing bell today, up about 43.

this is pending a strong run that left two major indexes up 2% last week. in the bottom box, a muslim teenager from oklahoma filing a federal lawsuit that claims abercrombie and fitch denied her a sales job because she wears a scarf on her head. the store manager says that the scarf violated the store's "look." martha: we want to get across to you the death of irving kristol, known as the father of a new conservatism. he had a long career as the father of "the commentary." he is also the father of william kristol, who is often on fox news and founded the "weekly

standard." crystal receive the medal of honor in 2002 from president bush, the highest civilian honor. he had a long, for full life. our thoughts go out to his family. trace: yes, our thoughts and prayers to bill kristol and his family. his father was a troop -- a true pioneer. right now, "studio b." [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- rick: there are major new investigations into cia interrogation tactics. wait until you hear who is telling the president to call it all off. it could be the news we were fearing. words that iran could have the ability to build ale