[captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- martha: hello, everybody. this is the "live desk." i am martha maccallum. trace: i am trace gallagher. today we are also live outside because there's breaking news in new york city. there is word that there could be more people connected to the ongoing terror investigation. martha: first, let's give you call up on what is coming into the newsroom. in the top box, president obama talking about how he is working

to change the way that america is seen around the world in his u.n. speech. what he said about israel is getting a lot of attention. also what libyan leader qaddafi said about president obama was stunning. we will show that to you. in the middle box, what is turning into a big controversy. is president obama changing his tune on how to proceed in afghanistan? the president and joe biden have some new ideas. rice has weighed in on those. we will give you heard take. in bottom box, president obama has said time and again that seniors will not see any it lost. the budget chief now is not so sure about that. trace: we are live outside for a very important reason. we have talked about new york as the focus of the potential terror threats.

now we know there could be more people connected to this investigation. we know three men are in custody. if you are not from new york city, it is very hard to visualize where this critical points of interest are, and just what close proximity they are. this is radio city music hall. this is rockefeller center. just down one block, that is the very center of times square. that is where they dropped the ball on new year's eve. if you go down eight blocks, that is penn station, one of the busiest stations in the country. security there is on high alert. across town is iran's central station, the biggest subway station in the -- across town is

grand central station. one of the men in custody had video inside that terminal. four blocks from there is the united nations, where world leaders are speaking as we speak. david lee miller, when we hear about potentially more people connected to this, it is very disconcerting. >> the police commissioner has said this could be the very beginning of the investigation. other media have reported that two thousand if not more individuals have been under surveillance in connection with this investigation. some now are disputing the figure. they say the manpower needed for that would be too great. i am told from someone close to the investigators that six or seven accomplices are being sought. there are reports that there could be multiple terror

investigation is taking place, in addition to this one. trace: i came outside of the train station today and they are everywhere. they are on every corner. there's word that there's a rift between the local police in new york and the feds. >> to be clear, the fbi and new york city have said there is no rift. if you look at the court documents, early in this investigation, the new york city police department went to a informant that they had used before. he was a religious leader at a mosque in queens. a short time later, he spoke with zazi on the telephone.

on that telephone conversation, he told zazi that he was under surveillance. realizing that, the feds took him into custody. the question now, why did he become a turncoat? why did the new york city police department go to their informant? that is a very big question. it has created something of a rift between the two agencies. trace: you look at new york city at 1:00 p.m. in the afternoon to the streets are packed. martha: and you have world leaders just several blocks across town. and a call for action today. president obama in his first presidential address at the u.n. general assembly.

the president said he is well aware of the expectations that the world has for his presidency. >> if we are honest with ourselves, we need to admitted that we are not living up to that responsibility. consider the course we are on if we fail to confront the status quo. extremists selling timber in pockets of the -- sewing terror in pockets of the world. genocide, more nations with nuclear weapons. the magnitude of our challenges have yet to be met by the measure of our actions. martha: he was calling on all nations to pull together and work toward those causes. major garrett is live from the united nations. the president talked about iran and north korea.

what did he have to say? >> he was tough, but not in the way that elicited from the general assembly any specific commitments to do anything concrete in the immediate future about either iran or north korea. this morning on fox, susan rice said iran will soon face a tough choice, or risk international condemnation and international isolation to the starkest of that choice is limited to what is on the table. there's no evidence whatsoever that the europeans or the united nations general assembly are prepared to move aggressively on sanctions. the president tried to make the case for that. >> if the governments of iran and north korea choose to ignore international standards, if they put the pursuit of nuclear weapons ahead of regional stability and security and opportunity of their own people,

if they are oblivious to the dangers of escalating nuclear arms races, then they must be held accountable. >> he said the next 12 months are going to be crucial for the united nations and the international community on the entire issue of nonproliferation treaty was clearly talking about iran and north korea. he said unless they do this, the treaties and resolutions will mean nothing and those who want to pursue nuclear weapons outside of that will do so without fear. martha: we will see what kind of response he gets on that as we go forward. talking little bit about the middle east, which was a cornerstone of the speech today. he drew applause when he talked about the settlements issue. >> he said that the united states -- this is not something that is brand new. the president and secrery of state hillary clinton have said it before.

yesterday, he dropped it as a necessary condition to final status talks between the israelis and palestinians. although it did get applause, equally, when the president talked about member nations needing to stop attacks on israel and ignoring its rights to exist -- but also received applause. that is more unusual than the ritualistic applause when israel comes up. on the palestinian side, the more hours before of israel's right to exist -- that got applause, which is rare. martha: be sure to keep it here on the "live desk." we will show you parts of the speech by libyan leader libyan president muammar qaddafi. we will place some of what he had to say, some of which was

quite stunning for a number of reasons. we will tell you what he had president obama to president obama. trace: a wrestling match on capitol hill over a health care plan that may be coming closer to getting passed by the senate. they have already hit a snag on the cost. and other lawmakers should know the true cost before they vote for this thing. carl cameron, it seems like a no-brainer. shouldn't that the lawmakers know how much this cost? >> all the lawmakers in the senate would say yes. more than half of them voted against exactly that just a little while ago clear ye. a senator said we want to see the actual language three days

before we have to vote on it and we want a complete analysis and report from the congressional budget office so we can put it all on the internet and we can read it and know what we're talking about. it did not go over very well. some democrats call that a delay tactic. john kerry said nobody reads it. that did not go over very well. you're just a sampling. >> the effect of this amendment is, we have got to wait two to three weeks after we completed everything. i do not think that is acceptable. >> this is about doing our jobs. if it takes two more weeks, it takes two more weeks. we are talking about trillions of dollars. i do not understand it. what is the rush? is there something happening in two weeks that we cannot wait?

is it the columbus day recess? >> they voted on the amendment. one democrati voted for it. there will not be any requirements. it made republicans furious. they lost 12-11. blanche lincoln broke with her party to say yes, it is the obligation, and it would be nice of the public could take a look. trace: carl cameron, thank you. martha: she once led all u.s. foreign policy for the bush administration. now condoleezza rice has some harsh words about president obama's administration and their plans for afghanistan treated the president seems to be considering a suggestion that came from joe biden.

why the former secretary of state is stepping up and saying that decision could be a prelude to disaster. we will tell you what she said about afghanistan. also, the defense secretary said that they both get a troop request by the end of this week. congress calling on to general mcchrystal to testify about the administration's policy in afghanistan to there's a lot of friction over whether or not he will testify and whether it the white house bowants him to testify before congress. please log onto foxnews.com andr only new dove has nutriummoisture... which can nourish deep down. new dove body wash with nutriummoisture. superior natural nourishment for your skin. a day on the days that you have arthritis pain, you could end up taking 4 times the number... of pills compared to aleve.

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martha: in the top box, the mass murder mystery in illinois. a family of five was found dead inside their home in illinois. autopsies show that none of the victims were shot. a 3-year-old girl survived the attack. paul kirk will be named interim senator until the election on january 19. they will have a special election. that is exactly what senator kennedy wanted.

in bottom box, congress calling on general mcchrystal to testify on the obama administration strategy in afghanistan to their questions on whether or not there is division there over what should happen in afghanistan between the general and the white house. we ask you to take our online survey. here are the responses. should gates to allow general mcchrystal to testify before congress? 53% said yes. 7% say yes, but only after the administration produced the recommendations. 38% stake no, this is a political move and could jeopardize the war effort. trace: two very different takes on the work in afghanistan from two very influential people in washington. president obama reportedly considering a suggestion from

vice president joe biden. he is advocating a plan to scale back american forces, focusing more on al-qaeda and the terrorists in pakistan instead of afghanistan. former secretary of state condoleezza rice says that is a recipe for disaster. she said -- trace: a former afghanistan and pakistan analyst for the state department joins us. i want to play you wat president obama said two months ago. >> if left unchecked, the taliban insurgency will need an even larger safe haven from which al-qaeda would plot to kill more americans. trace: now it seems like a lot of critics believe the president

is in this moment of indecision. >> yes, he is. i happen to agree with condoleezza rice. i believe she is right. she said it is more than simply a question of troops surge, but really a geo-strategic issue. we have enormous stakes in the region. al-qaeda, and the danger from the extremist is just one part of it. the future of pakistan is involved as well. the danger of a civil war in afghanistan, i believe, would be catastrophic for our interests. trace: admiral mollen referred to the book "3 cups of tea." he said they have to trust us. what does that say to the people who are in afghanistan, or tried to fight for their

lives? >> the dangers here is that we will be viewed as a force in the area is serving basically our own interests, and that we really do not care about the future of the people in that region could we have to be careful that we do not reinforce the idea that we are an unreliable power. i'm afraid that even this discussion that is going on now is sending a message that says the united states is looking for an exit. therefore, if you're ambivalent about where you stand, you perhaps want to jump in the direction of the taliban. martha: yesterday i spoke with john bolton. he feels that general mcchrystal should consider resigning if president obama does not support what he wants to do on the ground. now we hear there's an internal battle bueno between the pentagon and the white house about whether or not general

mcchrystal should speak before congress. >> this is a concern. there's also some disagreement within the military itself. if he does come back, i would hope that he would help redefine what we are there, and it is not just about al-qaeda. the fact that we so narrowly defined this to begin with has left the administration so vulnerable. if it had expressed this in terms of what are the major stakes the the united states has in the region, i think this is a defensible case, but not if our mission is going to be brought back to where it was in 2002, 2003, in 2004 when we let this get out of hand by simply focusing on al-qaeda. martrace: thank you. now, suddenly, he has this the

way to deal with. martha: do not take your eye off the health-care ball. have you heard this? accusations that one side is trying to stop the other from talking trade a top republican said the government put a gag order on a big health insurance provider after the insurer warned their customers that they could lose benefits under the president's plan. also, a frantic call to 911. the house and rushes home to save -- husband rushes home to save his life was being attacked by a bull elk. listen to this. martha: we are going to tell you what , next.

martha: he is calling it a federal gag order, leaving mitch mcconnell now to call for an investigation into why the government tried to silence a leading health provider that sent information out to their customers. it said the health care legislation may cut health-care benefits. president obama has repeatedly said that seniors will be able to keep their plants. jim angle is live from washington with this very controversial story. >> a funny thing happened in the debate over cutting money for

health care to finance health- care reform. republicans are calling this a gag order. it secured when humana, which offers a supplemental plan to medicare, sent a letter to beneficiaries warning that congress is planning on cutting more than $100 billion from the program and it could affect their benefits. that upset senator max baucus and he asked the center for medicare and medicaid services to tell all insurers that they cannot contact their beneficiaries. republicans called it a gag order. >> shut up, the government says. do not communicate with your customers. be quiet and get in line. >> all the letter said was if the proposed funding levels become cut, at the seniors and disabled individuals could lose

many important services that are part of medicare advantage. john boehner says it is outrageous that the obama administration is trying to keep seniors in the dark. rep camp wants to know what their legal authority was to tell the insurance companies they could not contact their beneficiaries. the head of the nonpartisan congressional budget office seemed to agree with the letter from humana, saying the proposed changes would reduce the benefits that would be available through the medicare advantage plans. cbo director can say it publicly, but the administration does not want the insurance companies to say the same thing to their beneficiaries. martha: thank you very much. trace: a colorado woman found herself in a frightening situation, suddenly attacked by a bull elk. she was kicked in the face by the animal. she jumped in her car and made a

frantic call for help to her husband, who then called 911. listen to this. trace: the woman was taken to the hospital. she is expected to recover from those injuries. the death toll in georgia to the rising and the new pictures are heartbreaking. we'll take you to the scene of

the flooding. you see the fire? the flooding and the fires in georgia and. president obama taking the podium in his first speech to the general assembly. libyan leader muammar qaddafi speaking at the un. he had a very interesting take in what he thought would be the best thing for america could be.

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trace: we have brand new information on three big stories. the faa is very concerned about your safety when you fly. molly henneberg is following a hearing on capitol hill. >> members of the aviation industry update the house transportation committee on what the faa and air carriers and pilots unions are doing to improve safety, especially in regional air transportation fee of the faa sent a letter to>> tg some companies' bottom lines.

manufacturers of those had sanitizers are watching their profits soar. these companies may be cashing in, but they say they are marketing their products responsibly and not contributing to people's flu fears. trace: the flood waters in georgia are beginning to go down. >> as these flood waters start to received, state and local officials are warning home mannerowners to take extreme ca. earlier, a home exploded because the gas was not shut off. there of working very hard right now to shut off the gas and make the area safe. back to you. trace: thank you very much. that is brand new information. martha: it has been a very big

day across the city where the united nations lives. president obama gave his first speech there today. right after his speech, libyan leader muammar qaddafi gave a rambling more than 90 minutes speech. sometimes qaddafi's speech was fiery. i wish you could see it. he read from yellow legal pad pages to be spent a fair amount of time praising president obama take a look.

martha: i am sure the president found that's very helpful. judith miller, ambassador richard fairbanks, and michael joins us as well. judith, he went on and on. he called president obama "our son." he went on and on about how happy he was that president obama is president of the united states. who wants this guy crazy prasing you. >> at least he is not doing what the french did, which is to call obama an amateur. qaddafi never fails to surprise.

he tends to have a penchant for american presidents who he perceives as being on the left. the should not come as a surprise. -- this should not come as a surprise. martha: we cannot wholeheartedly chuckle about it if he were not the leader of terrorist acts, was given this forum to go on and on trade it was awkward and odd. i want to get back to what are president had to say. >> we continue to call on palestinians. and we continue to emphasize that america does not accept the legitimacy of continued israeli settlements. martha: that got a big round of applause. embassador fairbanks, -- ambassador fairbanks, john bolton said that he felt the president was very tough on

israel in the speech. do you agree? >> from that excerpt, it sounded like the u.s. policy as it has been through many presidencies -- every single presidency in the last 25 years has said at a minimum that the israeli settlements are obstacles. some have said it is illegal. the president has said something in the middle. he has been consistent. he has been against settlements publicly and privately, but i do not think it is a radical departure. martha: he said we respect north korea and iran as members of the body, but he said they had to comply with the nuclear regulations of the un, or big bad things would have beppen. >> so far, the president does not have very much to show. the germans are terrified about

his afghan policy. the russians do not seem to want to give him anything on iran. the chinese expressed concern about what is going on with respect to iran. i'm afraid that the president, despite his enormous charisma and charm and elegance, is going to have very little to show at the end of this meeting. martha: michael, you spent time working on speeches for president bush. i want to play one quote from president obama. >> after years of war, he sough t some up the lessons that have taken place. he said, we have learned to be citizens of the world, members of the human community. martha: he was quoting fdr. what do you think about that?

>> there was almost nothing similar about the speech to franklin roosevelt. franklin roosevelt was one of the most clear, consistent defenders of american interests. this speech had a number of apologies for american policy. as was said earlier, it had a series of appeals that seemed to be going nowhere. it was a speech that conveyed weakness. i was deeply disappointed with the speech. martha: how does he worked the middle on this? he ran on a platform of reaching out to other countries. doesn't he kind of have to be in this vein and have this tenor when he speaks? >> franklin roosevelt spoke against war, even as he effectively conducted it, but i think many americans are getting

tired of rhetorical ploy. torture, the environmental degradation, the world is at fault here. in the answer. it is one of the most narcissistic approaches to american leadership i have ever seen in american political rhetoric. martha: thank you very much to all of you for your thoughts on this today. when this video came into the newsroom, everybody gasped. 6-year-old walking outside a store. a car comes out of nowhere. we certainly would not show it to you if this was (voice 2) they're pinging more targets... (voice 3) isolate... prevent damage... (voice 2) got 'em. (voice 3) great exercise guys. let's run it again.

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purple pill. learn how you can save online. if you can't afford your medication, astrazeneca may be able to help. trace: in corpus christi, texas, police are looking for a hit and run driver. he backed into a man in a parking lot. the 35-year-old is walking

across the parking lot. when he gets to his car, the man back into him. and then she just drives off. he suffered six broken ribs and several deep cuts. >> i felt a forceful push from behind. i did not know what it was at first. i was pinned between both the vehicles. apparently she realized she hit some state and drove away. trace: police later found the suspect's suv abandoned at a fast-food restaurant to the suspect is facing felony charges for leaving the scene of an accident. here's what we showed you before the break involved in that little girl in washington state. look at the car. as soon as this came in the

newsroom, everybody was like, oh, my god. the car came into the picture and smashed into the store. the girl was at the rear end of the carp. the girl was not hurt. police say the driver was arrested for reckless driving and driving on a suspended license. and there are new developments from guantanamo bay. there may be a ranch in the plans to close the prison by january. a judge presiding over one of the cases could buck president obama's buss and order his trial to go forward. catherine herridge, what happened in court today? >> this morning we ryan court room one, -- as morning we were

in court room one. in this case, the saudi national, the government contends he is an alleged terrorist. the judge was clearly frustrated that the government was asking for a third delay in this case. the judge said he was granted a continuance, which puts the trial on hold until mid november. after that, you told the government that there would be no more delays. the judges suggested very strongly that these constant requests for more time and the fact that these cases are not dealt with it, in his opinion, it is a violation of the executive order that the president signed in january. trace: new court documents were released from khalid shaikh mohammed and the other 9/11 conspirators in which they

attacked the president. >> these documents were released late last night. the documents are translated -- it appears to be in the very voice of the conspirators. the first reads -- and then there is a second statement from khalid shaikh mohammed that reads -- what i can tell you, having seen similar filings under the previous administration, that is the same type of rhetoric. however, in this case, their target is the new president, president obama.

trace: thank you. martha: he is in the united states for the first time since taking power 40 years ago, but dictator libyan leader muammar qaddafi is not as ugly getting a warm welcome. wait until you find out where he tried to pitch his lavish tent. and how one small town is keeping the leader out. you were right. these healthy choice fresh mixer thingys, they taste fresh... say it again! they taste fresh. wait. what are you doing? got it. you're secretly taping me?

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trace: that is the white house press secretary robert gibbs. the daily briefing is in new york today. take a listen. >> what is he trying to sell you

will give in order to get the kind of cooperation that he wants to get? >> first and foremost, what those at the united nations will get from the united states is a paner in pursuit of many of the goals which the president outlined today. i think he challenged the body to meet its responsibilities to the threats and challenges that we face with the type of action that is necessary to meet them. i think he laid out an agenda, part of which we will take up starting tomorrow when the president chairs the proliferation meeting at the security council. we continue our discussions on preventing nuclear weapons from landing in the hands of terrorists and the spread of nuclear weapons throughout the world.

i think the president outlined many of the challenges that we faced. and in many ways, challenged those sitting in the auditorium to use the form of the united nations in a more constructive way. and to all work together to meet our own goals, to stop playing politics, to stop using this as a form to create political sideshows. instead, to meet our challenges. >> can you outline what sort of activity is going on here? talk about what is being done to get ready. >> a couple of things today --

the president is meeting tomorrow at the national security council, which i think is obviously an important step. the president will continue to outline steps that we are taking well into next year to invite the nation's 2 summit to discuss the spread of nuclear material. the four ministers of the p5 plus one will meet later today and have a statement after that meeting. obviously, that is the group -- >> [inaudible] >> yes, that will obviously be the same group that meets on october 1. the president will discuss with medvedev today the topic of iran.

i expect these conversations to continue as the president travels to the g-20 in two different. >> [inaudible] >> throughout this, he will talk to members. this is a topic that comes up in virtually every conversation that he has with world leaders. i think it is important. the president believes it is important to continue those conversations. >> is there any sense that with president medvedev today that the obama administration abandonment of the bush era approach of the missile defense. >> i think it is probably best -- the read out will happen

rather than protect. -- rather than predict what might happen. as we talked about, the decision to change the 2006 recommendation to greater address the iranian threat with a system that was tested, flexible, and more effective, was the unanimous recommendation of the joint chiefs and accepted by the president. obviously, they will have a chance to discuss a wide range of topics, including iran. >> still contend with that decision -- was made without the russians in mind. >> do not take my word for it, take secretary gates workd. >> rice talked about benefits of the new approach to the un. the main thing she said was the

united states is viewed more positively. is that true at this point? is it too soon to tell? >> i think ambassador rice would tell you this. greater engagement worked first and foremost with probably the most high-profile issue that the security council has had to deal with since the preside came to office. that is dealing directly with north korea. go back to the briefings that we had around that time period. do not take it from me. read the skepticism from which the questions came about the security council acting in a way that was not simply unanimous but constructive in addressing death threats. -- in addressing that threat. that was addressed unanimously by the security council.

i think we are making progress on middle east peace. we are making progress tomorrow on nuclear proliferation. you heard of the president talk about the threat that must be faced with north korea and iran. we will continue to work to make progress on that. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- the president has been here for a little more than eight months. we never came in under the impression that years of these challenges would be wiped away in a matter of months. the president has invested a lot of time and energy in these challenges. and he understands it will take some time to continue -- it will take some time as we continue to make progress. trace: that is robert gibbs in

new york city today. the briefing is from new york because the president is in new york speaking to the general assembly at the united nations. we will continue to monitor that. martha: it was a 96 minute rant today from libyan leader muammar qaddafi. he said the invasion of iraq was a violation of the un charter and the rest of the world body has never held america accountable for its actions. >> why there was any reason to invade iraq? because it is mysterious, ambiguous, and we may face the same destiny. why did we invade iraq? it was a serious violation of the un charter. martha: that may just be the beginning. it could be the warm up for what we can expect tomorrow. the president of venezuela will address the u.s. assembly. there is president obama.

we will be watching that closely. after all that, and during all that, libyan leader muammar qaddafi was very complimentary of our president. >> qaddafi has endorsed barack obama as the president of the united states. in fact, he would like obama and not just to be president for life, but he would like obama to be president forever. that was part of this incredible, long speech that the blood on for 90 minutes. he was supposed to talk for 50 minutes. it ranged from everything from nuclear proliferation and terrorism to the evils of jet lag. when it comes to the president, he had some very complimentary things to say, calling him "our son" or "my son" because of his

african roots. >> we are happy, proud that one son of africans governs the united states. we are content and happy if obama can't stay forever as the president of the united states. >> that was just some of what he said. you may have seen the mouth of the african continent on his chest. that is because he is also chairman of the african union. martha: quite a forum he had there today. tell me a little bit about what happened with hugo chavez. >> i am not finished yet with this unbelievable speech by qaddafi. he said his co-pilot may have been barred from coming into the united states. as for chavez, he and qaafi

have met. cameras were not there. he will speak tomorrow. later on this evening, it is ahmadinejad's turn. he has been pushed back about two hours because qaddafi went on for so long. it has been a long time since the united nations has had one of these type of speeches. fidel castro went one time for more than four hours. qaddafi's speech was delayed a little bit. back to you. martha: thank you. trace: we're down here in acquisitions. that is what is happening right now at the united nations general assembly. the fireworks will almost certainly continue tonight when iranian president ahmadinejad

addresses the assembly. the experts say that iran is close to having the goods and the knowledge to build a nuclear weapon. president obama talked about that there is subjecsubject tod. >> if they put the pursuit of nuclear weapons ahead of regional stability and opportunity and stability of their own people, if they are oblivious to the dangers, they must be held accountable. trace: what he might say tonight? >> as we know, president ahmadinejad is known for surprises. he has already said that the nuclear issue is not on his agenda. he will be talking about political, economic, and humanitarian issues. this is days after he repeated his denial of the holocaust,

which drew international condemnation. earlier today, a prominent iranian american political analysts said it would be a mistake if the world's media focused entirely on the holocaust denial issue while ahmadinejad is in new york at the expense of putting pressure on the iranian president for the abuse of human rights that has been going on in iran. he said it would be a disappointment to those people who are right now fighting for democracy and human rights in iran. there are many people who are political prisoners now after the june 12 elections in iran. some of them are leading figures in the islamic revolution who are now lobbying for more openness in iran. the international campaign for human rights in iran claims four hundred political prisoners arrested after the june elections remain in detention now. that said, many of the pro- democracy protesters remained defiant and do not accept the results of the june 12 elections. as you can see from these demonstrations from last friday,

says the turmoil in iran began, 4000 people have been arrested. the government said 30 were killed in the violence that followed. the international campaign for human rights in iran estimates anywhere from 72 to 200 were killed. cracks in the iranian power structure continue to play out quite publicly. here you see what appears to be a snub of president ahmadinejad by the head of the expediency council last week. he walks by without any salutation. the iranian president says he wants to talk about how iran sees itself as a peaceful player on the world's stage, and the process ahmadinejad will talk about that in great detail. there will be discussion about human-rights situation in iran, and the holocaust denial. trace: we cannot show you all

the speeches, but if you want to see them, you can go on to foxnews.com. live streaming video of each and every speech. we will show you that on foxnews.com. martha: the fbi and the nypd on high alert. they are searching for suspects and looking for explosives and other bomb making materials that might be connected to an al- qaeda link terror plot they are investigating in the united states. this is now spreading to friends and associates andzazi, an afghan emigrant believed to be at the center. this is the 24-year-old at the center of the alleged plot. security has been heightened around the city. meanwhile, the head of homeland security is urging americans to stay vigilant. what does that mean?

james rosen is live in washington. agencies across the federal government are also on top of this case today. what are you hear me? >> not only at the federal level, but also law enforcement anon the municipal level. the fbi has been central on this case. there have been reports that units within the nypd have not been as cooperative as some would wish. the fbi and the nypd have clashed. the homeland security secretary emphasized the degree to which federal agencies are seeking to keep their ongoing investigative efforts in line with each other. >> right now, on the zazi matter, we have no information on the timing, location, or target of a specific attack. given recent events across the

federal government, we have been working very closely, sharing information, and coordinating resources to ensure that we are doing everything possible to keep americans say. -- keep americans safe. >> that echoes what we heard from new york city police commissioner ray kelly. martha: how many people might be involved? we're across the country are they looking? >> this is an international case, with elements tied to pakistan and al-qaeda training camps. authorities are tracking two dozen people in this case. so far, we have seen the arrest of three people, including zazi and his father. they were charged with providing false information during three days of interrogation by the fbi. the charges may expand further. authorities say that the third

man, afzali, was developed as an informant, and then allegedly tipped off the younger zazi. that work by the nypd has led to reports of a lack of coordination between it and the fbi. it appears the investigation is in a very fluid stage. martha: a lot more to be told on the story. thank you, james rosen. trace: one of the biggest worries for seniors when it comes to health care reform is that they will see their medicare benefits cut. president obama says that will not happen. breaking today, the congressional budget chief is telling a very different story.

♪ ♪ i got troubles, oh

martha: do you think the fed will tighten interest rates today. we will know in a few hours from now. we will let you know what the announcement is. in the middle box, a wildfire in ventura county, calif. evacuation orders are in effect for 100 homes -- 1000 homes that have been threatened. the flames have burned 9,700 acres so far. fire crews are keeping a close eye on that. in bottom box, emotional testimony from john travolta as

he told a court that he tried desperately to save the life of his son. the trial of two people accused of trying to blackmail john travolta with the private information about the rescue effort. he is testifying in that today. trace: is one of the biggest sticking points for health care reform, will seniors see cuts to medicare? president obama says older americans have nothing to worry about. the head of the nonpartisan congressional budget office is contradicting that stance. the cbo chief told senators the so-called baucus bill would cut payments to medicare advantage plans by more than $100 billion over 10 years. let's bring in the former communications director for house speaker phastert and

the former adviser to the clinton-gore campaigns. every time the president talks about these numbers, the cbo says that is not exactly right. >> this is really a budget been idem. they are wrangling in the finance committee over this right now. the fact is that president obama will not sign a bill that will take millions of seniors of the medicare rolls. the republicans used to accuse the democrats of scaring the public on social security. there's obviously a lot of political hay being made out of this. we have to see how the sausages finally made. trace: it is not the republicans tearing people now, is the cbo scaring people. >> now that we have the bill,

the devil is in the details. you are talking about $100 billion in cuts. not to mention, you also have cuts in nursing homes, hospitals, hospices. just on medicare advantage alone, they will take away benefits that include eye care, carry dafoot care, and hearing . they can point to the republicans if they want to, but they're the ones in charge. president obama said you can keep your health care plan. i guess it is not true for seniors who are not so well off these days. trace: the other big point is that republicans and some democrats say this mandate that everybody has to buy health insurance really is a tax. some democrats say this could be a burden on a lot of middle- class families.

the cbo says families making as little as $54,000 could have to pay 14% of their gross take-home income to health care premiums. >> ron just made my point. he is politicizing this whole process. he knows very well that this is a process. there will be proposals back- and-forth. this thing is not set in stone. ironically, there are republicans that have issues, and some democrats think the bill does not go far enough. trace: i have to stop you there. we have some breaking news. martha: this is a fox news alert. as promised, the fed has just made a decision. one of the most important things they say is we are in a recovery. they're leaving interest rates unchanged as they continue to take a look at how the economy is doing.

they say we're in recovery. >> they also say that inflation expectations will be damp for a long time. they're not worried about inflation. the markets are going up right now. one of the key things that the fed is doing is they are buying mortgage-backed securities. that is propping up home loans in this country could we need housing to recover. if there was any hint that there would be backing off in the mbs's, usa the market fall apart today. we are actually seeing the market go higher. martha: they will hold steady. keep interest rates exactly where they are. >> there you go. it is what we expected. martha: thank you very much. continuing right here, at least 10 deaths are blamed on flooding in georgia.

now they include a 14-year-old georgia boy who was swept away as his mother and grandmother and watched helplessly. he was struggling to reach a car that overturned in the flood waters. he thought he saw a hand sticking out of the window and went to help. >> he was not in that water. i kept screaming for him to come back and he could not come back. he wanted to help whoever was in the truck. martha: the governor said yesterday, you are not a match for the bader. it is causing some terribly sad stories as a result. let's keep taking a look at what is going on. breaking developments .

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martha: we have been showing you the horrible pictures from atlanta, georgia. the death toll now stands at 10. we are told that the water levels are starting to fall. people in the hardest-hit areas are beginning to take a look at some of the damage. early estimates are putting their losses in georgia at $250 million. past disasters of this kind have shown us the cost is likely to get much higher. latest forecast shows a lull in the leather. marianne, how are they doing? >> they are trying to do the best they can, trying to salvage some things. they're going back to their flooded homes.

they're still having to go in a boat. fema says there are 91,000 flood insurance policies in effect right now. they're trying to speed help to these people as soon as they can't. the governor has asked the president to help with federal aid. i'm about to come into the home of barbara robinson. she was able to come back home today. take a look at what she saw when she came in. mud everywhere and all of her things are destroyed. the worst part about this is you did not have flood insurance. >> i did not have flood insurance at all today said it was not needed because i was not in the flood area. >> what are you going to do moving forward? >> i do not know what i can do. >> the other thing is the possible danger of coming back to your home. we heard that there was a home near here that exploded because the gas had not been turned off.

i want to show you this home burning in the middle of this flood water. state and local officials are telling people to be very careful when they are coming back into their homes because of that. at your house, they did cut off the gas. people are dealing with a major mess. martha: we wish them all well. thank you. trace: i have never been so worried. those are troubling words from a counter-terrorism official on the expanding terror plot that is alleged. the fbi believes teams of terrorists are still out there and may be actively trying to finish their mission. the hunt for al-qaeda in 3 minutes.

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trace: brand new information on three big stories. the alleged terror plot. three suspects are in custody. now there's word there could be many more. david lee miller. >> the investigation into the terror plot based in queens, new york continues with its tentacles reaching out to denver, colorado and possibly al-qaeda networks in pakistan. there could be as many as six or seven accomplices, some of whom may be overseas. even complicating the

investigation, reports of a rift between the fbi and the nypd. trace: david lee miller in new york. hundreds of amendments to the baucus health care reform plan, but still very little agreement. carl cameron is on capitol hill. >> republicans are giving the democrats that there should be a publication of the actual language and a full analysis of the cost before they are compelled to vote. democrats flatly disagreed and said republicans were just trying to stall. there will not be a requirement to publish the legislative language. there's another glitch over the reductions in spending on medicare. republicans insist that you cannot cut $500 million without cutting services. democrats say they think they can still do it. trace: there's a signal that russia might be willing to talk about more sanctions against iran. wendell goler on the north lawn

of the white house. >> a russian diplomat says his country will not rule out tougher sanctions against iran. the white house says russia's willingness to play a constructive role is extremely important. officials say iran is at the top of the agenda for today's meeting between president obama and russian president medvedev. earlier, president obama told the u.n. general assembly that keeping iran from building a nuclear weapon is not about a single in how the iran, but the rights of all nations. martha: we want to get back to the terror plot that was just discussed by david lee miller. back with me is fox news contributor judith miller and steve emerson joins us. good to have you here. there's a lot of discussion about a storage unit, about bomb making materials.

what we have so far are these three men in custody only on charges of lying to investigators. >> you have almost a perfect storm because this is the week with all the dignitaries in new york, with the president, with the israeli prime minister, with the iranian foreign minister. nobody wanted to take any chances. when they discovered there was a plot under way, once it took a certain direction when there was formulations of chemical combustion material, talks about potential explosions, wiretaps going back to afghanistan and pakistan -- nobody wanted to take a chance that there could be explosives hidden someplace. they searched for storage containers. they searched for any type of storage unit that might have contained some of the materials used for bomb making. they did not find any. it does not mean they will not find any. because of what was going on

this week, they did not want to take any chances. martha: we do not know if this plot is still ongoing. they talked about other people. are they still out there? >> we believe that some of them have been picked up and spoken to by the nypd. this is an fbi-led investigation. yes, there is tension between the fbi and the nypd, but i would not make too much of that. this is an enormously charged situation in which people are very worried about the security of the city. the things they found so far, the backpacks and cellphones -- they look innocent. but the handwritten notes of the main suspect of bomb making instructions -- this is very serious. yes, the assumption is that there are other people out there i know they are very busy hunting for them. martha: how does this work? if they think they had as many

as 24 associates who may still be out there -- and judith believes that some of them have been spoken to. are they throw in the south there so the folks who might be involved my start talking and getting nervous? >> they have already started talking to some of the islamic mosque leaders in new york. one of whom turned out to be a dirty informant. he was leaking information he was getting from the new york city police back to the culprit himself. there's a dragnet in denver, new york city, queens, brooklyn, and the fisa wiretaps show of phone calls to afghanistan and pakistan. they are very serious. they clearly show that they're ready the directions given too or discussions about bomb making from those people connected to al-qaeda. martha: this is a huge case.

this is one of the first that i remember that does not have an fbi plant in it. these guys appeared to be cooking up something big. how worried should we be in new york city right now? >> there's always a fine line between panic and complacent. that is what we as new yorkers and americans have to cope with all the time. as they say in law enforcement, this is the real deal. the fact that there was not an informant, and also the fact that the one of them came from afghanistan when he was 12. this is what worries the fbi. this is a homegrown guy. martha: steve, this has to be the dream of al-qaeda to want to

pull off something in new york city that is similar to what we saw in london and similar to what we saw in spain that we have been mercilessly spirit of heared of. >> i was speaking to a dissident islamic spiritual leader purity said he broke away from a mosque that was full of taliban supporters. it gives you an idea of the extent to which there is sympathy for the taliban or four al-qaeda. the question is, or the home grown, or are they taking direction? martha: all you have to do is listen to qaddafi today at the un talking about how the taliban is not the enemy. back to you. trace: the media desk has new and very scary video. this is a school bus hitting a car head-on in tucson, ariz.

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trace: we just got brand-new video. it is pretty disturbing and traffic. this is in tucson, arizona. it is a school bus hitting a car. three people inside the car were killed. there were no students on the school bus, just the bus driver. pretty bad video just coming in on the media desk. with the h1n1 virus spreading in all 50 states, people have gone all out to protect themselves. these are popping up everywhere. what are these? an arsenal of sanitizers and termsgerm spray.

sales are booming. h1n1 is pretty big business. >> is very big business. companies that make these products aimed at killing the virus are watching their bottom line move. you can track the profits the way we track the virus. it was first diagnosed in early spring. since that time, why ilysol sals are up half a million. purell is held privately, so they do not have to release any information. trace: i'm sure nobody is suggesting that maybe these companies are trying to cash in on h1n1. >> nobody is accusing these companies of doing anything wrong. that was the case in 2001 when

the maker of cipro was accused of profiteering during the anthrax scare. some are questioning whether these companies are using their web sites to feed the hype. they say that is not the case and they're just trying to educate people. >> it is a company's responsibility to provide good information about the proper use of the products. and is physically if people are looking for that information -- and specifically if people are looking for that information. >> with the kids back at school, people want to know as much as possible about h1n1. back to you. trace: thank you. jay-z may have a little competition. new york dr. john clark is known as the wrapping physician. he is the medical doctor of the long island rail road could use the proud winner of the health

and human services department contest to find a catchy tune to use as a public-service announcement to prevent swine flu. >> ♪ i recommend usinwashing yor hands for protection don't touch your eyes, your mouth, or face you'd better play it safe ♪ trace: what better time for a shep tease? martha: no one even tell me they were having a contest. i would have submitted mine. shepard: i did not know the long island railroad had a doctor. only a million people a day on the long island rail road. bar car as a place to be.

i was just looking to see what is happening. we do have some very interesting things today. not the least of which is this qaddafi tent. there's some good deal. it is just up the river in westchester county where all the fancy people live. martha: i have seen better tents. it looks sloppy. shepard: how would you feel if you were a neighbor of this tent? one of the neighbors will be joining us. john travolta and testify in his extortion charges in the bahamas. we will update you on that. here is another thing. president obama is going around the world apologizing for the united states, according to one of our guests.

are we turning a blind eye to iran? i do not think we know. do we have a deal worked out with israel? i do not know. he does not know. we will talk to our guests about that. martha: portia'she is good. shepard: tomorrow i will go watch the rebels play. martha: we are excited for you. trace: the rebels are loaded with swine flu. [laughter] here we go again. a brand new wild fire raging in southern california. the flames are burning in ventura county. nearly 1000 homes are now threatened. we will talk to a fire captain to find out how they're handling this one. now they are dealing with those powerful winds. we will have an update in three.

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trace: in the top box, the french president is speaking united nations. if you want to watch that, it is streaming live on foxnews.com. in the middle box, dow was flirting with 10,000. it has dipped down again. the fed left their rates unchanged. in bottom box, a memorial held tonight for annie le, yale crested until right before her wedding day. martha: hot and dusty santa ana winds in ventura county, california. the governor declared the area a disaster to the fire is burning in the hills.

so far the flames have destroyed nearly two dozen buildings treated broke out yesterday. today's triple digit heat is not helping things. the fire capt joins us on the phone. tell us a little bit about how you're dealing with it. >> winds have kicked in today and we have over 100 degree temperatures and single-digit humidity. we were not prepared for that today, but it is pushing the fire. it is basically a two-fire front. it came yesterday from the north and burned quickly to the south. now it is spreading to the east and west. we have two major fronts at this time. martha: we reported that 1000 homes are in danger. how close are they? >> here in southern california, what we have learned through the last few years is it is not the

flame in pension and the burns down homes, it is the ember production that we have when we have these winds. homes as far away as a mile away from the fire can be affected. martha: how worried about this are you right now? >> at this point, we feel confident with the evacuation is that we have. we implement what the color a ready said go program. hopefully most of the president'residents utilize thi. they're not surprised when we evacuate them. they know where to go and what to take. martha: tell me a little bit about what you expect in the leather. -- in the weather. >> the weather did exactly what we thought it did yesterday.

yesterday evening we were hoping for more coastal influence. we are about 20 minutes from the pacific ocean. that did not pan out. we continue to have dry temperatures and dry humidity throughout the night. this morning it was about 70 degrees as the sun came up and now we are above 100 degrees. martha: thank you. i know you are working very hard. we wish you all the best. >> thank you very much. trace: the coastal influence is that wet fog. reaction now to the controversy over qaddafi's tent from neighbors who were dead set against letting the libyan dictator set foot in their town. a syracuse grad is among those. many of those killed in the pan am flight were syracuse

students. an 88-year-old man takes on a bunch of bad guys and comes out the winner. he uses a wheelchair. what he did and why his family is so proud of him in three minutes. >> i am so proud and thankful. . .

medicare. it doesn't cover everything.

trace: rescuers in china breaking up the chisels and the jaws of life to save a little boy trapped between two concrete

pillars. it is a three-year old, and somehow, he got his head stuck between the massive pillars. you can see him kind of standing there, right? firefighters tried using the jaws of life to break the concrete. finally, they had to resort to chiselling him out by hand. after many tense moments, the boy is finally free, and he is whisked away to the hospital. can you imagine that? he looks fine. i think he is going to be fine. martha: the other story we told you about is incredible. an 88-year-old world war ii veterans fought off intruders. a woman comes to the door, saying she is raising money for the church. she distracted the man in a wheelchair that you see there. the three men then tried to steal his safe. he jumped out of his wheelchair, tackle them, and punched them. listen to this. i >> gave the guy one could

wallop. i started running. i don't know how i did it. i can't run the woman was there pushing me away. they scratched me and pulled on my shirt. martha: i love that. adrenaline, right? trace: they got away, by the way. the cops are on them. martha: thanks for watching. we will see right here tomorrow. shepard: thanks, guys. i know you saw this controversial leader of libya up there at the united nations. his speech was out where the trains do not run, an angry red of handwritten notes -- and angry red an -- angry rant off handwritten notes. on the topic of president obama, it was a whole different story, and we will have it for you in 45 seconds. also,