martha: we've got a busy day for you, folks. trace: giving you a live look at the united nations. we are waiting for the israeli prime minister benjamin netanyahu to address the assembly. it is a very important speech. there has been a lot of talk about the possibility of israel striking iran. this could be a pivotal speech. we will bring you that live when it happens. in the meantime, we will get you up-to-date on what is happening in the world. breaking news in the growing terror investigation. a colorado man accused of conspiring to use weapons of mass destruction. the indictment also lays out some chilling evidence about how close zazi may have been to implementing his plan. we will take you live to the courthouse in moments. in the middle box, the healthcare debate is getting fiery on the floor of the senate. new numbers from a non-partisan congressional budget office appeared to back up gop claims that 20 million senior citizens

could lose half their benefits. we will show you the numbers. and the war in afghanistan front and center. general stanley mcchrystal saying in his assessment that we need many more resources to avoid mission failure. he could ask for as many as 40,000 more troops, and we are hearing we will get the general's request by the end of this week. martha: israel taking center stage at the united nations meeting. benjamin netanyahu was that to the podium and address the diplomats just moments from now. this speech comes just one day after iran's president verbally attacked israel, accusing the country of "in human policies" in the palestinian territories. ahmadinejad did not mention the tension between his country and the west over nuclear ambitions. the former ambassador to the united nations and fox news contributor john bolton joins us

now. talk to me about what you expect netanyahu to say. how forceful do you expect him to be about iran's nuclear ambitions? >> he will be very clear how concerned he is not just for israel but for the whole world about a country like iran getting nuclear weapons. i do not think there will be any discussion of what he might do. i think he will stressed diplomacy and make the case for israel's position in the middle east, specifically with palestinians. it will be a very wide-ranging and important speech. martha: what about the president -- what about what the president said yesterday about israel? >> actually, what he said about the palestinians was that they should curb their incitement. it is not incitement the israelis are worried about. it is rocket attacks. the parallels that he drew in some of his language about occupation since 1967 and the

illegitimacy of settlements is very bad news for israel. the government of israel does not want to portray this as a setback for political reasons domestically, but when you look at the substance of what the president said, it was as negative or more as anything a american president has said. martha: netanyahu has good reason to be unhappy with the american presidential administration right now. is this -- do you expect netanyahu to call out the united states in any way in this forum? >> absolutely not. netanyahu's sees it has in his interest to show no daylight whatsoever between him and president obama -- netanyahu sees it as in his interest. i think he wants to show that israel is willing to be a partner for peace in the language that they use and that he is prepared to make some hard

decisions. he will emphasize the economic benefits he has tried to give to the palestinian people -- not abstract political goals, but real tangible assets on the ground. i think he will try to show that israel is ready to bargain if only there were palestinians on the other side to bargain as well. martha: what will he say to iran? the iranian leader accused him of in human -- inhuman tactics, and has said that they should be blown off the map several times. what will he say in terms of how aggressive he is prepared to be against them? >> i do not think it is positive for him to get into an argument with someone like ahmadinejad, but he will try to point out that the iranian nuclear program is a worldwide problem. this is not just a problem for israel. it is a problem for the united states and anyone that does not want nuclear weapons to fall into the hands of terrorists. martha: how far does he go with

his speech? >> i think he will say israel is prepared to negotiate, but there is no responsible palestinian opposite number for him. he will not negotiate with hamas, the terrorist group, and abbas, as we can see, is very weak at this point. martha: we are getting ready for this speech, and you have set us up perfectly. we expect him at the podium moments from now. thank you. trace: we are getting brand new and frightening information coming out about the indictment of a terror suspect. it says that zazi was conspiring to use weapons of mass destruction and in recent weeks had been seeking help in trying to make explosives. here is why the case is so concerned and to federal authorities. remember, the 9/11 hijackers were mostly saudi nationals. there was a major push to tighten our borders, crack down on passports security afterward,

but the case now is the fbi's worst fears because it is american citizens sneaking out of this country, getting training from al qaeda allegedly, and simply coming back home. let's go to the federal courthouse in denver. a lot of very disturbing and telling information coming out of this indictment today. >> absolutely, and it is because of that information that the u.s. government says it needs to hold onto zazi and not released him on any type of bond whatsoever. tomorrow, he will be back in the courthouse behind me first for an identity hearing to establish first and foremost that this, in fact, is the man wanted in new york on this conspiracy charge, and they will further discuss his detention hearing. his father has been released on $50,000 unsecured bond, and he will get an ankle bracelet.

as you mentioned, the most frightening parts of this case were revealed in the government's evidence that they say they have. trace: we talked about the weapons of mass destruction. what does the government said zazi had planned? >> they say he learned in pakistan between august of 2008 and january of 2009 to learn how to build some of these improvised explosive devices, specifically bonds that were used in the 2005 london train bombing and the wind that the issue, intended to use. they consist of hydrogen peroxide, as a tune -- acetone. this is important because the fbi says it has surveillance video of zazi going into a hair supply stores trying to buy large quantities of ingredients that contain high quantities of hydrogen peroxide. they also have surveillance

video of him going into a hotel, the same room twice on different days, requesting a suite that had a stove. they went in after he left, and they found residue of acetone potentially being cooked down. they were concerned he was cooking this component down. in the days prior to his going to new york, he started researching places that sold hydrochloric acid in new york, the thought being that he was traveling to new york trying to find this third component of a bomb. he was then ticked off, according to authorities, and slid back to denver immediately -- he was then tipped off, and then flew back to denver immediately. trace: i look at this indictment, the travel plans of going from the united states into pakistan, very easily coming and going. we have to go. we have prime minister benjamin

netanyahu speaking at the united nations. let's listen. >> mr. president, ladies and gentlemen. nearly 62 years ago, the united nations recognized the rights of the jews, an ancient people 3500 years old, to a state of their own in their ancestral homeland. i stand here today as the prime minister of israel, the jewish state, and i speak to you on behalf of my country and my people. the united nations was founded after the carnage of world war ii, after the horrors of the holocaust. it was charged with preventing the recurrence of such

horrendous events. nothing has undermined that mission, nothing has impeded it more than the systematic assault on the tructh. yesterday, the president of iran stood at this very podium spewing his latest antisemitic rants. just a few days earlier, he again claimed that the holocaust is a lie. last month, i went to a villa in a suburb of berlin. there on january 20, 1942, after a hearty meal, senior not see --

senior nazi officials met and decided to exterminate my people. they left detailed minutes of that meeting, and these minutes have been preserved for prosperity -- posterity by successive german governments. here is a copy of the minutes of the meeting of senior nazi officials, instructing the nazi government exactly how to carry out the extermination of the jewish people. is this protocol a lie? is the german government, all- german government lying?

the day before i was there, i was given in berlin the zero original construction plans for the arts -- i was given in berlin the original construction plans for the ossets reject auschwitz concentration camp. i now hold these in my hand. they contain a signature by hitler's deputy himself. are these plans of the concentration camp where 1 million jews were murdered -- are they a lie, too?

this june, president obama visited another concentration camp, one of many. did president obama paid tribute to a lie? one of the auschwitz survivors, whose arms still bear the tattooed numbers branded on them by the nazis -- are those tattoos a lie, too? one-third of all jews perished in the holocaust. nearly every jewish family was affected, including my own. my wife's grandparents, her

father's two sisters and three brothers and all the aunts and uncles and cousins all murdered by the nazis -- is this a lie? yesterday, demand who called the holocaust a live -- the man who called the holocaust a lie spoke at this podium. to those who refused to come and to those who left in protest, i commend you. you stood up for moral clarity, and you brought honor to your countries. but to those who gave this holocaust denier a hearing, i say on behalf of my people, the jewish people, and decent people everywhere -- have you no shame?

have you no decency? a mere six decades after the holocaust, you give legitimacy to a man who denies the murder of 6 million jews while promising to wipe out the state of israel, the state of the jews? what a disgrace. what a mockery of the charter of the united nations. perhaps some of you think that this man and his odious regime -- perhaps they threaten only the jews. well, if you think that, you are wrong. dead wrong. history has shown us time and time again that what starts with a tax on the jews eventually ends up in a golfing many others

-- starts with attacks on the jews eventually ends up engulfing many others. this regime is fuelled by extreme fanaticism that has swept across the globe with a murderous violence that knows no bounds and with a cold-blooded impartiality in the choice of its victims. it has callously slaughtered muslims and christians, jews and hindus, and many others. though it is comprised of different options, the adherents of this unforgiving creed seeks to return humanity to medieval times -- seek to return humanity to medieval times. they imposed a backward society where women, minorities, gays or

anyone else deemed not to be a true believer is brutally subjugated. the struggle against this fanaticism does not pict faith against faith, north civilization against civilization. it pits civilization against barbarism, the 20th century against the ninth century. those who glorify life against those who glorify death. the primitivism of the ninth century ought to be no match for the progress of the 21st century. the zero or of freedom, the power of technology, the reach of communication -- the allure of freedom should surely win the day. ultimately, the past cannot triumph over the future, and our future offers all nations

magnificent bounties of hope because the face of progress -- the pace of progress is growing, and it is growing exponentially. it took us centuries to get some the printing press to the telephone, decades to get from the telephone to the personal computer, and only a few years to get from the personal computer to the internet'. what seemed impossible a few years ago is already updated, and we can scarcely fathom the changes that are yet to come -- what seemed impossible a few years ago is already outdated. we will crack the genetic code. we will cure the in durable. we will link in our lives. we will find a cheap alternative to fossil fuel, and yes, we will clean up the planet. i'm proud that my country, israel, is at the forefront of many of these advances in science and technology, medicine and biology, in agriculture and

water, energy and the environment. these innovations, my country and many of your countries are for humanity a sunlit future of unimagined promise, but it the most primitive fanaticism can acquire the most deadly weapons, the march of history could be reversed for a time. and like the belated victory over the nazis, the forces of progress and freedom -- they will prevail only after an horrific toll of blood and fortune has been exacted from mankind. this is why the greatest threat facing man today is the marriage between religious fundamentalism and the weapons of mass destruction. the most urgent challenge facing

this body today is to prevent the tyrants of tehran from acquiring nuclear weapons. are the members of the united nations up to that challenge? will the international community confront a despotism that terrorizes its own people as they bravely stand up for freedom? will it take action against the dictators who stole an election in broad daylight and then gunned down iranian protesters, who died on the sidewalks on the street choking in their own blood? will the international community forced the world's most pernicious sponsor and practitioner of terrorism -- above all, will the international community stopped the terrorist regime of iran

from developing nuclear weapons, thereby endangering the peace of the entire world? the people of iran are courageously standing up to this regime. people of good will around the world stand with them, as do thousands of people who have been protesting and demonstrating outside this hall all of this week. will the united nations stand by their side? well, ladies and gentlemen, the jury is still out on the united nations, and recent signs are not encouraging. rather than condemning the terrorists and their i iranian patrons -- and therir iranian patrons, some here in united nations have condemned their

victims. this is exactly what a recent report on because it did, falsely equating terrorists with those they targeted -- this is exactly what a recent report on gaza did. for years, hamas fired rockets, fired those rockets from gaza on nearby citizens. thousands of missiles, mortars falling some the sky on schools and homes, shopping centers, bus stops -- falling from the sky on schools and homes, shopping centers, bus stops. after these missiles were deliberately fired on our civilians, not a single -- not one u.n. resolution was passed

condemning those attacks. we heard nothing. absolutely nothing from the un human rights council, and is named institution -- a misnamed institution if there ever was one. in 2005, hoping to advance peace, israel unilaterally withdrew from gaza. it was very painful. we dismantled 21 settlements. we of brooded over 8000 israelis -- we uprooted over 8000 israelis. we just yanked them from their homes. we did this because many in israel believed that this would get peace. well, we did not get peace.

instead, we got an iranian- backed carapace 50 miles from televisa -- iranian-backed t error base 50 miles from tel aviv. the rocket attacks not only continued after we left. they actually increased dramatically. the increased tenfold. -- the increased tenfold. again, the united nations was silent. absolutely silent. finally, after eight years of this unremitting assault, israel was forced to respond. but how should we have responded? well, there is only one example in history of thousands of rockets being fired on a country's civilian population.

this happened when the nazis rocketed british cities during world war ii. during that war, the allies leveled german cities, causing hundreds of thousands of casualties. i'm not passing judgment. i am stating a fact, a fact that is the product of a decision of great and honorable men, the leaders of britain and the united states, finding an evil force in world war ii. it is also a fact that israel chose to respond differently. faced with an enemy committing a double war crime of firing on civilians while hiding behind civilians, israel sought to

conduct surgical strikes directed against the rocket launchers themselves. mind you, that was no easy task because the terrorists were firing their missiles from homes and from schools. they were using mosques as weapons depots, missile caches. there were ferreting explosives in ambulances. israel, by contrast, tried to minimize casualties by urging palestinian civilians to vacate the targeted areas. we dropped countless fliers -- flyers -- they cannot be counted, there were so many -- over their homes. we sent thousands of text messages to the palestinian residents. we made thousands of cellular phone calls urging them to

vacate, to leave. never has a country gone to such extraordinary lengths to remove the enemy's civilian population from harm's way. yet, faced with an absolutely clear-cut case of the aggressor and victim, who do you think the united nations human rights council decided to condemn? israel. a democracy legitimately defending itself against terror is morally hanged, drawn, and courted and given an unfair trial to boost -- morally hanged, drawn, and quartered and given an unfair trial to boot.

what a perversion of truth. what a perversion of justice. now, delegates of the united nations, and the government's whom you represent, you have a decision to make. will you accept this farce? because if you do, the united nations would revert to its darkest days when the worst violators of human rights sat in judgment against the law- abiding democracies, when zionism was equated with racism , and when an automatic majority could be mustered to declare that the earth is flat. if you had to choose a date when the united nations began its descent, almost a free fall, and

lost the respect of many thoughtful people in the international community, it was that decision in 1975 to equate zionism with racism. now, this body has a choice to make. if it does not reject this biased report, it would vitiate its cells -- itself, it would begin the process of initiating itself from its own relevance and importance, but it would do something else. it would send a marriage -- message to terrorists everywhere saying that terrorism pays. all you have to do is launch attacks from densely populated areas, and you will win immunity. and then a third thing -- in condemning israel, this body would also deal a mortal blow to

peace. let me explain why. when israel left gaza, many hope that the missile attacks would stop. others believe that even if they did not stop, at the very least, israel would have made this gesture -- extraordinary gesture -- for peace. but it would have international legitimacy to exercise its right of self-defense if peace fails. what legitimacy? what self defense? the same united nations that cheered israel as we left gaza, the same united nations that promised to back our right of self-defense, now accuses us -- my people, my country -- of being war criminals, and for what? for acting irresponsibly in self-defense? for acting in a way back any

country -- for acting in a way that any country would act? what a travesty. ladies and gentlemen, it is real justly defended itself against terror -- israel just lee defended itself against terror. this bias report provides a clear cut test for all governments. will you stand with israel, or will you stand with the terrorists? we must know the answer to that question now, not later. because if israel is again asked to take more risks for peace, we must note today that you will stand with us tomorrow -- we must know today.

only if we have the confidence that we can defend ourselves can we take further risks for peace. make no mistake about it -- all of israel wants peace. any time an arab leader general -- genuinely wanted peace with us, we made peace. we made peace with egypt led by on our stock -- anwar sadat. we made peace with jordan led by king hussein. if the palestinians genuinely want peace, i and my government and my people will make peace. but we want a genuine peace, distensible peace, permanent peace -- defensible peace. this body established a jewish state and an arab state.

the jews accepted this resolution. the arabs rejected it and invaded the embryonic jewish state with the hopes of annihilating it. we asked the palestinians -- we ask the palestinians to do what they refused to do for 62 years. say yes to a jewish state. as simple, as clear, as elementary as that. the palestinians must be asked to recognize the nation state of the jewish people. the jewish people are not foreign conquerors in the land of israel. it is the land of our forefathers inscribed on the walls outside this building is the great biblical vision of peace. nation shall not lift up sword against nation.

they show learn war no more. these words were spoken by the great jewish prophet isaiah as he walked in my country, in my city, in the hills of judea and in the streets of jerusalem. we are not strangers to this land. this is our homeland. but is deeply connected as we are, we also recognize that the palestinians want a home of their own. we want to live side by side with them. two free peoples living in peace, living in prosperity, living in dignity. [applause] peace, prosperity, and dignity

require one other element. we must have security. the palestinians should have all the powers to govern themselves accept a handful of powers that could -- except a handful of powers that could endanger israel. this is why the palestinian state must be effectively to militarize -- demilitarized. we do not want aid and other -- we do not want another gaza, another south lebanon. we want peace. i believe that with good will and with hard work, such a piece -- peace can be achieved,

but it requires from all of us to roll back the forces of terror that seek to destroy peace, that seek to eliminate israel and overthrow the world order. the question is whether the world is prepared to confront those forces or to accommodate them. over seven years -- over 70 years ago, winston churchill amended what he called the confirmed unteachability of mankind. by that, he meant the unfortunate habit of society to sleep and to slumber until danger nearly overtakes them. churchill below what he called -- church of bemoaned what he

called the want of foresight, the unwillingness to act when action will be simple and effective, the lack of clear thinking, the confusion of council until the emergency comes, until self preservation strikes it's jarring -- its jarring gong. ladies and gentlemen, i speak here today in the hope that churchill's assessment is for once proven wrong. i speak here today in the hope that we can learn from history, that we can prevent danger in time. in the spirit of the timeless words spoken to jostle over 3000 years ago, let us be strong and of good courage. -- spoken to joshua over 3000

years ago. let us confront this peril, and god willing, forged an enduring peace -- forge and enduring peace for generations to come. thank you very much. [applause] trace: you watched a little bit of history unfold there at the united nations in new york. that as prime minister benjamin netanyahu of israel. he began by going after iranian president ahmadinejad for going after -- for denying the holocaust ever happened. then, he asked a big question, which is -- will the world stand back and watch as iran gains nuclear weapons? he also, of course, took a swipe at the united nations for condemning israel as the

palestinians fired rockets into southern israel, not condemning the palestinians but on the flip side condemning israel for going back at these palestinians. really mentioned history at the top, but really a very powerful speech by the prime minister of israel. >> that is right, a very forceful, vivid, and at one point very personal speech by benjamin netanyahu to the general assembly really laying down the gauntlet. challenging not just the united nations but the world community to do something about iran. at one point, talking about his wife's family being exterminated during the holocaust, a direct rebuke of ahmadinejad's claim from that very same podium here yesterday. as well as talking about the plans of the nazis to exterminate the jewish people. also challenged the united nations system in a variety of ways.

asked if they will stand for civilization or barbarism. it is the ninth century vs. the 21st century when dealing with iran, which he said is a grave threat to israel and to the united states and to the world, trying to make that very clear to the audience. he did get applause at the end. the only applause at one point when he talked about a palestinian state. ironically, the palestinian note taker, the young man who was seen leaving at that point or just before that. he also discussed the human- rights council, a moment in history, challenging this organization. will it address what many see as the potential of an iranian nuclear bomb? will they continue these discussions? that is the challenge for the world community, and that is what netanyahu laid down today. trace: it was the gauntlet being laid down. thank you. martha: he said that the un

human rights commission is misnamed. really laying it down there. very interesting. our other big story is a chilling tara indictment. he was accused of lying to the fbi. now, he is accused of conspiring to use a weapon of mass destruction in the united states. >> you have nothing to do with al qaeda? >> of course not. i have nothing to do with al qaeda and any link or anything with al qaeda. if you're taking 8 extra-strength tylenol...

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martha: we had a huge story developing. a short time ago, a new york grand jury indicted najibullah zazi. federal agents have been eyeing him as a possible terrorist cell ringleader. investigators are still hunting, they say, for up to 24 more suspects who may be involved and maybe still trying to follow through on this mission. investigators are still searching for the explosives right now and for the components. a former supervising special agent in the fbi counter- terrorism division joins us now. as well as a terrorism expert here in new york. one of the other side bar stories here is that an investigator on this case in the new york department was moved aside. what is going on between the fbi and the new york police department and the detectives

there, and how could they possibly have blood on this -- blown this? >> it has been eight years since the 9/11 attacks, and we still do not have seamless cooperation. information is power. things are kept secret. we need to have one agency that supervises an investigation like this. we should not be talking about this now. this is something that both agencies should have been looking at without the public. did they need the public to help them make this case better? i do not think so. i think this is trying to cover once but -- cover one's butt. if do were involved, would you think it would be scattering -- if they were involved, wouldn't you think they would be scattering right now? martha: all they had was lying to federal investigators, but now, they have him on a

conspiracy of weapons of mass destruction charge. we hear that he made that last trip to new york, according to the indictment, to find the final components of a bomb that he needed, but as i understand it, all i have so far is hydrogen peroxide and acetone, which you could pick up at the local drug store. >> precisely, and that is what is scary, that authorities at this point have not been able to locate the peroxide or the large storage facility that they may be using that might be holding all of this. initially, the fbi went after them to question them because theoretically, they felt a plot was imminent, and they thought it was going to happen. that is why they went after him first with the charge of lying to federal authorities. that put him back, and they were able to hold him on bond. while doing so, there were able to pick -- able to do some additional searches. martha: harvey, talk to me about how hard you think this case is

to prove and whether or not they will be able to get any useful information out of zazi that might lead them to anything else that might be in the works out there? >> very interesting that he said something was about to happen. that is not what i'm hearing. the case was not fully along, so they did not have all the pieces collected. this is a big country. there is a lot of networking between individuals that want to do us harm, and they have all pulled back at this point. this is dangerous that they are talking about this. are they asking the public to help, if they have any information that would lead to the arrests? martha: i think richard was referring to the fact that it sounded like he was getting close to putting together this bomb, >> right > exactly -- putting together this bomb, right? >> exactly. you are talking about an individual who had hand sketches of bombs in his car, bomb-making

materials. when you start putting this together, it gets scary, knowing that someone has come to the conclusion that they are plotting to do something. martha: this text message, if it turns out to be true, that it said that the wedding cake is ready, and that the communications between him and his new york cohort were getting very frantic and he did, and he needed another component to this bomb, and that is why he came to new york -- getting very frantic and heated. >> there is so much on the internet today. igoogle -- i could google stuff and find out how to make a bomb. i think everybody is trying to cover up an investigation that went bad because somebody on either side gave that up. martha: all right, thank you very much. there is a look at the three co- conspirator's according to the government. we will see how well this case

goes. thank you very much. trace: just crossing the urgent water right now, new developments in that secret assessment of the afghan war, first made public this week. now, the commander of all u.s. forces in the region is waiting in. what david petraeus has to say about the situation. . . . .

martha: we have information on senator robert byrd. he was in the hospital. he has been released. he spent two days there as they were treating a spike in his white blood cell count. in the middle box, biggest today on acorn. the treasury department

inspector general has agreed to conduct a formal review of acorn and the irs's oversight of acorn and other nonprofit groups. the oversight is continuing to pick up. in bottom box, united nations seeking $1.5 billion to prevent the spread of h1n1. a lot of money going toward flu prevention. trace: we all know the clock is ticking in afghanistan to the battle over what to do there is intensifying. general stanley mcchrystal says terrorists are advancing and he needs more troops or this mission could fail. now his boss is backing that assessment. this is a key backing from general david petraeus, who said countering counter- terrorism requires a comprehensive approach. general david petraeus led the

turnaround in iraq. general mcchrystal's formal request for more troops could come by the week's end. we are trying to get jennifer griffin up on this and get some breaking information from her. ever since man landed on the moon, the big question has been, could we live on the moon? but until you hear about the new discovery that has the folks at nasa very excited. (announcer) carefree introduces protection, times ten.

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martha: a grand jury has indicted one of three men at the center of an alleged terror plot to investigators said they found a bomb making instructions on najibullah zazi's computer. we will have the very latest in 90 seconds. one pack. 6 days. that's elations. new elations. clinically proven to improve joint comfort...

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[captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- martha: 3 suspects appeared in court today. a brand new hour of the "live desk." i am martha maccallum. trace: i am trace gallagher. terror plot in the works for more than one year to set off weapons of mass destruction in the united states. najibullah zazi, prosecutors leonel frightening information about how close he may have been to implement iing his dangerous

plan. david lee miller is outside the federal courthouse in brooklyn, new york. what was he up to? >> the government outlined that in detail. it is pretty frightening. they say that as far back as august of 2008, he went to pakistan to learn how to manufacture a bomb. during the last three months in denver, he was actively trying to buy the components to build a bomb constructed of tatp. that was the same chemical bomb used by the london bombers. apparently, in this case, zazi was unable to get a third and crucial component that was necessary to manufacture this bomb. the bottom line is the authorities say in court papers today that until the time of his arrest, zazi was planning to use

weapons of mass destruction here in the united states. trace: i have to ask you the big question. a lot of people are still concerned. we talked about the fact that there may be other people connected to this. is there still a threat? >> u.s. attorney general eric holder said any immediate threat is over. we need to keep in mind that zazi is accused of being a conspirator. authorities have not name the individuals that he was allegedly working with. we simply do not know. the other thing to be mindful of here -- they were shopping around and they purchased a large quantity of chemicals, according to the court papers. as best we know, none of those chemicals have been found. authorities have been actively searching storage units in the new york area. trace: those are the same chemicals that were used in

bombings in europe. what about the other people who are rankwere arraigned today? >> the two other individuals will be released. one is a spiritual leader here in queens. he has been charged with lying to authorities. he will be released. his family will post the bond, $1.5 million. we also expect that zazi's father will be released today. both of the two defendants will have ankle bracelets. there will be under the very close scrutiny of authorities. trace: david lee miller, thank you. martha: we are learning more about a new federal probe today into the community group known as acorn. pressure on the group is growing. in light of the undercover video

allegedly showing acorn workers in dredging illegal activities like tax evasion, prostitution, and the bringing in of underage prostitutes. the treasury department is planning a formal review of acorn and the irs oversight of nonprofit groups. this is after the irs did cut ties with the group. james rosen is in washington. tell us about this investigation. you remember back in the day when it was just from belize here and there, and now there's a serious investigation at the federal level. >> this probably conducted by the department of treasury is expecteinspector general. this was called on by two lawmakers. senator susan collins and darrell issa.

the key focus will be the irs oversight of nonprofit organizations, which means that acorn will be but one of a number of groups that could come under scrutiny here. martha: it is pretty incredible when you think about the different times they're advising how to evade taxes. talk to me about the impact of all of this on acorn, and all of the groups that have fed the money over the years. is that dwindling? >> but funding streams have been negatively affected. in a word, devastating. acorn has received 53 moorlanren in federal funding. the census bureau has severed its ties with the group. new york gov. david paterson has ordered state agencies to suspend acorn contract.

the irs announced it is severing ties with the group. appearing on fox news sunday, but the ceo of acorn delta to provide proper stewardship -- vowed to provide proper stewardship. >> we continue to ensure that all of our employees understand that they're not reaching professional standards, we terminate them and we make sure that what we do internally is serving our constituents in this country. >> acorn has terminated some of its employees. acorn is also suing the documentary filmmaker who made the video and website that showed it. martha: it took those videos to because the changes in the

investigations. james rosen, thank you. trace: there's a showdown in pittsburgh just hours before the due-20 summit kicks off with president obama hosting world leaders. demonstrators are now gathering in the streets. thousands of law enforcement and security personnel are on high alert to. rick leventhal is in pittsburgh. it looks quiet behind you right now. >> there are not many demonstrators now. we can show you some police and national guard keeping a watch fulful eye. we can't tell you about 3000 protesters outside the demonstration area. so far, they're the only ones on scene could we can give you a look of arsenal park, which is about 25 blocks away from here. a group is planning to march

this afternoon to this is the people's uprising. at last report, there are only about 150 people. there's been a lot of talk about pittsburgh chosen as the host city for the g-20. when it was announced at the white house, the press court started laughing. yesterday we heard from the mayor who said that its board would have the last laugh. >> the 29-road mayor admits that his city has an image problem. >> the greatest opportunity we have is to change that. we bring people here and they see our beautiful skyline, three rivers, a clean city that is growing. >> for more than a century, the steel industry thrived, but the smoke blackened buildings. >> the street lights came on, but when you asked the industrialists about the smell,

and they would say it smells like money to me. >> it is what we were good at pure yet >> when the mills shut down, the city nearly went bankrupt. now pittsburgh has reinvented itself, creating tens of thousands of jobs in medical research, higher education, and new technology, transforming one of the dirtiest cities into one of the most environmentally friendly. >> pittsburgh still faces challenges. the median age here is 42.5, which is six years older than the average for u.s. cities. this is the only major area in the country where more people die than are born every year. i want to show you some riot police that have gathered on the other side of the security fence. right now, they do not have much to do, but they are getting ready just in case all those

protesters come this way. trace: rick leventhal, thank you. martha: testimony on capitol hill are revealing that taxpayers may never get back that tarp monday. -- tarp money. the watchdog says he's troubled by the lack of transparency. he told the senate banking committee that taxpayers are not told what most of the tarp recipients are actually doing with that money. the treasury department said it will soon start reporting those details. as for getting your money back, he said the program for modifying home loans, which cost $50 billion -- that is gone. and that $80 billion for the auto industry -- do not expect to see the money anytime soon.

trace: far from certain is code for don. that money is gone. new developments in the push for more books on the ground in afghanistan. the top republican in the house began out moments ago on why he thinks the top commander should testify before congress. martha: it has been 40 years since man landed on the moon. look at that. there's a new discovery that is offering a very compelling reason to go back to the mo on.

martha: nasa is talking about something very exciting to them. evidence of water on the moon. there's a pretty good combination of scientists who say they do believe is there. in the middle box, a full attack against the wildfire burning in ventura county, calif.. the wildfire is 40% contained. they are getting a pretty good handle, but there's a long way to go. in bottom box, home sales dipped unexpectedly. that has put pressure on the market today, breaking a four- month streak of gains in home sales. trace: we're now learning that

general mcchrystal's formal request for more troops in afghanistan will come by the end of the week. general mcchrystal says terrorists are advancing and he needs more troops or the mission could fail. he is getting a major endorsement from david petraeus. he says it requires a comprehensive approach. it was general petraeus who led the turnaround in iraq. jennifer griffin, timing is everything. why is general mcchrystal said the late sending his request to the defense secretary? >> pentagon official told us two days ago that they realized they had a perception problem. the perception was that somehow the pentagon or some administration officials in washington had asked general mcchrystal not to send his request for more troops until the president had time to review the strategy and to come up with perhaps a new strategy. they realized they had a perception problem, so they

wanted to put that to rest. the press secretary announced that it was likely to come in the coming days. we expected by friday. the question is, when will it be handed to the white house? defense secretary robert gates will not handed over broadway to the white house. there are calls on capitol hill from leading republicans who say they want general mcchrystal to come back with general petraeus and testify. trace: the white house was going to order the strategy review, right? what caused them to order the review after they announced they were pursuing a counterinsurgency strategy in march? >> that is the question many people are asking. when you talk to the white house officials and even those in the pentagon, they say what changed was the august 20 election in afghanistan. the white house was shocked by the level and degree of fraud in the election. that said, we have declassified testimony from february in which

dennis blair predicted the election could be extremely messy and it could be more than one month until their results, and the result could be inconclusive. they are still counting the votes from the election. 1.1 million votes for a sitting president are questionable. the white house thinks it has a problem with pursuing counterinsurgency strategy with a partner such as karzai. many critics have said that they have known for a long time that there were accusations of corruption and that the election was not going to be clear cut, so why is the white house getting buyer's remorse at this time? trace: jennifer griffin, thank you. martha: the house minority leader john boehner is among those who is calling for the top commander in afghanistan to come to washington, d.c. and to lay things out in afghanistan before

congress. this is what john boehner had to say. rumors have circulated in the past few days that's general mcchrystal might be considering stepping down. in captioned by the national captioning institute --www.ncicap.org-- -- he made it clear in "the new york times" article. joining me now is major general bob skcales. good to have you here today. we have seen a little bit of back and forth on this issue in the media. just yesterday there was a question about whether or not to general mcchrystal might be in not able to follow through on what he believes should happen

on the ground, adding troops. he has expressed that he thinks that needs to happen fairly quickly. how do you reconcile what he is a year now with what happened over the course of this week? >> stanley mcchrystal is a good soldier, and he will be loyal to the commander-in-chief. all the give-and-take in the media about him considering resigning or retiring. the other thing is, it has come down to making a decision by the administration. they can either listen to the generals or they can listen to the political settlement that the cost of this war is too high. by cost, i mean the sticker shock that comes with the numbers that mcchrystal will offer tomorrow off, and the political cost of continuing a war that is increasingly less popular with the american people. martha: either we have to defeat the taliban in afghanistan for the security of that area and our own country, or we do not.

van, your thinking is that there some kind of a rift going on between vice president joe biden and hillary clinton about whether this is a taliban fight or whether it is a pullback and strategic drone kind of fight to take out specific targets. >> i think hillary clinton is right. we need to take out the taliban. they have always given shelter to al-qaeda. what is required right now is very important. it is time for this president to lead, to support general mcchrystal, support the troops on the ground. i'm concerned when our troops and our allies see the vacillation that is going on right now. it sends the wrong message to our troops. when you couple what happened last week with the missiles shield, it sends the wrong message to our troops. it sends the wrong message to our nato allies. and also, the pakistani intelligence.

we have always had some problems there. this sends the wrong message. now is the time to get tough. instead of going on the apology tour at the united nations, is this president would go to nato and shore up support that we are going to fight to win in afghanistan. martha: we all remember president obama criticizing the bush administration for saying that they would take their orders from the generals on the ground. president bush always said that whatever the generals tell me they need, that is what i will give them. president obama has kept general petraeus in place and brought in general mcchrystal. these questions that are raised about whether or not general mcchrystal would stay in the stop -- you brought me in here now leaned what i wanted to do. >> let's be clear. the president has not said no to his generals yet.

it comes down to a numbers game. 40,000 troops is a lot of troops to add to the 22,000 he has already added. perhaps it may be something less than that. i agree with van that it is time to back the generals. let's always be clear that the administration has yet to say no to the generals. martha: what is the goal in afghanistan? is the goal to remove the taliban? if so, do you talk about numbers, or do you talk about what needs to happen and what kind of power you need to achieve that goal? >> the goal is exactly but it was after 9/11, to make sure that the taliban is not in a situation where it can reconstitute itself in afghanistan. a big story -- there is a guy on the ground, the top lieutenant for the taliban in the southern

part of afghanistan. he is a thorn on our side and causing more problems than anybody else. he has put together a shadow taliban government. he was a former prisoner of ours at guantanamo bay. we had him and we released him. the lesson we have learned is we have to quit caving in to the aclu crowd. martha: thank you very much. trace: it is one of the driest spot known to exist. it may come as a bit of a surprise that nasa has found the water on the moon. and why this discovery could be a game changer in the future of space exploration, next. medicare.

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trace: it is drier than the highest deserts' on earth, which is what people once thought. now it has been discovered, bader on the moon. minute amounts of hydrogen and t the moon's southern pole. former astronaut tom jones joins us now. with this find, it means that having permanent bases on the moon is not that far-fetched. >> it is not that far-fetched to think that astronauts could harvest their own water on the moon. a base could become self supporting if we figure out how

to distract the water. trace: value have found it water, does it change what we might do when we go back to the moon? >> exactly. we're now finding that there are some resources there that we can tap into. it's very promising, both from a scientific point of view, and also how we can make practical use of it. martha: how does the water get to the moon? >> there are two theories. one is that astronauts and comments smack into the moon and it arrives at the bottom of shodaddow creditors. another is that bader is made in the top layers of the lunar soil. martha: it is something that is coming from the outside.

>> our water on earth comes from volcanoes and some of arrived long ago from comets and asteroids attacks. some of that water is probably trapped deep within the moon. martha: does this mean there is life on the moon? >> no. we are talking about tiny amounts of water. there's not enough to support life. trace: 1 we going to find out exactly how much water there is -- when, going to find out? >> the evidence is from past observations. now we are talking about doing an experiment early next month where nasa will crush a satellite into a tradecrater. martha: a lot of us would like to see astronauts like yourself

go back to the moon. does this kind of discovery helped to sell that case and maybe gets president obama interested in a lunar mission? >> i hope so. i hope the moon becomes more attractive as an exploration destination and as a practical place to mine resources. if we use the water the right way, we could use the moon as a fuel depot, and to support humans and industry. martha: i vote for you to go back. thank you very much, tom jones. trace: we want to show you this video. it is school children in new jersey is singing the praises of president obama. >> everybody, let's sit together.

trace: we are going to play you more of it. marthe song is actually about jesus, they replaced the name of jesus with the president. we will get to the bottom of th. are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

trace: brand new information on

three big stories. the israeli prime minister challenging the iranian president. >> yes, in a very dramatic and vivid speech, benjamin netanyahu challenged a the united nations do something to stop and iranian nuclear bomb. trace: now to capitol hill. the senate finance committee is still wrangling over health care. carl cameron has the latest on that. >> senators going at it right and left. things have ground to a halt. it began with the revelation this morning that there will not be any new analysis from the nonpartisan congressional budget office. they have pretty much killed everything, including one amendment that would have taken more money from the drug industry. democrats said, do not do that

because it could undermine a deal the president cut with the pharmaceutical companies for their support in the first place. trace: phoenix, arizona is now the human smuggling capital of the world. adam housley is in phoenix. >> human smugglers have become more brave. the ndp in a nice neighborhood like this. they know they're going to get caught. it serves a purpose for a couple of months. phoenix is 1 20 miles from the mexican border and major freeways go in all directions. trace: that is brand new information at the bottom of the hour. martha: a lot of folks attended health care town hall meetings. a lot of them were senior citizens. one program which is called medicare advantage ensures 10 million seniors across this country and gives them extra benefits. this plan is at the center of a

huge debate. jim angle, there has been a two ruckus over cutting more than $120 billion from medicare advantage. >> 90% of seniors have some sort of supplemental plan that covers the gap in medicare. most of those are too expensive for the poor. about half of those who sign up for medicare advantage have less than $20,000 per year in income. it offers additional benefits such as eyeglasses and here in exams. it cost the government more, and that is what democrats want to cut. martha: why not cut it if it would save money? >> it gets 89% approval ratings. several democrats and republicans argue there's also an even more important reason. in many rural areas, it's the only way seniors can get health care.

>> we have 120 counties. in 100 counties, there's no other coverage other than medicare advantage. >> there are strong feelings among many senators that medicare advantage is absolutely critical. martha: thank you. trace: the battle over health- care reform turning into a fight over free speech after the administration slapped a gag order on one of the country's largest private insurers, humana. it sends out a letter on the medicare advantage program. it told them that president obama's proposal could eliminate some of their benefits. the health and human services department did not like that so they told humana to stop the letters or face legal action. now it looks like they may have been vindicated.

they slapped a got border on them. >> they should read it in half and welcome legal action because the department of health and human services will end up paying humana legal bills. that is how frivolous the government's argument is. humana is a corporation. under federal law, corporations or persons. all persons have the right to speak freely. humana has the same rights to challenge obama care, to challenge senator baucus care as an individual does, and the government cannot silence them. trace: to redo part of the letter -- i want to redo part of the letter. it says all communications are potentially contrary to federal law. >> one of the beauties of the

first amendment is to get to say what everyone about the people in the government, whether you're right or wrong. there's no right or wrong challenge. if humana says this is what is wrong with obama care, and if they are wrong, the marketplace of ideas will correct that, not the heavy hand of government. that is what we have a first amendment, to guarantee free speech, to let us say what we want about the government. trace: you were talking about vindication. suddenly, the cbo says it will cost $123 billion, so dochumana was right. >> the first amendment does not care. the first amendment says you can say we want about the government whether you have the effecfactst

or wrong. trace: now the gop wants to have a hearing on this. you would think that this is walking the fine line. the president was a former constitutional attorney. he knows the constitution. >> we have two serious events on iran's by the former -- we have two serious events on our hands. the website -- remember that from a month ago? and now the department of health and human services that wants to silence people. one should wonder how seriously this administration takes its oath to uphold the constitution. if they were right, could they still send the letter? >> they could send a letter, and humana could put it in the circular file. trace: thank you.

martha: it has been the dream of scientists for decades. they may have come up with a vaccine to prevent a disease that has killed millions of people all over the world. the city where police know everybody who drives through town. surveillance cameras check every single license plate in town on the spot. are you ok with that?

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trace: this is major. a breakthrough in the battle against aids. researchers developed a vaccine that appears to cut the risk of infection by 30%. 16,000 volunteers testing the one-two punch. the approach uses two vaccines. the first one crimes the immune system. the second one gives it a boost. -- the first one primes the

immune system. is this going to be great? >> i think this is going to be huge. this is one of the biggest price in the hiv vaccine history. it does not meet the standards of full vaccination. this is 30%. you would want to see 70%. for the first time, scientists have been able to come up with the technology for a vaccine prototype that is effective. as you said, a 31%. this is huge. wendy looked at the data -- when you look at the data, there will be a symposium in paris and all the scientists will come together and look at all the data. i think they will find that this is the beginning of a big change. trace: why 30%? is it because there are so many different strains? >> they looked at a specific strain in thailand which was

unique to their population. that is where they found the volunteers. it was a well-designed study. the american government was involved in monitoring the study. in that strange, 31 percent and efficacy. again, that is not what you expect in a full vaccine, but that tells you this is the biggest breakthrough. trace: if you have a flu virus and a flu vaccine, how much of the population does it work for? is 30% nothing? >> it does not meet the standards for approval in the united states. it does not meet the standards yet. it does tell you that somehow they found a way to look at this fibrous, the hiv strain, and labor able to boost the immune system, boosting the response --

they were able to boost the immune system and boost the response. it is not for major population use, but this will be one of the biggest breakthroughs in the future. trace: thank you. martha: i am at the assignment desk. i am with arick. check out the streets of pittsburgh. there are people walking through the streets of pittsburgh with black hoods. >> these are protesters of the j-20 summit in pittsburgh. we will check back in with rick leventhal during studio be to find out what is going ahead ahead of the president's arrival. have you heard the terrible story about the census worker whose body was found with the word "fed"carved in his chest?

trace: he was a boy scout leader, and he was found murdered. rick: we will talk to a friend of his who warned him to be careful. we will talk about that. after listening to all the whacky speeches at the un, i know that you played a little bit of benjamin netanyahu's speech earlier. we will talk about his message to the united nations a healthy dose of reality. if you have not heard of this, you have to stick around for that. we will talk to the former u.s. ambassador to israel. martha: he said, the jury is out on you. it was a very powerful speech. thank you very much, rick. trace: some call it state of the our security. for others, is an invasion of

their privacy. the american town home to one of the world's richest men in that gives new meaning to the term big brother is watching. next. @=h

trace: in the top box, the governor of massachusetts is named paul kirk to fill senator kennedy's seat temporarily. in the middle box, new details about jaycee dugard. she was found in antioch,

california. her attorney says she has mixed emotions about the arrest of her alleged captor, phil garrido. in bottom box, new jobless numbers showed the number of newly laid-off workers filing for unemployment benefits fell for the third straight week. that is some good news. martha: when you drive into medina, washington, you are struck by two things. the homes are beautiful and there are security cameras everywhere. law enforcement says the surveillance system helps keep the residents safe, including bill gates and other well-to-do residents. the average income in this town is $220,000 a year. critics call this an invasion of privacy to do the critics have a legal leg to stand on?

>> probably not with respect to the cameras themselves. courts have ruled in other cases where cities have put up cameras in high crime areas that it is ok because citizens do not have an expectation of privacy in public places. however, they may have an issue with what they do with this information. the police store this in a database for 60 days, allowing them to develop patterns on people who come and go, and to investigate people who have committed no crime or have been suspected of no crime. martha: how much support is there for these cameras among the residents? >> most of them are behind the idea. these are people who are extremely wealthy. they have supported this so far. the city council passed it unanimously. there may not be that great of indeed. most other cities would love it. there were no murders, no

results, only 12 perburglar ies and the entire year. . martha: thank you very much. trace: the fbi investigating the possible murder of a man found hanging from a tree in kentucky. the killer left behind a very strange clue, leaving the fed to believe that bill sparkman was murdered because of what he did for a living. that story is coming up. .

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martha: hugo chavez has just entered the building. he is a man who called president bush the devil last time he was there. after the heaping prays that qaddafi gave obama yesterday, we will see what happens. trace: see you tonight on "the fox report." [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- rick: the government now says that he plotted a terrorist bomb attack on american soil. that is part of a criminal complaint filed in new york against this man, najibullah zazi. he