potentially life-threatening condition, reported sometimes less than 2 weeks after starting plavix. other rare but serious side effects may occur. jane: that's going to do it for us this wednesday. megyn: megyn kelly is up next. megyn: "this is america live", we have colonel oliver north, and in afghanistan, cell phone companies may be trying help the taliban. ann coulter standing defiant after protestors were at a speech she was to get in canada, some say coulter got what she deserved. and -- >> i need this, and i need this, and i'm going to take this, and no, new york city i'm the old person, i need this. megyn: john stossel on how we are robbing our children's future to deal

with the coming tidal wave of federal spending. stossel! upcoming. but we begin this hour with stunning reports out of the u.s. capitol. the washington times saying that administration sources has confirmed the chinese government is behind massive cyber attacks on google and dozens of top american companies. stealing top secret corporate data. and the attacks are not over. the bad guys, still getting sensitive information from the hacked computers at this moment. joining me now with more, trace gallagher, live in the new york city newsroom. trace, google affected, who else? >> reporter: we believe, megyn, 20-30 high tech technology firms were targeted including google, the hackers, as you said, working within the chinese government. that might be the scariest part. these are colleges in shanghai, these are where the computers were traced back to. the connection is these

colleges have contracts with the government. the worry here is that china may have planted undetectable software inside american corporations and because they're undetectable, they can continuously steal these computer secrets. remember it's not just hackers, not just going in one time. they plant the software, they can go in, they can move the files without anybody knowing. the only reason google found out, megyn, is because they were tipped off. megyn: how did they get in? i mean, how are they actually able to bug the software inside the computers? >> we know this took years. what happens is they were targeting executives, high level execs with high level access to computers and through various flaws in the internet or the company's software holes if you will, they would go in, and spend months getting data on them, getting data on social networking sites like facebook, twitter and

finding out personal information about them, then they would send e-mails, these executives, from what appeared to be trusted sources, like if trace gallagher sent megyn kelly an e-mail, he would likely answer it. once the executives would answer the e-mails, that's when the e-mails would be infected and the bad guys could sneak in the back door. listen. >> first of all, when i install a key log into your system and i can grab your user's name and password and it's designed to send back a specific e-mail or pdf's dat, once i grab that information and you're an administrator on your network, no matter what network you work for, i log in and have control over your files and your install files. >> what he's saying if you go in undetected you can move or take whatever you want in perpetuity. the scary thing is they can do it to corporations which have high levels of internet

security. what about the american government? what else can they get into? the story is developing. megyn: you have to wonder whether google is better protected even than our own government would be. it's happening at this moment, trace gallagher, thank you very much. to get the latest information on this developing story, log on to our website, foxnews.com foxnews.com/cy-tech, lots of good detail on how the actual cyber threat and how the u.s. government is handling this. fox news alert now on disturbing news out of saudi arabia. the interior ministry there is reporting a major terror bust. saudi officials breaking up three separate terror cells, arresting more than 100 suspects. apparently these groups were plotting attacks on oil facilities, among other locations. do you know when an attack on a saudi oil facility would do to the price of gasoline in america? the saudis capturing weapons, ammo, phone cards, computers, and a number of

documents. we're going to have much more ahead on this developing story. in other middle east news, israeli prime minister benjamin netanyahu, meeting with president obama last night, but you might not have noticed. you see, unlike previous meetings, the event was all but closed to the media. this is video of the prime minister leaving the white house. all this as the obama administration is openly feuding with the israelis over housing construction in east jerusalem. rita nyman is live in jerusalem with more. rita, where are we exactly on this housing dustup? >> reporter: well, megyn, after a couple weeks ago when biden was here, netanyahu promised that he'd launch a special committee so there won't be any surprises on new housing announcements in east jerusalem. guess what, just moments before he stepped into the oval office to meet with president obama he announced 20 new jewish housing units in arab parts of east jerusalem. one called this nahoo --

netanyahu spiting in obama's eye. emuth said he won't promise there won't be more surprises in the future. mig mug i thought the position of the israeli -- israelis was look, we can build in ourical toll -- capitol, the dispute about our building relates to other areas as well. >> that's been here on the ground, israelis will say that as we. my cameraman and my producer, they just got married, they had a ceremony, the circum sigs of the baby, and in there, there's a prayer they utter and they say as long as i have a tong in my mouth i will always utter the word jerusalem. it's sacred to people on the ground. with the white house being involved in pushing for peace talks, they don't -- the palestinians don't feel they have a serious negotiator on the other side, they don't take the israelis serious because it undermines the middle east

process here. how can you talk about land for palestinians if there isn't the possibility of these house -- if these housing settlements are expanding, where do they start to build the future state. so they don't take it as a serious negotiating proposal and means to moving forward, hearing that netanyahu is meeting with enjoy george mitchell. we'll see if there's anything new that comes from that meeting today. megyn: we'll be watching. thank you, rena. conservative author ann coulter says she is pushing ahead with a series of speeches, despite being forced to japan appearance in canada last night. look at this. hundreds of rowdy protestors showed up at a coulter event at the university of ottawa last night, police canceling the event because of, quote, public safety concerns. couter seas the -- says the university is at fault. he sent her a letter of --

>> they're saying we want ann. they warned coulter of criminal charges if she violated the hate speech laws. the debate, head-- red hot with the babies on the view this morning. >> we're different because we don't attack each others' religion, we don't attack each others cultural and -- >> you know what it does for ann coulter is now she gets to go around to all of the news station outlets and say security, you know, i got -- >> it's a wonderful thing for ann coulter. >> it sells her book. she doesn't need a platform, she's got the platform. people want to hear what she has to say. megyn: they are very tolerant on the view. organizers say the cancellation is an embarrassment to the university and for its students, condemning the protestors for using threats and intimidation. however, later this hour, i will be joined by a canadian journalist who says ann coulter got what she deserved.

both sides of the health care fight are going full steam ahead today with ad wars, focused on the november election. it's only eight months away, why not start now! democrats are targeting republicans who voted against the oophhaul while spending mega bucks in support of lawmakers who did back the bill. republicans meantime raising more than a million dollars just since sunday. part of campaigns like this one. this website is gop.com and calls on donors to, quote, help fire pelosi by defeating democrats next november. steve centanni, it looks like things are getting a little hotter now, no pun intended. >> that's right, megyn. of course it's going to continue. this is just the opening volley. we're going to have this all the way up until november. it's going to be very costly, it's going to be an againstive -- expensive and bitterly fought campaign. democrats are passing health care reform and calling on

voters to house speaker pelosi, by voting her out, they need 40 seats to switch from democrat to republican in november and nancy pelosi would no longer be the speaker. the web campaign was designed to raise money. the goal was $400,000 in the first 40 hours, 40 for the number of seats they hoped to win. they hit that goal and the gop helped it going, they kept on making money. meantime tv ads are in the works for those who backed health care reform. mig manager and democrats have their own ads, fighting back. >> no question about it, no surprise, they're targeting republicans who voted against health care, planning to spend at least $5 million on tv and radio ads. it will be designed to thank 25 democratic members of congress who supported the health care bill and attack ten republicans who voted against it. one democratic source confirming this ad buy and saying this is just the beginning. democrats think they have a good opportunity to defend

their position on health care and minimize any damage that may be coming their way in november, megyn. megyn: steve centanni, on it for us, thanks, steve. the for sale signs are up and they are not coming down. big breaking news today on who is buying homes, who is staying away, and why our economy might be in worse shape than we thought. and one word for you: stossel! in 30 minutes, john station on what he calls the multi trillion dollars ponzi scheme that's robbing our children as we speak. >> you understand you have to take care of me, right? >> yes. >> no, i won't give it back. i need that. >> that's my --

megyn: big news today concerning media queen oprah wynn freerks oprah managing to settle a defamation lawsuit in philadelphia just days before the scheduled start of a trial, the lawsuit was brought by the former head mistress of a

school set up by winfrey in south africa, she claimed winfrey blasted her handling of an abuse scandal at the school, making it hard for the woman to find another job. a statement from both lawyers says the dispute has been settled peacefully, to mutual satisfaction. i need this! i need this. and i need this. because i need to take this from you. and i need to take this. because i'm old. and you kids have got to take care of me. megyn: children of the world, beware! john stossel is coming for your toys! you don't like it? get used to it. because while it's john today, it's the federal government tomorrow. and washington is after a whole lot more than just stuffed animals. here to explain, the man himself, john stossel, the

host of stossel on the fox business network. stossel, what are you doing, you're literally robbing children of their toys now? >> i want to illustrate what a scam this much loved program, social security and medicare, are. i mean, it is a ponzi scheme. we are stealing from children. it made sense in the 1930s when they passed social security, because most people didn't even live to 65. people my age rudely insist on living longer, the numbers don't make sense but the politicians won't cut anything. there were five people to support old people when they created it. now there are three, when your son nears retirement age, only two people will be there to try to pay for his retirement and it won't work. megyn: how can you take it away now that everybody has paid in? you have been paying in for years, won't you be upset when they take it away now that it's time to start collecting? >> yes, but we can reduce

the the wage, change the number of years. older people think they paid in, they don't know they get back 2-3 times what they paid in. megyn: and you have a piece for us that will highlight these issues. take a look. >> excuse me, i have to take some of these. no, no, i'm the old person. i need this. new york city i won't give it back. i need that. >> well, that's my thing. >> but i need that. >> today's tonight people are about to be forced to write checks to cover social security and medicare payments to millions of baby boomers like me. >> you understand you have to take care of me, right? >> we boomers who expect to collect social security and medicare are basically stealing from babies. >> you two may not have much of a future because you got to pay for geezers like me. you got to work really hard. >> they'll have to pay such high taxes to pay for my entitlement, they might as

well wear a ball and chain, it's a ponzi scheme a billion times worse than bernie madoff, but congress isn't investigating it, they're running it. >> and now they've added a new entitlement to it, health care. it's just so irresponsible. megyn: but if you talk to the democrats who pushed the health care bill through, they say we need it, that otherwise we were going to implode and it would have been much worse for our children who weren't getting coverage. >> yeah, and if you believe what the cbo says, what the cbo says, they are going to put medicare, which they would have to do to pay for it and they never cut anything. they're going to cut the doctors' pay? no, they're a powerful lobby. megyn: whose children were those? first of all, you put children in jail, now we see you taking toys from them and literally having one watch with a ball and game. >> we libertarians believe in voluntary action so these were volunteer parents who brought their kids in to be

abused by me. megyn: and now they'll have that forever more to show that to their own children. >> we warned you about medicare, they can say. megyn: they wanted me to bring my son, yates, in for the demonstration and i thought i don't think i want him to know stossel yet! well, i'm glad. thank you! if you can watch stossel on thursday he thinks, 8:00 p.m. eastern time over at the fox business network, he'll bring you more consumer reporting, he has expo -- exspoes and he does it before a stewed on audience, thursday nights, 8:00 p.m. eastern, fox business network. stossel! taliban tactics over in afghanistan. silencing informants by shutting down the cell phone towers. are the terrorists overplaying their hand? on the growrntiond colonel oliver north is live at camp weatherneck, helmand province.

and some of our neighbors to the north, not so civil when it comes to free speech. ann coulter, threatened with prosecution and prevented from speaking. a canadian journalist defend the very chilly reception, moments away.

megyn: now to afghanistan, where the dark of knight is dead silent, reports today that cell phone towers are shut down and the phones go dead at dusk under pressure from the taliban. we're told that that keeps the villagers there from passing tips to our coalition forces. and demonstrates how entrenched the taliban still are. colonel oliver north is live from camp weatherneck in the helmand province in

afghanistan. colonel? >> megyn, not all of the cell phones out here go dark. for example, we set this phone call up on my cell phone. it all depends on where you are in the country and how much control the taliban have over, in this case, government-licensed cell towers. it's almost an individual base. if the taliban have control over an area where there's a cell tower and can influence somebody to flick a switch, the generator goes off. it's not like in america where you've got underground conduit and hard-proof facilities for cell towers. they don't have that here. it's a single man running a generator, he's told by the taliban, shut that thing down at such and such a time or we'll kill your family, and this is all about control. you're exactly right that the taliban don't want their neighbors ratting them out to the marines and those others operating with the coalition forces. it's a matter of fear for the taliban. that's the message we really

ought to be getting out, is that the taliban are afraid of their neighbors ratting them out to u.s. and coalition forces. megyn? megyn: how do we combat that, colonel? >> well, you expand the control by the kabul government and the provincial governments over these areas where there are cell towers. about 40 percent of the country today has some kind of cell service, and we've actually been out in the field and seen folks, you know, rigging up little tiny antennaes on top of mud huts to try to get cell service. what has to happen is the government in kabul and provincial bottoms, all over in this country need to exercise control over the licenses that they have let, and make sure that those operating those towers know if they go dark, they lose their license. megyn: colonel oliver north, appreciate it, live in hel land province. no shortage of cameras when president obama signed that health care bill but a

whole different story today when the president signs the document that actually enabled the democrats to get that bill passed. a wild clash on catch us, students facing off against fellow students. just ahead, the author forced to scrap a speech because of threats and intimidation. you know her.

mig 1:30 here in the east. here's a quick look at the stories we're watching for you, the sex abuse scandal rocking the catholic church in ire rawnd, making its way to the halls of the vatican, pope benedict xvi accepted the resignation of an irish bishop, accused of sexual abuse. and a recall of a baby product, more than 1 million baby slings made by infantino, being pulled off of shelves after the product was linked to three infant deaths. it was bells and whistles at the white house when president obama signed health care reform into law, cameras, lights, a big crowd to cheer on the colder in chief and -- commedder in chief and fellow democrats but today a different story, the media is shut out as we await the signing of the executive order on abortion. the document was the deal maker that changed bart stupak's mind, leading him and other antiabortion

democrats to vote yes on health care reform. wendell goler at the white house, what exactly is going to happen at the white house one hour from now? >> reporter: a much lower key ceremony, if you will, than yesterday, megyn. we'll get a picture from the white house photographer, and he takes great pictures but we'd rather have our cameras in the oval office when the president signs this executive order. frankly, it didn't make prolifers or prochoicers happy. as you say, the president cut this deal with house democrats who are prolife, led by michigan congressman bart stupak, in order to get their votes for a health care reform bill that wouldn't have passed without them. under the deal, the idea is to separate federal funds from those insurance policies offered by state exchanges created by the health care reform bill. that -- that offer abortion. under the executive order, no health plan will be required to offer coverage for abortion in plans that do cover abortion, policy holders will have to pay for

the coverage separately, that money will have to be kept in a separate account and states could ban abortion coverage in the plans they offered. that is frankly not enough separation for some prolifers, they plan on challenging this in court. it is too much separation for some prochoice people, although the president says it simply codifies existing law. megyn: wendell goler, thank you. ann coulter going full speed ahead on her speaking tour, despite being shouted out last night in canada. the conservative author forced to scrap her speech at the university of ottawa. police canceling the event before it got started because of public safety concerns. those are their words. hundreds of rowdy protestors, showing up, on campus, ahead of the speech after coulter was warned by the university provost about possible criminal charges if she violated canada's hate speech laws. susan g. cole is column nis

for now toronto's weekly entertainment tabloid, she says coulter got exactly what she deserved. thank you very much for being here. why do you believe that? >> well, i don't think that she's really an appropriate choice to be speaking on campuses in canada. doesn't mean she couldn't be speaking anywhere else, but our view up here is that we're trying to create an environment where it's a place to think and learn and i don't think that ann coulter contributes to that. megyn: why do you say that? because you know, here in the united states, and i know it's different in canada to some extent, here in the united states we believe that the answer to speech you don't like is not less speech, it's more speech and that's the bedrock of our first amendment of which we're very proud of in this country. >> we don't have that same political culture here in our country and that's exactly what the provost of the university of ottawa was trying to tell ann coulter when he advised her to be careful about what she said, because she could indeed

violate some of our hate speech laws. so here in canada, we don't have a first amendment, we don't have a religion of free speech, haven't been etched in stone for 200 years the way it is in the united states of america. very different. it's exactly the information she needed to know before she came. megyn: so she gets this letter, though, she was invited to come on the campus and speak. it's not like she forced her way up to canada and said i will speak at this university. it was an invitation that she accepted. >> that's true. that's true. and it was inappropriate for those who invited her to invite her, because she wasn't going to contribute to the national conversation. she was mostly going to provoke. megyn: how do you know? >> well, because she actually spoke at the university of western ontario, in london ontarioo ontario the night before and had already shown her true colors on to how she was going to handle speech, including a muslim student to take a camel when he told her he couldn't fly on a

magic carpet as she suggested all muslims do because they should be on a no fly list. this is precisely the kind of what we would refer to as targeted speech towards minorities which are actually unacceptable in our country. it's part of our political culture. we still have very vibrant and vital dialogue, and actually don't need ann coulter to contribute to that. megyn: i just want to point out -- >> we even have our own home grown canadian conservatives to do that work for us. megyn: i just want to say obviously san not here. can i interject, i'll give you the floor back. she's not here, of course, but i have read what she said in response to that accusation about take a camel. she said that she had made a joke, somebody had said why can you -- did you say that all muz ims should be on the no fly list and that we should instead take a magic carpet, how am i supposed to fly if i can't -- because i don't have a magic carpet, and ann responded you could take a camel which ann says

was responding to what was a joke with a joke and that was her brand of humor. my question for you, whether you think that's funny or not, is when you ask ann coulter to come to your university and speak, you know what you're going to get. i mean, ann coulter, it's not like inviting some dosil, shrinking violet to your university. you know what you're getting when you have ann coulter and universities here in america have done it reet peedly, she's spoken at harvard, many of the ivy leagues. it's not like she only goes to conservative bastions to speak. it gets a conversation started. go ahead. >> it's not really a conversation. it's a set of provocations which in my view is not a conversation, and in fact, exactly in the speech at western, showed how she operates, and especially in response to the situation here in suggesting she's going to take a claim against -- to the human rights commission because she's a victim of hate speech, which is ri lick dous -- ri ridiculous and shows her ignorance and shows why

the provost of the university of ottawa was correct in informing her what our laws are so she couldn't make a fool of herself, which she appears to be doing continueusely. megyn: why is it so ridiculous? put yourself in ann's shoes. i know you don't like her, but -- she gets invited to go up there and give a speech, she agrees to do that, she gives a speech, she's herself, she doesn't make any pretenses about who she is or how she feels and she shows up to these crowds going crazy outside of the university. chanting some really vial things about her. why shouldn't she have her back up a bit? >> well, i mean, i'm sure she's a little bit distressed, but actually, i'm not sure that it's actually an authentic emotion that ann coulter is giving. i believe what's happening now, she's taking advantage of a situation and milking it for all its worth. i don't think she's really

hurt, insulted. i think she's enjoying every minute of it, and so are the extremists, the speech solutionists who are -- absolutists who are supporting her in canada, they're loving every minute of it and i actually don't mind that we're having a conversation about what speech is appropriate on campus, it's a good conversation to have. it's a better conversation, actually, than i think the one ann coulter was bringing to our campuses. and by the way, i really think that the group that brought her to canada could very easily have moved that selection to another space outside of the university and she would have been left alone. they brought her here, i believe, exactly to provoke this kind of reaction and everybody got what they bargained for, and can i say, they're having a field day. megyn: maybe, susan, those students like the way we do things here in the united states, maybe those are students who actually think the first amendment is a pretty good thing, and would like to see something like that in canada, and the way you move towards something like that is to get the debate started. i know i've read some of

what they've said, and they said look, canada has very strict laws on what you can and cannot say but the antispeech laws are mostly enforced according to them against conservatives and that when liberals come out and say incendiary things, people look the other way, so maybe they just want to get the debate started on canada when it comes to free speech. >> it's not that canada doesn't have a rich political history of talking about these things. we had a charter of rights where all of these issues have come straight to our own courts where we deal with them in a very, very rigorous way and i actually am a little offended by the fact that you think we've never thought about this stuff before. megyn: i'm saying their goal is to change things. >> the absoluteist, free speech people's goal is to change speech, that's true. they can have that conversation. not clear why they would have it an -- why they would

have it on campus. have it at a think tank, a lecture hall. the campus has to be a place, and there are all kinds of ways in which these things are made evidence. students sign off on all kind of agreements as to how they'll behave on campus to respect diversity, equity, all the values canadians care about and those are the things that drive our political cul tiewrk not freedom, not rugged individualism, not free speech. it's different and for us it works. megyn: it is different, not freedom and not free speech. here in america we had ahmadinejad come on to a university campus and speech but that's us. appreciate it. >> thank you. megyn: folks, what do you think about it? it raises interesting questions, doesn't it, should the university have not invited her, should we be more like canada in the united states when it comes to free speech and shut down anything we think is hate speech? here in this country, it's

allowed, unless it leads to, you know, immediate violence. there's been some limitations. e-mail me, kelly, foxnews.com and follow me on twitter. meanwhile we have news coming in from saudi arabia, more than 100 al-qaeda suspects, that's the number now, rounded up, and they have been arrested now in a plot that could have massive and dramatic fallout here in the united states. more on that in a minute. also, house minority leader john boehner is with us, the republicans, offering new and ugly numbers on what they say the health care law will really do to the national debt, your bank account, and your health. next. >> this bill is the mother of all unfunded mandates. the economic consequences, they'lling borne by this bill are truly horrific.

megyn: court is adjourned and we are awaiting a decision on a dramatic piece of videotape. sea world trainer dawn brancheau was drowned by a killer whale last month. there is surveillance video of the incident, but a court is preventing its release. brancheau also family wants to keep that tape private, and today, the court extended a temporary injunction that blockings the release of the tape for now. attorneys for the media organization are pushing for the tape. brand new numbers out from the gop on the new health care law, and these are fighting words directed at the white house. according to thelatest projections from the ranking republican on the senate budget committee, look at this, they say there will be a decifit increase of $618 billion over the next ten years, with a decifit increase of $1.8 trillion

over the second ten years. house minority leader john boehner joins me live to discuss this. okay, so thank you so much for being here, mr. minority leader, those numbers are pretty shocking when it talks about the red ink we're about to, as john stossel put it earlier, hoist off on our children. you know, the democrats say that's just not right, all along they've told us this is going to be a cost-saving measure. how do you get to the huge decifit numbers? >> well, you know, the congressional budget office can only score what they're given and in the way it's given to them. and what's becoming clearer every day are the gimmicks that were used in order to show that this was actually going to save money. when you start double-counting, the $500 billion m medicare cuts, you start double-counting some of the money that's going into the long term care program that is supposed to there be to pay benefits, 20 years from now, except we're going to spend it today on a new entitlement program, and so it's been clear to many of us that this is a budget

busting health care bill that i think is going to bankrupt our country. megyn: that's such an extraordinary statement, it's going to bankrupt our country. walk me through that. because you the republicans say the money is not there to pay for this thing and nonetheless, the entitlements are coming. we are doing this. it's a law now. so where is the money going to come from? >> well, it's either going to come from the backs of our kids or grandkids, like 43 cents of every dollar we're spending this year or it's going to come from increased taxes on small businesses in america, and at a time when we're asking them to create jobs, because the american people are asking us where are the jobs. and so it's not going to come out of thin air. megyn: dick durbin, he was on talking about this and he says forget tax hikes, it's going to be just the opposite. take a listen to what he said. >> joe, you know, i keep

hearing you every morning talking about the biggest tax increase in history but you don't mention it's also the biggest tax cut in history. we have almost $500 billion in tax cuts, and the tax cuts go to small businesses to help pay for health insurance premiums. they're going to go to individuals who can't afford their health insurance premiums. it really is going to make certain everybody has a chance for affordable health insurance. we welcome this debate. megyn: is that true? >> well, i don't think it's true at all. yes, there are subsidies in there for people to buy health insurance, yes, there are. but when you look at the tax increases that are being put on the back of small business people all over the country, i don't think you could ever find a way to call this a tax cut. megyn: what could happen now? because there was talk yesterday about the possibility that the democrats would have to implement a national sales tax to pay for this. that perhaps they would just raise other taxes on the middle class to pay for it.

or there was also talk about perhaps if the republicans retake the majority in 2010, of the republicans just refusing to fund this. i mean, what realistically is going to happen over the next 8-10 months? >> well, i think that we need to repeal this bill and replace it with common sense reforms that will bring down the cost of health insurance, but with a democrat president for the next 2 1/2 years, even if we gained the majority, it's going to be very difficult to repeal this bill outright. but things like if i were the speaker of the house and we were the majority, i'd have a bill on the floor that would eliminate the $500 billion worth of medicare cuts. i would have a bill on the floor that takes away this individual mandate and the employer mandate and the tax increases. in addition to that, it's going to take appropriated funds to actually come through the process to fund the hiring of new employees, to create these new bureaucracies. i can't imagine that a

republican congress is going to give this president the money to begin this process. megyn: i want to ask you, sir, because there's been a lot of news out there about the climate on capitol hill, and some of the tea party members were accused of misbehaving when we saw the bill being voted on and even some members on the house floor were accused of misbehaving, we heard one yell out it's a baby killer about the bill and so on. you had thoughts on the climate and the hostilities on capitol hill. >> well, there are a lot of angry americans and their angry over this health care bill, they're angry about the fact that the democrats here in washington aren't listening to them, but i'm going to tell you that violence and threats are unacceptable. it is not the american way. yes, i know there is anger, but let's take that anger, and go out and register people to vote, vo volunteer on -- go volunteer on a political campaign and let's do it the right way. i'm concerned about the amount of violence and canninger -- and anger that's out there but it's

unacceptable. megyn: all right sir, thank you so much for being here, we'll be right back's don't goy away.

mig this is a fox news alert, disturbing numbers just out on the economy today. the federal government now says that new home sales are down just over 2 percent for the month of february. falling for a fourth straight month, to the lowest level in history. james rosen is live in washington. james, has the president weighed in on this? >> his spokesman has and with continuing concern, miggen, the -- megyn. the seasonally adjusted projection falling to 308,000 for the year. >> we will continue to --

continue the modification program to strengthen that program, in order to keep as many people as possible in their houses and to continue to work towards building an economy that has a stable foundation. >> reporter: and yet, these declines took place despite the extension from last november until april of this year of a tax credit for first time home buyers. consider that the sales of existing homes, not just new homes, but existing ones, which accounts for nearly 95 percent of home sales, also dropped last month, megyn, according to the national association of realtors by half a percentage point. since the great recession began in december 2007 we have seen new home sales decline that began in 2006. the 625,000 new home sales we were charting 15 months ago has been cut by half and the rebound in '09 has certainly evaporated. megyn: thank you for that

uplifting report. all the best, james rosen. >> i do what i can. megyn: if you think the home sales are bad, wait until you hear what we have with homeowners staying in the homes they've got. here's a hint. not working so well. brian sul van has that story ten minutes away. plus it could be a major blow to the top terror network, and a life-saving arrest for the united states. a roundup of the terror arrests in saudi arabia. what do you think of tax dollars buying viagra for sex offenders? republicans today are hoping to stop that. we'll show you why the democrats may have to stand in their way.

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megyn: this is a fox news alert. new details about a major terror bust inside saudi arabia. we just got these images in. they show weapons and computer equipment seized during the raid. they are reporting its security forces foiled several plots to attack kingdom's oil installation. we understand many of them are from the naiftio the nation of . >> reporter: 113 people were rounded up. half of them saudi. others yemeni. two of the cells are said to be suicide bombers, the others an

organizational capacity. their targets the oil infrastructure inside the saudi kingdom. saudi authorities identified them as belonging to a relatively new branch of al qaeda that claimed responsibility for the infamous underwear bomber. megyn: how did they get into saudi arabia. >> reporter: a small number appear to have entered the kingdom under the guise of going to the holy site. and some entered in that no-man's land. a lot of the an arrests took place near that border. it appears the saudi government is swooping into do what it can. megyn: how sophisticated were these terrorists planning to

target oil installations. we see quite a weapons cache, we see computers and electronics. how sophisticated was this group? >> reporter: it's tough to say how sophisticated they were because they got caught in the end. they did seem to have a substantial number of weapons. it's interesting that thi this s is taking place and the fact that the government in yemen can't do that much against these guys and the saudi government came against them. it dees pear the audi government did view them as a significant threat that could have inhibited the flow of oil. megyn: we continue to hear the name yemen as a source of terrorists. mike tobin, thank you so much. live in jerusalem.

we are moments away from a much-anticipated event at the white house. president obama is about to sign the executive order that reaffirms restrictions on federal funding of abortions. it helps him help seal the deal for healthcare reform. today's event takes place behind closed doors. the president invited some members of the democrats' antiabortion block the signing. we'll be joined by ron paul and he has some thoughts whether that executive order is worth the paper's print on. members are push for several amendments including one that will prevent sex offenders from get getting viagra.

here to explain is carl cameron. he's on capitol hill. what's the deal? >> reporter: the senate has to pass the how reconciliation package of fixes without changes. they can technically move a comma or semicolon, but they can't make any substantive changes. essentially it's a huge delay for democrats. so when you have an amendment like one you are talking about that would prevent sex offenders from getting government subsidized or health insurance for viagra, though it seems a perfectly good thing to allow not to happen, they will have to allow it to go forward as potentially feasible. to fix -- to change the bill would be to derail it and do a u are turn in the house. megyn: can't they do it separate

and apart from this healthcare mess? >> reporter: sure. in the appropriations process -- what they are trying to do in the process of finalizing the legislation tbhb thfinalizizingt stupak abortion debate. initially what the pro life democrats were arguing we need a permanent ban. they wanted language in the statute. the executive order the president is going to sign many critics say has no force of law, can't overturn the statute because you don't have a permanent ban in the language of the law. so what they are trying to do -- what the republicans are trying to do is saying if it isn't expressly prohibited is thee prs

theoretically permitted. megyn: carl cameron, thank you, sir. the u.s. inspector general blasting the plan that was supposed to help americans avoid foreclosure. you may recall at the height of the mortgage crisis president obama outlined a $75 billion plan to offer relieve to struggling homeowners. here is what he said. >> lenders who participate will be required to reduce the payments to no more than 31% of a borrower's income. this will enable 3 million to 4 million homeowners to modify the terms of their mortgages. megyn: the plan was supposed to help 4 million americans. 13 months later we learn it has helped 170,000. is that right?

brian sullivan is an anchor with the fox business network. is that right? >> reporter: 4%. it's a miniscule percentage. megyn: how do we know that's the number? >> reporter: it takes time. it's a lot of paperwork. a loft banks don't want to do it -- a lot of banks don't want to do it. megyn: you hear president obama say we'll make sure they can't collect more than 31% of your income in any month. is that happening? >> reporter: the banks are largely resistant to this. they don't want to do it because they can make more money on a home by foreclose. a lot of times the oklahoma owners don't want to do it. if you lost your job or if you

reduced to part time from full time, it doesn't matter if they cut your payment by a couple hundred bucks a month. megyn: there was such a controversy when this got started about if i had been responsible on my mortgage, i don't want to have to bail out my neighbor from his mortgage. there was pressure not to create a system where we had to do that. is this the only mortgage assistance program in effect? >> reporter: you can call your bank on your own and see if they will lower your mortgage payment. you need to cut your principal. but banks don't want to do that. we have bailed out the banks once. now we are talking about reducing the value of these mortgage holdings. we have 6.4 trillion in mortgage holdings in the federal government right now. megyn: what does that mean?

>> reporter: if less than% of those go -- if less than 2% go bad, that will cost more than healthcare. megyn: that's not surprising when you look at these jobless claims. it's still almost 10%. james rosen is saying new home sales are down to a record level. it feels like the housing mess is what started this whole thing. the bankers with the mortgages and the trading that went on -- where are we now in that mortgage market? when could this real estate market start to turn so we can see relief to homeowners? >> reporter: in five years. you talk about that bubble. that many the fed trying to pump up the mortgage market. next week the fed stops its mortgage buying program. if people aren't buying a home at a 5% 30-year fixed they

probably won't buy a home at 5 1/2% 30-year fixed. megyn: i understand enough to know i'm depresses. thank you. we are not going to touch that last remark. we are 20 minute away from president obama scieng the executive order -- president obama signing the executive order banning abortions in the healthcare plan. congressman ron paul will be with us to tell us why he thinks this entire deal is flat out illegal. what's the happy meal without the toy? is it happy at all? it could leave a lot of kids not loving it. >> we go for a happy meal for a child, we go for the prize.

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megyn: a warning that a nation's largest city is bracing for a round of potential job cuts. up to 19,000 city workers could have their jobs on the chopping block, including 8,500 teachers. under a new state budget proposal the big apple would receive a $1.3 billion cut in state aid. moments away from a major event at white house. president obama is about to seen it executive order that reaffirms restrictions on funding for federal abortions. that order was part of a last-minute deal struck with congressman bart stupak and

other pro-life democrats. but my next guest says that deal is flat out illegal and unconstitutional. he's congressman ron pawf congrf texas. >> the constitution says only congress passes laws. the executive branch is not allowed to pass laws, nor should the judicial system pass laws. it's unconstitutional. both parties have don't. but congress is careless -- they allow and encourage and do these deals to get the president to circumvents the congress. it's uncop par and can't get -- if something is unpopular and you can't get it passed. i think it's a shame congress do it and i think it's a shame

the american people put up with it. megyn: do you think that executive order he will sign in 15 minutes is worth the paper it's print on? >> i think executive orders are powerful and they are wrong and they do have the effect of law. i don't think the hyde amendment has ever been effective. it's symbolic. it says organizations can't spend their money doing abortions. but in the past when we give money to pregnancy centers and family planning centers. they take that money and use it for birth control pills and take it money for birth control pills and use it for abortion. it doesn't have much effect. that's why the liberals went along with it because the hyde amendment doesn't have that much effect. the only way is to strike the funds from the pregnancy

centers. that's the reason. but i disagree with some who say, this executive orders don't have any authority. they do. presidents can go to war over executive orders. they have a lot of power. megyn: stupak says the emanicipation proclamation was an executive order. let me shift gears. you mentioned the federal government shouldn't be involved in family planning. and a lot of americans are worried about what's going to happen now. how much will the federal government be between me and my doctor. be between me and my accountant and mortgage broker? are we seeing a shift in how involved the government is in our lives? >> it's already been a mess and that's why people have been unhappy. the insurance companies have

gotten in between the doctor and the patient. this will be a lot worse and cost a lot more money. not only that, do you have the drug companies. you have the lawyers in the middle, too. the tort law, you will have the incentive by doctors to overtest. when there is third party payment that's one inducement for overorderring. but then when you have the threat of an attorney suing you, i'll say i will order more tests. i don't want to answer these questions to the attorneys. megyn: how is that ever dialed back. some on your side of the aisle are talking about repiece. once the fed -- are talking about repeal. >> the only thing you can hope for is we legalize a private option instead of just the government option. we have a private option on

education. public education is going down hill because the federal government runs it and all they do is run up the cost and they have done this in medicine. now with this metropolitan date you must buy -- now with this mandate that you must buy insurance, there is no opting out. there will be no chance to opt out of the system. so it means that we have had this encroachment of government all these years. but now this is closing the door to any other option. we don't even have a chance for a small group of people to say i have had enough. i don't want anything to do with the government. i would like to legalize freedom for the individuals who say i will got it on my own. i don't want anybody to take care of me. i'll be responsible for myself. this bill has closed the door on that option. megyn: thanks so much for coming on and discussing it with us.

if you missed any part of our interview with congressman paul you can go to our web site foxnews.com/america live. you can see the whole thing or you can see other clips not just from today's show. you can see dr. manny talking about the two brothers who had a heart attack the same day, the same hospital. also we have posted behind the scenes moments. americans are fired up over healthcare reform. but some in the media are suggesting there is something more sinister behind all the protests and the tea party movement. bernie goldberg weighs in on whether these are fair, right or whether they will stop. the college student hauled off in cuffs for disputing her grade with her professor. look at this. the disturbing video is exhibit a in "kelly's court." you will decide who gets the

failing grade.

megyn: your kids may deserve a break today, but soon sit may not include any toys. at least in one california town where a lawmaker wants to stop fast food restaurants from giving away any toys. it's not putting a smile on any parents' face. >> reporter: my kids would rather have the toy than the burger. this is being pushes from a lawmaker in northern california, santa clara county, north of san francisco. it's also known as the silicon valley. he says the meals are high in calories, they are making kids

fat, and this is his push to end childhood obesity. >> one in three kids are overweight or obese and we are finding out more and more if you are obese as a child you are going to have health problems your entire life. >> reporter: these things are popular. the federal trade commission says more than a billion toys have been give up away with fast food meals. the law would ban the toys all together or you would have to give the toy out with a healthy meal. many disagree. let parents do what they want, guide their kids the way they want. they say a lot of kids are overweight without eating happy meals. >> i have grown children and that starts at home. they eat what's in the refrigerator, they eat what their parents buy at grocery store. >> reporter: if it passes it

will be the first in the country. megyn: would your kids do it if you said you could have the salad and the toy, but not the burger? >> reporter: they just want the toy. the food is secondary. when you get the happy meal it's all about the toy. it's not about the food. megyn: maybe he's on to something. >> reporter: the kids would rather have the toy than the meal. megyn: i didn't start caring about nutrition until i got into college. i think you make up your own mind. >> reporter: i think so. megyn: i had to stop doing that. what do you think? you can go to our web site foxnews.com. should toys be band from your child's fast food meal?

or no. give me a break it's a toy. not up to our lawmakers to get involved. foxnews.com/america live. rosie o'donnell is look to return to tv. could she become the new oprah. new word rosie is gunning for the queen of talk's top spot. president obama will sign a controversial executive order banning federal funds for abortion. but unlike the signing of the healthcare reform bill which was under the glaifort media lights, today there is not one reporter and only a white house photographer. this is all the american people will see on their television cameras. the reason why just ahead. they're made from whole roasted nuts and dipped in creamy peanut butter,

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megyn: here is a quick look at some of the top stories we are watching for you. wind and rain can't stop the post office, but weekends might. they took the first step to cutting mail delivery to week days only. balloon boy's dad is out of the slearmout of theslammer. changes may be coming to your

kids' school cafeteria a senate panel approving a measure aimed at make school food healthier. any moment now the president is expected to make good on his promise to pro-life congressman bart stupak. he will sign an executive order reaffirming federal funds cannot pay for abortion except in cases of rape, incest, or if the life the mother is at risk. no media allowed. but official white house photographer will be on hand. there is no doubt about it. the healthcare debate fired up this country like nothing in our recent history. amid that passion news of some troubling reports. racist slurs allegedly hurled at black lawmakers and even a claim that a protester may have spit on a congressman over the

weekend. but has the media been too quick to claim that racism is behind the protests. what is the answer to that question? >> there are two issues. one is what happened that day, and two is your question, how is the lame stream media handling the story. if what happened that day is what's reported, it's reprehensible period. it's just interesting -- i'll do this briefly. with all the cameras out there and all the audio equipment, nobody has produced the audio of these racial slurs. and i spoke to john lewis' people who say he was called names. but of all the articles i read, there are no direct quotes. not -- i couldn't find any direct quote with the congressman saying i was walking down the street and they called me a blank.

so i'm not saying it didn't happen, i'm just saying something feels odd about this. megyn: we have video of congressman cleaver in the incident in which he claims was spat upon. that one at least according to him was caught on tape. >> but the racial comments -- i'm not saying it didn't happen, but there is no evidence -- no hard evidence. as far as how the lame stream media is handling this, they are trying to portray the tea party movement in general as a bunch of racists because it fits their narrative. when environmentalists on the west coast burn down an suv dealership because it isn't green, no lame stream media tries to tie it to.

yet in this case it fits the narrative. and the narrative is this. as far as liberal journalists are concerned. conservatives in general and the tea party people in particular are a bunch bigots. when something like this comes about, even if it was three people who yelled these terrible things out. two people. maybe just one person in a crowd of thousands. even fit was one person in a crowd of thousands, that's enough to tar the entire movement because it fits their narrative. megyn: this is just a sample from the baltimore examiner. this is about the "n" word. this lends proof to the fact these rallies are no longer harmless, but hateful and have tang on the same deme mor demeaa

ku klux klan rally. >> journalists are sceptical of what politicians tell them, but in this case they are believing it flat out. that person you just quoted didn't hear it. i'm willing to accept in a crowd of thousands somebody might have done it. but she didn't hear it and she doesn't say they claim to have used these names. she come perils it to the ku klux klan. that's disgraceful journalism. megyn: there are reports out today that rosie o'donnell is starting a new talk show. but they say she is going to be basically replacement for oprah. she is going to be the next go-to gal of day time television. the format will be just like oprah's. is there any chance rosie

o'donnell can become the next oprah winfrey? >> let me make sheer that it is physically, mentally and emotionally impossible for me to care less as to who replaces oprah. it's just impossible. but having said that. i think people who make their living in the public eye, whether it's on television or politics, the one thing you have to be is likeable. do i have to finish the sentence? megyn: she used to be. when she had her own day time talk show, she won best -- that was six years in a row. >> how many years ago was that. a long time ago. megyn: before "the view." >> that audience has gotten older and moved on to things. they may not be there for her. if i had to guess -- megyn: her day time talk show you don't think will succeed.

>> i don't know -- i don't watch any of that stuff so i don't now know if it will succeed. are you asking if she'll be the replacement for oprah? enough. megyn: oprah never became as polarizing a figure as rosie o'donnell. where can people tweet you? >> don't do that to me. it's at bernard goldberg. and my web site is bernardgoldberg.com. . megyn: you are with it. i just got a twitter myself a couple weeks ago. thank you so much. a stunning story is developing out of the seattle, washington, where one mother is furious. she says the school put her 15-year-old daughter in a cab, sent her to a clinic and helped

her get an abortion on school time without saying a word to the mother. we have a live report breaking details on this in moments. plus the college classroom chaos. a student who yesterday her grade got a rude greeting from police. low in fat and cholesterol, heart healthy levels of sodium, and taste you'll love. girl: this is good for my heart? chef: you noticed. [cheering] announcer: campbell's healthy request.

megyn: "kelly's court" is back in session. on the docket today, cuffed in the classroom more quarreling over a quiz question. watch it. robin foster arrested and dragged out of her class at the university milwaukee.

the professor asked her to discuss it after class. she kept up her foul-mouthed rant -- listen here. it went on from there. before all this happened she hurled a water bottle at a student who asked her to settle down. the teacher said she would call the cops. the cops showed up and foster said to them, you will have to carry out of here so they did. now some say the police stepped over the line. really? let's ask our panel. the tape shows a dramatic takedown. it shows a belligerent student. did the cops step over the line? >> i watched the whole video.

while this student is not going to win a miss congeniality contest. she didn't deserve to be taken down like the taliban. she never raised her butt out of that chair. to me that makes a difference. this force is excessive. megyn: kimberly, was it? she sat there, she was back talking with the professor, dropping "f" bombs, and the teacher calls the cops. did the cops do anything wrong? >> no, i think they were totally within their rights to handle the situation in the manner in which they did. the student is the one out of line. they did not do anything wrong to her. she did resist arrest. she was disorderly. she was disrespectful to the teacher and the rest of the students. this cannot be tolerated. you are there to get an education. megyn: jonna, do the police need

to take down a student because she is being obnoxious? are the badges and the guns enough to get her to go? >> if we could watch the whole video. she is packing up her backpack as the police are walking in. and boom they are on her and that many the end of the story. let' not forget, there is a difference between civil disobedience and criminal destructiveness. she was questioning a grade. megyn: let's listen. >> all you are doing is make me get constantly more uncomfortable and angry. you are making me continue to do this.

megyn: finish your thought. >> she is trying to act rationally saying i want to stop this argument. she is not threatening to blow up the building or set somebody on fire or sleep with the professor's husband. she is saying i want to stop. then three huge police officers are on her. too much. megyn: what right does she have to continue swearing and causing a ruckus in the classroom when the teacher told her calm down or you are out of here. >> i don't understand why we have to allow this behavior in a classroom. she is totally out of line. i would say the school would be well within their rights to not allow her back into that classroom for a long period of time and make her write an apology note to the teacher and apologize to the class. this is outrageous behave year anout ray -- this isoutrageous t

be condoned. >> they are misdemeanor offenses. this is a woman who did not cooperate. she was being aggressive and being aabusive and verbally taunting people. the cops had to step in and do their job and she interferes with them doing their job. megyn: she did dare the police to take her down saying you will have to haul me out of here. >> how many times have police heard that before? i think it's a lot of blustering. they didn't have to take her up on it. do i think she should get rich from this? no. but should it cost her her college career? no way. megyn: she may be setting the ground work for a lawsuit. what we heard at the end, they said, do you need an ambulance? and she said yes. she said you have got your knee in my back.

it looks like she was trying to make a record for a civil suit. kimberly if we go that route, any chance? >> she is just a complete brat, i hate to tell you. she doesn't deserve to get one dime. she is what goes wrong in classrooms. this is not a woman who should be rewarded for bad behavior. >> thank you so much. one final word for our viewers, this student was way out of line. she was asked to leave nicely repeatedly. she was told the cops were coming. she said they would are to carry her out. they did. don't want to be cuffed and removed by the cops, don't misbehave like this person. we have breaking news out of capitol hill. democratic leaders are talking about security threats being made to lawmakers who back the healthcare overhaul bill. this is just coming in. we are getting word from steny

hoyer on potential threats. we'll bring that to you next after this break. also a student's mother is furious after her daughter's high school reportedly helped her get an abortion during school hours without the mother's knowledge. a live report straight ahead. nature knows just how much water vegetables need. so, to turn those vegetables into campbell's condensed soup, we don't boil it down, our chefs just add less water from the start. ♪ so many, many reasons ♪ it's so m'm! m'm! good! ♪ [ male announcer ] competition... it pushes us to work harder.

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megyn: fox news alert. we are now hearing that saweddies have arrested 113 terror suspects accused of plotting attacks on saudi oil facilities. this is a huge bust. we have video coming in at the top of the hour showing weapons and computer equipment seized

during the raids. terrorists have targeted saudi oil facilities in the past causing problems for oil prices in the united states. jonathan hund has informatiodow. moments ago democratic leaders got a briefing by capitol police talking about security threats on leaders who backed the healthcare bill. here is steny hoyer talking with reporters about this moments ago. >> our democratsy is about participation and debate and an made it debate and passionate debate. about it is not about violence. it is about make sure that everybody in america feels free to express their opinion and to take such actions as they deem to be necessary without

subjecting themselves, their family or others to the behavior and frankly criminal behavior in some respects that undermines our democracy and undermines the safety of individuals. megyn: there were reports that democrat louise slaughter had a brick thrown through her office. that has been condemned by both sides of the aisle. and you will hear more on both of those stories coming up over the next hour. moms, dads, listen to this one. we have new details on a shocking story out of washington state. the mother of a 15-year-old girl is lark out at he lark out at h- is lashing out at her daughter's high school saying they helped

her daughter with an abortion without ever telling her. >> reporter: this girl was taken over to a planned the parenthood for an abortion, she was give up a cab ride over there. basically put into a cab and taken to planted parenthood. according to her mother she was then discouraged to tell her parents about her plans to have an abortion. according to her mom this planned parenthood worker said if you tell your parents they will be on the hook for this abortion. if you don't, the procedure will be free. washington is one of 15 states that do not require parental consent for abortions. girls of any age can go into a planned parenthood and get an abortion. it was a health clinic inside a high school run by the county. they administer this program. we talked to the administrator and he says no laws were broken.

megyn: usually for these health clinics even for schools to administer healthcare to a child, the parents have to sign a consent formal beginning of the school year. do we know about that angle? >> reporter: in this case they did. the mother signed a consent form saying if my daughter has to be taken off premises for any treatment, this would be okay. it does not say for an abortion. we have more information we'll get to later about all the different times of procedures that can be done in the state of without parents being notified. megyn: dan springer, thank you. india says it has a new weapon to use in the fight against terror. hot chili. hers. how will that work? a former army colonel house an expert on military weapons joins us live.

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