>> julie: i'm julie banderas, welcome to america's news headquarters. >> gregg: i'm gregg jarrett. toppings the news, after promises of bipartisan from both sides in the campaign, the incoming republican congress now vowing to to stop the president's health care law right in its tracks. what your health care coverage on could look like. >> after a riding a wave of tea party enthusiasm, joe miller

looks to be defeated by his rival senator lisa murkowski. >> after 18 months inside an australian prison, american citizen gabe watson is out of prison and why the attorney general eric holder is stepping in to make watson come back to the united states. >> fireworks ahead of the lame duck session and new fights shaping up not between the two parties but within them. a battle is brewing right now between traditional al gopers and new brand of lawmakers. molly is live in washington. we hear of competing orientation events for freshman men, what is that all about? >> one is sponsored by tea party patriots and one is organized by a conservative think tank. claremont says it's important

for the historic class to get to know each other and how we can work together as group. but the tea party patriots have an event the same day and see the claremont event as competition. an e-mail tea party patriots said supporters d.c. sniders and lobbyists are trying to push the tea party aside and coopt the incoming congressmen. they offered to emerge the events but the claremont institute was not interested. >> julie: and nancy pelosi trying to prevent fighting within hurry caucus what your is he doing? >> she is trying to iron out a battle between the current second and third in command in house democrats. congressman steny hoyer, a conned jim clyburn, is number three but in the next congress when pelosi is no longer the

speaker says she wants to run for minority leader and that is going to pit hoyer and clyburn for minority whip. it would create a new position for clyburn. in a letter to democrats she wrote, i will ask the caulk to us designate that new position as assistant leader meeting that clyburn would report to pelosi and not to hoyer. >> gregg: president obama and republicans laying out respective strategy to boost spending. president obama focusing on reducing earmarks, the pet projects that lawmakers always insert into spending bills. we have a chance not only to shine a light on a bad washington habit that wastes billions of taxpayer dollars but take a step toward restoring public trust. we have a chance to advance the interests not of republicans or democrats but of the american people.

to put our country on the pads of fiscal discipline and responsibility that will lead to a brighter, economic future for all. as a future i hope we can reach across party lines. >> gregg: gregg walden is saying the gop will put spending measures under the microscope. >> we are tracking down every last rule and roadblock rigged to keep spending on autopilot. we michael it easier to cut spending and harder to increase it. we're searching for savings so we can cut the cost of congress and make the institution more efficient. there one the won't be any sacred cows here. >> eric cantor says the gop conference will vote to ban the earmarks. they are urging democrats to do the same thing. repeal and replace the new

health care law, that seems to be the rallying cry of republicans but with a divided congress that may be easier said than done. democrats still have control of the u.s. senate that may mean republicans will be looking across the aisle for some help. with us, is christina, editor for role call. good to see you. republicans can pass repeal of health care in the house, they don't have majority in the senate. what if they get the following four democrats to join them. john manchin, who vowed to repeal part of health care. ben nel soften and jim web and john castor who have voiced displeasure of the law and all come from reddish states who are going to be facing the voters in 2012, what if they get those four dems and maybe you can get bill nelson and conrad, what if?

>> those are big what ifs. the democrats still control the chamber. they control what is brought to the floor in the chamber, in the senate. i think that 60th member, they can reach as you mention have competitive races ahead of them. it's definitely a big what if because even if governor manchin the parts of obama care we don't like, that is not very specific. so i look what they put on the senate floor, it's another question. >> gregg: how unusual, politicians being vague and ambiguous. look, the senate is empowered to pass a new law that repeals an old act. it's the old act was passed through device known as reconciliation, couldn't a repeal being done the same way, a simple majority. >> that is an interesting

question, probably technically it's possible. i don'tthink you are hearing anybody talk about it at this point. the more likely procedural tactic that republicans are going to be able to use is denying in many cases the funding for implementation of the newer health care lay because right now there is a lot of money set aside in the budgeted to be able to implement changes to the irs system, changes to the insurance commissioners are regulated. if they were to cut off funding you wouldn't be able to pay for it. fo don't forget, president obama is still president and he would veto any attempts to repeal the law. so i don't think you are going see it. polls show there are a lot of elements in health care that are popular. republicans face a little difficult. >> gregg: there is a handful of no brainers that everybody agrees on most of which has been implemented. i am glad you brought up president obama.

democratic pollster who helped bill clinton to center and also i might add contributor to fox news wrote an op-ed and he says the president is flawed. he could begin working with republicans on a series of initiatives to emphasize cost containment and more medical innovations and at least some form of medical malpractice tort reform and expanded interstate insurance purchases. you think the president after awakening after the election, do you think he might be amenable to those things? >> probably. if they sounded a little familiar, there are elements within the study you can get on board with way back when. when they had a big health care

summit bipartisan with both members in the house and senate, those are some things you could agree with. this is an area where they can tinker along the margins with small bills. they can change funding within the tax code. there are lots of options available to sort of make it better. more than likely president obama will be taking some of shone's advice and go more to the middle. that is what bill clinton did and you are seeing the white house look at that on tax cuts. >> gregg: back to the issue of repeal. mitch mcconnell who is any majority leader, he wants to send as many repeal bills to the white house even if the president vetoes any and all of them. do you think that is in 2012 campaign strategy as opposed to a genuine legislative goal? >> yeah, it sounds like a campaign strategy.

you can sort of see that. president obama showdown with senate republicans but can turn around and democratic campaign ads now, republicans want to make sure that you are still paying for the highest price for your child's insurance if they have a preexisting condition. if you have child in college they won't be able to get insurance on their own. that is what you will see from campaign ads on both sides. the idea of sending that many bills to president obama is not possible particularly given the democrats still control the chamber. >> gregg: a sluggish beast, i love that. great to see you, thank so much. >> julie: former white house chief of staff rahm emanuel is running for mayor of chicago.

the announcement coming on the city's north side. he represented that area in congress before taking the job at the white house. he says no hard feelings between him and his former boss. >> the opportunity to lead this city could have pried me with a away from the president's side because he notion and loves chicago, president obama supported my decision for which i am grateful. >> julie: election to succeed richard daily will be held in february. the man convicted of hacking into sarah palin's e-mail will not go to prison. federal judge sentencing him to one year and one day in a tennessee halfway house. the punishment fallen short of prosecutors' request for an 18 month prison sentence could illegally accessed the e-mail

during the presidential campaign. in the facebook posting, palin called the move an attempt to derail an election. >> gregg: bye-bye to the big pensions. bell administrators will not be able to cash in the massive pensions and they gave themselves. you may recall the enormous salaries sparked protests. one manager charged with misproper yate go millions in public taxpayer funds. they have pled not guilty. they were slated to get $600,000 a year in retirement benefits while the exact amount is unknown. we do hear they are going to get less than that. >> i have it in my bra. $76,000 in cash. >> gregg: wow! >> julie: we won't go there. that is what f.b.i. officers say

they can hear d.c. politician leslie johnson saying on tape before they entered her house. leslie and her husband a county executive are now facing corruption charges. he allegedly told her to stuff the cash in her underwear as he flushed the $100,000 check in a real estate developer down the toilet. it's part of a four-year investigation. >> gregg: his remarks, i'm innocent i can't wait until the true facts coming outs and caught on tape telling her to stuff it in her bra. that caught you by surprise. okay. >> it's here the first major winter storm of the season hitting the upper midwest. minneapolis getting a foot of snow, flurries expected to continue sunday into monday with another chance of snow late tuesday into wednesday. get out your new boots, skis and

poles. >> two international airlines keeping the super jumbo jets in the air. they are flying a-380s after inspections of the engines. an engine exploded and prompt them to make an emergency landing last week. all the aircraft use the rolls royce engines. qantas is keeping the fleet in hangars until further notice. >> soldiers in iraq and afghanistan after experiencing things like this. [ gun shots ] >> gregg: taking the challenges of returning to civilian life. the story of five remarkable veterans and what they learned from the field of battle. >> julie: he got ton tons of demerits but he had a lot of friends.

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>> gregg: welcome back. actress zsa zsa gabor expected to be released from a hospital. treating an infection originally believed to be a blood clot. >> myarmar freeing sui kyi. and auctioning off pieces of antiques that belonged to bernie madoff. the money will go toward victims of the disgraced ponzi scheme. >> julie: service members returning from war and one group is putting video cameras in the hands of veterans. for the very first time

capturing the stories of soldiers and marines through their very own eyes. casey stegall is here with the story. >> reporter: move over james cameron, a new study of film directors out there and not only do these people have a good eye and interesting stories to tell but they have served in the u.s. military and right on the front lines of war. those experiences made their documentaries more compelling. for the last three years the brave new foundation has selected veterans from around the country who have an interest in film and have unique stories to tell. funded by a $4 million grant the veterans get hand on training under operation in their boots on how to translate their ideas to the silver screen. >> we begin to realize that a lot of veterans either have film making skills before getting deployed or coming back and going to film school.

a lot of trained and skilled film makers who can deliver and produce some great films. >> reporter: today more than 20 15-documentaries have been produced. troops suffering from survivor's guilt and even develop go into other things. >> i want to see people's reaction to be engaged but i want them to see a personal snip petd of somebody's life. i want them to put a face and a personal to the veterans returning home. >> reporter: so the big question where can you see these? you can check them out online but you can also see them on public access television in your area. if you would like to check your complete listings or watch them

on the world we web, go to the web address on the bottom of your screen. they are 15 minutes apiece and they are fashion nate go to watch. >> gregg: an amazing glimpse into the past. this website is now posting 115,000 old application documents to the u.s. military academy at west point featuring very prominent players from the civil war. for example, general william sherley. peter doozy who did not get into west point? >> we know what sherman and custer and stone wall jackson did after their graduation from west point but until this weekend, very few of us actually knew how they got into the u.s. military academy. now anyway with an internet connection can scope out 115,000 pages of cadet applications

thanks to the folks at ancestry and national archives. it's released from 1805 and 1866 if you can decipher it, it's fascinating. in 1842 george pickett wrote, i'm a young man, 19 years old, six feet tall and moderately good-looking. george a.custer would be described as the ohio congressman that nominated him, abe to perform with facility and ground rules of arithmetic. thomas a.jackson years before he became stone wall jackson, but we won't be seeing any of this if it wasn't for the hard work of the national archives. >> there are a lot of boxes. we have 80 million items.

records are all permanent records never to be destroyed. our mission is to preserve them for posterity but also make them available. >> reporter: anybody that wants to check them out or their own relatives can do so until tomorrow through ancestry.com. >> gregg: moderately good looking? >> that was from picket es and not yours. >> julie: now i get it now. >> it's all the same list. >> before you leave from washington, i'll get even. >> julie: illegal immigrants heading leaving in droves from arizona. where are they going? next. hey, guys, i know i've been bad at this in the past, so i've come up with some mnemonic devices to help me learn your nas. hello, a "penny" saved a "penny" earned. oh, that's 'cause fedex ground helps you save money.

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>> julie: time for the top of the news, president obama about to wrap up his trip to japan. a meeting with the president of russia still ahead. the coming as a white house has to round up votes for a nuclear arms treaty that the two leaders signed. >> gregg: ten people killed in afghanistan when a motorcycle blows up in a marketplace. three of the dead are children. >> julie: navy commission ago new warship named for medal honor recipient. he died after throwing himself on an enemy grenade. he presented the parents the medal of honor. >> gregg: right now the senator from alaska remains a mystery. votes are still coming in. lisa murkowski is getting on most of the write-in votes but joe miller is not giving up yet.

it's possible that the counting no those may well run into next week. dan springer reporting. what are the vote counters finding today. >> they are finding that the challenges are now going back up. the miller camp looked a little did he rejected. i was noticing a different body language. they are letting some of those murkowski votes through. she had been 90% of all the write-in ballots and now it's down to 89% so its critical distinction that has to happen for joe miller to win this race. he has to have about 12% of all the write-in ballots not go to lisa murkowski. after the election night had a significant 5% lead in the overall vote over joe miller. she just showed up a short time

ago. i think what he is doing is rallying the troops, and shaking hands of the observers that are here. they have been going through process and challenging ever single ballot that is not spelled correctly but said lisa mur could you si, republican. that was quite disturbing to the mur could you si people, that is clearly the interest tent of the voter that lisa murkowski gets the vote. they spoke how the count was going yesterday? >> what we're arguing over is whether the "o" is completely closed at the top, maybe it could be an "o" or could be a "u" but everything else is correct. i do not think and most alaskans would agree that the intent of the voter --

>> its cliff hangar, they are asking for donations for the hand count because he is putting up money for the people on hair behalf. it most definitely will. they have about 70,000 votes to go through by hand and assign the ones that should go to lisa mur could you si and that they say will go through wednesday. if the unchallenged votes the ones that the miller observers are letting go through if that count is above the miller total, then we are told that miller will concede at that time. >> gregg: dan springer who only packed an overnight bag when he went out there, thanks. i'm going to talk about joe miller's challenge of the counting of write-in ballots. >> julie: police making a disturbing discovery in the

search for four missing people in ohio. they have found and unusual amount of blood in the home of tina herman. her boyfriend reported her missing on wednesday along with two children and a female friend. right now police are searching for clues. >> dts are interviewing family members, friends, acquaintances, those kinds of things. right now there is no indication to say they were abducted, if that is the path you are going down, but they are unaccounted for. >> police found her man's pickup truck abandoned on thursday. that prompted an overnight lockdown. >> germany listing a ban on passenger flights to yemen after the mail plot was uncovered last month. germany is now allowing cargo flights from yemen. they were several countries

banning all cearg from that country. a new twist in the controversy over illegal immigration, according to a new study, 100,000 hispanics have left area's arizona since they starting diagnostic the law. joining me now is ira federation of american reform and thank you gentlemen for talking to us. ira, 100,000 hispanics leaving arizona, the question should be, who exactly are we talking about that is leaving and where have they gone? >> it's not just hispanics. it is people who are in the country illegally. in arizona they are predominantly hispanic origin and family members who may be legal are leaving. by and large the law is working.

it is doing precisely what it was intended to do. to discourage from people to settle in arizona illegally. it belies the contention that only thing we can do is give them amnesty because they won't leave. what arizona is proving if you institute sensible laws and show determination to enforce those laws, illegal aliens will pick up and leave. right now they may be going to other states but fewer and fewer states are willing to accommodate illegal immigration and more and more are deciding to go home. >> julie: is the new law sb-1070 working or possibly back firing? >> i really think it's working. for the first time ever i'm going to agree with ira on this one. it's been working. it's also preventing the entry of illegal aliens into the united states. it's preventing a lot of them,

citizens from other states to come to arizona. is this what the statute is all about it. nobody wants to go to arizona. >> julie: i'm sensing sarcasm. you are saying a law prevents illegal aexperience from entering the state of arizona is in fact preventing legals from coming into in country and more specifically in arizona and you think this is helping other states. what do you mean by that? >> texas recently has created 166,000 new jobs this year only when the rest of the nation has created 266 total. it's incredible. we have seen an exit of migrants coming to texas and we work on that. not of them are illegal.

>> julie: first of all, some illegal aliens, some 23,000 plus have returned to mexico between june and september. isn't this proof when laws against illegal aliens are enforced like ira pointed out, curtailing benefits and services to illinois experience are deterring illegals from coming into this country illegally. by illegally i mean dangerously. 30,000 mexicans have died and 2010 because of the drug cartels has exceeded the 10,000 persons. isn't that message you want to deter the crime and by deterring illegals you are reducing crime? >> the statute has not been enforced completely. it's been challenged in court. because of the economy of the

united states and what do you do when this there is no work. you leave. i really don't think this is a consequence of the statute. >> julie: what he is talking about the state's appeal they are trying to hold parts of law which would have allowed police to question the immigration status randomly and to those i guess get pulled over for speeding you are allowed to ask them if they are illegal citizen. that part of the law is being repealed. nonetheless, he is saying the law hasn't taken into effect. how do you explain hundred thousand hispanics that are fleeing the state of arizona. >> it's not just sb-1070. there are other laws that have created deterrence. even with the injunction of the judge, a police officer are not required to ask immigration status if they think somebody is in the country illegally. the police can do that. it's been a systematic revolve

we have seen the results, illegal aliens have gotten the message they have left arizona and these are heavily subsidized jobs that we're talking about. when you pay people low wages it costs the taxpayers. if other states wants to subsidize these workers but arizona has made the determination. >> julie: when you say subsidize workers, are you talking about sanctuary cities? >> california and lot of them are going there. >> a sanctuary city, local authorities say they will not cooperate with federal immigration authorities that they will allow people to show up with their card. >> julie: in other words, they are not enforcing federal law. >> it is true. the bottom line that arizona has proven that it works. if you set up laws and you

demonstrate determination to enforce those laws, people will say, you know, what i'm not going to arizona. if you eliminate where people can stay illegally, more will make the decision like 23,000 and more will make the decision to go back to the native countries. which is precisely what we want. that is the most effective form of enforcement. >> there was a recent article about subsidizing sanctuary cities. they were claiming they receiving money and it's interesting. how can one go with the other. they are giving them money for arresting illegal aliens and referring them to the authorities. this is just a big joke. there is no such thing as a sanctuary city. if you what tonight say that any other city aside from phoenix or

any other city is sanctuary city go for it. it's misleading. >> julie: that is all the time we have for today. >> gregg: neither rain nor gloom of night will stop them. no, we are not talking about julie personal shopper, we're talking about a budget shortfall could stop them in their tracks and why they are asking for help from congress. what may happen to birthday and holiday cards from grandma if they don't come in time. úç>?[ozo

you assume a letter is going to arrive when it's supposed to but what if the u.s. postal goes bankrupt. they are warning they need help or they will go broke next year.

boy, christmas cheer wouldn't be the same if we couldn't ship the christmas gifts. what the real cause of them going broke? >> the official cause is electronic mail. there are estimates that 17.1 billion pieces of mail have been reduced by the advent of e-mail. unfortunately this internet thing isn't going away. it's an ongoing problem and get worse. >> julie: 105,000 jobs lost and counting. that is huge. will the new legislation really help and is it fixable? >> when you look at the numbers, the postal service lost $8.5 billion last year. that after $9 billion in cuts over the last two years. so the losses are adding up but most of those losses come from funding retiree benefits of health care and pension funds. it's so similar to what we saw in general motors, its situation

where we make promises 30 and 40 years ago with the intent to keep but with lives being longer and rising costs of health care it's just simply creating a burden on the taxpayer. there is really a few choices for us. when you look at the laws, there were about 171 billion pieces of mail delivered last year. so when you look at the lost per inch piece, it's about 5 cents per inch piece so the post needs to price that service properly. that will either drive them out of business and have independent contractors come in and take over the postal service or it will let them pay their own way because, you and i are paying for that regardless if we put a 50 stamp on an envelope or 44 cent stamp. >> julie: okay, thank you so much. >> gregg: by his plea in court,

he admitted killing his wife on a hoon my moon trip. a year and a half behind bars he is out of an australian prison. will america promise to keep the death penalty off the table to bring him back stateside for prosecution? that are good for you. new v8 v-fusion + tea. one combined serving of vegetables and fruit with the goodness of green tea and powerful antioxidants. refreshingly good. until the combination of three good probiotics in phillips' colon health defended against the bad gas, diarrhea and constipation. ...and? it helped balance her lon. oh, now that's t best part. i love your work. [ female announcer ] phillips' colon health.

>> gregg: dubbed the honeymoon killer, dave watson served a scant 18 months in an australian prison after admitting in their court of law to manslaughter in the death of his wife tina during their honeymoon diving trip in that country. now australia is refusing to send watson back to the u.s. to face american justice unless the country receives guarantees he will not face the death penalty in the u.s. upon a conviction here. joining us is joey jackson and vicky ziegler. good to see you both. this the equivalent of let's make a deal, france is country, for example, like australia that is against the death penalty. we'll never hand somebody over unless you agree not to kill. do we do a deal? >> i think there will be a deal made here. i think it's a political and legal structure. they have the ability to do it. you know will australia is

against the death penalty. i don't think they have an interest in releasing him however i think the only way that a deal will be struck if they agree to release him based on those set of circumstances. >> gregg: it's a case held hostage to our own principles? >> we also have to respect the principles of other countries, understand this, gregg, he was trained adjudicated. >> there was deal that was cut and ultimately he pled guilty to manslaughter. understand in 2003 this tragic incident happened. it took australian authorities five years to get enough evidence to charge him. he went back and pled based upon the evidence they had at that particular time. why don't we respect the jurisdiction of other countries. >> gregg: it does invite double jeopardy, does a conviction in australia constitute double general i did i under u.s. law thus preventing him from bee

re-tried on the essentially the same facts? >> i say no. there is a legal principle called dual sovereign doctrine you can be tried in the same crime in a different sovereign location as long as they can show they have jurisdiction. thousand do they show that. he lived in alabama. number two, the argument he is formulated the plan to kill his wife while in alabama. you know what -- >> let's pull that one right out. >> gregg: that was good. >> this is double jeopardy in the finest hour. double jeopardy he was tried there and adjudicated there, why are we imposing our will. there are a lot of verdicts upon which we have dissatisfaction, should we go to every state or

verdict on all notions. >> gregg: let me move on. if there is no double jeopardy and he can be tried on the same charges essentially here in the united states, his plea to manslaughter which is an admission of guilt admissible in an alabama or federal courtroom? >> yes, it will be able to come in and, based on the record, what his conditions were, and specifically manslaughter. >> gregg: they are going say, it was under duress and it wasn't voluntary? >> he can make that argument and that is the argument he'll make. if they go after him for murder, he went for manslaughter and it might help him in a strange way. joey, what he did he do, he served 18 months for killing his wife. >> gregg: if not weird or

bizarre he remarried already a woman who looks just like his dead wife. is it relevant, is it admissible? >> i think it's relevant to show that he would never kill his wife. he is so heartbroken that he goes out and find someone that looks like. >> admissible. bear hug and it's outrageous what he did this to this woman. >> this is australia. >> second wife or third wife. >> good to see you. >> julie: the fight for the state of alaska senate seat. we'll speak live to the lieutenant governor joe miller wants to take to federal court, next. i'm done with airline credit cards

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>> gregg: hello, i'm gregg jarrett. welcome to america os news headquarters. >> julie: topping the news, the president meets with his russian counterpart in japan as a nuclear treaty they signed takes the fight back to washington. >> gregg: alaska write in senate votes could end up in a federal court of law, but not if the state's attorney general has anything to say about it. we're going to be talking live with the state lieutenant governor. >> julie: husband, from bad to worse? mexico's -- a new report finds the u.s. fight to keep funds

from going south across the border appears to be failing. >> gregg: getting ready to head back to work on capitol hill and there could be some big faceoffs in this lame duck session. as both democrats and republicans grapple with internal party issues and try to tackle some of the very serious issues facing the united states. molly henneberg is live in washington with that. hi, molly. >> hi. outgoing house speaker nancy pelosi may have arranged a cease fire between two of her deputies who have been battling over leadership positions in the next congress. right now pelosi is speaker. hoyer is number two, and congressman cliburn is three, the majority whip. when the republicans take over the house in january, democrats will lose that speaker position and pelosi will run for minority leader. so pits hoyer against cliburn in the battle for who will be the minority whip. pelosi stepped in to settle by asking hoyer to be the number two guy and creating a new position for cliburn.

she writes in a letter to democrats today saying, quote, i will be very honored to nominate our outstanding colleague, cliburn, of south carolina to serve in the number three house democratic position. i will also ask the caucus to designate that position as assistant leader. on the other side of the aisle, republicans are battling over welcome events for incoming lawmakers. there is a meeting on sunday at the national republican club off capitol hill organized in part by the conservative think tank, the claremont institute, and some incoming gop lawmakers. but the tea party patriots, national tea party group have an event the same day and say the claremont gathering as an attempt, quote, to push the tea party aside and co- opt the incoming congressmen. fox confirmed a third event tomorrow open to incoming freshmen at the reagan building in d.c gop senators tom coburn and demint are expected to speak. >> gregg: molly henneberg live in washington, thanks.

>> julie: americans are looking to washington to get work done. the economy moving again. now the republicans seized control of the house. it seems both parties are taking more of a hard line stint, at least in their post-election rhetoric. will the side that compromises first actually gain the political ground? how is this all going to work? for a fair and balanced debate, let's bring executive director of the gop political action contributor. thank you so much. seven weeks, david is, all we've got left before all of us face being hit with higher taxes being taken out of our paychecks if the liberals have their way and liberals right now are pressuring the president, nancy pelosi, to name a few, taking a hard line against the republican. so is the side that holds out the olive branch first the winner or is it the opposite? >> well, republicans need to

hold strong on this lowering taxes and cutting government spending because first it's the formula that has proven to work over decade, whether it was president kennedy in congress, president clinton in congress, or president reagan in congress. those administrations and those congresses that cut taxes and cut spending created jobs. that's what we need right now. >> julie: and doug, what do you think we need right now? >> what david inadvertently said is what we need, which is bipartisanship. we need to find common ground. democrat and republican presidents have done, policies that are particularly prudent, fair and reasonable, given our resources and basically seek to find common ground. the premise of your question is exactly right. the party that appears most constructive in dealing with our economic problems and our tax issues is going to be the one that wins and so far neither

party really looks like it's going to earn much in the way of points with the american people. >> julie: david, when the democrats were -- let's hope that the republicans -- or let's say the republicans do not act the way the democrats did when they were in control. democrats didn't want to listen to republicans. are republicans going to listen to democrats when it comes to extending the tax cut as soon as will there be a compromise? if there is, will it be for all americans or will they go with only wealthy americans being excluded, what the democrats like? >> first we have the opportunity to actually a bipartisan discussion. whether it was the health care bill, whether it was the second tarp, whether it was the financial regulation bill, republicans weren't even invited to have that discussion. mitch mcconnell for 18 months never got invited to the white house to have the discussion. now we actually have an opportunity to have bipartisan

discussions, but still, republicans should continue fighting for keeping taxes low on everybody. that's how we create jobs in america and cut government spending. as doug would tell you how we did with president clinton, president eggen and president kennedy, when we needed to create jobs. >> julie: i want to throw up a rasmussen poll and it asks americans about their expectations of the new congress. more than half say it's likely they'll pass major legislation in their first 100 days with 15% saying that it's very likely. 6% saying not likely. there you see it. 39% somewhat likely. 33% somewhat unlikely. it seems confidence i guess is being ensued and the republicans are going considered to be trustworthy or at least more so than the democrats. polls for the democrats in congress were nothing like that. >> i'd call that lukewarm confidence with 15%, very likely

and 39%, somewhat likely. the american people are optimistic. they hope -- >> julie: optimism is never a bad thing. >> no, it's a very good thing. but unfortunately, the history of the last few years doesn't suggest that excessive optimism is a good or necessarily reasonable conclusion to draw. we all want to get the bush tax cuts i think extended, those of us who are reasonable, perhaps for upper income people two years temporarily tied to some deficit reduction targets. but bottom line, there has got to be cooperation on taxing, on spending and job creation. we have to stimulate the private sector any way we can. if we do that, the findings to that poll will be realized. >> julie: you and scott wrote a piece that's going to be appearing in the "washington post" tomorrow. i just want to touch on this quickly because it's very interesting, the title you two came up with, to be a great president, obama should not seek

reelection in 2012. you think he should walk in two years? >> our point was that he should governor as a centrist for the next two years, that he should put reelection aside and bring people together to solve our really very serious international and domestic problems. if he does that, he could be a transformative president. that's what we argued. >> julie: you wrote that with pat goodell. what do you think of in a notion? >> well, if he continues the redistribution policies of the first two years, he absolutely shouldn't and won't be reelected because it's not where americans want to go. doug wrote a wonderful book "mad as hell" with scott rasmussen ." >> julie: that's the book. thank you. continue. >> sure. it talks about the populous movement and doug can talk about it better than i can. this essence it breaks down into two groups, those who want less government, who see government

as not working out of washington and they want more freedom and more private enterprise versus the side that wants to redistribute wealth which is the president's side and the policies that he has pursued for two years. that side lost a few days ago. we ought to be pursuing that formula that works, which is cut taxes and cut government spending and let the private sector create jobs. >> you know what we argued in that book, is that there is really a plague on both houses, that the antipathy to the democrats and republicans is from an overarching level of spending and in a sense, washington is not working and that's why we really do need cooperation going forward. >> julie: we do need cooperation. the question is will -- >> and fiscal discipline. that's absolutely right. >> julie: that's a good one. david and doug, thank you very much. >> thank you. >> gregg: pressure is mounting on president obama to make a decision on the bush tax cuts ahead of the looming expiration date, january 1.

republicans argue that no american should see a tax hike, but the president remained adamant that the current tax rates will only be extended for middle and lower income households. julie kirtz now tax cut battle followed president obama on the asian trip, he said he's willing to compromise with republican, but how much and when, he's not saying. in japan, the president seemed to enjoy a theater performance as he prepares to jump back into some political kabooky in washington over those bush era tax rates. the president said it would be an irresponsible mistake to extend the highest of tax rates permanently, but here is where the political dance comes in. he has, quote, there is a whole host of ways to compromise on taxes. >> i continue to believe that extending permanently the upper income tax cuts would be a mistake and we can't afford it

and my hope is that somewhere in between there we can find some sort of solution. but i'm not going to negotiate here in seoul. >> the president is down with republican and democratic leaders next week to try to hammer out a deal. republicans want a tax break for everyone. so the pressure is on to avoid a jam if there is no action by the end of the year during the lame duck session, the current tax rates expire across the board. remember on wednesday, david axelrod, top obama advisor made headlines essentially testifying the huffington post that obama was ready to give in on temporarily extending the cuts. not so says the president, as he gets ready to fly home. the huge question at this point, how far is obama willing to move on a very real money issue for millions of americans? >> gregg: all right. thanks very much. we'll also have a live report from japan with wendell goler

coming up later this hour. >> julie: a bomb hidden in a motorcycle blows up, killing at least ten people, including three children. at least 18 others injured in the blast. the bach explode not guilty a busy market in the northern part of the country. it's aimed at a local police commander as he drove past. he was also killed along with one of his body guards. nato forces fought off another attack today in eastern afghanistan, killing six insurgents trying to blow up a nato air base. >> gregg: belgium, thousands protesting against the rising violence against christians in iraq. rainy day in brussels not stopping people from taking to the streets. the demonstration following a series of violent attacks against the christian community in iraq, including a deadly attack against a church service in baghdad last month. protesters coming from all over europe, a march ending with a rally in front of the headquarters of the european commission. >> julie: a possible restart to the stalled middle east peace process.

netanyahu fresh off a five-day visit to the u.s. meeting to discuss ways to resume peace talks with the palestinians. reena is in our jerusalem bureau. >> netanyahu is expected to meet with his top seven cabinet members saturday evening to talk to them about his recent visit to the u.s. and efforts to renew peace talks. u.s. secretary of state, hillary clinton, met with netanyahu for seven hours on thursday, stressing the importance to move forward with the palestinians on a final peace agreement, which stalled since the israelis allowed a housing freeze on settlement construction to last. just before netanyahu arrived to the u.s., it was announced that 1300 new housing projects were approved on land palestinians would like for a future state. the white house has been pushing for a construction freeze which expired at the end of september. an editorial from this weekend's newspaper was headlined, quote, netanyahu exploited his u.s. trip to embarrass obama.

it appears netanyahu may be trying to take advantage of obama's perceived weakness following the democrats' defeat in the house. some worry that this approach could jeopardize israel's interest. julie. >> julie: thank you. >> gregg: germany lifting a ban on passenger flights from yemen. it was put into place after the mail bomb plot was uncovered. but germany is not allowing cargo flights from yemen. they banned it after explosives disguised as toner cartridges were found on board planes. >> julie: u.s. marine going full circle, first serving in iraq, then coming home to help rebuild the world trade center site. mat rein reservist got a construction job through helmets to hard mats. it means much more than a paycheck. shepard smith has more on this story.

>> this 23 year old marine corporal is serving the country in more ways than meets the eye. home after a yearlong deployment in iraq, john is now fighting for america's future on the home front. >> i'm just trying to do my part, you know. i went overseas trying to help out and do what i had to do for my country and now i'm doing what i have to do for my state and rebuilding the world trade center. >> five years after the attacks of 9-11 destroyed the original twin towers, he enlisted in the marines as a reservist. >> my father was in the air force and my mother was in the air force. we grew up in a military family. you want to fight for your country. you want to do something. >> and he did. john volunteered for six months deployment in iraq, but he ended up staying a year. john returned home in 2008, the year the stock market crashed

and unemployment soared. the recession hit iraq and afghanistan war veterans particularly hard. >> the past two years, we trended higher than the civilian unemployment rate and it's so brutal when you think of these folks coming home and transitioning back and they can't find a job. >> my name a andrea. >> rick: he found out about an organization called helmets to hard hats. it helps service members find jobs and gain skills in the construction business. >> when they come home, they don't want the down time. they want to go to work and do something fulfilling and important. not necessarily stock shelves in a grocery store. >> john is one of 4,000 service members with a job in construction thanks to helmets to hard hats. >> we kind of need something to get back into the swing. we weren't home looking for a job for four years. we were doing our job. we were out there preserving our country. >> for this u.s. marine and

local 580 iron worker, regular building the world trade center site means much more than just a paycheck. >> we had to send out a message that we're always going to rebuild no matter how many times you knock down a building or take us out, we're going to get back up. we're going to stand and we're going to spit in your eye. >> that was shepard smith. thank you. >> gregg: her fight for freedom and democracy left her in prison for almost two decades until now. the military regime in myanmar, free ago nobel peace winner today. we'll tell you why. >> julie: and new twists in the battle for the senate seat in alaska between joe miller and lisa murkowski. >> if what we're arguing over is whether the o is completely closed at the top so that maybe it could be an o, maybe it could be a u, but everything else is correct, i do not think that most alaskans would agree that

the intent of that particular voter is not clear. >> julie: and murkowski isn't the only one who says miller has no grounds for a legal challenge. we're going to have alaska's lieutenant governor next.

>> julie: time for the headlines. in myanmar, the military government released the democracy leader after seven years of house arrest. thousands there cheering for her freedom and president obama calling the nobel peace prize winner an inspiration. a fire in southwest germany killed thousands of animals at a zoo. no word on what caused the fire. and the search is underway for a missing ohio family. the mom, two kids and a friend all reported missing earlier this week. police say an unusual amount of blood was found in the family's home. >> gregg: new developments in the ongoing saga over the alaska vote count. senate candidate joe miller is taking his challenge over the counting of write in ballots for his opponent, lisa murkowski, to federal court. but the state attorney general argues that he has no grounds to

go to the feds now and he wants that case dismissed. joining us live is alaska's lieutenant governor, craig campbell. thanks for being with us. >> thank you. >> gregg: i want to ask you about the legal challenge. u.s. senators are elected by popular vote from each state and that's pursuant to the 17th amendments of the federal constitution. so why wouldn't a federal court have jurisdiction? >> actually you got it right, gregg. the 17th amendment puts the popular vote to a senator within the state and the constitution actually puts the entire process for elections with the state. so our position is that when it comes to election process, that's a state process and therefore, the state courts. >> gregg: but it's a federal right by a federal constitution and one would argue that that means any violation of it is a federal violation. in fact, lieutenant governor, similar case happens in 1984 in

north carolina. it also involved a recount of ballots of that was with u.s. house seat. the fourth circuit court of appeals in that case is called hennen versus north carolina, ruled the federal courts do indeed have jurisdiction because recounts can involve the 5 and the 14th amendment, in fact, let me quote and we'll put it on the screen. quote, the u.s. constitution preprotects the right of qualified citizens to vote and have their votes counted as cast. if the election process in a state reaches the point of fundamental unfairness, the due process clause may be violated. that's joe miller's argument on that basis. wouldn't the feds have jurisdiction? >> see, we disagree with joe miller's position. you start with that equal protection clause and look back at the process -- look at the florida case, felling, where the

due process of the review of the ballots were done in a number of different jurisdictions in different areas across the state. here in alaska, you can see behind me, all the write in counts are being done in one room by one team. the same team and in fact, the one individual makes the decision on whether it counts or not is the director of collections. a single person. therefore, we argue there is no violation of due process because everybody is being treated the same. >> gregg: would you agree that if there is evidence of voters being disenfranchised, that's a violation of federal law? >> up to this point, as of right now, there have been no allegations of fraud or voter intimidation that's been filed with the attorney general of alaska, with my office, nor with the division of elections. if there was allegations, we'd like to see them. >> gregg: well, joe miller, in his application to the federal court, in fact, argued a violation of equal protection in due process and, in fact, there is an affidavit of one observer that in three rural precincts,

the write in ballot in each precinct have the same handwriting showing up on multiple ballots, which obviously would indicate that perhaps one person in each precinct was filling out ballots. now, i'm notaying it happened. but the allegation through an affidavit, a sworn affidavit exists. if that's true, again, isn't that disenfranchising voters, which is a federal violation? >> gregg, you have two points there. let me go to the second one first. the handwriting, you say that there may be ballots that have the same handwriting on more than one ballot. part of the state law here allows for direct polls people to be able to assist vote% they need it. you take a person that cannot right because of parkinson's disease or some other disease, they can ask a voter to write in the name that they tell them. so it is possible you will have ballots with the same handwriting done very legally under state law. >> gregg: joe miller claims

state law requires the full name or at least the last name be spelled exactly as it appears in the candidate's write in declaration and he says that you have been misinterpreting that state law. what's your response? >> we've gone through a process of the last two months with talking to the attorney general office, how to construe what is a valid vote or n. it comes from case law in alaska through a very significant ruling over the last 25 years in the courts where voter intent is important. our law says it has to be -- the name is declared under declaration or the last name. in truth it does not say has to be accurately spelled. it has to be the last name. therefore, to make sure we do not disenfranchise voter whose intent is to vote for murkowski, it can have slight deviations. that's where it comes back to this room and the director of election socials reviews that. we think that's a consistent,

especially in a state like alaska where we have a variety of languages. several native groups in the western alaska area almost speak english as a second language. you do not want to disenfranchise some by saying you have to get it exactly right. and you will see the difference between an o and a is almost indistinguishable and could almost look like an and you do not want to disenfranchise a minority vote by saying it has to be spelled exactly right written by a western style. >> gregg: given what's at stake here, wouldn't a federal court be a more neutral venue to decide this very contentious issue? >> gregg, i think you jumped the boat here. states run elections. just because somebody wants it to go to federal court is not good under the rule of law. you have to stick with the system of the law. law for elections means you go through a state jurisdiction. unless you can prove a validated violation of the federal, and i think i explained how we

disagree. it goes into the state courts. so we're consistent in that and we think we'll win. >> gregg: in the election controversy in 2000 in pensacola, there were simultaneous wiggle action, one in federal court and one in state court. couldn't there, at the very least be concurrent jurisdiction s? >> gregg, i won't argue with what the miller campaign wants to do as far as where they file their cases. the state position is we handle the elections. >> gregg: by the way, a lot of people may not know, you served for a great many years in our military. you were promoted to lieutenant three star general with a state national guard, you retain your two star general rank. we want to thank you so much for your fine service and thanks for joining us here today. >> appreciate it. thanks for the time. >> gregg: and you're going to want to hear from joe miller

tomorrow night right here on fox news. he'll be sitting down with geraldo rivera. that is tomorrow night at 10:00 p.m. eastern time right here on the fox news channel. >> julie: president obama wrapping up his trip to asia with some tough talks for china. nuclear di proposal see with russia. >> the president says you can't always hit homeruns in international diplomacy. sometimes you have to be happy with singles. i'll have a report coming up.

>> gregg: bottom of the hour, time for the top of the news. nato soldiers killing six would be taliban bombers trying to attack a nato base in eastern afghanistan. but in southern afghanistan, insurgents carry out an attack that killed three service members. >> julie: former chief of staff rahm emanuel making it official, he is running for mayor of

chicago. he is one of about a half dozen candidates seeking the job. >> gregg: and hollywood jejnd zha zha gabor being released from the hospital, being treated for an infection in her leg. >> julie: president obama wrapping his tour of asia in japan, meeting with russian president medvedev on the economic summit focusing on a key nuclear treaty. wendell goler is traveling with the president and joins us live from japan. hi, wendell. >> hi. president medvedev will be looking for the promise that the congress will ratify the treaty during the lame duck session, booth's not necessarily a promise president obama can make. republicans are demanding billions more spending, the price for nuclear modernization as the price for their votes. it will take 67. pentagon officials say it's important to ratify it quickly because it's that treaty that

allows the u.s. to inspect russia's nuclear arsenal, something we haven't been able to do isn't the old treaty expired. the president focused most of his efforts on expanding u.s. trade just as he did at the g-20 summit in seoul. but he has not had any more obvious success in japan than in south korea. the emerging economies, china and brazil exerting influence they didn't have before this global economic forum was expanded from eight countries two years ago. mr. obama told a group of ceo's here, one of the lessons of the global economic crisis is that the world can't depend entirely on american consumers to drive economic growth and he vowed again, the u.s. won't finance the world's economic recovery. >> going forward, countries with large surpluses must shift away from an unhealthy dependence on exports and boost domestic demand. as i said going forward, no nation should assume that their path to prosperity is paveed

with exports to america. >> the president's pushing back against the widespread assumption that he didn't accomplish much on this trip. he certainly didn't accomplish as much as he wanted. no deal on the u.s. south korea free trade agreement and no real pressure on china to scale back its exports and increase domestic consumption. he told his ambassador he wants the deal wrapped up in weeks and he will put pressure on china himself when the president from there visits washington in january. >> gregg: there is a new congress coming in january promising to turn the u.s. economy around and that means renewed optimism on everything from employer to consumer confidence. so how can you make the most out of this glass is half full approach? the december issue of money magazine is south this week. taking a close look at how to make money in 2011. here is the cover. here to tell us more about it, money magazine's staff writer,

amanda. great to see you. you divided this thing up into sort of four areas. i want to go through each one in order. first of all, your jobs. how do you make money with your job? >> the good news is that layoffs for the most part are done and raises will be back in 2011. that's because companies are now focusing on retaining their top talent. so if you're a valuable employee, this is definitely the year you want to press for more. i should add that increasingly companies are differentiating between their superstar employees and just their average joes. they're planning to give their most valuable employees larger bonuses and larger raises. >> gregg: especially if you develop an expertise and corner of the market in that area that, will certainly help you. let's move to the next one, your home. now, there is a lot you can do here to make money. right? >> i think for people who are in their home, homeowners, the best thing you can do is refinance and take advantage of today's

low rates. the 30 year fixed mortgage is averaging about 4.2%. a 15 year is only about 3.8%. so if you can shave at least one full percentage point off your loan and you also plan to stay in your home for at least probably three to four years, absolutely, make those low rates work for you because this is sort of a once in a lifetime opportunity. >> gregg: a couple other points you make is don't try to time the market perfectly. everybody waits and waits and waits and the next thing you know, rates are going up. you'll never hit it perfectly. so you just have to use your best judgment and if you're a seller of your home, you say slightly underprice it. why? >> that can actually sound very scary, but realtor after realtor that i speak to says look, there are buyers out there. they're just circling and waiting to find a good deal. so if you come on the market just below fair value, you're going to attract more than one buyer. they're going to end up bidding

up your home to its fair value anyway, so you'll get what you always would have, but much faster. >> a bidding war, always helps the seller. all right. area number three, your investments. how do you maximize that? >> a lot of people are hearing emerging markets, emerging markets. they're the hot spot, and indeed they are on track to outpace the u.s. just because of their stronger economies over the next couple of years. but that said, you really have to remember that they are very risky and that they can suddenly suffer very steep losses. so our advice at money is to only have about 10 to 15% of your equities overseas. >> gregg: but there are growing market there is that once you keep an eye on. finally, your savings in credit. what do you do there? >> well, companies are fighting and feetth competing for people with the best credit. so a great goal for 2011 is to get your credit score up to 750.

if you do, you can really have your choice of some of the best deals on everything from car loans to credit cards that are available today and to check what your current score is, go to myfico.com and it costs $16. >> move your money to a community bank or credit union. you might make some money there. all right. amanda, money magazine, terrific article. thanks very much. >> thanks. >> julie: adding fuel to the drug war in mexico, a program to keep guns from going south of the border misfiring and badly. drug cartels stock piling the arsenals with weapons from this country, how can this be happening? we'll take a closer look next.

>> julie: the drug war in mexico hitting new levels of brutality. gunmen kidnapping a men, pointing guns at his head forcing him to confess, his

sister works for a drug cartel while she was an attorney for the government. the woman says her brother was coerced into lying. a new report by the federal government in this country finds the u.s. is failing to keep guns from going south of the border. the weapons helping to keep mexico in a state of siege. joining me now is chad suite, a former c.i.a. member. thank you for talking to us. this new study shows the program to slow gun noose mexico may not be working and it actually appears to get back to the same problem the 9-11 commission said was our initial problem pre9-11 and that's lack of communication between law enforcement, organizations and the feds. why is that the case, first of all? >> well, the historically these agencies have all been rather independent and the commission was correct in pointing out the need to connect the dots and

need to increase information sharing. however, since then, there have been a number of efforts,atf, dhs, et cetera, improved. what the report shows is there is room for further improvement, number one. number two, it should be noted this has been a woeful underfunding of the initiatives that the inspector general is criticizing. only seven of the entire programs, seven agencies were actually funded and put into the field, which is woefully inadequate. >> julie: at the same time these drug cartels are seeming more like terror organizations. the picture we showed, if we can show the picture we were showing during our intro, it really does look a lot like al-qaeda. i mean, they're paying young kids to kill and cartels are taking hostages, making videos. this one appearing on youtube. should border violence be dealt with the same way that we do the war on terror, for example? >> the answer unequivocally is yes. the level of violence in mexico

reached the stage of an insurgency. make no mistake, this is a battle for the very foundation of civility in government in the state of mexico. as israel learned the hard way, if you don't be mindful of your neighbors' situation, having a failed state on your doorstep is a horrific security situation for the united states. we just saw recently united states citizen killed while water skiing, jet skiing in mexico. as you know, the prosecutor that was assigned by the mexican government to that case was beheaded and his head sent in a suitcase to the mexican military. that shows the state of affairs currently in mexico. >> julie: mexican police last week estimated that there are over 8,000 cartel members operating in juarez alone, one of the dangerous, if not the most dangerous city. that's just across the border from el paso. but by comparison, we have a little over, and i understand this coming from our brain room, they did a search here -- over 20,000 customs and border patrol

agents, 1200 national guard and several hundred ice personnel along the entire 2,000-mile border. is this enough to keep up with the drug cartels? >> well, we clearly need more. i think president bush deployed 6,000 national guard when i was the chief of staff of dhs. obama has attempted to do something, but on a much smaller scale. the administration currently is not fully deploying, the smart fence, full, it's under the review, but it's taking too long. the technology is now proven and working. agents in the field like it. we need, through a combination of boots on the ground, technology, to do more and there is no question that we need more help also with our colleagues in mexico. >> julie: fortunately, a lot of the drug violence in mexico hasn't spilled into the united states. however, the number of u.s. citizens killed in mexico more than doubled. 79 in 2009 from 35 in 2007.

so clearly the obama administration must take this seriously, must take on the terror going on in mexico to prevent the killings of more innocent americans traveling this or else american also stop going to mexico. >> that's right. it feeds on itself. tourism is one of the largest industries for the government of mexico in terms of revenue and oil business between texas and mexico is a core backbone of the economy. so the inability to get control and secure the citizens and the environment seems to further economic instability. you're right. we just saw in juarez five american citizens killed last week. when i used to be in government, the red line there was -- the drug lords knew never to kill americans because it would invite retaliation. this is a dire situation and it has gotten worse. >> julie: that's all the time we have. thank you very much for talking to us. plenty more on our battle to

secure or battle. tonight on geraldo rivera, reporting live from the mexican border throughout the hour, 10:00 p.m. eastern only right here on the fox news channel. >> gregg: we'll be right back.

>> julie: san francisco mayor trying to put the happy back into happy meals.

the mayor vetoing a controversial ban on toys in fast food meals for kids. unless mcdonald's offers healthier choices in those meals. >> you have to have a certain milligram percentage of this and have that and doing this and then you can have a toy. and i just think it goes a little too far. >> julie: but the fight is not over. the board of supervisors could override the veto. the mayor hopes to find on the board who will reconsider. >> gregg: i like happy meals. >> julie: i like the toys. >> gregg: metro man. like that. >> julie: i like the cars. >> gregg: yeah. okay. finally, we end with this, it turns out that man's best friend is also a healer and a helper for soldiers returning from war. dogs are helping veterans cope with posttraumatic stress disregard. one returning soldier says that the devotion from his dog is remarkable. >> the love they give you, they're still going to lick your boots and kiss you?

>> gregg: they can be trained to turn out the lights, retrieve food, and pass a credit card to a cashier, tasks that can help a disabled veteran. >> julie: tea party winners going to washington. >> gregg: some are already facing criticism from the rank and file and there is a battle brewing in the tea party movement. when rick folbaum and juliet huddy take over. >> julie: we'll see you back here and i will see you on the fox report, one hour electric now. >> gregg: have is a great weekend, everybody.