shouldn't be. afraid of her. >> i think she should go. >> you are wrong. >> i want to say congratulations for the guy who won the medal of honor today. >> are you throwing us out tonight? >> thank you. >> yeah. >> sean: by the way, that's all the time we have left. not yet -- we weren't on camera. greta is next. take us out. >> spiral! >> greta: tonight, he finally did it. get ready for the royal wedding, because england prince william popped the question to his long-time girlfriend kate middleton. >> it's been for quite a long time and you get to know och're very, very well. you go through the good times, you go through the bad times. grew personally within our relationship as well. i think you can come out of that stronger. learn things about yourself.

certainly, certainly -- yeah, it's been a good -- [ inaudible ] how long? >> three or four. >> greta: more with the happy couple coming up, but first, congress may be in a lame duck session but republican congressman mike pence is busy. he went "on the record." good to see you. wonderful building, isn't it? >> a beautiful and an historic building. standing in between the original house chamber and where the house of representatives meets today. >> greta: never gets old, does it? >> it really never does. >> a member of rising majority, my wife and i came in statutory hall and greeted the throng of men and women elected to congress. capital dome never looked better to this republican. >> greta: now to the nuts and bolts of what you guys are doing. after you get done looking at the beautiful building.

heavy lifting today. what did you do? >> we introduced legislation to deal with quantitative easing, qe2. there is an effort underway by the federal reserve to print money as means of fiscal policy. around the election time. the federal reserve announced they would authorize $600 billion to purchase bonds by the treasury department. there is a concern among millions of american what is we're trying to do here, however quietly is initiate inflation and ultimately devalue the dollar and monotize the debt in the long term. my line today is printing money is no substitute for sound fiscal policy. we ought to make sure that the fed is exclusively focussed on protecting the dollar. >> greta: if the fed puts the cash in the system and devalues the currency it puts

us in the game a little bit vis-a-vis china. china had devalued currency for a long time and made the import-export imbalance that it's painful to the american people. is it possible if we did devalue the currency more people would be buying our products and that would help the economy? >> in fact, initiating -- that is the fascinating thing about qe2 and the troubling thing, the federal reserve in an effort to lower unemployment rate, they are attempting to initiate inflation in this country. inflation is taxation. you just take value from americans, from the saving and investment. if inflation kicks in and we cheapen the dollar, americans are the loser. >> greta: flip to taxes. bush tax cuts of 2001. where do you stand on that?

>> tomorrow i'll do it in the house and demint will do it in the senate and we'll introduce legislation to make the tax rates permanent. there is talk about the compromise and a deal. our position is higher taxes won't get anybody hired. >> greta: everybody? >> absolutely. that's a good start. if the current tax rates were enough to get the economy moving again the economy would be moving. make sure no american faces tax increase in january. if congress fails to act before we adjourn, you will see $2.9 trillion tax increase. the average family sees $1,500 per family, the largest tax increase in american history to ecreate certainty, to encourage businesses and invest in ways to create jobs and opportunity for americans. make the tax cuts permanent

and then pursue the additional tax relief to get the economy moving. >> greta: is your position on taxes founded it will help the economy? or is it a political philosophy that people shouldn't be taxed or people should be taxed equally no matter if you are at the high or low end? >> as a conservative, what you tax you get less of and what you subsidize you get more of. i believe in low marginal tax rates as growth. this is about jobs today. >> greta: if we extend tax cuts to everybody, top to bottom, that will have a better effect on the economy through jobs? >> yeah, look. the recent election was rejection of the american liberalism. the obama-pelosi agenda on capitol hill. not only boar erowing and bail-out and takeout, but the higher taxes that have been planned. the americans are rejecting the class warfare.

they know half of the americans file taxes above the leverage that are ready to raise taxes are small businesses on the farm. higher taxes won't get anybody hired. jim demint in the senate and myself in the house as well as our colleagues will work to extend all the current tax rates permanently. >> greta: i take it there is no "compromise" in the sense that everybody gets it permanently. there is no wiggle room in terms of the white house would like to do maybe make it period of time. some scheme like that. are you opposed to any of that? >> i believe in the interest of hurting families and interest of millions of americans that are unemployed or underemployed we ought to make tax cuts permanent. >> greta: no wiggle room at all? >> no compromise on ending the era of run-away spending, borrowing and bail-out there.

should be no compromise on higher taxes on any americans. that i election is extraordinary. we almost couldn't fit all the incoming freshman in statutory hall for the dinner sunday night that speaker elect boehner hosted. the american people didn't just vote to change congress, they voted to change direction. that includes let's not raise taxes on anyone next year. >> greta: i understand how the american people voted but a practical matter there is another step. you have to get people to agree, certain number of votes to achieve something. you may draw a line in the sand and say it's non-negotiable, because american people don't want taxes raised but the fact is if you want to achieve something you may wheel and deal a little bit. on some issues. >> i understand that. that is the typical horse trading on capitol hill. >> greta: do you expect it here? >> i don't. i think we won the argument with the american people. >> greta: what is going to

happen? >> the american people also have a seat at the table. this isn't just about president obama and harry reid and the democrats and republicans in the house and senate. the american people have a seat at the table and they've said enough is enough. we don't want more spending or taxes or bail-out. >> greta: what happens? you file your bill and democratic majority in the house, you win or lose? >> we will introduce the legislation tomorrow. and we incourage both political parties to join us. anybody that didn't get the message two weeks ago today responsible for raising taxes on americans in the worst economy in 25 years might get the message 24 months from now. all bets are off. we won the argument with the american people and we should stand that no americans should see tax increase, extend current tax rates permanently. let's have the debate and

vote. >> greta: counting numbers you don't have a mar joy thety in the house and don't have it in the senate. doesn't look like you will get it in the lame duck, right? >> difficult to say. >> greta: it would be unusual. >> sure. do i expect nancy pelosi to allow a vote on the floor to extend current tax rates permanently? number one, if she did that, i think it would pass. last time i checked 38 democrats are in favor of the tax breaks to one degree or another. she might not be willing to do it, but who knows. have the debate and introduce the bill. if democrats adjourn and allow the average family to face $1,500 tax increase in january, small business owners and family farmers facing the higher taxes on the savings and ininvestment and inheritance in january will bring it right back.

we will fight to make sure no one sees the tax increase and make it permanent. >> greta: after you file and this percolates among the members will you come talk to us about it to see where we stand? >> you bet. >> greta: thank you, sir. >> thank you. >> greta: guilty. the breaking news exploded in washington today. charles rangel found guilty on 11 counts of violating ethics rules. among violations failure to disclose income from property in dominican republic and use of rent controlled apartment in harlem as campaign office. they will now decide what punishment if any to recommend for charles rangel. the entire house will vote on any recommendation. for his part, charles rangel is defiant calling the process unfair. he won re-election earlier in month. stay with fox news for the latest breaking news about this story. next, john thune wants two-year time-out. time-out on what? he will tell you next.

you know you are interested in this? prince william and his bride to be talk about their engagement. what did prince do as tribute to his mother princess diana? find out coming up. find out coming up. dick cheney fires off a [ j. weissman ] it was 1975. my professor at berkeley asked me if i wanted to change the world. i said "sure." "well, let's grow some algae." and that's what started it. exxonmobil and synthetic genomi have built a new facility to identify the most productive strains of algae. algae a amazing little critters. they secrete oil, which we could turn into biofuels. they also absorb co2. we're hoping to supplement the fuels that we use in our vehicles, and to do this at a large enough scale to someday help meet the wor's energy demands.

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>> greta: congress is back, which means the smell of pork will soon fill the air in washington. maybe not. thune went on the record about earmarks.

nice to see you again. >> nice to see you, greta. >> greta: i want to get it straight on your view of earmarks and whether we should have them or not have them. >> the american people spoke on that and made it clear they want action on earmarks. we had a number of votes in the last congress. republicans put forward amendments on the senate floor to reform the process by which we spend their money. they were defeated. we had a resolution to put the republicans on record. asking the democrats to follow our lead. >> greta: earmarks are fraction of what we spend? >> people across the country equate earmarks with corruption.

there has been abuses of the earmarks over the years. >> this is way to make a clear statement that we've heard what they said in the election and we intend to change. >> public thinking about the earmarks is it's billions of dollars spent on why frogs like to leap or something like that. a lot of money sent for the shock trauma you wants. to upgrade it to take care of people. whatever. there are good earmarks. >> not all earmarks are created equal. by the number of earmarks ballooned. the way they're passed makes everyone raise questions about the process we use to pass these things.

earmarks at the 11th hour that didn't pass the senate. group of people putting earmarks in the bill. it became abusive. there are worthwhile things funded that way. there is an argument of the support for congress making spending decision. we acknowledge there is a problem. we have want a time-out. look at the process and clean it up to figure out how it make sense for the american people. >> why is a moratorium? why not get rid of them? why not get rid of them. >> you could. for purposes of the exercise

we went through, we decided two-year reform on the earmarks. we want to provide the level of confidence and trust that people should have in their leaders if they're manging good prudent fiscally sound decisions. it was a resounding yes when we had the vote. >> greta: what percentage of the budget is discretionary spending? >> if you count defense it's a third. it's a sixth and a small amount overall but if you roll it back, and say $450 billion in ten years.

in the last two years non-defense discretionary spending increased. inflation over that same time period was 2%. so the federal government is growing ten times the rate of inflation. you can't justify that to the american people. if we go to 2008 levels we could save money. >> greta: suppose it happens, it s it not true that the rules could be suspended or changed. one day they could vote for it but in application it's under the carpet. >> if we get a vote on it, and affirmative vote on that, that continues to be -- >> greta: it's a problem? >> every year you do new appropriations process and new budget. if we have the political will to make hard decisions today, it will make it easier to make decisions in the future. >> greta: can you see how americans could be cynical

because we see situations where the good ideas passed and then as the time marches on, the gud ideas are suspended and we're back to bad ideas. >> that is true. but over time what we saw from the election is eresounding state fire department the american people that they think the government overreached and growing too fast and sgoten too big. they want it stopped and want to shrink the size of the federal government. get spending in washington under control. if we don't change our ways we're on the road to a train wreck. we have a few years to turn it around. we're running $13 trillion debt. economy is $14 trillion. on a pathway to put us in the same category as countries in europe that are struggling. greece, ireland and portugal

and spain and countries with serious financial problems and we're heartbeat away from it. >> greta: thank you. in 18-minute window of time expose the united states to grave danger. china is involved in the story. ambassador john bolton goes you might also want to try lifting one of these. a unique sea salt added to over 40 campbell's condensed soups. helps us reduce sodium, but not flavor. so do a few lifts. campbell's.® it's amazing what soup can do.™ missing something? now you get a cleanser with scope freshness. new fixodent plus scope ingredients. cleans and kills germs that cause odors to your dentures. new fixodent cleanser plus scope ingredients. we get double miles on everyurchase. so we earned a holiday trip to the big apple twice as fast! dinner! [ garth ] we get double miles every time we use our card.

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>> did 18 minutes in april of 2006 -- a chinese internet service provider halftimed 15% of the world's internet traffic and redirected it through china. it included traffic from the got and military site. and the draft report said

indemonstrates a capability of a capability used for malicious purposes. what does that mean? ambassador bolton, 18 minutes, should we be alarmed? >> we should be concerned. this doesn't conclude it's a deliberate effort by china to hijack the data, but it could have been a technical glitch. the fact is, if we look at what we know about increasing chinese cyber activities, they are actively stealing data, proprietary data from american companies. it wouldn't surprise me if it was deliberate effort. >> greta: if you look at those hacked. army, navy, marine corps, nasa, department of congress.

it's not the local grade school. >> china has thousands of engineers and specialists who do this on a daily basis. they have extraordinarily complex cyber capability and they use it. some of is it an edenial of service attack, bringing down the computer network. a lot of it is theft. a lot of this is classified but it's probably as explicit as it could be. we node more public discussion, because this constitutes a serious threat to the united states and the friends around the world. >> greta: are we at the point or protented from people entering the banking system or the power grid? >> i think those are the targets. you have seen the russians taking down acetonian

computer system in the conflict with georgia, destroying their communication capabilities, including communication with the united states. i think the chinese are flexing the cyber muscles with respect to u.s., japan, south korea. this is something in actual warfare could be devastating to our capabilities. >> greta: what are we doing about this? >> not enough. there is heightened awareness in the government. >> greta: but we can see it coming rather than prevent it. does that make you feel any better? >> i'm getting to that point. i think we have to look at this as not just some chinese college grad student and his dorm room late at night. this is a concerted effort by china and russia we ought to respond to. it's unclear here when you get in actual warfare. there is a big range of activities in the clandestine

operations category we ought to direct against china. experimenting with the offensive capability of our own. >> greta: i don't want to be paranoid but we have a situation where china have 18 minutes when they hacked in the system. inadvertently or purposefully. we have a situation that manipulate in theed currency so they don't want to buy our products. they hold down their debt and won't help with us north korea. what is good sign? those seem like bad signs. >> there are other bad sipes as well. all six u.s. air bases in east asia are in within range of chinese or ballistic or choose capabilities. in real conflict the bases could be eliminated. what we need is leadership from the administration. the president has a problem seeing adversary around the world.

i'm not saying china is in one way being adversary but one way is to appear weak in response. >> what is the leverage? we stand there and talk tough? what leverage do we have to talk tough? >> we have enormous leverage. this business over china holding american debt is vastly overstated. the economy is joined for reasons to make it hard to assert leverage. in the chinese ramping up the nuclear capability. what are we doing in response? we find it hart to assert the interest around the world. we saw it in the president asia's trip, humiliating in many respects. we need them to pay attention to all the threat.

>> full-time job. it is. thank you. >> thank you. >> greta: coming up, it could be the wed og the century, prince william and their fiancee talk about their engagement. when and where did they pop the question? you will find out. don't go away. and vice president cheney is back and taking digs at obama. that is minutes away. new twist in the fight against illegal immigration in a place you might not expect, because it's far from the southern border. stay at can i get ya? i'd like one of those desserts and some coffee. sure, decaf or regular? - regular. - cake or pie? - pie. - apple or cherry? cherry. oil or cream? oil or cream? cream... please. when other toppings are made with hydrogenated oil, the real dairy cream in reddi-wip's sure an easy choice. nothing's more real than reddi-wip. fork or... spoon

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time. we had been talking about marriage for a while. it wasn't massively a big surprise. i took her out somewhere nice in kenya and proposed. >> very romantic. true romantic in that. >> did you accept? >> of course, yes. >> i've been planning it for a while, but tateks motivation to get yourself going. i was planning it and then it felt right. in africa. it took planning. >> kate, you have been on holiday for a while. did you see it coming? >> no. we were out with friends and things. i didn't think about it at all. very excited. >> i had carried it around in rucksack for three weeks before that and wouldn't let it go.

i planned it and sort of went fine, a lot of horror stories about proposing and didn't get it wrong. i went really well. pleased she said yes. >> family ring? >> yes, my mother's engagement ring. that's nice because she's not around to share in the fun and excitement but this is my way to keep her close to it all. >> his mother was the massive iconic figure, most famous figure of our age. is it worrying, intimidating, do you think about it a lot? kate? >> obviously, i would love to have met her and she was an inspirational woman to look up to. obviously going forward, you know --[ inaudible ] very inspirational, yeah, i

do. >> no pressure. we're carving our own future. no one is trying to fill my mother's shoes. what she did was fantastic. it's on the road now. and her and her family i want to make sure they have the best guidance and chance to see what life has been like or what it is like in the family. i wanted to give her a chance to see or back out if she needed to before it got too much. not trying to learn from the lessons in the past and i just want for her to have the best chance to settle in and see what happens the other side. >> i am glad i've had the time to sort of gro go in and understand myself more. hopefully -- i think maybe -- it's sort of, i don't know.

i'm willing to learn quickly and work hard. >> went very well. >> greta: the wedding is scheduled for spring or summer of 2011 and will be in london. you bet the world will be watching. if case you didn't hear, president obama is once again a published author. this time, though, he wrote a children's book called "of thee i sing, letter to my daughters." joining us live is robert barnett, president obama's lawyer and literary representative. >> nice to see you. thank you for having me. >> greta: this is his first children's book. >> third book and a wonderful piece of work. >> greta: when did he write this? >> he signed a deal in 2004. >> greta: 2004? >> 2004. we did a three-book work. this is a book for charity, as we'll mention. he wrote it mainly during

2008. turned it in before the inaugural. why is it coming out now? >> we had time for the illustrator to do the fabulous illustrations. each one is a painting, work of art. you have to format it and publish it and decide on the right timing. perfect time because it's terrific holiday gift. >> greta: my favorite picture is the first one. showing the father looking at two daughters. written for his daughters. these are president obama's two children. >> a wonderful message, father to his daughter. and a message that resonates with the republicans and democrats. not in any way partisan. about american values and

heroes and tells the young children whether it's your child or grandchild wonderful lessons about the history of america. >> greta: he chooses different people and heroes. who is the favorite? >> of these i'd pick abraham lincoln. >> greta: you know who i pick? [ inaudible ] >> a fun thing for the parents and grand parents to do after they read it to the children is talk about who they would have added to the book. one thing you learn is what the author, president of the united states thinks about the heroes and an opportunity for the parents, grandchildren and their children to talk about who they care about and who are their heroes. >> greta: i assume that some didn't make the cut because they want to keep lid on it. who else? >> i have no idea. >> greta: who would you have added? >> i might have added

geraldine ferraro who is a hero of mine and persevered through difficult times lately. i would have a military person. he has a military person, historical military person. at the time with difficult struggles, celebrating a military person in this book might be a good idea. >> greta: you mow who i'd put? this is odd one. gerald ford. when he pardoned nixon i thought he was wrong and i realize as i grew older that it changed the country. it turned out to be courageous and unpopular an cost him the presidency. >> that's fair. won the kennedy courage award. >> greta: as it turned out, put lid on problems we had in the country. much turmoil. money to charity. >> it goes to a scholarship fund for the children of fallen and injured heroes.

it will be administered by fisher house. i encourage everyone to buy it and i read it to my grandson. everybody should read it to their child. >> i'm sure they will. it's spectacular. thank you. nice to see you. look at what is coming next after the show? >> ann coulter is furious about the body scan deal. karl rove critiques my interview with president bush. "factor." >> greta: that's 11:00 but we're live until the top of the hour. up next, everyone is talking about the immigration crackdown. but another crackdown is happening in a place you might not expect. is it a good idea? we never thought we'd see the day bristol bail-out and the situation making headlines together. what is going on? stay tuned. [ female announcer ] it's the ultimate surf and turf event,

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>> from america's news

headquarters, i'm ainsley earhardt. a report due out wednesday concludes a quote, lack of operating discipline by b.p. led to the gulf oil spill. "the wall street journal" reveals b.p.'s being targeted for failing to recognize the danger signs. the analysis was compiled by a team of technical experts. lisa murkowski might declare victory in the senate race wednesday night. a recount has the democrat incumbent more than 10,000 votes ahead. the count includes ballots challenged by g.o.p. rival joel miller. nikkei is up 9811. hang seng, down at 23532. dow jones futures is 11014. for more business news, tune to the fox business network, giving you the power to prosper. i'm ainsley earhardt. greta. thank you for watching. >> greta: when you think about illegal imgation you

probably don't think about new england. isa officials have been cracking down on immigration in a way you might not have heard about. joining us the boston globe immigration reporter. miria, what is i.c.e. doing in the new england, massachusetts, boston area? >> doing things to help nationwide which is shift in policy of illegal immigration issues. they're going after reporters. we have had an immigration race in new bedford where 360 immigrants were arrested. thaw we have arrest of business owners going up. >> give me a saturday, idea or what is happening, the numbers. >> well, the arrest is

striking. but last fiscal year it was 1600. >> the vast majority were employees. >> and now? >> well, now the number of the employers that are getting arrested has gone from 100 to few 100 nationwide. it can be difficult to prosecute someone criminally to prove they knowingly hired someone here illegally. . >> greta: what happens if you get arrested? what are the penalties like? >> i don't remember but you can go to jail. three years ago we had an immigration raid in new bedford. the owner was prosecuted.

jailtime and fines in the thousands of dollars. >> greta: are the employers using -- are they looking to whether the employees are eligible to work illegally? >> they are doing it regardless of the enforcement effort. it's growing by thousands a month, including massachusetts where it's not mandatory like in other states. especially after the enforcement action, the employers tell me they are sign up for ee-verify and they say it works for them. >> greta: is there a way to judge the pulse of new england area on the issue? people in arizona are on fire of this. how about massachusetts? >> echo of arizona around the country and in massachusetts, too. a few years ago, massachusetts backed away from policy to help the state police enforce the

immigration law and considered immigrant friendly state. in recent months the the state legislature was cracking down. in may, they passed amendment that would have explicitly barred students getting in-state tuition. and other kind of benefits as well for the illegal immigrants. >> the train shifted -- >> greta: sorry i cut you off. i have to go. thank you for joining us. >> thanks. >> greta: for the first time in nearly 40 years living member of the military has been presented the medal of honor. today at the white house, president obama awarded the highest honor to staff sergeant who distinguished himself on october 25, 2007 when the plafoon was ambushed in afghanistan. he faced wall of bullet and chased down two of those. and two soldiers died. the sergeant said i'd give it

back if a second to have my friends with eme right now. we salute him. next, the best of the rest. uh-oh, vice president cheney takes a swipe at president obama. what happened? find out coming up. bristol palin and situation. together at last. what? that part may surprise you. stay here. you want to see $46 million diamond? you will. minutes from now. eggland's best eggs. the best in nutrition... just got better. now with even more of the vitamins your body needs. like vitamin d. plus omega 3's. there's one important ingredient that hasn't changed: better taste. [ female announcer ] eggland's best. better taste. better nutrition. the beer egg.

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>> greta: the top stories but now the best of the rest. bristol palin confronts an interesting situation. she was teen ambassador and is working to promote teen abstinence. for the foundation latest p.s.a., she enlists unlikely help from a "dancing with the stars" castmate. [ applause ] >> excuse me, miss. have you ever had a situation with the official situation? >> excuse me? >> oh, palin. >> you mean to tell me that girls fall for that line? >> if those words don't work -- i got the situation. right here. >> i hope you're as committed to safe sex as you are those abs. >> i know you're all about

the abstinence thing, but seriously, you're not going to hook up, before you marry, for real! >> are real. >> for real? >> for real, for real, for real? >> in case you get in a situation, i want to make sure you're situated because if you get in a situation with your situation, you may end up with the situation. you may not like that situation. >> trust me, i'm not getting myself into another situation. i know how hard it is. >> i totally respect that. i totally respect abstinence. i'm the situation. >> i'm glad we agree on one thing. pause before you play. >> pause before you play. >> the most important thing. you got to think before you get into a situation. >> greta: construction of the george w. bush presidential center is underway. ground breaking for the project has been a long day in dallas. visit president dick cheney appeared at the ceremony. since he had a shovel out for ground breaking he took a dig at president obama. >> the george w. bush

presidential center isn't much to look at just let, but the workers are ready. and construction will move fast. after today's ground breaking. this may be the only shovel-ready project in america. [ applause ] >> greta: diamonds are forever, right? this better be. cost $46 million. you heard that right. $46 million. the giant pink diamond nearly 25 karats sold at auction in geneva. the highest price ever paid for a jewel at an auction. the proud owner of the diamond is a jeweller who says it's the most fabulous diamond i've seen in the history of my career and delighted to have brought it. congratulations. there you have it. best of the rest. but still ahead -- president obama cannot escape controversy about the healthcare law. following him somewhere you might not guess. you have to see this. stay tun [ advisor 1 ] what do you see yourself doing one week,

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>> greta: 11:00 is almost here, flash those studio lights. it is time. last call. and we're guessing this will not be used to promote the president's childrens book. >> i read president obama has written a children's book. i don't know how popular this book is going to be. if only one person reads this book it will be double the number of people that read the health care bile that is funny