>> ♪ she calls me because i'm still awake and help me unravel my latest mistake i don't love him winter just wasn't my season ♪ >> good morning, everybody. it's friday. that means the all american summer concert series is live on our plaza plus our good friends from famous dave's cooking up some barbecue. if you're here in new york stop by 48th and sixth avenue all morning long. free music and free food. >> all that classic weekend fare. a lot of people will be eating just this stuff all weekend. >> yeah, four straight days of it is what we'll be eating. i cannot wait for it. good morning, everyone. welcome into "fox & friends." brian, steve and gretchen are getting a kickoff to their early fourth of july weekend and molly

line is in this morning with a look at the headlines. >> indeed. the former head of the international monetary fund could be free on bail as early as this morning. law enforcement sources say the hotel maid accusing dominique strauss-khan of assault has repeatedly lied to prosecutors and is not a credible witness. investigators say she's a con artist with ties to drug dealers and money lawnunderers who deposited money in her bank account. he'll request to be released from house arrest or be given more time outside. the nigerian man accused of boarding a flight at j.f.k. airport with an expired boarding pass is due in a los angeles courtroom today. he allegedly used the pass to board a virgin american flight to lax. he was then arrested trying to board a delta flight on wednesday with another bogus boarding pass. they are demanding an investigation into the breach. the tsa says it's reviewing the

incident. and a powerful storm system pummelling the midwest overnight with severe weather being blamed for the death of a wisconsin man when a tree collapsed on to his motorcycle. it packed winds up to 80 miles per hour knocking out power to thousands of homes. and in just three hours, leon panetta will be sworn in as the new secretary of defense. panetta has been the c.i.a. chief for the past 2 1/2 years. the 73-year-old, as the 73-year-old, he will the oldest to take on the defense secretary post for the first time. he faces a series of problems including winding down wars in afghanistan and iraq and managing the conflict in libya as well as dealing with calls of cuts in defense spending eechl replace robert gates who is retiring after four plus years on the jobs. those are your headlines. >> most americans get the extended holiday weekend. most americans return to work on tuesday. congress usually gets a week and a half to two weeks off. they take a nice long recess.

it's not going to happen this time because the president and congress are going to be trying to work through some of these debt deals. senate majority leader harry reid saying no to the recess. >> that's right. they're going to continue these debt talks, as you all know, the deadline is august 2nd. president suggesting, though on thursday they need a deal by july 27th to get legislation out. here's what they said about the president on thursday. >> if maybe he would take a valium and calm down, it might be helpful. >> a valium. a valium in case you missed that. >> they have been going after each other, everybody in washington. the president said i've been here, let's get back to work. mitch mcconnell said come on down. it's been fascinating to watch. here's jay carney, the conversation saying the conversation isn't working and his reaction to why the president isn't racing down there to talk with republicans.

>> what the senator invited the president to do was to hear senate republicans restate their maximalist position. we know what that position is and he also invited them to hear, invited the president to hear what would not pass. that's not a conversation worth having. >> we watched bret baier's show last night and he's out in iowa interviewing a lot of individuals who are dealing with the real issues affecting them. they're sick and tired of the president and congress talking past each other. they're saying one thing and they're getting frustrated. they're getting upset and frustrated because meanwhile, they're having to lay people off and having to rethink their entire organizational structure and they're sick of the po politics. congress' approval rating is 27% right now. >> neither side is willing to compromise right now. >> mitt romney sounding ever

more like the g.o.p. frontrunner out on the campaign trail on thursday. he went to a spot that the president once touted as what was likely to show stimulus success. he was at a place in pennsylvania, a steel factory that the president, again, went to to talk about the stimulus. it's now shut down. it is locked. and here's what mitt romney said in front of the closed down steel factory. >> and the president's time is being focused on playing golf, and campaigning, and blaming. he should be spending his time and his energy working on getting americans back to work and fixing this economy and yeah, there's a big issue coming up with regards to the debt ceiling. the president ought to be in washington meeting with republicans, meeting with democrats, he shouldn't leave that town until he has an understanding of what it's going to take to get this economy going again and deal with the fiscal crisis that the country faces. but he's here raising money for

a campaign. doesn't even have a primary opponent. >> the president was also in pennsylvania, the white house, though, fires back at that particular metal works plant, the allentown metal works that had been struggling for years when the president visited in 2009. president obama saying while i'm working, there will be candidates parading around the country and doing what they do can which is trying to attack. he told supporters in other parts of pennsylvania while mitt romney was there in pennsylvania. >> mitt romney did not mention his rivals. he's clearly taken the stance that i'm the frontrunner, i'm not going to mention tim pawlenty or michelle bachmann. why's he in pennsylvania? not an early primary state, key general election state. >> remember obama last time? >> and typically does. mitt romney rolling out an attack ad. he's ready to go against the president. >> good to be back in pennsylvania. i just came from allentown metal

works where i had a chance to visit with workers there. >> the allentown metal work is set to close its doors on friday. it was hailed as a symbol of hope by president barack obama last year when he promoted his jobs plan. >> there you go. not wasting any time. literally in pennsylvania, the very same day that's how quickly the media can work now if you've got the money that mitt romney has, you take that footage that you were at the allentown metal works and ship it out to your advertising house and there's an attack ad out coming. >> president obama made that run when he was trying to gain support for the stimulus package. there's an underlying message regarding the stimulus package and whether it's been successful or not. >> of all those images we were seeing, we were seeing some american flags there as the president was making his way on to the tarmac and mitt romney was out and about. are all those images, flags and so forth, part of some g.o.p. agenda?

are they only republican images? according to harvard and a new study out this weekend saying that july 4th -- july 4th parades are right wing. >> that's right. they do a couple of key things. they only energize republicans, not democrats. they turn kids, close your ears, kids, turn kids into republicans and that democrats gain nothing from participating in these 4th of july parades. >> and they have numbers. >> according to harvard as clayton said, they do have numbers to back this up. >> listen to these numbers. when done before the age of 18, it increases the likelihood that a youth identifying as a republican by at least 2% if they go to a 4th of july parade and raises the likelihood that the parade watchers will vet for a republican candidate by 4%. it says if you're a democrat, it does nothing to bolster you as a democrat going to the 4th of july parades. >> i think it's interesting that the study was done at all. this is a chance for everybody

to get together, democrats and republicans and i think whether you're a democrat or republican, it may have to do with the city you live in, how your parents voted. all sorts of factors. >> that republicans have done a much better job of tying themselves to the american flag and to patriotism. therefore, if you identify yourself with the american flag, you have a flag in your yard, maybe, perhaps, you're more likely to be a republican rather than a liberal. >> we want to hear from you on all those stories as well as one in "the new york times" this morning that suggests you can save the planet on the 4th of july before you just throw the steak on the grill, first consider the environment. there are a couple of key things says this "new york times" piece that you can do on sunday, monday, whenever you're grilling. first it starts with potato salad. ok? scrap the potato salad or instead of boiling your potatoes, pan fry them. saves a little energy. they also have some grilling suggestions. if you guys are -- they say charcoal is worse.

charcoal briquettes are slightly better but propane for the most environmentally friendly way to grill in terms of the energy it burns up. >> yeah, "new york times" putting this out there. propane, propane accessories, a much better way to go than actually using the old charcoal. >> even dessert. they even say dessert, you should grill up some fruit as opposed to firing up the oven and baking a pie. this, again, we're not making this stuff up. this is an op ed piece in "the new york times." let us know how you feel about it on twitter or e-mail us, friends at foxnews.com. >> or just don't cook anything. eat everything raw. eat your meat raw this weekend. >> just have tacos. >> is chris doing that? coming up on the show, do you want your money to pay for attacks on fox news? coming up, you'll meet a guy who told the irs to stop giving media matters a tax break. >> and is the last man standing about to surrender? stuart varney up next on timothy geitner and the rumors he might be calling it quits.

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>> is tim geitner ready to give up his job as treasury secretary? new reports say he's thinking about leaving. >> but when asked about it, this is what geitner had to say. >> i live for this work. it's the only thing i've ever done. i believe in it. i'm going to be doing it for the foreseeable future. people will worry -- are interested because we're -- you know, i have a family and my son is going back to new york to finish high school and i'm going to be commuting for a while. i'll be doing this for the foreseeable future. >> with the national debt under $14.3 trillion and unemployment at 9.3%, should he leave? >> stuart varney says he does, it will be a clean sweep of the old guard. >> yes, it would be a clean sweep of the old guard if he leaves. and i think he probably will leave. look, i don't think it makes any difference whether he leaves or

not because i don't think president obama is going to change his basic economic policy. that policy has not been doing too well but the president is committed to it and i think he's going to stick with it. he won't change course. i don't think he can change course so whether or not mr. geitner stays or leaves, i don't think that's a big deal quite frankly. >> so basically, he's a yes man in the administration. rotation of treasury secretaries in any administration. >> look, he works at the whim of president obama as long as he's doing what president obama wants him to do, he's in. >> and that whim, by the way, according to reports this morning, treasury secretary timothy geitner has overseen the largest increase in the national debt of any treasury secretary in american history. >> yes. he is one of the architects of president obama's basic economic policy. the stimulus plan, the record government spending and some of the bailouts. he is one of the principal architects and he's the last man standing so if the president wants to get a new policy, now is the time to do it but again, i don't think he's going to get

a new policy. >> say he does leave, then what happens? who comes in? could there be a new policy? >> a lot of different names for you. laura tyson worked under president clinton. janet yellin from the federal reserve. erskine bowles, a very long shot but a name that keeps coming up is jamie diamond, top wall street banker. >> here we go with the wall street. you're a wall street guy. >> no, you'i'm not. you love wall street. you have a flat on wall street. how do you feel about these guys being so connected to the very system that got us into this mess in the first place? >> ok. you say that the system got us into this mess in the first place. did it, clayton? >> well, in part, let's talk about that. i mean, this is one of the big issues, right? everyone loves to pass the buck. wall street says we didn't have much to do with it. you ride tead the big short and see all of the weird

mortgage-backed securities, hiding things in different places, away from the eyes of the sec and then these guys get cushy jobs in the administration. >> you've had your say. let me have my say. you are totally wrong, by the way. what started this thing was politicians shoehorning everybody and anybody into a house that they could not afford and into a loan that they could not repay. that was a house of cards made by politicians and lax regulation. wall street jumped on board, exploited it. guaranteed that's true. but the original sin is shoehorning people into houses that they could not afford. >> i'm saying both. >> what if it's somewhere in the middle there? >> it's six of one and half a dozen of other. i'll agree with that one but this coziness between wall street and the white house, that is troubling. that really is troubling ooment auto doesn't seem like it's going to stop. >> can we get a compromise? i like that. that was a warm and fuzzy moment there.

>> stuart varney, great host of "varney & company" on the fox business network. you can catch it every monday on the east coast. always great to see you. >> are you with us this morning? you know what we're going to talk about? >> h.p. touch pad. >> and -- >> and was john lennon a republican and a fan of ronald reagan? we have people who say yes, he was. john lennon. >> that sounds great. >> thanks, stuart. coming up here on the show, in one town, the unions have such a strangle hold, police officers can retire at the age of 50 with 90% of their paycheck but our next guest managed to get elected in that city by taking on the unions. >> and forget snakes on a plane. a sleeping passenger gets stung by a scorpion! that story is ahead.

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>> some quick headlines for you. the venezuelan president acknowledging he's had two surgeries for cancer. it's unclear when this video was made but it was shown last night, chavez had the surgery in cuba. he has already returned to v venezuela. his aides say he's recovering well. whitey bulger's request is grantedment he has a public defender on the taxpayers' dime. the government seized more than $800,000 when they arrested bulger. a federal judge assigned him a boston attorney. bulger is a suspect in 19 murders. dave and molly? >> thanks. public worker pensions have exploded in city budgets across the country. in coasta mesa, california, where unions have a

stranglehold, police officers can retire at the age of 50 with 90% of their pay. >> our next guest managed to get elected in that city by taking on the unions. jim briggheimer serves on the costa mesa city council and joins us this morning. good morning to you, sir. >> thanks for having me, dave and molly. >> thanks for being on. it's not an easy battle happening across the country coast to coast. how did you do it? how did you take on these pensions and the unions and come out on top? >> basically, just told the public what was happening and it's not just our city that has that 90% pay at 50 years of age, it's pretty much all of california, police and fire have that kind of pension and neighboring next door newport beach, they have that same pension planned for their lifeguards and it's 90% of their pay at 50 years of age and it's a problem that the public didn't know about but we also did during the campaign when the union started attacking me is we

basically laid out what individual employees made in the city. actually a list of the different jobs and when you had 38 people on a small police department making total compensation over $200,000 a year, the public noticed. >> so jim, essentially what you're doing, we're saying to the voters, this is exactly what you are paying and we want to be fair because not all public employees are raking in massive pensions or making big salaries. but you just drew attention to the fact that this is where the voters' money is going. >> yeah, i think what it is for a lot of the public out there is let's face it, we love our police and our fire and everybody is afraid to say anything that would be negative so we're not trying to be negative but all of a sudden, it gets to the breaking point where 11 years ago, our city was spending about $5 million a year on pensions. this last year, we spent $15 million on pensions. we have less than $100 million budget so the numbers are just exploding and what's happening is there's no money for roads, no money for parks, no money for the infrastructure and things people need and we're not a poor city. i mean, we have south coast plaza here which is, you know, a

destination retail center of the world. and yet, we have a hard time maintaining our streets. >> unions have not been receptive to this message across the country, as you know, in fact been downright combative towards it. how were they in costa mesa, are they receiving this message and getting it? how can this be emulated in other cities across the country? >> i will tell you transparency is really what works. most people, you know, want to make sure that their public employees get paid well and they want to make sure that their firefighters and their police officers get paid well but most of them don't understand what the number is here especially in california and i'm not saying across the country it's this way but people think a person might make $60,000, $70,000 to $80,000 when at the start to our average police officer was $131,000 in total compensation and on top of that, we had to put $42,000 in their pension every single year because it's very, very expensive to retire somebody at

50 years of age. remember, people are living longer now so a 50-year-old usually goes to about 80. we'll be spending 30 years of pay which, again, goes up 2% per year. they also have increases in there for the rest of their life as long as -- basically for as long as they worked, we'd be paying pension for that long and it's unsustainable. >> it sounds like you have the right message ute there and those folks are receptive. thanks for being with us. >> thanks for having me. >> coming up, the justice department with a major flip-flop on enhanced interrogation like water boarding. why is eric holder changing course? >> then a big weekend at the box office this holiday weekend with big names like tom hanks and julia roberts on the big screen. courtney friel live with which flicks you should spend your money on and she brought popcorn. hey, court! >> excellent.

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immediately so we can't drive to legoland. >> i can't get past the image of harry reid in a speedo. >> have you seen charlie rangel on the beach with that? >> put that in your mind this morning. >> oy! >> we have some more headlines for you. prosecutors in the casey anthony trial say they can prove that cindy anthony was lying when she testified she googled the word chloroform and not casey. the state is going to call former co-workers of cindy's and they can prove that she was at the office, not at home when those searches were conducted. yesterday, the defense pulled out a secret weapon of its own, george anthony's alleged mistress, crystal holloway, claiming george admitted to her that caylee's death was an accident. >> i didn't think that he could raise somebody who was capable of killing a child. that's when she said it was an

accident that spiralled out of control. >> he denied all of holloway's claims. the jucase could be turned overs soon as tomorrow. the government shuts down after talks failed to keep up the government. republicans were refusing to support tax increases. >> for the last six months, i've said the remaining gap be closed by raising taxes on 2% the wealthiest of minnesotans. >> they tried to pass a bill that would keep the government working for 10 more days while they worked out a deal but dayton rejected it. attorney general eric holder is back tracking on c.i.a. investigations. in a statement, he says the justice department will end its interrogation of 100 detainees. not all is over. they say a criminal investigation will be opened into the deaths of two detainees

who died while in u.s. custody. forget snakes on a plane. this time it's scorpions. an oregon man flying to alaska becomes the in flight snack when he was stung by a scorpion. he was napping on an alaska airlines flight, don't you hate it when they wake you up while you're napping and when he felt something crawling up his sleeve and a painful burn on his elbow. >> you know, it's a scorpion! >> first, i didn't believe him and i saw the tail wriggling. >> it's believed that he climbed on board during a layover on texas. makes more sense of it coming from alaska. scorpions can be deadly but ellis did receive some medical care and he's doing just fine. he reportedly got 4,000 free smiles a miles and two free tickets for his troubles. >> he still had to pay baggage.

>> right. >> thought there couldn't be anything worse than the image of harry reid in a bathing suit. the scorpion tops that. let's talk sports, though. first time in more than a decade, two major league sports leagues now have a work stoppage at the same time. overate, the nba joined the nfl with a lockout. owners locking out players this time after last minute negotiations fell apart. >> i think our fans will tend to have a negative view of why can't you guys work this thing out? we would just like to have our basketball and all that goes with it. so i don't expect anything good to come out of this. this is just what happens in labor disputes when there are lockouts. >> can't we just get along? this one could last a while, too, though. players and owners much further apart on key issues such as players' salaries. you'd say closer or further apart than the nfl. concerning the players and owners. and there's no optimism speaking of the nfl. players and owners set to hold

more talks in minneapolis today after negotiations late into the night. some say a deal could be in place by the end of next week. that would allow time for free agency before training camps open later this month. can't we all just work out a deal? it's just millionaires and billionaires. by the way, the last time two major league sports were in a work stoppage at the same time was in 1994 with hockey and baseball. let's head to the tennis courts now. the men's semifinals at wimbledon is about to get under way. rafael nadal taking on andy murray, the british need to get a wimbledon win, don't they? jokovich up against tsonga who beat federer the other day. on the women's side. maria sharipvoa advanced to her first final in seven years. sh she took out her opponent from germany in straight sets.

she meets her opponent from the czech republic in tomorrow's final which promises to be a very loud, grunting women's final. ladies, what's happening this weekend other than tennis? >> well, we are here warming up for a day at the movies. big holiday weekend and that means a lot of big names on the big screen. courtney friel here to tell us what's in line, exactly, i was going to do the yawn. >> molly, you know, holiday weekends are great for the box office. ticket sales have been down from last year. and the highest grossing fourth of july opening in history was "spiderman 2" in 2004 which made $88 million followed by the original transformers in 2007 with $70 million. >> those movies are great. >> so "transformers 3" just had the best opening day of the year and it's on its way to raking in $200 million by the end this weekend. here's what else is new in theaters. >> in true july 4th fashion,

shia brings a save the world blockbuster to theaters reprising his role in the third installment of "transformers" with "dark of the moon." as the director michael bay pins autobots against decepticons, humans are caught in the middle and this time man kind is taking sides. >> as you requested, a 26 pound lobster. >> i shall take it in my room. >> from intergalactic travels to a european escape. selena gomez and "glee's" cory montiefe head to monte carlo as a case of mistaken identity turns into an amazing journey. >> tom hanks reunites on screen with julia roberts for the coming of age story of "larry crowne" a middle aged man who loses his job and goes for a life do over returning to college.

>> and with over $123 million in ticket sales worldwide, "cars 2" has reved up to take another lap with its family friendly adventure. >> calling those who stay on four wheels and those that take on another form all together. >> there's no way you're going to be able to reach it. >> what do you suggest i do? >> it's over! >> now, let's talk about the reviews. "larry crowne" aren't so great. kind of mixed but it is the most sophisticated film of the bunch and has the oscar winning cast. for "transformers 3" you've got to bring some aspirin and ear plugs because it is over 2 1/2 hours of banging noises, pulsating and you don't have to see it in 3d. monte carlo was on fun, it's a really cute film. and if you have teenage girls at home, they'll love this movie. everyone in the cast is gorgeous. so are the clothes. and the scenery. they go to paris, monte carlo.

>> back to "transformers" bond movies have a new girl and now "transformers" have a new girl. >> no more megan fox. >> it's huntington-whitely and the reviews on her performance, you can kind of tell it's her first film but she's gorge use. >> she's beautiful, right? >> that's what she's hired for. new transformers girl. >> did you hear the scoop with shia. he told "details" magazine that he hooked up with megan fox and everybody is wondering what this meant, she was with brian austin green and he answered i don't know 12 times in a row. >> very smart. i don't remember. >> a little drama to get more buzz for the film. >> hey, it could work. it could work. >> are you going to see any of these movies? >> you know, the "transformers" flicks are great. i don't know. i don't know if i'll have time over july 4th. everybody is grilling or barbecuing but great rollout time. >> no megan fox in this movie? there's zero reason to see

"transformers." >> i cannot think of one. >> you don't want to go see it for the victoria's secret model that's in it. >> "cars 2" that's all i'm saying. coming up on the show to most of us, he'll always be lieutenant dan. >> now, actor gary sinese bringing that brave character to life. how he's honoring our military this fourth of july. you don't want to miss this. >> we've been telling you about media matters bilking you, the taxpayer. our next guest is demanding something be done about it. so can you. we'll tell you how. verizon claims its 4lt is twice afast as at&t.

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20 million men already have. with every age comes responsibility. ask your doctor if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. side effects may include headache, flushing, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a suen decrease or loss in vision or hearing. this is the age of taking action. viagra. talk to your doctor. see if america's most prescribed ed treatment is right for you. >> welcome back to "fox & friends." quick headlines now for you.

prince william and kate middleton on their two -- on day two, excuse me, of their tour of canada today. new video shows the royal couple greeting crowds at a barbecue in ottawa. next up, they'll attend several events celebrating canada day, the equivalent of our fourth of july before heading to the united states. comedy central host stephen colbert gets the green light to launch his so-called super pac. according to him, it's allowing him to raise unlimited cash to influence the 2012 presidential election. federal election commission says colbert has to release the name of people who give him more than $200. dave? >> thank you, clayton. we've been telling you how your tax dollars are subsidizing media matters, liberal propaganda war against fox news and now some fox viewers are firing back, filing complaints with the irs to revoke media matters government handouts. rejo jerome is a contractor and very educated viewer. he joins us from birmingham,

alabama. good morning to you, sir. >> good morning, dave. thanks for having me on. >> thanks for being on. tell me why it bothered you that media matters was able to get tax-free charitable donations and why you decided to do something about it. >> well, first of all, dave, i -- i care about the media because the media's responsibility is to get out the facts to the viewer. and when -- and that includes tv, newspaper, radio, and on-line media and when i heard on fox news wednesday morning that media matters was tax exempt, i went on media matters and looked for myself to see what they were -- had on their web site. and it didn't take long to realize that they had a left liberal agenda. and they are a partisan organization. so what i did was i went on the

irs tax web site and looked at the 501c3 on tax exemptions requirements and restrictions. after reading that and understanding what media matters is all about, then i decided to do something and on "fox & friends" on wednesday morning, you mentioned a form that someone had come up with to fill out if you had a complaint and i did because i feel like that anybody, any media organization that services the public should not be tax exempt because people who are tax exempt, nonprofit, they are just talking points for those individuals or organizations that have given them money. >> right. organizations that get that 501c3 designation are like schools and churches and the red

cross and charitable organizations, media matters originally said they were an educational institution but as you point out, any visit to that web site tells you they are anything but but you're not stopping there, you're not just getting on the web site yourself. you're getting out there and encouraging others to do the same. tell us about that. >> absolutely. after i found that form is a 139-09 form that i found on foxnation.com, i filled that form out. at the top of the form, somebody has already filled out dave brock's name and all the information about them, all you have to do is fill out your information, why you think that they're in violation and then you can e-mail it to them or you can mail it to them. and i've down loaded that form and i've sent it to all of my friends. i'm going to keep doing it until something is done. and i'm not trying to stop media matters. >> go ahead.

>> i'm not trying to stop media matters from doing what they're doing. i want them to stop being a tax exempt company. >> right. >> they have the right to free speech. they don't have the right to tax free charitable donations. great example of what viewers can do. you have a voice. thanks for joining us from birmingham this morning. we want to remind you, if you have a complaint, you can file it in regard to media matters. go to foxnews.com as jerome did and click on the justice tab. coming up next, a very brave lieutenant dan comes to life. gary sinese using his role in "forrest gump" to help our nation's military and he's live with us next. then hillary clinton was branded a witch. sarah palin called a ditz. now the mainstream media going after michelle bachmann. thanks to the venture card from capital one,

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>> welcome back to "fox & friends." who could forget his role as the memorable lieutenant dan in "forrest gump." >> thought i'd try out my sea legs. >> you ain't got no legs, lieutenant dan. >> yeah, i know that. you wrote me a letter, you idiot. captain forrest gump, i had to see that for myself. >> years later, actor gary

sinise continues to bring that role to life off the screen spending countless hours giving back to our troops and their families. he's launching the gary sinise foundation and releasing new information about the lieutenant dan, great to have you here on "fox & friends." thanks so much. >> thank you. good morning. >> you've done an incredible amount for first responders, veterans issues in this kuncoun. why start the foundation? >> over the years, i've gotten so busy with various charities out there supporting our troops and i've been raising money and helping organizations draw attention and awareness to what they're doing in service to our country and to our troops, that i just -- i'm kind of at the point where i either back off from the activity that i've been doing or ramp it up in some way. and so i thought how can i ramp it up when i'm already, you know, about committed as i can be. and starting a foundation and

entity that i can actually draw more awareness through the web site, through the foundation, raise funds, seemed like a logical next step for me. >> keeping it under one umbrella to make sense of it all makes sense. we've had a number of veterans here on the show and one of the big concerns as they return from the war front is a lot of their fellow service men and women have been suffering from ptsd, depression in general, unemployment, and they feel that not a lot of attention is being shed on these issues and we've tried to do quite a bit about that here on "fox & friends." do you think these issues are getting enough attention? >> it's certainly better than, you know, if you compare it to 30, 40 years ago when our vietnam veterans came back from war, it's certainly better than that. but, you know, while we -- while we're doing, you know, there are organizations out there that are trying to fill those gaps. we can always do more for our veterans as far as i'm concerned. i'm trying to fill some of those gaps by going out and supporting organizations that, you know,

have stepped up and, you know, kind of, you know, gotten stronger over the years in terms of their support for wounded warriors and the children that are fallen. mental health issues, what not, grief counseling but, you know, there's never going to be enough. as long as we're deploying our troops to war zones and expecting them to go over and over and over again. i mean, how can they not be stressed? so we have to just do what we can to fill those gaps and creating a foundation that i can, you know, funnel actual funds through it and also guide people to organizations that are trying to fill those gaps and inform not only the american citizens but also our soldiers, our military that there are organizations out there that will -- that you can reach out to for help if you just look in the right places. but we can always do more. >> we can always do more. one of the things we're watching on the side of the screen as you were just discussing that in your missions over there, going

to afghanistan and visiting the troops on the front line is this new documentary "lieutenant dan band for the common good" is the name of it which will be released. what's the common thread that you see when you talk to the men and women in uniform? >> well, they're -- i've met extraordinary, extraordinary people serving in the military. i've been actively involved with veterans groups and veterans issues since the early 1980's when i got involved with the group of vietnam veterans out of the chicago area and then i did "forrest gump" and i got involved with the disabled american veterans and now i've been very, very busy with active duty service members since 9/11. and, you know, wherever i go, they -- they're strong, they're resilient, they're doing their job. but again, we have asked a lot of this military in the last 10 years. and we -- you know, we aren't expanding the military to accommodate this thing. we're requiring these service members to keep redeploying over

and over again. that's stressful on them and their families. >> well, goary, both of our we sites on our fox news.com web site. have a great fourth of july holiday. great to see you. thanks so much. >> thank you very much. ♪ [ male announcer ] and just like that, it's here. a new chance for all of us: people, companies, communities to face the challenges yesterday left behind and the ones tomorrow will bring. prudential. bring your challenges. it's trade-up time. 'cause the prices we've beewaiting for on those features we've been looking for... are here. which means we can finally kick out the old and pick out the new. we've got 'til july 6th. let's snag some serious savings.

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get a carfax vehicle history report. see accidents and service reported to carfax and a price based on the car's history. free, at thousands of reputable dealers. just say, show me the carfax. >> good morning, it's friday, july 1st. i'll molly line in for gretchen carlson. as the clock runs down, the president holds off saying no debt talks with the g.o.p. but can the democrats really get this done alone? >> and primary, what primary? mitt romney is hot on the president's tail pointing out a trail of economic promises gone wrong. >> and you thought the fourth of july fireworks were dangerous. no way. here's what you really need to watch out for. parades, patriots and barbecue. some say the fourth of july is just g.o.p. propaganda in the skies. "fox & friends" hour number two right now.

>> ♪ we walked through the doors so accusing your eyes ♪ >> it's friday and the all american concert series here in new york city on our plaza here on "fox & friends." anna nalick is live on our plaza plus famous dave's cooking up some barbecue. if you're here in new york, please stop on by. 48th street and sixth avenue all morning. free food and music. >> friday means concert series, holiday weekends mean clayton and me getting fat. typically what it means, molly. >> baked beans for the morning right there. >> historically just watch our waistline. >> all america joins you.

we're going to eat the barbecue. >> step on the scale and enjoy those beans, we'll be talking about that this morning as well. >> we'll be working all weekend and the senate will be working all next week. typically they take the week off of fourth of july but no, this year, harry reid says we're going to stay here. we're going to try to work out a deal on this debt ceiling, of course, as you all know, the deadline is august 2nd to raise that debt ceiling but the president yesterday said we actually need to get a deal done by july 22nd because we have to write legislation so the clock is ticking. >> some republicans don't buy that deadline. they think that's an artificially ginned up deadline by the treasury secretary but many congressmen taking swipes at the president in taking some time off and doing the fundraisers when, perhaps, the president should be doing some work. take a listen to pat roberts. >> maybe he would take a valium and calm down and come down and talk to us, it might be helpful. >> whoa. take a valium? that's strong. >> come on down. >> jay carney, the white house

spokesperson says, look, it's not worth having a discussion. we tried before to have a conversation with it and republicans just aren't willing to have it. here's the white house press secretary. >> what the senator invited the president to do was to hear senate republicans restate their maximalist position. we know what that position is. and he also invited them to hear, invited the president to hear what would not pass. that's not a conversation worth having. >> that specifically is in response to mitch mcconnell, the senate minority leader who invited the president to have a conversation on the debt ceiling and the president, needless to say declined. >> it's been interesting to watch. both sides have drawn a line in the sand when it comes to increasing taxes, where revenue is going to come from. the president saying everybody should be working harder. i've been here and i've been working harder. mitch mcconnell inviting the president, come on down, we're ready. we're here. there's been a lot of finger pointing about who is working the hardest.

it's interesting, senator coburn of oklahoma has said that obama is doing more campaigning than fixing of the economy. take a listen. >> about the next election, you know, what -- all this is about, this is a political campaign he's in rather than a policy campaign for what is best for our country right now. i think he's travelled more than any other president, been out of the country more than any other president in the same period of time, utilized his plan more. done more campaigning at this stage than probably anybody else, and yet, we've accomplished very little towards solving the very real problems that are in front of us. they're urgent problems. >> and senator schumer right here in new york has been accusing the republicans of sabotaging the economy, not working hard enough also about the elections so how much does this really have to do with -- >> sure, suggested medicare and medicaid be taken off the table by the democrats so that would put these two sides further apart than the nfl, the nba and the players and everybody combined. >> that's another issue.

>> whole other issue, of course, is the campaign right now and the republican candidates who have announced for president though mitt romney on the campaign trail doesn't look like he's really campaigning against any primary candidates but going right after president obama, perhaps a smart strategy for him. take a listen. >> and the president's time is being focused on playing golf and campaigning and blaming. he should be spending his time and his energy working on getting americans back to work and fixing this economy. and yeah, there's a big issue coming up with regards to the debt ceiling. the president ought to be in washington meeting with republicans, meeting with democrats, he shouldn't leave that town until he has an understanding of what it's going to take to get this economy going again and to deal with the fiscal crisis that the country faces. but he's here raising money for a campaign. doesn't even have a primary opponent. >> notice what's over his shoulder there, the no trespa trespassing. he's in front of the gates there

of the allentown metal works which is a steel plant that was struggling in january. when president obama visited there back in 2009, he used that as an example of what the stimulus dollars would do for the economy saving the steel plant. as you can see from the gated up fence out front, not quite. >> no, that's an important symbol although the white house fires back that this particular steel company was already struggling at the time, well, then why did the president go there and use this as a symbol of hope? of what the stimulus could save? because, in fact, it did anything but and mitt romney, of course, rolled an attack ad out regarding this very closed steel factory. >> good to be back in pennsylvania. just came from allentown metal works where i had a chance to visit with workers there. >> the allentown metalworks is set to close its doors on friday. it was hailed as a symbol of hope by president barack obama last year when he promoted his

jobs plan. >> so a couple of interesting things there, you know, that specific attack ad but will mitt romney mention his rivals or continue to play it as i'm the frontrunner, i don't need to mention them. i need to go after the president. will that work? will he just hold steady? >> we're waiting for the financial numbers to come out. it was the end of the fiscal deadline came at midnight and waiting for the results. we'll see how far ahead he is on fundraising. >> we'll bring those jobs numbers to you at 8:30 eastern time on "fox & friends." now headlines for you. >> the former head of the international monetary fund could be free on bail as early as this morning. law enforcement sources say the hotel maid accusing dominique strauss-khan of assault has repeatedly lied to prosecutors and is not a credible witness. investigators say she's a con artist with ties to drug dealers and money launders that deposited $100,000 in her bank account. strauss-khan says his encounter with the maid is consensual and he'll be requesting to be given

more time outside. nigerian man accused of board a flight at j.f.k. airport with an expired boarding pass is due in a los angeles courtroom today. he used the pass to allegedly board a flight at lax. he was arrested trying to board another flight with another bogus boarding pass. now they are demanding an investigation into the breach. the tsa is reviewing the incident. powerful storm pummelling the midwest overnight. a tree collapsed into his motorcycle. the storm packed winds of up to 80 miles an hour knocking out power to thousands of homes. and overnight, minnesota's government shuts down after six months of negotiations that failed to close a $5 billion deficit. the democratic governor mark dayton blames republicans for refusing to support tax increases. >> despite many hours of intense negotiations, the republican legislative caucus has remained adamantly opposed to any additional tax revenue. >> we always thought that the

government shutdown was not only not necessary but it was bad for minnesotans. >> republicans say they tried to pass a lights on bill that would have kept the government funded temporarily but dayton rejected it and those are your headlines. >> all right. >> thanks, molly. let's refresh your memory a little bit and go back to egypt and the arab uprising in the spring, the arab spring as it's been called and the muslim brotherhood, remember, they were banned under hosni mubarak, the head of the egyptian government. they were banned and there was concern when he left that government, they would fill the vacuum with ties to terrorism and everything that everybody was concerned about that a number of experts here on the show illuminating their ties to terrorism. well, now it turns out the white house is going to reopen negotiations and discussions with that very same group. here's secretary of state hillary clinton. take a listen. >> we believe, given the changing political landscape in egypt, that it is in the interest of the united states to

engage with all parties that are peaceful and committed to nonviolence that intend to compete for the parliament and the presidency. >> peaceful and committed to nonviolence. i believe that's what you were going to say. we're trying to reiterate the point of the secretary's speech there because peaceful and committed to nonviolence does not exactly describe the muslim brotherhood, at least their past. they are a very violent, very strict islamic organization and, in fact, here's their motto going back a couple of years. "allah is our objective. prophet is our leader. the quran is our law. jihad is our way. dying in the way of allah is our highest hope." >> here's their objective which is also part of their doctrine. grand jihad in eliminating and destroying western civilization from within. and sabotaging its miserable house by their hands and the hands of their believers so that it is eliminated. >> and they also have some ties

to some terrorist organizations. hamas, al-qaida, so, you know, there are a number of things that are very curious here as we continue to figure out what to do with egypt, where to build our consolidation, where to find our allies in that country as it struggles to feigned a government. >> when story was first reported, there was a lot of concerns about these meetings but the white house is standing firm on this, they're saying these guys are a major force in the upcoming election. >> they are. they're posed to do very well in egypt. >> should the united states sit back? the white house threw that argument out there. let us know what you think about it. should the white house be engaging in discussions with these openly -- openly jihadist organizations. >> yeah, very difficult situation there. this isn't exactly, you know, the worst of two evils, you know, or which one, it's a tough choice to be made in egypt. >> i mean, let's take violence out of the equation. what about women's rights? this is not exactly a pro women's rights organization. are they headed somewhere like

saudi arabia if, in fact, the muslim brotherhood, strict islamic law, we will see, but also, israel very uncomfortable with this because hamas committed to their destruction says they are a guiding force, says the muslim brotherhood is their guiding force so if you're israel, you're again very uncomfortable with the obama administration's stance. >> coming up here on the show, they branded christine o'donnell a witch. sarah palin a ditz. next up, congresswoman michelle bachmann, is the mainstream media waging war on conservative women? >> forget the fireworks. what you need to keep your kids away from this fourth of july is these. who are saying these are just g.o.p. propaganda in disguise. coming up. getting grime from deep inside grout takes the right tools,

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lets go... haha. if you have high cholesterol, you may be at increased risk of heart attack and stroke. don't kid yourself. talk to your doctor about your risk a about lipitor. >> welcome back, everybody. first they called sarah palin a ditz and then they called christine o'donnell a witch and now the claws are coming out against congresswoman michelle bachmann. >> said that the founding fathers worked tirelessly to end slavery. >> well, if you look at one of our founding fathers, john quincy adams, that's absolutely true. he was a very young boy when he was with his father serving essentially this -- as his father's secretary.

he tirelessly worked throughout his life to make sure that we did, in fact, one day eradicate slavery. >> he wasn't one of the founding fathers. >> he was not one of the founding fathers but the point here, does the mainstream media have a bias against conservative women? let's ask our panel. we have this morning christopher hahn, democratic political strategist and a former aide to new york senator chuck schumer. amy is president and co-founder of the new agenda and didi banky is a republican political strategist. good morning to all of you. we'll start with you, is this sexist? >> absolutely it is. they're scared to death. let's talk about history here, president obama got recent history wrong when he talked about the medal of honor winner and it was -- he said it was not posthumous and it was. now that's a mistake. >> he did apologize to that family. but why is it sexist? >> it's sexist because it's wrong to have a double standard for women.

they're tougher on women and there's no doubt about it. they're scared to death. they're concerned about the republicans, michelle bachmann and sarah palin and sarah palin could very well run getting more of the women's vote and they probably will. >> why, amy, are the mainstream media for the most part so tough on conservative women in particular? >> well, it's actually all women. you know, this is amateur hour compared to what happened with hillary clinton. >> i think it's a different standard compared to hillary clinton. >> must be sleeping in 2008. >> no -- >> what happens when women enter the national spotlight, they're bran branded by the media in one of three ways. they're either a witch, ditz or a slut. in the case of a witch, hillary clinton wasn't likable but niki haley had these alleged affairs because the media puts women into a different standard than our male candidates. in the case of michelle bachmann because she speaks a little differently than those in the

east coast and didn't go to an ivy league school and she's an authentic candidate, they'll brand her as a ditz. not to worry. if that doesn't work, there's a plan b. >> i don't think they brand her as a ditz. >> come on! >> what happened here was she made a small error in history and then decided to pile on to that error just as sarah palin did when she was talking in boston a couple of weeks earlier. i think when elected official makes a mistake like that, these guys have long days. they could just say you know what? i made a mistake. john quincy adams and john adams, it was a long day and the founding era was a longer period of time. if she would have back tracked from that. >> i acknowledge that. here's my question, do you think that george stephanopoulos would ask that question of mitt romney? >> absolutely! if mitt romney would have called john quincy adams a founding father, he would have said he's not a founding father. >> if you look at our web site for the new agenda, there's a nine minute long you tube video that another organization did of

obama's gaffes and we would put biden's gaffes up but you tube only takes 20 minutes. there is such a different standard for women and male candidates. women are presumed to be unqualified when they enter the national spotlight. >> conservative women, it is worse. >> i disagree with you. it's nonpartisan. >> when you run for president of the united states -- >> scared to death of them. >> when you run for president of the united states, you're going to be held to a higher standard. it's primetime. you can't make these kinds of mistakes. >> hold it there. you guys are coming back. we've got more with our panel. next, we want to know what happened to the important stories while the mainstream media is busy blasting michelle bachmann, web sites like media matters through your taxpayer dollars. the president wants to end tax breaks for corporate jet owners. governor chris christie said it should never fly with you the taxpayer. hear why coming up.

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>> welcome back to "fox & friends." time now for your news by the numbers. first up, $3 million. that's how much the september 11th memorial at ground zero is now over budget. not clear who is going to pick up the extra tab. the memorial opens in fewer than 10 weeks. next up, fourth place. that's where conan o'brien has fallen in the late night cable ratings. he just got passed by chelsea handler's show on e. his ratings are down almost 20% last month. and finally, the five, that's the name of the new fox newschannel program that will

air at 5:00 p.m. beginning monday, july 11th, it will be a roundtable of five fox news personalities drawn from some of your favorites here on the channel. tune in for that. "the five". >> thank you, clayton. michelle bachmann may be dealing with the wrath of the mainstream media but where are they when it comes to covering liberal bias? over the past week, the far left web site media matters and their founder david brock has been exposed with their tax exempt status. with taxpayers essentially subsidizing their attacks, doesn't this deserve more coverage? we're back with our panel now. and we start with you, christopher hahn, i'm perusing "the new york times", arguably the biggest and most successful paper in this country. i don't see a whole lot of coverage. in fact, there has been zero. there are some inmates wearing theater make-up, i believe, a very important story. where is the major -- >> a 501c3. i was president of united way of long island which is a 501c3.

it can actually take positions on things. they can be political. you may not agree with the positions, you may not like the positions but they can take positions on it. it's when they actually engage in campaigning and supporting candidates actively, candidates actively. not causes. not iessues, that they violate the rule of the irs. >> media matters claims to be an educational organization when they applied for this 501c3 and in fact, most of the groups that have these are schools, educational outlets. and does media matters deserve taxpayer dollars in a sense? >> no. they -- and it's sad because this was such an important organization in the 2008 election when hillary clinton was a victim of sexism. this is an organization that spoke out against msnbc, cnn and fox and they were totally nonpartisan and when you -- when it's degraded now into a

partisan idealogue, that's not something that should be conducted under a 501c3. they should do what they're continuing to do there. it's totally inappropriate. >> this is bizarre because the irs is not red, it's not blue. they are about green. who is at fault here, though? is it just the irs? it has to be, right? >> whenever you wage war and say you want guerilla warfare, and you want to take out fox news. fox news is doing so well, they want to counter that. that's what this is all about. that's not being nonpartisan and george soros just gave a million dollars to media matters and there's a connection there that shouldn't be and it's not right. so they should not -- definitely should not get irs tax exempt status. >> the koch brothers are pretty political and gave a lot of money to lincoln center. you can't talk about, you know, the donor -- >> that's apples to oranges.

>> it's an opportunity. they do work as a watchdog and they do a good job and they should be defending michelle bachmann right now. i mean, that would be a great use for the organization. but what they're doing is just not -- >> got to leave it there, guys. if you want to weigh in on this, you can go to foxnation.com and get right to the irs and let them know what you feel about it. thank our panel, christopher, amy and dee dee. thank for being here. have a great fourth of july weekend. is our nation's birthday political propaganda in the skies. the study that claims kids who celebrate vote republican once they grow up. then the health nuts didn't see this coming. eating sugars and sweets might be exactly what a growing child needs. sweet! and anna nalick performs live as our fox all american concert series rocks on this morning. i will send this to shelley. yeah.

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>> welcome back to "fox & friends." time for your shot of the morning this morning. watch this. >> your shot of the morning. >> while you watch this -- >> i have to stay on this side of the couch to avoid the -- in the white dress. >> come on by. 48th and sixth. i'll save some shrimp for you. >> take a look at this, an australian teenager venting her frustrations with facebook through a song. take a listen. >> she's crooning her complaints about status updates on facebook and takes issue with

people who post scandalous pictures on facebook. older men who try to chat with her. the song has earned her a lot of fans on facebook and she's been liked nearly 10,000 times. >> nice little voice, you know, she's got a great voice. >> she's hitting on something that really frustrates a lot of people. they'll go on facebook and see this status updates and they find they've been on there for two hours. >> how do you keep up with 300 or something friends? >> they've wasted two hours after being on there. >> i'm one and done. five minutes i'm off facebook myself. let's talk about the president's war on those wh corporate jets. that's what he highlighted on wednesday in that rather partisan speech. well, chris christie, the governor of new jersey who tends to speak out on issues if you haven't noticed. he doesn't exactly like this idea. an idea, by the way, that would save a whopping $3 billion over 10 years. here's what the governor of new jersey says about it.

>> this myth that somehow this is a bunch of people on, you know, golf courses and lear jets, you know, is the type of democratic misinformation which really is only there to mask the real generaled which agenda is increase taxes. you let them in your pocket for a second and they keep grabbing for more and more. that's the way it works. i'm not letting my foot off the throat of that for a second. >> republicans are jumping on fact that president obama himself supported these tax cuts for jets in a stimulus package twice. two different provisions that would give these tax breaks to corporate jet owners and the president himself was for it and now they say he's against it. >> we've seen these historically in the past. these types of issues have come up regarding yachts in the past and the idea is that if you're taxing something less, more people will buy it and maybe it won't create as many jobs. people who are building

airplanes and building yachts. really interesting controversy that's much more layered than the initial, should people get a break for buying these products? >> really just a symbol, you know, he wants to make the republicans the party of the corporate jets? it really isn't about fiscal health for our country. i mean, it's not going to make much of a difference at all. he wants to put the symbol in the voters' minds ahead of 2012. >> discussions that we've seen in the past. some other headlines this morning. prosecutors in the casey anthony trial say they can prove that cindy anthony was lying when she testified that she googled the word chloroform, not casey. the state is set to call two last minute witnesses during the rebuttal today. both are cindy's former co-workers and they can prove she was at the office, not at home when the searches were conducted. yesterday, the defense pulled out a secret weapon of its own, george anthony's alleged mistress crystal holloway claiming george admitted to her that caylee's death was an accident. >> i didn't think that he could raise somebody that was capable of harming her child.

and that's when he said it was an accident that snow balled out of control. >> george anthony denies holloway's claims. the case could be turned over to the jury as soon as tomorrow. a fiery plane crash killed a wisconsin man and we're hearing the chilling 911 calls that came in after the small plane went down north of denver in heavy winds. >> yes, just a small plane that's gone down. >> 128th. >> 128th. >> already on our way. >> i just heard a big boom. >> ok. >> yeah. the thing is on fire. >> the owner of the aerial photography company was killed. he also had a close call about 12 years ago when he clipped a tower and lost a wing on his plane. and firefighters in new mexico say they're making progress against a fire burning in a canyon near the los alomos nuclear lab. the site manager said the threat is now limited. the town is totally evacuated.

residents say they've been told they may go home as early as sunday. it's christmas in july for pepsi. they just heated up the coca-cola wars bridging santa claus from coca-cola. take a look. >> santa, my man! make it a pepsi. >> i thought you had a deal with, you know. >> i'm on vacation. having a little fun. all right? >> all right. >> well, coke has been advertising with santa for 80 years but this summer, he's pepsi tv's pitch man. how did that happen? well, pepsi tired of being in third place behind coke and diet coke has boosted its spending by about 30%. can you believe it? >> cola wars continue. good to know they're still fresh. check in with dave for a look at sports. >> not good sports news this morning. for the first time in more than a decade, two major sports leagues have stopped work at the same time. overnight, the nba joined the n

nfl with the lockout. locking out players after last minute negotiations fell apart. >> i think our fans will tend to have a negative view of why can't you work this thing out. we would like to have our basketball and all that goes with it so i don't expect anything good to come out of this. this is just what happens in labor disputes when -- >> this one could last a while, too. players and owners are much further apart on key issues such as players' salaries than the nfl players and owners. speaking of that, the nfl lockout, players and owners are set to hold more talks in minneapolis today after negotiations late in the night. some say a deal could be in place by the end of next week. that would allow time for free agents before training camps open later this month. by the way, the last time the two major sports leagues were in a work stoppage at the same time was 1994 with hockey and baseball. remember 1998, the nba did miss

games, strike shortened season there. to wimbledon now, the men's semifinal match about to get under way. nadal taking on andy murray. jokovich up against tsonga and maria sharapova moving on to the women's finals. she'll meet her opponent from the czech republic in tomorrow's final. a lot of folks rooting for saharpova to get back on top of the tennis world. i'm a sharapova. -- fan. it's good for the sport. >> there was a viral video going on, seeing if you could guess the grunt. >> they will be a loud, loud -- >> steffi graf is famous for that as well. >> a new report out from harvard. talking about the fourth of july and what parades mean to

americans and it turns out, according to their estimates in this report, that it confirms that those who go to parades are likely to be republican. that it will affirm for them a republican stance. so if you go to a parade, there's a chance -- there's a great chance you're going to vote republican and that you identify with the republican party. >> right and this could affect your voting down the road. in other words, you'd be at a parade when you're 4 and down the road, you're starting to vote in your later years and you're voting g.o.p. the numbers are pretty small, actually. when done before the age of 18, the increase in the likelihood of identifying as a republican is about 2%. that's pretty marginal. >> democrats gain nothing from participating in the 4th of july parades. we have e-mails from you. neither, we show pride in the country wee're republicans. if we show no pride in the country, we're democrats. >> if they go, it doesn't do anything for them. bill from arkansas writes this

this morning saying didn't reagan say republicans believe every day is the fourth of july but democrats believe every day is april 15th? >> tax day. >> here's another tweet. the harvard elite in their ivory towers have no use for the fourth of july. fine, lady liberty is waving good-bye. this is an all american holiday, right? >> i would hope so. one final tweet. in their eyes, anything pro american is right wing propaganda. me? i love fourth of july and nothing beats a good fireworks show. halleleujah to that. keep sending in your tweets and e-mai e-mails. friends at foxnews.com. >> is the rag in the united states in the bag for obama? exposing "the new york times" cleverly disguised plot to some say re-elect the president. >> and a shiny new railroad project hits a road block. it can't cut through a bird reservation conservation.

should the government tear up somebody's farm land instead? does that sound fair? we report, you decide. >> the trivia question of the day. born on this date in 1977, not this cow but this model turned actress first thought her father was a different rock 'n' roll star. >> we're not calling her a cow. >> no, we're not. >> she uses both names legally. who is she? be the first to e-mail us, friends at foxnews.com. with the correct answer. ♪ [ male announcer ] every day thousands of people are switching from tylenol advil. to len more and get youspecial offer,

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>> 7:44 eastern time.

quick check of the headlines. a big setback for boeing. a federal judge has denied its motion to dismiss a government lawsuit. the national labor relations board said the company illegally moved work to a nonunion factory in north carolina from a union factory in washington state. as punishment for past strikes, boeing denies the charges. and so much for the first lady's campaign against sweets. according to a study at the louisiana university kids who eat candy weigh on average three pounds less than those who don't. the study doesn't say why and researchers still recommend a healthy diet. snickers for the kids this morning. >> california's estimated $45 billion high speed rail project may even end up costing more. that's because they're thinking about making a change to the rail route this time to protect birds. the new proposed route goes around a bird habitat but runs right through a neighborhood and

across farm land. our guest, mike montero is a dairy farmer who will be affected by the new high speed rail. you know, if you can just start by telling us a little bit about your dairy farm, sort of the expanse of it and the inconvenience that you could face if this rail line comes through your area. >> yes. i'm a dairyman about five miles south of town, we have a 3,000 cow dairy. and the proposed alignment of about just two months now splits my dairy and my maintenance shop in my fueling yard. >> what does that mean to have your farm literally split? we're talking about some big animals here and i imagine you have to get them from place to place. >> right. yeah, it's just unbelievable to me that they've made this alignment and they haven't come out and talked to any of my neighbors, they haven't asked what detriment it would cause to us. it comes through my square

fields in an angle and it's -- it leaves triangles at the corners of these fields causing additional waste other than just 100 foot strip that they're going to run through there. and so it also goes through -- goes over the top of a cemetery. it goes over our neighbors' sump in the back of his dairy. it's just unbelievable what they're doing here. >> we have a quote here from the california high speed rail authority and it says over the last two years, the authority has worked with communities in the central valley to gather feedback on the alternatives for the route, potential station locations, track design options. you know, so they're still looking at things, weighing in on things. and there will be a public comment period after the environmental report comes out. will you be attending that? is that the plan amongst you and your neighbors? >> yes, yes, it is. i want to add that the biggest problem that we have with the alignment of the high speed rail is that it doesn't follow any of

the guidelines of proposition 1a passed by the voters in 2008. those guidelines said it needed to follow transportation corridors and there needed to be no detrimental impact on the ag lands in the valley and that's absolutely not the case and that's the biggest problem that we have with the high speed rail right now. >> one of the controversies of the project, it goes through the wetlands region and they're concerned about 2,000 species of birds. that's what they're looking at in this environmental report. do you feel that the tradeoff here is, perhaps, the birds might not be affected if the rail line has changed but you, your neighbors, farmers, farmers have it tough in america right now. dairy farmers, there are a lot of pricing challenges you have to overcome. your thoughts? >> yeah, absolutely. you know, there's a huge impact on kings county and it's -- it's just -- it's just absurd that they would come through there,

not talk to anybody about the detriment to everyone and to -- it's just unbelievable to me that they would do that. >> all right. mike monteiro, thank you so much for joining us. a dairy farmer working to protect his land as the california rail project moves forward. we'll probably talk to you again as this project gets under way and is a major rag in the bag for obama? "the new york times" and its mission to re-elect the president next. and then he's been called a dreamer, long shot and even a failure but newt gingrich's claims that his critics got it wrong. he is live to explain why coming up. funny thing about vegetables... they fill you up without filling you out. yes! v8 juice gives you three of your five daily servings of vegetables. that's what i'm talking about! v8. what's your number?

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>> the answer to the trivia

question of the day is liz rundgren tyler and the winner is mike in south carolina. congratulations, mike. last month, "the new york times" asked readers to dig up dirt on former alaska governor sarah palin writing "help us review the sarah palin e-mail records." then the paper tried to prove clarence thomas unethical, to fight with archbishop timothy dolan. joining us from our d.c. bureau, former undersecretary under george h.w. bush and contributing editor for "the american spectator" jed bavin. welcome to "fox & friends." >> thanks, guys. >> what facts do you have to support this claim that "the new york times" and i'm sorry, i called you babin. my apologies. >> anything close. >> your piece on what you called the pinch going after "the new york times" basically saying they've been in the bag for the left. why do you say that? >> well, it's a very long track

record that they have and there's two important facts that you go on. number one, the fact that they do not report important stories critical of democrats. they are only critical of the republican party. number two, their bias is long established. if you read their columns, they are really a hub of liberal thinking. and if you look at what's going on with the catholic church right now, there is a deep seeded anti-catholic bigotry going on in the pages of the "new york times." it all comes down to the publisher, arthur salsberger jr. took over in 1992 and he took out most of the people that had built "the new york times" post world war ii, very established journalist and he's put ideological reporters and editors in their places and now what you have, you have maureen dowd, you know, some person now just bashing the catholic church in her spare time. and you have, again, this jill abramson coming on as executive

editor who is by all reports and by her own track record a very liberal activist. if you look at salsberger yourself, all you need to too go back to his speech a couple of years ago where he was just histronic in telling the graduates, you poor children, we grown-ups are supposed to be leaving you a world not riddled with global warming and war and dissemination. it's playing out in "the times." >> what you mentioned earlier about the catholics, apparently "the new york times" has a problem with catholics. here's timothy dolan says the common casual way that "the new york times" offends catholic sensitivity is something they wouldn't do rightly so so the jewish, black and gay communities. >> that's right. if you look at the "new york times" track record, they are more eager to publish national secrets than they are, for example, to republish the danish

cartoons making fun of muhammad. these people have a deep seeded bigotry against the catholic church. it's reflected in their reporting. if you look at the way they report on art exhibits, on plays, the way they criticize the church and when timothy dolan, archbishop dolan tries to put in an op ed piece in "the new york times," they reject it. there's a bias there. there's a bigotry and very big problem with "the new york times." >> want to read jed's piece, it's called "the pinch happened" in "the american spectator." you won't read it in "the new york times." thank you very much for joining us this morning. have a great fourth of july. >> thanks. you, too, guys. >> coming up on the show, casey anthony skips the stand as the defense rests its cases. is she doomed before deliberations even begin? geraldo is live at the white house at the top of the hour. taxpayer cash to bash fox news? should media matters be charged with fraud for cashing in on tax breaks?

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go to cymbalta.com to learn about a free trial offer. good morning. it's friday, july 1. i'm molly line in for gretchen carlson. casey anthony's defense rolls the dice. their client skips the stand and the state gets another go. is she doomed before deliberations begin? geraldo rivera is live from the courthouse. >> as the clock runs down, the president is saying no to republicans offering a an olive branch. account democrats really get this done solo? >> plus, taxpayer cash to bash fox news. can media matters be charged with fraud for collecting charity tax breaks? "fox & friends," hour three, starts right now.

♪ ♪ >> you are listening to our guest this week. a big outdoor picnic is set up, with barbecue from famous dave's. now we are on to anna nalick. >> we've got barbecue dave ate his second plate of food already this morning. it's almost 8:00 a.m., you know dave has had a couple plates of meat. >> 48th and 6th.

>> steve, gretchen and brian are all off getting an early start to their fourth of july holiday. >> i'm sure there are a lot a people doing that. first we have more work to do. working through the holiday weekend on a debt deal, but the president rejecting an invitation to talk with republican leaders. wendell goler is our foreign affairs correspondent and live at the white house with more. good morning. >> good morning. democrats with knowledge of the debt talks say that they have about three weeks to come up with an agreement to trim the deficit by a trillion dollars. a couple of trillion dollars in fact, before they bump up against the debt ceiling deadline of august 2. they can't take the talks right down to the wire because it takes sever days for the congressional budget office to score the plan and there is a waiting period before the house can vote on it. the senate will stay in town next week to work on it. that's a change. democrats and republicans are still far apart over the president's insistence that some tax increases be part of the formula. here is a bit of what the

president and mitch mcconnell had to say. >> i'm prepared to bring our deficit down by trillions of dollars. that's with a t, trillions. but i will not reduce our deficit by sacrificing our kids' education. i'm not going to reduce our deficit by eliminating medical research being done by our scientists. >> i want to know, is there a single member of congress, democrat or republican, who thinks it's a good idea to raise hundreds of billions of dollars in new job killing taxes at a time when 14 million americans are out of work? >> the president and other democrats talked most about ending subsidies for oil and gas companies and the special depreciation treatment that

corporations get. but they would raise less than $50 billion of the roughly 400 billion in new revenue the president wants to go along with more than a trillion dollars in spending cuts. the bulk of the revenue would come from capping itemized deductions for families making more than $250,000 a year at 28%. that's $290 billion. of course, that would impact far more than just the rich. molly? >> all right. thank you so much, wendell goler, following the news out of washington for us. more headlines this morning. you're looking live outside of the house of the former head of the international monetary fund, dominique strauss-kahn who could be free on bond this morning. law enforcement sources say the maid who accused hill of assault lied to prosecutors and is not credible. they say she's a con artist with ties to drug dealers and money launderers who deposited $100,000 in her bank account.

he said his encounter with her was consentual. he is expected to be given more time outside. and the nigerian man accused of boarding a flight at jfk airport with an expired boarding pass is due in a los angeles courtroom today. he allegedly used the pass to board a virgin atlantic flight to lax. he was arrested for trying to board a delta flight on wednesday with another bogus boarding pass. now congressman peter king is demanding an investigation into the breach. the tsa says it is reviewing the incident. overnight minnesota's government shuts down after six months of negotiations failed to close a $5 billion deficit. democratic governor mark dayton blames republicans for refusing to support tax increases. >> despite many hours of intense negotiations, the republican legislative caucus remain adamantly owe toesed to any additional tax revenue. >> we always thought a government shut down was not only not necessary, but bad for minnesota.

>> republicans say they tried to pass a lights on bill that would have kept the government funded temporarily, but dayton rejected it. prince william and kate middleton on day two of their tour of canada, new video of the royals greeting crowds at a barbecue in ottawa. they'll celebrate events for canada day. they will leave canada in just over a week from now and they'll head south to sunny california. those are your headlines. >> the defense in the casey anthony trial has rested. let's bring in geraldo rivera this morning live in orlando, florida, outside the courthouse with more on this. great to see you this morning. >> thanks. how are you doing? hi, dave and molly. yes. i'm doing well. it's the usual muggy early summer morning here in orlando. but all eyes are on the courthouse behind me. >> yeah. yesterday the only exchange we're likely to hear casey speak in the courtroom when the defense was resting, let's take a listen to that because we may

never hear from her. take a listen. >> it's your decision not to testify based upon consultation with your counsel? >> yes, sir. >> you understand that your decision to testify or not testify is solely your decision and your decision alone? >> yes, sir. >> and it is your decision not to testify? >> yes, sir. >> it's unequivocal. so smart decision or not? >> i think it was a smart decision. the only thing she sacrifices is the astronomically remote possibility of an acquittal. if she had testified and if the juries believed her or hope lesley deadlocked her velocity about maybe, maybe, you could have herized she could have been

acquitted. but that was such a long shot that the defense attorney and indeed if it was casey anthony's own decision, the accused in this case made the prudent move in not testifying. she has lied and lied and lied and it is very difficult, i think, for her now to take the witness stand and say those are lies, but this is the truth. she made exactly the right move. plus why lock her into testimony. the defense is confident, after extensive conversations with them, that they have an appealable case here, that the fact that she was not given her miranda warnings, the fact that the judge in this case has ruled almost invariably in favor of the prosecution, allowing that animation of the child's face to morph into this grotesque skeleton as the mother looked on smiling. they think she'll get something like an aggravated manslaughter conviction, not murder one or two. and then have an appealable case

and then have the ability somewhere down the line, a couple of years from now maybe, to testify as to these tragic events. >> if there wasn't enough intrigue concerning this case, a very fascinating development on thursday where the judge sentences a young kid to six days in jail and a $400 fine for, let's call it a finger gesture. tell us about what happened there. >> well, he did. i was going to demonstrate, dave. you don't have your digital capabilities ready yet. some wise kid sitting in the front row a couple of seats down from where -- i wasn't in the court at the time. holly briscoe, she usually sits there. so he's a couple of seats down. he made obviously a bet with his pals, you know, as jeff ashton, the prosecutor, the stern guy was making a presentation to the court, the kid flips the bird, knowing he's on world wide

television. guess what? his pals at home weren't the only ones to notice. he got called in. he's held in contempt. he got six days and $600 fine. the kid was apoplectic in his apology. you can't come to a trial like this where a life is at stake and be so disrespectful, the judge did exactly the right thing. this is not a judge to mess around with in any case. remember the lady who had the outburst during jury selection? he is determined to keep some sense of decorum despite the obvious burlesque circus that goes on and scores of people all across the country, they come flocking here. one lady interviewed last week said it was like "jersey shore" to her. so there is that aspect of it. but the case is plunging ahead. there will be the rebuttal case by the prosecution today. i believe -- i talked to jose

ba. >> last night -- i believe there will be no court on saturday. that's just my impression. some are saying closing arguments on saturday. i believe closing arguments will happen on sunday and the jury will decide whether or not to deliberate on july 4th, my birthday. so go figure. i have 100 people coming to my house and i'm in orlando. >> there is something else we want you to weigh in on. media matters filing documents claiming to be a 501 c 3, claiming to be an educational element or charity. but can they be charged with fraud because they're spending an awful lot of time attacking fox news channel and it doesn't seem very charitable. your thoughts? >> well, that's a great question. i wish we had a whole evening to discuss it. in my ten years at fox n i have been very proud of our network in our refusal to be tread on by others. you hit us, we're going to hit

you back. whether it's the "new york times" or any of the other main stream media giants. if you insult us, we're going to find out your motivation and strike back. i am not like bill o'reilly. i'm not a cultural warrior. i'm not red or blue, i'm red, white, and blue. they are partisan for sure, but there are many partisan organizations and what i would suggest is all of these 501 c 3 organizations that have a partisan chip on their shoulders be examined by the irs. we're looking to make up this budget deficit. let all of them, you know, justify their charitable deduction status, media matters and the others on the right wing included. >> you can watch geraldo at large this weekend at 10:00 p.m. eastern time and follow him on twitter as well. finally. i asked him this six months ago. >> and happy birthday. >> i can't figure out how to do

the damn thing. >> we'll be working through the weekend. >> happy birthday, sir. >> thank you. >> coming up next, he's been called a failure, a lost cause, but newt gingrich, the former speaker, says those critics better check the facts. he's here live to respond. >> then they rated christine o'donnell a witch. now is michelle bachman under fire? is the main stream media waging war on conservative women? brent bozelle is here next.

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>> the 2012 presidential race is heating up and so are the main stream media's attacks on conservatives. take a look at michelle bachman getting grilled by another news outlet. >> earlier this year, you said that the founding fathers who wrote the constitution and the declaration of independence

worked tirelessly to end slavery. now, with respect, congresswoman, that's just not true. many of them, including jefferson and washington, were actually slaveholders and slavery didn't end until the civil war. >> brent bozelle has been monitoring this situation. thank you for joining us. >> sure. my pleasure. >> brent, i want to get to you weigh in here about what you've just heard. what mr. stephanopoulos is talking about is a quote she made in january. you said this before, but it's really kind of harkening back, why do you think that this is happening with michelle bachman specifically? >> because they don't like her. there are a couple things going on. one, it will be -- i've been saying it for months and you're seeing it happen. now until election day 2012, it will be scorched earth against any republican who gets in the way of barak obama. she just announced, she's the target. there is something else going on. michelle bachman is a woman. she's a conservative woman. and that goes against the narrative of the enlightened lib

rap. look at the coverage of hillary clinton over the years. it's the same thing as covering the same thing as thurgood marshall and clarence thomas. one a liberal black jurist, the other a conservative black injurist. a difference of night and day the way they've been covered. she threatens the liberal establishment. just like sarah palin. >> here is another even more creative attack actually. chris matthews going after her, really harkening back trying to make an attempt to even pull religion into this. take a listen. >> we have to recapture the founders' vision of a constitutionally conservative government if we are to secure the promise for the future. >> what is this, a prove san antonio reformation, somehow we're going back to the purity of the original christian church, we're going back to the original perfection of slave holders and how perfect they were and government is the enemy? >> he is going after her perspective on the constitution, saying that there is some sort

of religious angle involved here. i mean, what's your take on his statement? >> number one, she's right. number two, that's a personal attack on his part. you would never do that to hillary clinton. he would never in a million years wage that kind of insulting attack on hillary clinton. he has been insulting michelle bachman since michelle bachman showed up on this scene. why she does his show, i'll never understand it, because she is just fodder for him. but that's the kind of low brow msnbc kind of coverage you get now, it's just not worth our time. >> brent, thank you for joining us, weighing in on michelle bachman. i'm sure we'll be talking to you lot throughout these elections. >> thank you. >> all right. remember the release of the gas pump. why the white house planned to open our reserves has not exactly worked. then don't count him out. newt gingrich here live to fire back at his critics who claim he has already lost the race for the white house, coming up.

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welcome back. many considered the start of his campaign a bit rocky. in fact, some already writing off newt gingrich's white house run all together. >> this is a big deal. he's done. he didn't have a big chance from the beginning, but now it's over. >> back in 2008, john mccain had significant staff departures and cratered and came back in a magnificent way for him. and won the nomination. that's not going to happen here with newt gingrich. no chance of that.

i think he's done. there is no chance that's happening here. >> wow. here to respond to republican presidential candidate and author of "a nation like no other," newt gingrich. thanks for being here this morning. >> it's good to be with you and sort of fits what brent bozelle was saying. none of the people who decided i wasn't a candidate anymore were with me in iowa, south carolina, new hampshire, georgia, california where i just came back from. so i find it fascinating sitting around in washington and new york, they decided they ought to tell the american people who the candidates. >> that's part of where this comes from is your staff leaving. >> ronald reagan had 13 senior staff quit the morning of the new hampshire primary and two weeks heard they laid off another 100 staff. john mccain had a similar experience. my ohm point is i'm talking about substance, how do we create jobs? look at the unemployment numbers today. how do we deal with energy? look at the gasoline prices. how do we help housing get back

so that -- which is now in worst shape than in the great depression. >> these are interesting topics and they resonate with the american people, but just given this fox news poll, is it not resonating on your behalf? 3% of voters, gop primary voters in the new fox news poll, 3% and you have mitt romney out there at 189%. politicians hate polls sometimes. they like them at other times. what do you think of this one? >> i think it's exactly what john mccain would have told you in the summer of 2007. when the same poll said rudy guiliani was going to be the republican nominee and hillary clinton was going to be the democratic nominee. this is going to be a long campaign. i think substance matters. i think the american people know we have a problem with the economy and in the middle east. they know we have a problem on the border. they know we have a problem with the deficit. i think the american people will end up looking for substance and my campaign is going to offer specific real solutions across the board and i think over time, that will matter. i think by january, that will have sunk in. >> i'm curious, you're right,

that the media can contribute to a narrative. is it fair then that the media is making michelle bachman out to be a relative dits when it comes to american history? >> i think a lot of those questions are deliberately biased and inaccurate. i would have said to some of the folks who were challenging her, they ought to go and read what abraham lincoln said, because he actually agreed with her about the intent of the founding fathers. i would have said to people like chris matthews, you ought to go back and read the declaration of independence. that's why i wrote "a nation like no other." it's an answer to the chris matthews of the world because it takes you back to the declaration of independence, the federalist paper, the constitution, the founding fathers, and it suggests that the real future of america has to rely on going back to the very basics and being prepared to look and why america was created and why we're an exceptional country and why obama's european socialist answers are fundamentally wrong. >> a lot of that greatness comes

from the constitution of the united states. which many countries try to emulate. this magazine says one document under siege, which basically questions the constitution's validity or its evolving nature over time, and you take issue with that. >> no, i think that the time magazine cover poses for the american people exactly the right question for 2012. i wrote "a nation like no other" to make a case that american exceptionalism really does matter, that being endowed by our creator really does matter, and that, in fact, the elites, including time magazine editor, all believe that that's old-fashioned stuff and that if only we would relax and become subjects rather than citizens, let washington control our lives, and accept the european socialist model of obama, that somehow the world will be better. i don't agree with that. i don't think the american people agree with that. the 2012 election will decide. do we, in fact, enforce the

constitution, enforce the declaration of independence, go back to being a country that believes our rights come from our creator, or do we give up those rights and become a nation in which government defines the rest of us, what we're allowed to do? time magazine in that sense placed perfectly what this election is a all about. it's about whether or not the constitution is real. >> the debt deadline is looming and that's the focus in washington right now. everybody is staying there through the july 4th weekend and working on this. your thoughts on how things can move forward from here when both sides have kind of drawn this line and no one seems willing to find a compromise? >> the american people need to hold president obama accountable. he's president of the united states. if the republicans in the house pass a debt ceiling that includes substantial spending cuts, a debt ceiling which includes a balanced budget amendment and the republicans in the house do their job, it seems to me the burden then is on the president. is he really going to veto that and create a default? i don't think so. so i would say that the house republicans should move forward

with confidence. they should pass the right kind of spending cuts. they should cap spending for the future. they should have a balanced budget amendment and at that point, they should put the burden on the president to do his share in helping lead the american government. >> the speaker, along with tim pawlenty, rick santorum, geraldo rivera, signed the cut, cap and balance pledge. thank you for joining us. have a great fourth of july weekend. >> thank you. >> coming up, the justice department with a major flip flop on enhanced interrogation like water boarding. what made eric holder change his mind? >> forget snakes on a plane. a sleeping passenger wakes up after being stung bay scorpion. -- by a scorpion. >> the "fox & friends" all american summer concert series rocking friday with anna nalick coming up.

♪

>> here is your shot of the morning. forget snakes on a plane. this time it's scorpions on a plane. an oregon man flying to alaska becomes the in flight snack who gets stung by a scorpion. he said he was napping when he felt something crawling up his sleeve and felt a burning sensation in his elbow. >> it's a scorpion. >> at first i didn't believe him. then i saw it and i saw the tail wiggling. >> oh, god. it's believed the scorpion climbed on board during a layover in texas. they can be deadly, but he received medical care and is doing fine. he reportedly got 4,000 free miles and two free tickets for

his trouble. >> i don't know if that's a good deal. i think i'm going to need more than that. >> you can almost die or get 4,000 free miles. despite president obama's recent decision to release 30 million-barrels of crude oil from the nation's strategic reserve gas, gas is 3.55. >> we have joining us to chat about it is eric bolling from the "fox business" network to give us the dirt on this. we know the reserves were opened up, but we're still seeing the prices the way that they are. >> they're moving back up. here is what happened, last thursday, the 23rd of june, the morning of, they said they were going to release 30 million-barrels. i immediately, on a couple of various shows, i said, this isn't going to work. this will maybe last a couple of days, maybe a few weeks or a month. turns out it last add week. at the time oil prices were $94 a barrel. after they made the announcement, they dipped down to $89 a barrel, the same day. >> looked like it worked!

>> it always works for a little bit of time. it was 30 million barrels, though, over the course of the next six days, it went back up, now we're higher than prior to the release of the spr. clearly it wasn't going to work, didn't work, and honestly nothing changed. >> one of the things -- >> plus what we used. >> that's one thing. but the reality is we haven't changed the supply-demand dynamic at all. we used 20 million barrels a day in this country alone. the country uses 80 million-barrels a day. less than half a day's worth of oil they threw out. >> i watched you on the shows, you were saying it wasn't going to work and you were saying american production has not increased. but we're not -- when people jump on this, they say look, we need to increase domestic production. but what they don't say is it will take years to get out of the ground. you say something different. >> look, we've been having this discussion back and forth for

years, so if three years ago we had the discussion and they said, no, don't worry, it will take too long, we would have this oil by now. some of the proposals on the table right now are for taxing our oil companies, our big five oil companies, taking away a tax incentive for them to drill here. that doesn't apply to foreign oil companies drilling our oil off our shores in the gulf of mexico. so think of it this way, a brazilian company a chinese company, a russian company comes in, drops a drill bit into the gulf of mexico, pulls oil out that's sovereign to us, our oil companies do it, they have a tax disadvantage to their oil company. it's really the bottom line is it's a drilling policy that's pushing drillers overseas instead of right here where we really need the oil. >> a good point. eric bolling, you can see him on "follow the money" on "fox business" network. and congratulations, he's one of

the five -- who is it? you and others. >> there is a rotating group of -- i'm not calling them hosts. we talk about the stories, news of the day, have is a lot of fun. it really doesn't have -- >> we are looking forward to it. they're telling me we have to get to the news. leon panetta about to arrive at the pentagon to be sworn in as the new defense secretary. later today he will have lunch with the joint chiefs chairman, admiral michael mullen, before hosting a meeting of senior military commanders. he comes to the pentagon after 2 1/2 years as the head of the c.i.a. he takes over for robert gates who has retired. eric holder is backtracking on c.i.a. investigations. in a statement he says the justice department will end its probe into past interrogations like water boarding on roughly 100 detainees at facilities like guantanamo bay. however, not all investigations are over. he says a full criminal investigation will be open into the deaths of two detainees who

died while in u.s. custody overseas. a powerful storm system pummeling the midwest overnight. a wisconsin man was killed when a tree collapsed on his motorcycle. the winds up to 80 miles per hour, knocking power out to thousands of homes. those are your headlines. >> just about 20 minutes away this morning from the start of court this morning. the defense rested its case as we talked with geraldo about. now it's time for the prosecution's rebuttal and closing arguments. >> one of the questions, will testimony from casey's parents put them at risk of prosecution themselves? fox news legal analyst peter johnson, jr. is following this ever developing, very intriguing case. what do you think about that latest statement regarding the parents? >> it's very interesting, depending what happens, whether there is a conviction or not. both of them are potentially, in my view, at risk for perjury. more importantly today we're going to hear testimony that

apparently debunks mrs. anthony's testimony about where she was and where she would be looking up chloroform allegedly on the computer, they're going to show work records that, in fact, perhaps she was at work. so she's testified that she wasn't at work, that she was at home looking up chlorophyll and chloroform and we know chloroform is the key to the prosecution case. they're alleging that the girl died as a result of chloroform and duct tape poisoning and asphyxiation. >> the air samples show chloroform and high levels of it there in a forensic report. i want to ask you about the crystal hollowway information, the alleged mistress. take a listen to this saying she had an affair with george anthony. listen. >> did you get to know mr. anthony a little better? >> yes. >> did you develop a relationship with mr. anthony? >> yes, sir. >> and was it an intimate

relationship? >> yes. >> and did mr. anthony go to your home or your apartment? >> it was my home and yes, he did. >> about how many times did he go to your house? >> maybe 12. >> he denies it. >> i think it destroys his credibility. so if the jurors are looking at his credibility as a bellwether of the strength of the prosecution's case, that puts some dents in it. the problem is, lousy case put in by both sides in this particular case. we're going to have closing arguments over the weekend. fox, we'll be covering it, every minute. i'll be there tomorrow with some great experts and some of the talent from around here and around the country will be talking about it. >> looking forward to hearing from you about that. peter johnson, jr., thank you. >> coming up on the show, remember this song?

♪ breathe. >> don't change the channel. anna any link performing her new song on the summer concert series, when we come back.

♪ . >> we are here with anna nalick and that incredible song "breathe" came out. since then, you have come so far. just tell us a little bit about what the last six years have been like with you and what's new? >> okay. i left my record company and went on my own and i traveled a lot. i wrote a lot.

i just put out an acoustic album, that's sort of a collection of songs from the last few years. >> acoustic? >> it's a digital release for now, but i just september out the artwork yesterday? >> who is buying cd's anymore? >> no, no, buy cd's! >> an acoustic sound. you got a great rock sound. go back to when you were in the fifth grade, started writing lyrics, writing music. is that why you decided to go acoustic, to go back to your roots? >> you said you're a song writer first. >> that's not why i went acoustic. i wanted to try something different and i intend to put out another record in 2012. it was sort of in between thing to show people what i've been up to, but i'm working on the next song. as far as writing songs from the time i was a kid, i still write songs the way when i was a kid. >> one of your teachers said, one day you're going to be on the jay leno song. why did that stick with you and

you were on the jay leno show, what did you do? >> it was my third grade teacher, and she told me that one day i would be on the "tonight show." when i was in the third grade was jay leno's first year. but anyway, she told me that and so when i was on the show, i invited her to be in the audience. that's what she asked all those years ago. in fact, jay leno put her on camera. it was exciting. she said hi to her third grade class. >> that's great. coming up next, you'll sing "walk away"? >> yes. >> i think "breathe" in the after the show show in a couple of minutes. >> thank you. >> she will be performing live for us. we'll be right back. let's hear it for her. [ cheers and applause ]

you don't just engineer a future-proof hybrid system. you engineeamazing. ♪

>> coming up on "america's news room," there is word now that the sex assault case against the former imf chief dominic strauss-kahn is about to collapse. we'll have the latest and the casey anthony murder trial, rebuttal witnesses. the case is about to get to the jury. back to your summer concert series. >> performing her new single "walk away" coming up here. you remember her song "breathe." her new song is out. >> here is "walk away". ♪ there you are underneath someone else's suit, is that the

way you lie ♪ ♪ do you believe a picture ♪ is that the way you like it ♪ beware and oh, be careful ♪ it's only skin and therefore ♪ so break a boy but take heart ♪ ♪ it's only a part of who you are ♪ ♪ don't you wonder why everybody cries ♪ ♪ every time you walk away ♪ walk away ♪ walk away ♪ don't you know the sunrises when you come ♪ ♪ follows when you walk away ♪ walk away ♪ walk away ♪ don't you walk away ♪ walk away

♪ walk away ♪ hi, daddy ♪ you believe that you've been crowned ♪ ♪ with your own foreign thunder cloud ♪ ♪ is that the way you like it ♪ is that the way you like it ♪ you don't need remote control to tell you that you're beautiful ♪ ♪ but that's the way we like it ♪ ♪ is that the way you like it ♪ beware in love ♪ be careful ♪ it's only skin and therefore ♪ so break a boy but take heart ♪ ♪ it's only a part of who you are ♪ ♪ don't you wonder why

♪ everybody cries ♪ every time you walk away ♪ walk away ♪ walk away ♪ don't you know the sun ♪ it rises when you come ♪ and follows when you walk away ♪ ♪ walk away ♪ walk away ♪ don't you walk away ♪ walk away ♪ walk away ♪ didn't anybody tell you you don't have ♪ ♪ you don't have to ♪ you don't to jump ♪ if you don't like it ♪ you walk away ♪ be wary and be careful ♪ it's only skin and therefore ♪ so break a boy but take

heart ♪ ♪ it's only one part of who you are ♪ ♪ don't you wonder why ♪ everybody cries ♪ every time you walk away ♪ walk away ♪ walk away don't you know the sun ♪ ♪ it rises when you come ♪ and follows when you walk away ♪ ♪ walk away ♪ walk away ♪ don't you walk away ♪ walk away ♪ walk away ♪ don't walk away ♪ walk away ♪ walk away [ cheers and applause ]

>> all right. we're back this morning with our friends from famous dave's barbecue and anna nalick performing on the fox summer concert series. tell us about the digital release. is that the future, no more cd's? is that a thing of the past? >> it isn't for me. i just took too long in cropping my own artwork. so there will be a physical. but i only cropped it yesterday. i really didn't want to wait. >> you're going to be perform not guilty our after the show show, you'll perform "breathe" and lulla bye singer ." tell us about that. >> that will come out in 2012. >> you'ven working on the new album which will be out in 2012. tell us about that. >> i finished making this acoustic one and