they would likely stay at record lows or go even lower in the next six months to one year. bill: so if you're buying a house now might be the time? >> oh, yeah. bill: we said that now for several years. what about the politics of acting? do you do it now? do you do it in september? how do you figure that? >> well ben bernanke can not just turn around turn on the money spigots just like that. he has to go with his own board of people on the federal reserve. he is not likely to act until august, maybe even september. that means that is too late to help president obama with his re-election campaign. it will not stimulate the economy in the immediate future. bill: europe's a creeping mess. you have have spain and now italy and england? >> i've got the latest for you. new figures just in from britain show it is now in a double-dip recession, first time we've seen that in 50 years in the u.k. you're right, bill, europe is an absolute mess and the markets are tanking there. bill: no gold medal on that

one. stuart, thank you, so much for you to talk about on fbn, okay? we'll catch you in fit teen minutes over there. >> yes, sir. bill: stuart varney. here is martha with more now. martha: for some context here is a look how much money has already been spent in stimulus funding. $300 billion has been spent for tax benefits. 237 1/2 billion dollars awarded in terms of contracts and grants and loans. and then nearly 230 billion has been spent on entitlement programs, all for a total of $764.5 billion. so lots and lots of stimulus has been pumped into the market both through the bill that was passed by congress and also fed easing, quantitative easing, that we've had two rounds of. that's really what we're talking about now. bill: when they go out and buy the barrel of ink, don't they? martha: print a whole lot of dollars and add to the debt. bill: i think the last point stuart made is very interesting about the politics of this. if the fed waits to act until september, does that help the current administration or not? the fed can pretty much do

what it wants. we talk about a meeting coming up in a couple weeks and then again in september. we'll see which way they move, if at all. martha: if people don't feel the results of it, whether or not they hear that the fed added money to the markets may not be a huge factor to them. it will matter how they feel in their pocketbooks or take a vacation or have a job. bill: your 401(k) might get a little bit of a bump. you might feel richer for a week or two. we've seen the way that goes. let's take a look at the other side of the evasion -- equation here in presidential politics. governor romney arriving in london. before he left he took some time to address a string of national security leaks when he spoke in front of this group, the veterans of foreign wars at their convention in nevada. the president had done the same the day before. governor romney accused the administration of putting lives in danger by playing politics with our nation's intelligence.

>> this isn't a partisan issue. it is a national security crisis. this conduct is contemptable. it betrays our national interests. it compromises our men and women in the field and it demands and full and prompt investigation but a special counsel with explanation of consequence. martha: so the governor was seizing on some comments by democratic senate intelligence chairwoman dianne feinstein. she said on monday that she believed the white house appeared to be responsible for some of those leaks. we're going to have the back and forth on her comments and what she said after that, all that coming up. bill: the romneys woke up today in london a few moments ago. now it appears senator feinstein is walking back those remarks. in a new statement she said this. she was speculating about the source of the leaks and defends the white house. quote, i regret my remarks are being used to impune president obama or his commitment to protecting national security secrets. i know for a fact that the president is extremely

troubled by these leaks, end quote. the about fares from her -- face from her raise eyebrows in the romney campaign. it appears if the smart got the cory booker treatment, referring to the newark, new jersey mayor reportedly chastised by the white house after making negative comments toward the white house. have you been bookered? martha. martha: and some troubling news for millions of americans who get health care benefits through their jobs. there is a new survey out and it claims that one out of every 10 employers plans to drop health care coverage for their employees in three years when the key provisions of the new health care law really begin to kick in. so one in 10 would stop covering employees according to this survey. peter doocy joins me now. he is in washington. so, peter, how many people would that impact? >> reporter: it's hard to say specifically but potentially millions of people who get their health insurance at work because the consulting firm deloitte says employers sponsored health insurance covers more

than 160 million americans. when they randomly asked 560 employers with 50 or more workers what's going to happen with their health insurance coverage in the next one to three years, 9% said they anticipate they will drop it. vast majority, 81% said they will keep it. 10% said they're just not so sure. but that is not all because under the affordable care act there is a set of health care categories that must be covered by certain plans starting in 2014. it is called the essential benefits package and 34% of employers say if the benefits in that essential benefits package are more generous than the ones that they're providing they will also consider dropping coverage. martha? martha: so many businesses have seen their health care coverage costs rising in recent years by up in members that don't -- numbers in the recent years that don't keep up with the pace ever inflation. the president said if you like your health care you can keep it. that brings that into doubt

as well. how far out does the study go in seeing the future trend in all this? >> reporter: that is interesting. they give it some his call context. listen to what the director of their health services department said. >> at the beginning of the decade 70% of the companies provided health insurance. at the end of the decade 60%. 10 years that would be 50%%? probably. are there questions about whether the affordable care act reduces cost? yeah. that's what the employers said. i know it is covering a lot of folks but does it reduce costs? we're not so sure. >> reporter: and, keep in mind that not too long ago theongressional budget office estimated that only 7% of workers could lose their coverage in the next decade under the affordable care act. this new number, 9% has the potential to raise a lot of eyebrows here in d.c. today. martha: boy, sure does. peter, thank you, very much. peter doocy. bill: got some more breaking news, martha.

is this syrian president bashar assad's last stand? serious fighting in the capital city. the rebels are pushing forward and the government responding with tanks and fighter jets in the air. have a look. [gunfire] just to give you a sense of what's happening on the ground there, again it is very difficult to get reporters inside of syria. here's the lay of the land. damascus, the capital city down here. this is the town of aleppo. to the north here. aleppo is the largest city in syria. a lot of commerce runs through this town up near the border with turkey, a border that runs for 550, 560 miles. that has been closed today and between aleppo and down to damascus and down here to the southwestern border of syria where we find our own correspondent, dominic di-natale, world affairs contributor. what is happening in aleppo

today there, dom in this case? >> reporter: a major counteroffensive by government forces against rebel positions there after they stormed the very center of picture. this is the latest pictures we have, bill. fighter jets have been seen over the city, firing guns at rebel positions near the old citadel. we understand helicopters with rockets fired on those positions. rifles with machine guns can't repel fire power of that magnitude. it will be a very tough fight. thousands of troops apparently were ordered into the city by the regime. we understand tanks have been withdrawn from the turkish border on the very day turkey actually closed those border posts over concern of an influx of refugees. no wonder there would be so many refugees after heavy artillery opened fire in certain parts of damascus and hundreds of families haed to flee. the syrian observer for human rights based in london says at least 1200 people

have been killed in the fighting in the past week alone, if those figures are accurate. it means the death toll toll is catastrophic and possibly 18,000 people have died sips the uprising began and that number only set to rise as the regime unleashes quite frankly hell on the city of a help poe, bill. bill: there have been headlines by the day and guaranteed to be more today. dominic di-natale, thank you. near the syrian border in the northwestern part of that conflict. 11 past the hour. martha: we're just getting started this morning. a showdown on capitol hill extending the bush-era tax rates. the white house is trying to force republicans into a corner according to reports from the hill. we'll explain what is going on there. bill: could the u.n. force you to register your firearm? why some fear a new arms plan making its way to the international body could hit your constitutional rights. we'll check in on that. martha: stealing your vote? a alarming reports of voter fraud are running rampant right now. drug money even said to be

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martha: there's new reports of gun sales apparently spiking in colorado in the wake of the tragic movie theater shooting in aurora. some gun store owners say they can barely keep up with demand. the number of people applying for background checks to purchase a gun is up over 40% from the previous week. one shop owner explains what he has seen. >> obviously buying happened guns, mostly. some were buying ak-47s, things of that nature. >> they were all pretty much, buying for lack of, i won't say lack, for fear of their own safety, considering what happened in aurora. they want to be prepared as much as possible.

martha: still no word yet exactly how many people actually bought a firearm in the wake of all of that. bill: guess what they're fighting over today? a battle over taxes will head the senate floor today. democrats argue the wealthy should pay more. those making more than $250,000 a year. republicans say, extend the tax cuts for every american. meanwhile the white house claims if congress fails to act, middle class families will see their taxes go up an average of $1600 per year. art laffer, a former economic advisor to president reagan. art, good morning to you in nashville, tennessee. >> good morning bill. how are you? bill: i'm doing fine, thank you. the lines are being drawn and some would argue this is largely symbolic, a political message in a political year. >> true. bill: the question, who blinks first? >> i think the democrats will blink first. call this extending a tax cut is so silly. these tax rates have been in 10 years. this is raising tax rates. that is all it is.

what the democrats want to do is raise tax rates on rich people, on dividends and capital gains. the republicans don't want to raise tax rates on anyone. i don't understand how you would want to in this terrible economy raise tax rates and especially not on those guys who are the job creators, employers and -- why can't they just --. bill: you think democrats blink. let me get back to that in a second. do you think this is worked out before or after the election, politically speaking? >> it should be worked out after the election and i think it will be. why would you let a lame-duck congress and maybe a lame duck president decide tax rates going forward forever? why shouldn't we the voters get the right to choose our new congress, new president, maybe and then make the decision whether we should have tax increases or not tax increases? it's much better putting it off and let voters decide rather than a bunch of cronies sitting in back rooms deciding for us? that doesn't make any sense to me. bill: stu varney 20 minutes ago is making argument we're

headed right down the same path we came from. >> we are. bill: not just here. also in europe. if you believe democrats blink, what would be the effect on the economy if democrats got their way and taxes were raised on those who make more than $250,000 a year? what would that do to the economy? >> well, i think there's a huge tax cliff right here and no matter what happens you will see a very, very bad 2013 because a lot of people have already anticipated tax increases, have shifted income into 2012, out of 2013 and they're just millions of ways of doing that. and i think it is going to be a very large effect and we'll go right straight south, starting on january 1st, 2013 no matter what happens. but i do think the democrats will blink. the policy is just terrible. bill: how do people perceive this battle? when the white house makes the case if you're a middle class american family you will be out 1600 bucks starting next year.

>> well, let me ask you a question, bill. do you think we should raise taxes in this economy? does that raise sense to you? have you ever heard of a economy being taxed into prosperity? it's stupid. it really is just dumb and no taxes should be raised in this economy period. anyone who wants to raise any group's taxes i think is making a big mistake. if i were in the house today -- if i were in the house today i would make it for everyone. if i were in the house today i would make the tax, extend the tax cuts as they call it for everyone. let the president veto it. let murray, vote it down in the senate. patty murray. bill: that's all right. >> but you know, i just don't see the logic of all of this. i don't think it worked well for obama in 2010 when he did the same thing and he got slammed in the house and in the senate. and i don't think it this will enure to his benefit this time either. bill: i know you're an economist but one last question on this.

>> sure. bill: as you gauge the landscape, nashville, rest of the state, and the country who do you think is winning this argument? can you say whether it is romney or obama? >> i believe it is romney and i believe it is the republicans. my simple thing is i never heard of raising taxes in a bad economy is making sense. we should extend all of those tax cuts, period and we shouldn't be doing the obamacare tax increases either which by the way are not even being discussed. there are large numbers of other taxes coming in on january 1st, 2013 that no one is even mentioning. bill: we'll see how it all goes down. art, thank you for your time. >> we will. very exciting, though, bill? bill: it is an election year. it is like sports for us. there are winners and losers and strategy on both sides but the outcome is absolutely vital for the direction of the country. talk to you. 20 minutes past. >> thank you very much, bill. martha: you know who is speaking out? the voters. we have brand new poles from

voters. who can fix the economy of the two men on your screen? who do you like better? how do you react to all the ugly ads out there? who has more support in the battleground states today. the changing trend coming up. bill: also why are gun owners worried about a proposed u.n. treaty, u.n. treaty on global gun sales? could it affect your right to own a weapon? tourism season in years. in florida we had more suntans... in alabama we had more beautiful blooms... in mississippi we had more good times... in louisiana we had more fun on the water. last season we broke all kinds of records on the gulf. this year we are out to do even better... and now is a great time to start. our beatches are even more relaxing... the fishing's great. so pick your favorite spotn the gulf... and come on down. brought to you by bp and all of us who call the gulf home.

bill: 24 minutes past the hour now. headlines, heavy rain drenching southern arizona. streets flooded in tucson in parts of the annual monsoon that soaks arizona in the middle of summer. a group called the islamic state of iraq claiming responsibility for recent attacks that killed more than a 100 people in the country. the group is affiliated with al qaeda. the group says the attacks

are aimed at rebuilding strength in parts of iraq. a detroit woman sentenced to probation for collecting welfare checks after won more than 700,000 in the lottery. 24-year-old amanda clayton forced to repay $5,000 in food aid and medical benefits. hit a couple lotteries. martha: that could be covered. bill: how about that, right? merry christmas. martha: so there's some new concerns today that a u.n. proposal that's aimed at keeping arms out of the hands of rogue nations could have an impact on everyday gun owners here in the united states. that is getting some attention. u.n. arms trade treaty which the president and his administration support would curb sales of weapons to other countries but gun owners here are concerned that they could be forced under this to register their own weapons with some sort of u.n. bureaucracy as part of this outcome. david lee miller looking into this for us. he is at the u.n. what does it exactly say, david lee? >> reporter: well, martha,

proponents of this treaty say that its goal is to eradicate the illicit trade of conventional weapons. the document includes a laundry list of weapons that they are addressing, specifically tanks, missiles and warplanes and helicopters, for example. also on that list, small arms and light weapons. critics say that the treaty opens the door to the u.n. stomping on the rights of the u.s.'s second amendment. listen. >> the national rifle association has been very clear. any treaty that covers civilian firearms will be met with our full opposition because civilian firearms, for your viewers are handguns, shotguns and rifles, lawfully and legally owned in the united states by law-abiding gun owners. report additionally critics say that this treaty could impair the united states's ability to sell weapons to allies such as israel. so that is another concern that it essentially impinges on u.s. sovereignty. martha? martha: very interesting. david lee, thank you very much.

david lee miller outside the u.n.. bill: we are learning more about the chilling plan behind the colorado movie massacre. why investigators believe the gunman had significant preparation, including target practice. plus there is this. [sirens] [shouting] martha: incredible scenes this anaheim. a fourth night of violence on the streets of a california city. huge crowds out there clashing with police. brand new video we'll show you moments from now and some new details on what happened. ♪

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bill: 9:30 now here in new york and we find this small and heartfelt display of kindness for a community that frankly needs it. a lot of it. the star of the "the dark knight rises" visiting survivors of the colorado movie massacre. christian bale, the actor, taking pictures with some of the shooting victims and thanking hospital staff and leaving flowers at a makeshift memorial to the 12 people killed last week. kuhn unalicia acuna is back live in aurora. we're hearing about another bright spot in all that happened. thank you, alicia. >> reporter: that's right, bill. a new baby born to parents inside the theater at the time of the shooting. hugo jackson medley came into this world a little

after 7:00 in the morning yesterday. his mother, katie, was not injured however his father was shot in the head and is right now in critical condition at university hospital. the father and newborn son are just one floor apart from each other in the same hospital where seven other victims are also being treated. caleb's family is worried because the medical bills are mounting. >> he doesn't have insurance. he didn't see it as a necessary expense with, with his wife being pregnant. he figured every dime that he could put back he needed to put back for his son. so he wasn't worried about himself. he was more worried about her and the child. >> reporter: right now there is a statewide effort underway to raise money for the victims and their families. at least $2 million is currently in that fund. warner brothers pictures has also donated to that effort. bill? bill: is there anything new today on the suspect, alicia? >> reporter: there's some new information coming out

enconcluding a report out, a couple of reports out on james holmes. he remains in solitary confinement in the arapaho county detention facility. there were reports out he is actually spitting at the guards every time they walk by and now he is being forced to put a mask on at certain times because of that. also, there are some reports out that when police first apprehended him, they put plastic bags over his hands to sort of preserve that gunpowder residue they say was on his hands. they say in these reports, that he was using his hands almost like puppets, pretending like they were puppets. who knows what that means. additionally the judge in the case that says cameras will not be allowed in the courtroom on monday when james holmes learns what the formal charges to be filed against him will be. of course a camera as allowed in the courtroom this past monday when his rights were read, however we will not see him again this come monday. bill: alicia acuna, back live in aurora, colorado,

today, thank you. martha: all right, we've got some brand new poll numbers this morning. and they show that voters believe that governor romney can best improve the number one issue that faces the country and that is the economy. according to the latest "wall street journal/nbc" poll, take a look, romney leads president obama by 7% in this category, 43-36. but take a look at the head-to-head. here the president beats romney by 6%, 49-43. let's chew over this and some other numbers in this poll this morning. ed rollins here, former deputy chief of staff to president reagan. he also managed the campaign for mr. reagan's re-election in 1984. he has had major rolls in nine other presidential campaigns. you've been to this rodeo before. >> good morning. martha: good to see you as always. what do you read into this? if you were advising mitt romney right now what do you tell him he needs to do? >> somehow he needs to get

more traction on the economy. that is the strength of his candidacy. he can't beat the president on foreign policy he is not as popular as the p he needs to convince americans i can get you back to work again. that is tough in this environment with millions and millions of dollars of negative advertising to break through. but his message isn't clear enough at this point in time. martha: look at the next poll which goes to what you were speaking about. it asks who is better for middle class voters. take that up on the screen. we'll take a look at it. who would be better when it comes to looking out for the middle class. got president obama at 49. governor romney at 33%. you touched on something that may be very clear here. although people think he would be better at fixing the economy, mitt romney, they seem to think the president is the guy who has got their back? >> that is absolutely right. for some reason governor romney has not connected with ordinary voters. obviously business people, more affluent, see him as a smarter guy on the economy. but at the end of the day

that middle class vote where target something going on is being affected. those numbers should basically be detrimental to the president. they're not at this point in time. martha: foreign policy is a surprise when you look how this is going. typically republicans score better on foreign policy issues. they ever on all the recent presidential elections i can remember. who is better on foreign policy? president obama, 47. governor romney 32. certainly he is starting trip to london hoping to close that gap. >> it won't close the gap. it is book end for the olympic games. we're in a freeze point. we go to the olympic games for couple weeks and then go to the convention. these are the mid work ground and after this it is about the conventions. both campaigns get a little momentum and go to the fall campaign. martha: you sat in the room with candidates in this kind of position. >> right. martha: if you could sit down with him right now what would you say to him? here are three things you

got to do to close this gap and win the election? >> something that is memorable. some phrase, something out there that convinces people that sums up what his economic policy is. how do you get people back to work again. there is lot of rhetoric. attacking the president on leaks in the white house, all those kinds of things. those aren't relevant issues. they're important issues but not relevant to this campaign. this campaign is all about the economy. martha: he has got to speak to people in a way they walk away from and remember. >> he has to connect. mr. romney is wonderful man. i think he would be a great president. i think at the end of the day the ability to connect with ordinary people is still missing. martha: wonderful man and you think he would be a great president. those are two phrases you just used. it must be extremely frustrating because they feel he is not able to get across. he has a couple big opportunities. convention speech will be huge and debates. those are the opportunities to make that. >> one thing that this president can't convince anyone that he is strong leader. either on the economy or anything else. but, romney has to move into

that void. he has to basically convince people when they go in the poll place, he is would be better leader. martha: ed, always good to talk to you. thank you very much. >> thank you. martha: we'll see you soon. >> great, thanks. martha: ed rollins joining us this morning. bill? bill: martha, the, well he played the cranky half of george and weezie. sherman hemsley. tv's george jefferson passed away at the age of 74 at his home in el paso, texas. >> [laughter]. now look at it. we can't get out of here. >> don't get excited, george. >> who is getting excited? weezie! [laughing] bill: it was ground-breaking, a sit come about an african-american businessman who made it big in the dry cleaning business in new york and moves on up from queens and upper east side in a deluxe apartment in the sky of manhattan.

hemsley's character was loud, rude obsessed with money and so doggone funny. he turned george jefferson into one of the most popular characters in sitcom history. it was spin-off from a very original series, all in the family. martha: sure was. >> sherman hemsley apparently died of natural causes. as i mentioned 74 years of age. changed tv in a lot of way. >> you and i grew up in a simpler time. you probably have the same memories i do, sitting with your family and watching tv and watching those shows back-to-back. theme song, kicked in, we're moving on up to the east side. it reminds me of laughing on the floor of my family room in new jersey. bill: and breaking the mold on --. martha: absolutely. bill: on society in america and how we view each other and really groundbreaking. that and ""all in the family"" and think about great ones. today we have "family guy" and "the simpsons.".

martha: a little different. bill: in a different way too. martha: he will be missed. nice man by all accounts. everybody who knew him said that in the past couple days. bill: 20 inches before the hour. there is a fresh analysis of the health care law which is just out, telling us how how much it will truly cost. a new report gives us new information. we'll talk about that in a second. martha: president obama tells supporters at a fund-raiser his economy worked for the economy. where are the numbers to back that up? we'll take a look. bill: the tension continues in a imagine juror american city over the shooting of a civilian by a police officer. we'll tell you what this is all about. >> officer roden then states at this time, mr. harper said, you're going to have to kill me. and officer rhoden, feeling fearing for his life, pulled out his weapon, being beaten by mr. harper, shot mr. harper.

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martha: police bringing out the riot gear in dallas after dozens of local, locals voiced their outrage over a deadly police shooting. police say that the trouble started when officers got a call about a man being dragged into a house. when they showed up, four men ran away, one taking a gun with him. officers gave chase and one suspect reportedly said that the cop would have to kill him. that officer fearing for his life, according to these reports, then shot the suspect. despite the drama, the crowd eventually breaks up, and no arrests were made in this situation. that is what is going on in dallas. bill: dallas, anaheim. so new fallout from the health care law, the nonpartisan congressional budget office saying the supreme court's ruling made the law cheaper but will also ensure three million people less than before. wyoming senator john barrasso, chairman of the senate republican policy committee. also an orthopedic surgeon.

doug holtz-eakin, former director of the nonpartisan congressional budget office and president of the american action forum. gentlemen, good morning to you. senator, what do you think about this? 84 billion less over about 11 years. >> well, bill, it still shows there is over a trillion dollars of new taxes on the american people. it still shows it cuts $700 billion from our seniors, on medicare, and yet today the democrats in congress want to vote again to raise taxes on the american people. folks in wyoming, folks across the country realize that this cost to this health care law continues to hurt our economy. they are linked together. bill: let me bri in doug into this. you crunched numbers for a living, doug. keep it in english for me if you can. >> sure. bill: 84 billion in savings over 11 years. it sounds good as a headline. do you believe it? >> well here's the how the cbo analysis works. suppose someone is on

medicaid and end up being uninsured, the taxpayers save $6,000. if instead being on medicaid goes into the insurance companies, it costs the federal government $3,000. cbo said we'll have about equal numbers of each. so the savings outweigh the new costs, so the bill is cheaper. the important thing about that is, if more people go into the exchanges you debt a different answer. if medicaid happens to be very cheap in that state you don't get the same amount of savings and you get a different answer. cbo admits doesn't know which states will do medicaid expansion. doesn't know if it will do it by 2014 or do it completely or partially. bill: calculations, you are hedging a little bit, suggesting we don't know how the law plays out. is that what i hear from you, doug? >> i would say we really do not know how the law plays out absolutely. >> senator, do you agree with that? >> i know for patients the law plays out poorly. for providers and nurses and

doctors that take care of patient it is plays out poorly. and for the american taxpayers it pays out, plays out poorly. across the board this is a, this law that, it doesn't give people what they want which is care they need from a doctor they choose at lower costs. on promise after promise, the by the president, they have been broken. the president said, if you like what you have you can keep it. the story that was just done with martha and peter doocy said one in 10 people will lose their health insurance through work. that will increase the cost to the government as well. i say how can we afford this, bill. bill: the question on that study is whether or not companies will keep the current insurance plan for employees or not. they found 10% are considering dropping it, if not more than that. to doug again, when you crunch these numbers and try to figure out the direction for this law is and who pays what, a big component of this is what the governor's responsibility will be through medicaid expansion.

how are governors expected to figure that out? >> well governors can do the math in their own state and know just how much they will have to pay if the medicaid expansion takes place. they know how much they can save if it doesn't. we've done some analysis where you pick the sick states where governors announced they will not do the expansion. what happens is, people end up on the much more expensive federal subsidies. it costs the federal taxpayer billions more. we get an answer very different from the cbo. if we have governors picking intelligently, this could be very expensive. it is already enormously expensive. bill: you're sighing this would push the employees into a health exchanges run by the government? and the government pays for that, which means more tax dollars. that is the argument you're making? >> it is pretty simple. the senator is right. there is a real temptation for firms to dump their workers into the government exchanges. there is also real temptation for states to dump their medicare population into the exchanges.

if that happens, that could cost more than anyone could dream. bill: let me get the senator's last comment here. you said the governors need to be told how up that are obligation is and how much do you budget for your state's money. >> governors are right not to trust washington to come through with promises. what governors want is flexibility and choice which is why lindsey graham and i have introduced the state health care choice act to give the governors flexibility and choice that the obama administration doesn't want to give to them. bill: the agreement that both of you gentlemen make here, we don't know how this law plays out. we'll wait for another study and we'll analyze it then. thank you, gentlemen. john barrasso, senator, doug holtz-eakin. thank you for your time. >> thank you, bill. bill: martha. martha: we're about to show you never-before-seen video of an attack inside a whales tank. a trainer dragged underwater again and again. we'll play this video for you for a very specific

reason. we'll talk about how it could change your next trip to an aquarium and all the trips after that. bill: dramatic it watch, right? stunning new report on election fraud. how much does it cost to buy a vote? here from a man who confessed to selling his own vote. >> i was a young boy growing up, as soon as you become of age to vote you have people hounding you wanting to buy your vote. are you receiving a payout from a legal settlement

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bill: it is a popular piece of exercise equipment loved and often loathed by millions. it is the treadmill. the man who invented it, william stab, died at the age of 96 from his home in new jersey. he built and marketed his first treadmill in the late 1960s and at the time it was

almost exclusively used by doctors but he wanted to develop it commercially so people could get the exercise done in doors. he practiced what he preached. he was on the treadmill as recently as two months ago at the age of 96. martha: pretty good advertise mane for the treadmill, isn't it? bill: certainly is. life well-lived. martha: absolutely. we have new details dal in a major voter fraud case where people were literally selling their votes to the highest bidder and in one case big-time drug dealers were the ones buying the votes. can't make this stuff up, folks. senior correspondent eric shawn has the stunning details in his reporting on this. good morning, eric. >> reporter: good morning, martha. drug dealers buying votes to steal elections. it is the most shocking investigation of voter fraud so far. prosecutions of vote-buying in kentucky. it is a political practice they say, that is a way of life. you sold your vote. how much did you sell your vote for? >> $25.

>> reporter: richard moore says vote-buying and selling is a accepted longstanding practice in eastern kentucky. >> as soon as you become age to vote you have people hounding you want to buy your vote. >> reporter: in the past two years are more than 20 officials have been convicted in vote buying schemes to steal elections. clay county, 400,000, part of it drug money was spent to buy the votes of 8,000 voters at 50 bucks each. >> they use drug money to buy votes and the drug dealers, there was testimony from drug dealers that indicated that they felt they would be protected. >> reporter: convicted multimillion-dollar cocaine marijuana trafficker, kenneth day also served as the clay county republican elections commissioner. he testified that, i always bought votes. i bought my first vote with half a pint of liquor. democratic board of elections judge and convicted cocaine trafficker european lewis said, vote buying was so easy, i would

pay them right in the booth. you would not believe the percentage of people that i have bought their vote from. it is unbelievable. >> this conduct has tentacles that use goes throughout the communities where it occurs and it really has a corrosive effect on the, really the very foundation of the freedoms that we enjoy. >> i don't feel good about it. i wish i had never done it but i can't go back and change something that i done. >> reporter: one firm in a county pled guilty yesterday in a vote-buying case. two others will be sentenced on vote-buying related charges tomorrow. federal and state authorities say they are making a dent in all of this. one candidate who sold his vote, told us, vote buying is everyday thing like jay walking. if you suspect voter fraud where you live. we want to know about it, voterfraud@foxnews.com is the address. martha: incredible. you've shine ad light on dark spots of voting.

eric shawn, thank you very much. bill: we'll take you to the streets where there is battle underway

martha: president obama making kind of a stark statement to his supporters, it's getting a lot of attention this morning. he said that his economic policies have "worked" for the u.s. economy and that is raising questions because we are at 8.2% unemployment. more than 15 million people are under employed in this country and economic growth is at a standstill at this point. a little bit of eyebrow raising going on in a reaction to that. we are starting a brand-new hour on this wednesday in "america's newsroom." i'm martha maccallum. bill: i'm bill hemmer. the president making remarks at a fund-raiser in oakland, california where the unemployment rate in that town is nearly 14%, telling the crowd that governor romney's top down approach did not work during the last administration, and will not work now. >> just like we tried their

plan, we tried our plan and it worked, that's the difference. [applause] >> that's the choice in this election. that's why i'm running for a second term. martha: some asking if this is success, you might ask what does failure look like with this economy the way it is right now, and matt mccall joins me now the president of penn financial group and somebody that we turn to a lot on economic issues. good morning, good to have you with us this morning. does it surprise you that the president would say that? >> it doesn't surprise me he'd say that. we've seen for the past three and a half years that his level and education of the economy is pretty darn lows. where he gots off saying this blows my mind. 8.2% unemployment, that is higher than when he started his administration. we have numbers that just came out last week that are predicting the poverty level here in the united states we're at the highest level since 1965, that is nearly a half a century,

so if that means inning innings things are good and working then i'd love to see when things are not working. martha: you hear his spokes people saying things are improving that it's not at the pace they want to see it at but that is the argument. >> it's better than it was at one of the very worst recessions we've seen in this country. the problem is when we hit the bottom things were eupl moving. for the last six months we've seen unemployment, gdp, there is a laundry list of kpheb numbers that is slowly getting worse. we are getting worse. and at this point we have interest rates at zero, we've already spent over a trillion dollars. we've already bailed out the auto industry, we don't have any money left to keep it going. martha: that is the number one

thing that the president points to, that's his go-to first fact, he says look what we did for the auto industry, if mitt romney were president the president claims he would have turned his back on the autoindustry and we bailed him out and now it's a great success story. >> i wouldn't really call it a success story. they said chrysler paid all their debts back. the taxpayers were still on the hook for $1.3 million. if we had to sell their stock today it would be another hit. that is not a success, we are still losing money. say you want to go on a diet and lose weight, how do you judge if you're losing weight? you step on a scale. stepping on the economy scale right now the numbers are worse than they were when he took office. there is no way in his mind that he can say things have got even better and things are work. martha: if you buy bigger jeans maybe you're going in the right direction. good to see you.

bill: now on the trail governor mom mom slamming president obama's foreign policy east starts his first trip overseas at the presumptive republican presidential nominee, touting america as the greatest country in the world in a speech to the vfw yesterday. >> i do not view america as just one more place on the map, one more power to be balanced. i believe our country is the greatest force for good the world has ever known and our influence is needed today as ever before. bill: at the moment governor romney and his wife ann are in country, the beginning of a two-week long trip where he will meet with several leaders. first it's london, israel and poland. carl cameron is troflg with th is traveling with the cameron. >> reporter: mitt romney is trying to burn i shall his foreign policy tra tkepbgs and

is going to countries that every four years get a bit nervous about the possibility of a change of power at the american white house as to how it might affect them in terms of national and economic security. romney came in the early morning hours, he'll have a day to get prepared for both meetings with british leaders as well as aeu tepbgd the owe limb peubs e. phaeufd it clear in his speech that he does not share this notion that the united states should in anyway stand down from its strong national security position, it's war on terror around the world and advancing american principles aggressively. its meant as an eup implicit and explicit contrast to president obama who romney thinks has led down his guard and has too often apologized for american foreign policy. >> i am not a shame of american power. our power has brought justice where there was taernny, and

hope where there was despair. >> reporter: he will head next for israel where he will meet with israeli leaders, no explicit criticism of barack obama but there will be implicit criticism of the commander and chief. he'll meet with benjamin netanyahu, a longtime friend. they got to know each other way back in the 70s when benjamin netanyahu was a graduate of mit and romney a graduate of harvey and they both got hired by the same company. romney will try to flex it's foreign policy muscles through poland who shares an american view of a nation until and international strong foreign policy. bill: who knew that relationship went back so far with benjamin netanyahu. carl cameron. have a good trip. martha: fox news alert, a

showdown on capitol hill today. we are waiting for a vote in the senate on a bill that would raise taxes on people who would earn more than $250,000 a year and extend tax breaks for others. it is expected not to get enough votes so it will be largely a symbolic gesture. missouri senator roy blunt will be here. we'll see where if anyone that goes. bill: police in anaheim, california, have a battle on their hands now. they say they've restored order after a fourth night of violent protests over two police shootings. have a look here. [sirens blaring ] bill: last night's clashes lasted for tefplast for seven hours. hundreds of protestors gathered near city hall, kicking police car, throwing bottles, our

affiliate has more from the scene there. here is bob. >> a fourth night of protests following two fatal officer involved shootings. this is a starbucks across the street from anaheim city hall. 24 people were arrested, demonstrators actually taking some of the tables and chairs and throwing them through the windows there. we're told four people were hurt, including an officer who injured his arm. this started about 5:00 in the afternoon. police say the protestors started throwing bottles and rocks at officers. they set trash bins on fire. businesses were vandalized. officers responded by firing bean bags and pep ea pepper balls by some o at some of the protestors. they did ask to that the investigation commence with regard to the shootings. the mayor and police chief in and time today will update us on the situation here. at 11:00 this morning the family

of manual diaz the man fatally shot on saturday, police say he was unarmed his family filing a $50 million wrongful death lawsuit against the city. bill: that report just moments ago out of fox l.a. now we wait to see if at nightfall they deal with the same issues the same way. martha: governor romney taking the white house to task over a string of controversial intelligence leaks, saying that whoever did it, he believes, was playing politics. >> whoever provided classified information to the media, seeking political advantage for the administration must be exposed, dismissed, and punished. the time for stonewalling is over. [applause] martha: that was yesterday at the veteran's of foreign wars, plus the top democrat who may have got even the quote, booker treatment, meaning the corey booker treatment we'll explain

what that is all about. bill: a race against time to save a police officer who went over the falls in my ago tkpwra and the daring rescue that followed. martha: disturbing video of a killer whale at seaworld attacking a trainer, unbelievable. [ male announcer ] it's a golden opportunity...

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bill: breaking news on the economy. this is not the direction we were hoping for, wrong direction on new home sales, they fell 8.4% last month, the lowest level now in five months going back to november of 2011. that steep decline suggests a weaker job market can make the housing recovery a bit slow and a bit uneven, but you can drive around your neighborhood and probably see that, right. martha: sure can. bill: 13 minutes past. martha: back to politics now. governor romney is calling out the obama administration over the white house's national intelligence leaks. here is he yesterday speaking to

the veterans at the vfw, watch. >> this con detectivethis conduct is contemptible, and demands a full investigation by special counsel by explanation and consequence, obama appointees who are accountable to president obama's attorney general should not be responsible for investigating the leaks coming from the obama white house. what kind of white house would reveal classified material for political gain? i'll tell you right now, mine will not. martha: this issue is not going away. joined by alan colmes the host of the alan colmes radio show and tucker carlson the editor of the daly caller, also a fox news contributor. gentlemen, welcome. good to have you here today. right now there are two u.s. attorneys who are investigating what happened in the administration, and in the larger circle in washington, in terms of how this information got out. and the information that they

are talking about is the details of the osama bin laden raid, which even robert gates was agast at what kind of information got out about that raid and how quickly, also the doctor who helped with the osama bin laden raid who ended up in prison. a cyber attack that the u.s. was able to be part of against iran, those details got out the kill list got out. big, big questions that we're dealing here with tucker. >> these are not even outstanding questions. there is no debate this information came from the obama administration at som some level. "the new york times" said as much. senator feinstein who is the chairman of the senate intelligence committee she made a washington srefrgs the gaat and told the truth. to watch her walk that back is a dc version of a possible taj tape. the white house pre paeuld o

prevailed on her to lie. it's a remarkable moment. martha: she is a long-time senator, very well respected, head -pb of the intelligence committee. we'll play the full screen, then we'll play when she walked it back as tucker said. >> i think the white house has to understand that some of this is coming from its ranks. i don't know specifically where, but i think they have to begin to understand that and do something about it. martha: and there is the quote from when she walked it back, she said i state that i did not believe the president leaked the information. i shouldn't have speculated beyond that because the fact of the father is i don't kno matter is i don't know the source of those leaks. she said she didn't think the president knew anything about it. even the original reporting on this came from white house sources. >> to try to impute that from

the president and blame him and mitt romney says, we shouldn't be playing politics with this. this is not a partisan issue, then of course by saying what he is saying and going after the white house and implying that somehow the president is involved in it, and it would never happen in his white house, of course he's playing partisan politics. he can't have it both ways. dianne feinstein speculated, then she said i shouldn't have speculated. and everybody is saying she was corey book erred as a romney spokesperson said. we don't know the answer to that. it's all speculation. martha: no one would suggest that dianne feinstein was speaking anything other than what she thought. she was supposed to make two appearances in washington. catherine herridge is reporting on this for fox of course went to ask her follow-up questions on this. she didn't show up at either one of those things. it sounds like someone is asking her to be quiet.

>> it sounds like speculation. >> its not speculation. was this information classified, including the fact that we have a mole apparently in al-qaida, was that information leaked by sources at the white house? that is not speculation. >> that's not spec lace, wha speculation, whether the white house got to her or she was corey book erred, that's speculation. >> senator fine taoeupb will be 8feinstein is 80 years old, she is one of the richest members. why in the world would she walk back comments that were true if she wasn't under enormous political pressure by the white house? martha: is this an important issue right now? >> i think the leak is an important issue but trying to attack dianne feinstein for saying, look i shouldn't have said it or trying to go after the white house in the middle of a political election, saying that the white house did it, implying that it was obama. there may have been a rogue person somewhere up the food

chain. martha: she clearly said she thinks it wasn't the president. >> then to say, she must have been corey book erred, someone must have got to her, that is all speculation to make someone look back in the middle of an election year. >> all these leaks make this administration look tough on foreign policy. >> they don't need a leak to look tough on foreign policy. their record already indicates that they are the case. martha: they are definitely doing well on the foreign policy polls which is not a typical position you see for a democrat against a republican in a presidential poll. thank you, gentlemen. good to talk to both of you. bill: there is a showdown in the u.s. senate on your tax dollars happening at the moment. the top republican leader, senator roy blunt on what this vote means in an election year. we'll have that for you. martha: i guess you can't always believe what you see, a woman in

panic calls 911 after seeing this. but she maybe should have held off. >> what appears to be a giant mountain lion lying on somebody's patio table. that would be pretty scary if somebody walked out and found that, you guys, somebody better get down here as soon as you can.

. martha: a supersized fight bulb link up in new york city. an argument over a proposal that would ban sugary drinks above the forbidden 16-ounce size. it's getting heated at a public hearing. they say the mayor and board of health are over stepping their authority on this one, but supporters say it is about public health in their opinion. >> the epidemic of obesity kills

58 on you new yorkers each year. >> the sort sighted measure will cut down production of movie theaters. pizza plays ez, coffee shops, parlor shops. martha: they will vote on the ban in september. it is expected to be approved. drink your big sodas now, folks. bill: they had the salt delio, a couple of years ago we had the cigarette dealio. martha: there was one man that said, i'm fat but not because of soda, it's because i like sa sausage and pizza. bill: a terrifying moment when a seaworld trainer is caught underwater by a killer whale.

a grueling 10-minute ordeal. the trainer dragged underwater struggling to reach the surface, pulled down again by his feet. this was captured by seaworld cameras in 2006. it is surfacing publicly as part of a government safety hearing. we have a wildlife expert for net geo wild. good morning to you. we will keep the video up on the screen here. tell us what we need to know about this. >> good morning. i get asked this question all the time about what happens when wild animals attack. even though we are talking about a animal in captivity, they are wild animals and there is a real risk when you're working with these animals. i, for one, have been working in the wild for more than ten years, and there are times that i admit that i become somewhat complacent around these animals and perhaps not as much on my

toes as i need to be, and i think that that just happens when you work with these animals day in and day out, and you get a little bit complacent. i spent some time -- bill: can you say that that was the case here? >> what i can say is that wild animals are unpredictable, and you don't know how they are going to react, sometimes people get hurt, as in this case, even if the animal was playing in the way that they would play with their cohorts. and unfortunately a whale is incredibly powerful. we don't stand a chance if they decide to drag is down, we are going to go all the way down no matter how much we fight to get back up. bill: ken peters was the question, he's out of san diego. the name of the whale is kasatka, and this what happened about four years before the trainer in orlando was pulled under by the whale known as til

i-k um. are you aware of ken paoerts? have you ever met them? >> no i have not met him. >> he was kwaoeted as saying he was rushed to the hospital for surgery and vowed to never swim with that animal again. do you know if that happened? >> well, understandably i think that would be my reaction as well, but i don't know, and i don't know him personally. >> how often does this happen? can you say? >> i think this happens extremely infrequently. i mean clearly this is something that we hear about and does make the news. sadly that is what makes the news. the fact is that day in and day out these trainers are in the water with these animals and nothing does happen. these are not really aggressive animals by nature because they've been working with humans, and that's what they are accustomed too. there is an chip in these

animals and they will act like wild animals at any given time and you have to be aware of it. >> the whale grabs the trainer's foot, and will not allow him to go, ken peters, the man, for extended periods of time. how does this affect seaworld? >> i can't speak for the numbers, obviously this always has a negative impact. you know, this is a major show for them. the problem is, is although i believe that seaworld for one, and zoos in general are part of a huge conservation and education effort, and i think are very successful at it, there are certain animals that are better kept as captive animals and whales are certainly not one of them. for a whale that is like putting a human in a bathtub for lifement it's a very confined space for an animal that size.

bill: thank you for your expertise and coming on today. we appreciate it. it's so rare to have the opportunity to watch this. martha: he's so lucky that he got out of there, that that whale allowed him to come up to the surface. i was reading about it. he's rubbing the back trying to calm the whale down so he'll release his foot, an just made it out of it. that was a longtime ago, but what a story it is. all right. so a usually outspoken sheriff was a bit quiet on the stand. sheriff joe arpaio on trial for alleged racial profiling. what he told prosecutors about some of his past comments and what we can expect back in court today. bill: a possible link between al-qaida and the bombings in syria, why us intelligence is concerned about this. are you receiving a payout from a legal settlement

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bill: fox news alert, there are new worries about the growing violence ph syria as the battle rages, a possible link to al-qaida. u.s. intel officials concerned that the terrorist group is spreading from iraq into syria, while iraq kwaoe officials say that they are 100% sure that is not happening. mike baker is president of diligence l. l. c. a global intelligence and security firm.

good morning to you. >> good morning. bill: they say the extremists operating in syria in many casers the same militants striking across their country. >> yeah this is a real worry. it's a serious problem and it's a bit of a revisit to the early days of the libyan up rising. if your viewers remember that when there was talk about why don't we do more to support the libyan opposition. it's because we didn't know who the opposition was, a concern that al-qaida would try to take advantage of the chaos. bill: al-qaida is sunni. >> right. >> and the opposition in syria is sunni. >> for the most part. the leadership in syria, for decades the assad family is from a sect that is a very small group, and traditionally it never had power until assad's father came in and took control. the fact that syria shares a lengthy border with iraq, the

fact that the syrians have taken over a couple of checkpoints with turkey, and turkey is not necessarily our best friend at this point, there are serious anti-u.s. feelings in turkey. the fact that there is a sunni comparison between the opposition and what is going on in iraq, there are some real problems here that we need to get our heads around. part of this is we are lacking intel, we are looking insight inc into again the impact al-qaida to date has had and the syrian opposition themselves. they have been coming out and saying, no, no, no, this is not true, we don't want al-qaida here. but right now al-qaida, if they are willing to provide personnel, they are willing to provide bomb-making expertise and of course suicide bombing is their trademark, if they are willing to provide weapons or other resources do we really believe that the syrian opposition at this stage, while bashar al-assad is so aggressive are going to turn that down? it's unlikely. bill: on the intelligence front

it takes months if not years to catch up for lost time. what the al-qaida affiliated groups are trying to do in all likelihood is when and if bashar al-assad goes down they fill the vacuum. >> they fill the vacuum, now, you know, part of this is also hinged on iraq. iraq is not a finished story yet. we tend to forget about iraq, and we're starting to forget about afghanistan, but in reality iraq is still a very unsettled place and al-qaida still has a foot old there. that's why we are hearing from those in the government, we are hearing from bad characters that are expanding their influence into syria. if they can do that we have a serious problem. >> because you asked we have a question, where did syria get its chemical republicans? is it possible saddam hussein sent them there for safekeeping. is there any evidence that would

confirm that or turn it down? conclusive evidence, no. what we do know is that bashar al-assad and his father for decades, they had the resources and strong ties to their allies, meaning iran primarily and others, including north korea, they had the ability and made the effort to develop internally their own chemical stockpiles. we know they had that. is there evidence that hussein as the war approached moved some of his wmd materials to syria, there were reports about that, but quite frankly the reporting was never particularly well vetted for sourced. i wouldn't call that information conclusive. bill: mike baker good to have you in today. the story is ongoing to viewers at home. just need one line with a question mark for viewers at home. martha: america's so-called puppet sheriff is denying allegations of discrimination. arizona sheriff joe arpaio testifying in court in the class action lawsuit against him that

claims that he and his department are racially profiling latinos. william la jeunesse joins me live. what happened this court with the sheriff? >> reporter: an aclu attorney hammered arpaio for hammers on the stand using the sheriff's own media appearances to show that he encouraged discriminatory policies. frequently with one-word answers he admitted saying his department had become quote a full-fledged anti-illegal immigration agency, and that the crime suppression patrols were quote, a program to go after illegals and not crimes first. those admissions they say support their contention that the sheriff's speech became discriminatory policy on the street. >> we believe that the sheriff's testimony along with the other testimony in this case show that

the sheriff's department even gauges in and continues to engage in racial profiling and we filed that lawsuit to stop that process. >> reporter: this will be decided by a judge that has a reputation for being fair but tough. martha: what is next, william. >> reporter: arpaio redeemed himself in the afternoon claiming that the media comments don't reflect department policy and that the so-called immigration sweeps were placed on crime data not skin color and the locations were determined by staff not by him. that he applies to letters that appear racist doesn't mean he shares those views. >> sheriff arpaio was very pleased that for the first time in a longtime he was able to get out the other side of the story, and so we are very pleased at that. what you heard today was that the mcso has not, does not, and will not racially profile. >> reporter: there were 40 ple 40 protestors outside, police arrested those who were illegal

immigrants. police say they will be cited and released. this will continue today and it will wrap-up some time next week. martha: thank you v. bill: if congress does note agree one of of the largest tax hikes in history may take place and that is the threat. a top senate republican, roy blunt, joins us on what the vote means for you especially in this election year. martha: talk about competition, a bus putting many of us to shame one push up at a time. now that is a bus. look at that. ♪ i want to get until, let's get until. let me hear your body talk, your body talk. ♪ ♪ [ male announcer ] eligible for medicare?

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defiant new comments out of iran, the country's supreme leader says that outside pressure will not force iran to change its policies. the latest sanctions against iran's oil industry went into effect on the 1st of july. north korea leader kim jong un is a married man, at nounsment cominthe announcement coming after he was seen with an unknown woman. her identity not known. martha: she is very attractive. we did see him with her recently. now we know the answer to that, mrs. u.n. i guess. we'll find out, right? fox news alert as we await a showdown on capitol hill over the controversial bush tax rate extensions. senators about to vote on a democratic plan today. that plan would let the tax breaks expire for the so-called wealthy and keep them in place for everybody under 200 or 250,000 depending on whether you're married or not.

good to have you here today. roy blunt is vice chairman of the republican congress. the first question is how do you think this is going to go in the senate? i guess everybody already knows that, right? >> i think everybody knows that, martha. you say there is a lot we don't know about north korea. more and more there is a lot we don't know about what is going to happen in our own country and it holds job creators and decision makers back because they don't know what the rules are and we continue to heighten the uncertainty. howard dean said yesterday we ought to get the country go off the fiscal cliff. he's the former chairman of the democratic committee. i don't know why people don't know that raising taxes right now is not the right thing to get the economy where we want it to be. martha: republicans are going to want to hold the line to want awful the tax cuts to stawant

all of the tax cuts to stay in place. the president and democrats say they are going to point that right back at you and all republicans that vote as you likely will and say why wouldn't you be willing to allow the class cuts to stay in place for the middle class, then we'll go back and fight for the rest of it? >> that is not exactly what we'll be talking about at all. the proposal that send reid it going to bring to the florida actually takes the inheritance tax, the death tax back to the 2000 standard, much beyond where the president would have gone. it increases farm taxes on family farmers by 20 times and small business taxes nine times, as many small businesses have to comply. they are going to raise dividend taxes which really impact senior citizens to a higher level than they are today. i just don't know why they think this conversation works. we had this same conversation two years ago, and then as soon as the election was over the president says, well, now is no

time to raise taxes on anybody owe let's extend all the current tax policies. the economy is in worse saeu shape today than it was the day the president said that. martha: so many folks sit at home and watch the process as it plays out and it's extremely frustrating as you know, and i'm sure it's frustrating for those who work on the hill as wel well. the sequestration was supposed to be put in place so you have to come become to the table and workout meaningful cuts. the president claims yesterday in a speech that he wants to see responsible spending cuts take place. what do you tell people who say, why can't you get it together and make something happen that would be productive? >> well, i think we ought to be focused on how we cut spending, one way to do that would be to have the appropriations bill on the senate floor. we haven't had a single appropriations bill. we're going to come back in september and the choices are going to be that we want to continue to spend at this year's

level or do we want to shut the government down? that is a terrible choice, and the american people know it. there are lots of things we could be doing, but for whatever reason the senate is not willing to do them, no budget in three years, no debate of any spending bill at all. in the six years that the current majority has been in control three of those six years didn't have a single appropriations bill come to the floor, and that's just no way to do business. people know that. i think they are going to know that on election day in november. and i wish we could solve these problems right now, but we certainly can't put them off very much longer, and i think everybody in washington knows that. i don't know why we don't get down to business and do what has to be done. martha: are we likely to see the see questions thraeugs kic sequestration kick n the defense kicks kick in and the me go over a fiscal cliff? >> they say that's what is going to happen. i hope that doesn't happen.

a lot will be decided by what voters decide to do in november. if there is a new president, the job of that new president will be to convince the people that the right thing for job growth are going to happen in january, february and march and how we're going to get that done. martha: senator roy blunt, thank you for being with us. bill: fearless prediction, it's christmas eve, right? it will be late december based on the track record that we see. martha: we'll most likely find a way to postpone the sequestration and come back and talk about it little bit longer. bill: a massive manhunt is on for this woman. why the f.b.i. wants this plain jane behind bars we wonder. martha: imagine seeing this heart-stopping sight sitting on your patio. things hr-pb aren't always what they seem. >> we've had a bobcat coming down from the hillside snatching some of the domesticated cats.

martha: it's not often that 911 calls end on a good note, but we like it when they do, and that's what happened after one california woman called 911 over what she thought was a live mountain lion in her neighbor's yard. >> what appears to be a giant mountain lion lying on somebody's pa patio table. that would be pretty scary if somebody walked out and found that. somebody should get down here as soon as you can. martha: it turns out that she was only half right, the animal is real but it's actually a stuffed mountain lion. the woman immediately called back 911 when she realized her mistake. >> it is an artificial stuffed mountain lion. [laughter] >> i'm so sorry. >> don't be sorry. it's actually kind of made my day. >> the owner of the stuffed

mountain lion later admitted to lending it out to friends as part of a prank. bill: that is classic. look at that. martha: we're talking about a stuffed real mountain lion. bill: that is great. oh, stuffed real. martha: i think so. bill: not a toys r us stuffed, we are talking about a real stuffed lion. bill: she has a sense of humor, the operator. six banks in two weeks, the hunt underway for a bang ro*p robber they are calling plain jane. >> we know she has been busy and consistent and her method is simple according to the f.b.i., she approaches the teller, demands money both verbally and with notes claiming to have an accomplice outside the bank. she collects the cash and so far has got even away clean. the first time was on july 12th. the next a week later and yesterday the feds suspect she

pulled off three bang robberies in one daybank robberies in one day. the suspect is described as a hispanic woman, 5'3" to 5'5" inches tall, 150 to 170 pounds and she is 35 to 40 years old. believed to be driving a silver four-door vehicle with a sunroof. she may also have a scar below or next to her right eye, and possibly a tattoo on her right shoulder. of course if you think you've seen this woman you're urged to call police or the f.b.i. bill: we called her plain jane. how did she get that name, do you know? >> it turns out the thins aren't all that scientific. she earned her nickname after a witness in one of the earlier robberies described her as a plain jane. by the way robbing a bank is a federal crime. that's why the f.b.i. handles these cases and the penalties can be severe. several years behind bars and long for the criminal is arnold. is armed.

no information whether she is carrying a weapon. bill: she has been successful here. >> they almost always get caught. bill: when that happens we'll bring you back. martha: can't evade the law for long. you saw it unfold live on our air yesterday. now we are getting new information on this wild motorcycle chase out of california. ed. >> and with challenge comes change. >> announcer: p90x completel anday n be an adventur that's whye got a subaru.

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smart, safe and secure option that could help you pay off your original mortgage, manage your health care costs or just cover your day-to-day expenses. so call this toll-free number and let me send you your free video right now. [♪...] martha: an olympic push upmachine is the talk of london. check this out. a shek artist created this structure. the giant arms lift the six-ton bus and there is sound take of labored grunting. with all the push ups. it sits outside the czech olympic team hoed quarters. wonder how many push ups it can do? bill: but the grunting for good measure to make sure you know what it is working. see you on the radio with

kilmeade today. i don't know what is on his mind, do you? martha: it is always fun. see you tomorrow. "happening now" starts right now. jon: hey, speaking of push ups. governor romney beefs up his foreign policy chops with an overseas trip but before he left he unleashed his most scathing attack on policies. did you hear that? how will it play with volters? it new report is coming up. jenna: al qaeda active in syria and now infiltrating rebel forces. there are new concerns about the country's stash of chemical weapons. we will dig deeper on that. jon: also a dramatic high-speed, really high-speed chase. it unfolded live right here on "happening now." it could have ended very badly but for one brave officer. new details on what went down. plus breaking news all "happening now."

jenna: we'll take you out to colorado though first. new searches in the movie massacre investigation. we're glad you're with us, everybody, i'm jenna lee. jon: i'm jon scott. investigators in colorado are still combing through the apartment of the suspect looking for more evidence. one former fbi agent describing as something you would see in a war zone. the explosive-packed homes was essentially a building bomb. a team of attorneys spent more than an hour inside a movie multiplex, the scene of that shooting rampage that left 12 people dead and dozens more injured as prosecutors begin to build their case against james holmes. the accused 24-year-old gunman remains in solitary confinement awaiting his hearing on monday. the judge is now preventing cameras from going into that courtroom. alicia acuna is live in aurora, colorado. i guess there is a little bit of good news out of the tragedy this weekend, alicia? >> reporter: there is some good new