good morning. i'm chris jansing. america's debt mess. if you can believe it, it is getting worse. facing a revolt from the tea party, the speaker of the hoist is forced to re-do his plan after it did not cut as much as he promised. it is $150 billion short. >> if it means we go a day or two or three beyond august 2nd to get this right, that is what i think we should do. >> the tea party is in the driver's seat for the house republicans now. that is a very scary thought.

>> this idea my way or the highway, it just doesn't work when we have the america economy at stake. >> the assessment of harry reid's plan came out too. it is short as well. half of the cuts assume the drawdown of the wars. all of this happening six days before the country defaults. we have chris van hollen with us. >> good morning, chris. >> let's start with john boehner. if he brings the cuts to $1.2 trillion, can it pass? >> i'm not sure it can pass then. before you have the error that they caught. before that, he was having trouble getting the votes. i don't know what the situation is right now. the problem with the boehner proposal is it puts the country in the same fix now, just six months down the road.

why do we choose the road? >> it cannot be the short-term plan? >> because the economy is in a fragile state. it makes no sense at all for anybody to do anything that makes it more fragile that risks the credit worthiness of the united states and risks putting more people out of work. those are risks we should not be taking right now. this is a choice. there is no reason we have to do that. why in the world do we adopt a plan that creates continued uncertainty and instability in the economy. that is beyond me. as you heard in the clips, what you have now is a situation where a small group within the house, a lot of the house tea party caucus members are saying if we don't get things 100% our way, we will prevent america from paying her bills. >> is that all that is going on here? help the american people understand, congress member. after all this negotiating all this time and all of the

proclamations of the gloom and doom. why is the hold up? >> that is a good question. the easy thing for us to do is do it in two pieces. one, make sure we can pay our bills. lift the debt ceiling and come up with a plan to reduce the deficit. the reason that has been difficult is because our colleagues refuse to take a balanced approach. the president has said we can do $4 trillion in cutting the de deficit over ten years. we can close corporate loopholes or deal with the revenue side. we have been met with a total brick wall when it comes to making sure that balance could be enforced. >> how close can you cut this? let me play for you what jay carney said on "hard ball yesterday." >> the time limit was when congress can act before we know

longer have the ball. >> when is that? the bill comes to the president's desk of the morning of august 2nd is in time? >> as i understand it, that would be the case. i don't know if it is august 1st or 2nd. >> is that what you understand, congress member, the drop dead deadline? >> that is my understanding. >> the "new york times" saw that august 2nd is not necessarily the day. the country could continue to pay its bills maybe until august 10th. is that true? >> it depends how much revenue is coming into the treasury on any particular day. that is difficult to precisely calculate. that is why we shouldn't be playing russian roulette in this way. we should play it safe. make sure we get it done now rather than monday. at the very least, we should get it done by then. because of the uncertainty and we don't know what the cash flow

situation is. >> congress member chris van hollen, thanks for coming on. i want to bring in the leader of forbes media. there has not been a change in the markets. why? >> the markets feel the united states will still be able to pay the interest on the bonds. if you did not get an agreement, there is enough cash to pay the interest. >> is that what you think? >> that is true. otherwise you would see the interest rates reflect greece. >> here is what steny hoyer said this morning about the politics. >> i think we are playing russian roulette with the nation's credit worthiness. unfortunate unfortunately, the chambers are loaded in the house side. they want to shoot every bullet they can at the president. i think it is political in that sense. it is much, much too dangerous.

>> what do you think is going on here? what is the bigger problem? is it the next election and the politics surrounding that or is it the details of how to get it done? >> i think it is the politics of the next election which is the biggest thing. the president, i think, has been behaving badly in the sense he has not put a detailed proposal of his own to get this moving forward. he keeps -- >> he kept calling the leadership in. he basically said -- >> he did not put together on the table the way you would expect. the way ronald reagan did 25 years ago when he got a bipartisan agreement to overhaul the tax code. they hashed it out. he had a proposal. his administration had a proposal. this president has not done so. >> let me ask you, their concern with the republican plan is this, it is that it is short-term and in six months from now, we find ourselves in

the same situation. it makes the markets uncertain. it makes us look weak internationally. is that a legitimate concern? >> if all of those things were a genuine concern in the market, you would see the bond market in turmoil today. i think people want to get this thing eventually done right. if you get a short-term solution and short-term cuts and revisit in six months, fine. the idea that you take tax increases today with the hope of spending cuts tomorrow, we tried that twice in the past with the same ratios three-to-one. ronald reagan made the mistake. george h.w. bush did it 20 years ago and never got the cuts. that is why they are doing it together now. >> the poll that i will show you is really telling. 83% of the american people are concerned about default. 56% want the combination.

spending cuts and tax hikes. now the wall street journal says they are worried about a default. would this stop a business owner from hiring or investing in new equipment? >> the short-term debt crisis? no. what is hurting us now is the monetary policy, the weak dollar. it has sent capital fleeing. concerned about the tax code at the end of 2012. the small companies coming from the health care bill and the uncertainty is on banks, especially community banks. massive new regulations coming which creates uncertainty. >> steve forbes, thank you for the time. what happens if the debt ceiling is not raised by august 2nd? it is complicated, but we crunched the numbers. wednesday, august 3rd, $12 billion comes into the treasury. look what goes out.

$32 billion. including the money for social security, medicare and medicaid. almost $2 billion for the department of education. day one of the default would lead to a $20 billion deficit. on august 4th, government spending outpaces revenue $10 billion to $4 billion. that brings our default spending to $26 billion. august 5th, $7 billion coming in. $12 billion out. that includes more than $3 billion for federal salaries and another $2 billion for medicare and medicaid. the cost of default would climb, total, $31 billion. after two weeks, that would be $73 billion. i'm joined now by writer jonathan capart. let's say there is no deal and the government is out of money. who would decide at that point which bills get paid and which

don't? >> ultimately, it will be president by way of the treasury. they know the amount of money coming in. that needs to go out. it will be a wrenching decision. 40% will have to be hacked off with the obligations and cash on hand. >> we hear if that happens, if there is a default, it will not be long before there are d disast disasterous consequences. clearly the american people are getting the message. >> what is happening is you have house republican freshmen, 87 of them elected, on the promise to do one of several things. they would not raise the debt ceiling under any circumstances. they would pass a balanced budget amendment. they would change the ways of washington by cutting spending. they believe that by raising the

debt ceiling, you are giving as speaker boehner said, the president a blank check. that is not true. by raising the debt ceiling, you are allowing the federal government to pay the bills it has already run up. if the united states does not pay its bills, it becomes a dead beat. >> and run up under previous administrations, in many cases. >> right. these are bills that have been run up by ever president and congress since the nation's founding. this is not something that president obama did all by himself. >> what do you think will happen here? will it come down to default or an 11th hour deal? >> chris, what we are faced with now, we being the united states of america, is between default on this side and downgrade on the other side. speaker boehner and president obama said default is not an option. it will not destroy the faith and credit of the united states. the deal that could be struck in order for the nation not to

default could lead to downgrade by standard and poor's or moody's. they have been clear since really the beginning of the year saying if a long-term deal is not agreed to, s&p says if this does not lead to $4 trillion in cuts, it will lead to a negative outlook on the credit rating or a downgrade. if we downgrade from aaa which is the highest grade you can get to aa, estimates show it could mean 1 million jobs lost in the american economy. >> jonathan, thanks. great piece in the post. can the american dream be saved? tea partiers are fighting for their version, but there is a better way forward for all americans. sad news about the u.s. ski

champion jarrett peterson called 911 before shooting himself in a car monday night in a car. peterson suffered from depression and alcoholism. he was probably remembered for his signature jump called the hurricane involving twists and turns while 50 feet in the air. he won a silver medal in the 2010 vancouver olympics. the georgia mother spared jail time in the death of her 4-year-old son. killed by a hit-and-run driver while they were jay walking. she was given the option of a new trial or 40 hours of community service. she spoke to the "today" show. >> we are weighing our options. there is a part of me that doesn't want to go through it, but if i did it once, if that is

the purpose, i will do it again. >> her son was killed by a driver who had prior hit-and-run convictions. he served six months in jail. you name it. i've tried it. but nothing's helped me beat my back pain. then i tried this. it's salonpas. this is the relief i've been looking for. salonpas has 2 powerful pain fighting ingredients that work for up to 12 hours. and my pharmacist told me it's the only otc pain patch approved for sale using the same rigorous clinical testing that's required for prescription pain medications. proven. powerful. safe. salonpas. ben and his family live on this block. ben's a re/max agent, and he's a big part of this community. re/max agents know their markets, and they care enough to get to know you, too.

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[ male announcer ] the new citi thankyou premier card gives you more ways to earn points. what's your story? citi can help you write it. no shocker here. david wu is calling it quits. the oregon representative will resign over allegations over a sexual relationship with an 18-year-old girl. he will not make it official until the debt ceiling. congress member gutierrez was arrested in front of the white house. he was arrested in may of 2010 in a similar protest. elizabeth warren is going

back to harvard. she left to start the consumer protection bureau. a new survey shows facebook is the preferred social media method for members of congress although twitter is growing in popularity. two-thirds of staffers 30 years and younger say social media is worth the time their offices spend on it. if lawmakers have not gotten the message yesterday, it should have come in loud and clear yesterday. >> we have 220 people waiting on hold. >> those are congressional phones and they have been flooded with calls after president obama urged the americans to have their voices heard on the debt crisis. i'm joined by the president of rebuild the dream. good morning, van. >> good morning. >> your group has been rallying. what is your message? do you think lawmakers are getting it? >> i think so. i think the american people are waking up. we had rallies in every district

yesterday. tomorrow on the steps of the capitol at noon, there will be major demonstrations. i think most of americans were enjoying the summer vacations and did not realize these hostage takers had a gun to the head of 310 million people saying if you don't do everything we say the way we say it, we will blow the american dream away. we will blow a hole in your economy. we have never seen that behavior from elected officials. people are shocked to hear this is going on in washington d.c. people are standing up. >> congress is still fighting with each other. on the republican side for sure. there is inter-party fighting. i'm not sure they are hearing the american people who said in the polls and phone calls, get this done. i'm wondering, van, can a group like yours have influence? who will press congress? >> i think coppingress is start

to listen. the american people are standing up. we have with the american dream movement. if the tea party which is a small minority can have this much influence, what about the 60 to 70% of americans like me and you, raise the debt ceiling. don't destroy medicare and social security. why should we have a gun to our head and destroy the programs helping our grandparents to appease these people? normal americans are enjoying their summer vacations. normal americans are not figuring out ways to destroy the economy to get their way. normal people are waking up. you are seeing the roar. every server on the hill is shutdown. phones are ringing off the hook. people are coming to protest. the american dream is not thrown under the bus by people who want to repeal the 20th century. we are a better country than

this. raise the debt ceiling like you have 100 times. no deals. no destruction of our programs. go home and have a good summer break. the real patriots who love this country will not let the american dream be run over. >> van jones, thanks for joining us. america is more than ready for some football. maybe a distraction from the debt dilemma. the walkout is over. players are arriving for training camps. fans are shelling out big bucks. ticketmaster says sales are up 332% monday from the day before. which means things are looking good for the cash-rich national football league. every day, all around the world,

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terror threat against the united states remains mostly from offshoots from al qaeda. the third hearing on islamic radicalization. it is drawing comparisons so the mccarthy hearings of the 1950s. one outspoken is keith ellison. he joins me from capitol hill. >> good morning. how are you? >> good. you testified at the first hearing, but you were turned down to testify today. you are the first muslim in congress. any idea why your request was denied? >> no, but i don't think i should be allowed to testify because i'm the first muslim. i happen to represent the congressional district with the largest somali area. the muslim community is the topic of the hearing. i have expertise on this issue. >> am i right that you will

submit testimony? >> yes. >> what is the point you would want to make before the committee? >> basically two points. first point, the anti-muslim rhetoric here evolves into toxic and terrible consequences indirectly and ugly rhetoric fed into anders breivik who killed so many people in norway. >> let me stop you right there. that is a strong allegation, congress member. is there any indication that is the case? >> yes. if you read anders breivik's manifesto, american anti-muslim web sites and commentators were referenced, including pam geller and others known for whipping up anti-muslim hate. i cannot -- i'm not making the

tie. the tie has been main by anders breivik. my second point is they are very bad people. we have to stop them from recruiting. what is the best way to do that? engagement with the somali community. engagement in building trust with the community, not vilifying and making a toxic relationship. in fact, trust building. that means police officers, like chief smith in st. paul reaching out to build a trust so a relationship and information can be shared to protect the community. al shabab is victimizing the community. let's not make the somali communities the target. >> let's talk about what is happening in the u.s. that is what peter king has talked about. the obama administration has expressed concern. the justice department has

indicted americans with the viewpoints. is that a legitimate concern because that is what we hear from peter king? >> we should fight without the religious religious affiliation of the actors. if you want to attack people on misguided idea of islam, it doesn't matter of those who get threatened and intimidateintimi. our benchmarks should not be religion. we should target people based on their behavior and action, not based on their religious affiliation. this is the bedrock of my point all along. i think it is the point of the homeland security committee to protect the homeland. that means going after people who are terrorists. not going after them because of

race or religion. >> congress member keith ellison, thank you. remember the lockerbie bomber who claimed to have three months to live because of cancer? that was two years ago. today, rather, tuesday, abdel al-megrahi was appearing before a moammar gadhafi rally. the bomber is still alive and kicking. jeff, lunch! uh-huh. jeff!

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it's schwab at your fingertips wherever, whenever you want. one log in lets you monitor all of your balances and transfer between accounts, so your money can move as fast as you do. check out your portfolio, track the market with live updates. and execute trades anywhere and anytime the inspiration hits you. even deposit checks right from your phone. just take a picture, hit deposit and you're done. open an account today and put schwab mobile to work for you. good morning. i'm meteorologist mike sidel. we will get back to chris in a moment. we have storms along the gulf coast and the midwest. everybody else, we are stuck in the sunshine. it will not be as hot as it has been. starting to warm up in new york as we head into the upper 80s. hot and steamy in st. louis. dallas, this is day 27 of 100 or better in dallas. we head to the all time record

of 82. in chicago, we may get up to 93 today. cool in seattle. you head to 80 by the weekend. look out in chicago. big storms coming into the west side and may impact flights at o'hare. the sun will come back out after. it will be steamy. storms along the gulf coast. the beaches of florida getting pounded. we are watching the tropics, chris. our first close call here, potentially. this is a big cluster of thunderstorms. a hurricane hunter aircraft will look at this. this would be named dawn. this may move through the gulf and intensify. it may impact texas. chris, they could use the rain without the other impact, which is wind and storm surge. getting excited in atlanta. chris, back to you. thanks. here is a look at other stories people are talking about right now. federal officials are saying there is not enough evidence to show dust and debris from the

9/11 attacks may have caused cancer. that sparked a furious response from ground zero workers and residents. their cancer diagnosis to the attacks. the findings mean they do not qualify for federal benefits to treat or compensate them for cancer. casey anthony's jurors will keep their anonymity for another three months. that is unusual after the names are made public after a verdict in florida. strong storms triggered water spouts in northwestern pennsylvania. the water spout here off bear beach. they all dissipated before reaching land and no one was injured. the one-year countdown to the 2012 london olympic games is today. frequent flyers are furious.

federal aviation administration taxes expired saturday after congress could not agree on the plan to reauthorize the faa. that should translate into a 10 to 15% reduction. instead, the airlines are poc t pocketing the money. nicole lapin is here with more. airlines are getting money for nickel and diming us. i had to buy my pretzels last time. >> i'm stumped by this. i don't understand this. this was money that was going to washington. why they are using this as an opportunity to hike fares is bringing in $25 million every day for the airlines. spirit airlines and alaska airlines are bucking the trend with this. the treasury department said you should be getting refunds here. we don't know how that process is going to happen. if you bought an airline ticket before july 23rd, you are supposed to get your money back

for this. >> we shall see about that. let's talk about the wedding of wills and kate. it is the gift that keeps on giving. >> it is. i thought that is the case. it brought in the revenue during the wedding. $68 million. that is equal of people going to the museum and looking at the memorabilia from the royal wedding. this is a time when a lot of pressure is on cultural institutions. the record royal revenue is now clocked in and what do you think is the biggest draw? >> it has to be her dress. >> yes. >> i was there. i saw it. not super up close with the details. >> she went to see it with the queen. >> the queen made a disparaging remark. >> we need the royals in america so bring in more money to washington. >> nicole lapin. princess of cnbc.

always a pleasure. we elected these people. nobody agrees. >> it is like a spoiled child. >> it is just taking down the morale of the country. >> america is angry. congressional web servers crashed and the phones have been ringing. constituents are frustrated with the debt stalemate. the pressure is only going to mount. joining me from california is karen bass and the congress member from louisiana john flemming. thank you for being here. congresswom congresswoman, let me start with you. the question that seems to be on the mind of all of the americans. what in the heck is going on there? why can't you get this stuff done? >> i think it is very challenging. what i would prefer is we raise the debt ceiling clear without combining it with the deficit. like they did seven times under

the bush administration. i have been here for six months. i'm new. this is similar to what we go through in california in negotiating a budget. >> what will get done, congress member flemming? john boehner doesn't seem to have a vote because of the tea party. now, he is working to add some more cuts to get to that $1.2 trillion figure. is there any circumstance under which you would support his plan? >> well, i do support his plan. my preferred plan is cut cap and balance. the president said he would veto it. >> you challenge that would not happen? >> yes. as a result, we have the boehner plan, which has some of the same benefits in terms of no tax increases. but cuts that exceed the amount that we raised the debt ceiling. harry reid already indicated that he would support it, although the president got him

to back away from that. at the end of the day, the boehner plan is an excellent compromise. it is getting the president and democrats to work together. >> you understand the democrat concern. they don't want to go through this in six months. it turns out it is ex-cruciating for the american people. >> the president has increased our debt by $4 trillion in two years. he wants another $2.4 trillion. that is unprecedented. what we are saying is, mr. president, if you want us to raise the debt ceiling, you have to slow down the spending and be accountable to the american people. >> there were other issues with boehner's plan where senator reid said it was dead on arrival going into the senate. it is not just about the cuts.

it is about other policy issues that have been put in. like my good friend here talked about the cut cap and balance. what boehner was proposing really was that. i think that is really problematic. the cap piece, we are in a recession. we had to make terrible cuts. we really compromised education, for example. under boehner's plan, a cap would be in place. when the economy turns around, we would not be able to restore funding to education. that is unacceptable. in the 21st century, we have to keep up with the other nations around the world. >> congress member, who is to blame in all of this? >> i think that the american people showed in the 2010 elections that they are terrified of the out of control spending. even in the area of education which yielded no benefits. the baseline spending went up

25% for the first two years of the obama administration. >> congress member, the polls show the american people want a balanced approach. they want overwhelmingly, they want to include as part of the package, that the rich, that the people making over $1 million and hedge fund managers as ceos with corporate jets, that they pay in more to solve this problem. >> we tried to work with the president to have tax rate reform which would lower the rates and do away with the deductions. the president sent boehner away. remember the president is not offered a plan. harry reid only now offers a plan which is really no plan at all. that is increase spending with no controls. all we are saying is republicans, the american people sent us here and gave us control of the house. get spending under control. that is what we are going to do. >> i think it is really

important that we separate the issues. i think there is a very simple plan. the plan that was used seven times under the bush administration is to raise the debt ceiling. if you are going to talk about cuts and addressing the deficit, it needs to be addressed separately. i empathize with speaker boehner. the speaker should be given the authority to negotiate the best deal and his caucus should support him. he came back with a plan. he wanted to do the big plan, but his caucus rejected that. it is my hope they will give speaker boehner a break. >> i would disagree as a member of the caucus. i can tell you it was the president that ended the big deal. we worked with speaker boehner. we are in agreement. this bill will pass in the house, at least. >> congress member karen bass and congress member fleming, thank you.

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positive light were more likely to view the scenarios positively. good morning. i'm thomas roberts. in the next hour, where is the deal? the debt ceiling war wages on. we will talk to barbara boxer. and terrorists. washington post columnists ask the question about the norway shooter anders breivik. the executive director of the project will join me how they are trying to save lives. thank you, thomas. july 27th, next year, one year from now, we will be sitting down to watch the opening ceremony of the 2012 olympic games in london. peter alexander is there to see how the city is preparing for

the big event. peter, what is going on? >> reporter: chris, good morning. i got a good seat for you. different deal a year from now. 80,000 people will be inside that olympic stadium. you can see it behind us. they like to say they are bang on schedule when it comes to construction. they completed the construction of the building back there. the track is now being laid down. take a look at what has happened over the last several years from london as they celebrate the one-year outdate. this is the aquatic center. we were inside today for the unveili unveiling. it is unbelievable. it feels like you are entering the inside of a blue whale. $440 million to complete it. this is the spot where michael phelps hopes to tack on more gold. also throughout the area today, one of the things that makes this place unique is the iconic

landmarks surrounding wembley stadium and the wimbledon center. the royal horse guard parade is the very spot where william and kate rode home in the carriage on their wedding day. they are preparing for a test event at that site. it will be, believe it or not, the venue for beach volleyball. more than 17,000 delivering 4,000 tons of sand as we speak for this test coming up in the next several weeks from now. preparing for the test event to get them ready. throughout this day, a lot is going on. trafalager square is revealing the medals for the first time. we will look at the medals for the first time. the u.s. leading the way with 110 medals in beijing. they hope to do better than that a year from now. >> nbc's peter alexander in london. i'm sure we will see you there one year from now.

thank you, peter. people still talking about a terrible call. terrible. ending a 19 inning battle between the braves and pirates. the game-winning run to the plate. the throw. the tag. the home plate umpire calls him safe. when it looked like the catcher clearly got him in time. the braves won, 4-3. the catcher mike mchenry was fuming. the ump admitted he missed the call. that call is the subject of the tweet of the day from three rivers blog. "michael mchenry looked to see if home plate moved." love t hat myaughter's part fish. but when she got asthma, all i could do was worry ! specialists, lots of doctors, lots of advice... and my hands were full. i couldn't sort through it all. with unitedhealthcare, it's different. we have access to great specialists, and our pediatrician gets all the information. everyone works as a team.

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a butter sculpture dubbed the human cannon. let's go down to the wire. what state fair would be complete without the butter

sculpture? the ohio state fair. it took 6,200 sticks of butter to make. it weighs more than 1,500 pounds. facebook is banning nirvana's "never mind" album cover. it violated the user agreement. hundreds of people have applied for a job as assistant duck master. duties include cleaning up duckingham palace. the peabody is an historic hotel in tennessee. these animals don't quack. the animal whales are attracting tourists off colombia. already 100 humpbacks have been spotted. this guy doesn't swim. he flies. this is his human home run. watch this. he is 69 years old. david smith shot out of a cannon and homered over a wall in front

of thousands of fans in lowell, massachusetts. gene simmons finally proposed to his long time girlfriend. he will propose to his girlfriend on his reality show. he takes a knee during a sunset walk-on a beach in belize. that is how it goes. not bad. that will wrap up this hour of jansing and company. coming up next is thomas roberts. i'll see you tomorrow. rapid ink. its retinol formula smoothes wrinkles in just one week. why wait if you don't have to. neutrogena®. so i took my heartburn pill and some antacids.

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d.c. is the norway massacre suspect a christian terrorist? why that label is sparking so much controversy. plus, nine teen suicides in one school district. the anti-gay policies may be to blame. i'm thomas roberts. there are more twists and turns over the debt ceiling. republicans are scrambling to come up with the re-write of the bill after the cbo said the math in the boehner bill was wrong. with the clock ticking to an august 2nd deadline, there is pre precious little time to reach an agreement. we have harry reid speaking later this hour. he spoke out against the boehner plan earlier this morning.