>> rather than lifting the fog of default, this republican plan would usher in an era of bad economic weather that could last for years. congress has a duty to do what it takes to earn a national default in one swift leap. >> we have luke russert live on the hill with the latest. according to politico, the story said get his blank in line. >> reporter: i know it would be get their behind in line, thomas. that has been reiterated here. even from eric cantor. saying stop grumbling. they need to get behind the boehner bill. the question is after the boehner bill was scrapped because it did not save enough money. the cbo said it saved $150 million. any debt ceiling would have to have larger spending cuts. the new bill will be on the floor tomorrow. the question remains whether or

not boehner can get to 217 votes within his conservative house. why cantor and mccarthy, and these guys trying to push these things through. if the bill does not come out of the house as a deficit reduction eleme element, the republicans have lost their leverage. harry reid is watching this play out. mitch mcconnell believes there has to be a compromise because the republican bill doesn't have a chance on get through the senate. it will be vetoed by president obama. >> what do we know of the talk of the 20 or 30 day extension? >> reporter: that has been floated out there. obviously you heard from the white house saying they don't want to do that.

it does reflect the political reality. a lot of folks don't believe they can make the august 2nd deadline. we are here, less than a week away, and so vastly apart. remember, if anything will come together, it looks like it will be on sunday. it will be some sort of plan that harry reid and john boehner will craft which will be shot through in the dead of the night through both chambers. that was unpopular with the house the last time the government shutdown. that is why you are hearing it. in terms of the august 2nd deadline, there has been some discussion that perhaps the treasury will have money to pay through the end of next week. a lot of folks don't want to take that chance. to put on our cnbc hats, the yen is at a record high against the dollar. record low against the swiss franc. gold is at an all-time high. this is not good news.

>> luke russert on capitol hill. thank you. remember that june golf summit that was supposed to open up the dialogue with the president and john boehner? we have come a long way since that hopeful moment. now the men could not be farther apart. tara and ron christie joins me this morning. tara, i want to start with you. one report described this as mr. compromise as mr. my way or the highway. now we are hearing from luke and hearing about the boehner bill and saying from the speaker this morning to his people, get your tail in line. get behind this. now is it mr. my way or the highway to his own people? >> i think john boehner is being my way or the highway to his own people. as we have seen, he is having a difficult time getting consensus and support within his own party.

he is determined to advance a bill he cannot get through his own party. i think what needs to happen is seven out of ten americans said this in the latest pew poll. they want to see compromise. the democrats have shown a willingness, too much of a willingness to compromise and try to build consensus to save our country from worsening the economic crisis that we are already in. >> ron, what is your opinion? we are talking about the left and the right and we are losing out with the compromise. to come up with a draft to agree on and get behind. >> good morning, thomas. the art of the compromise is two parties coming to the table having an honest discussion and dialogue and presenting a plan and finding a way forward. the house republicans have been sta stallwort. you saw the house republicans pass the cap cut and balance bill. that would have a constitutional

amendment. my worry and concern is the democrats for their willingness to compromise and negotiate, they have not put a piece of paper in writing. they have not assessed the merits. instead, all they do is take pot shots at the republicans. i'm not worried about the republican caucus, but i'm worried about the democrats sitting down and presenting a plan and having a good path forward. something we have not seen other than the demagogging. >> tara, i see you looking at that issue. steny hoyer has the statement from this morning. let's get your thoughts after. >> the cuts equal to the extension of the debt limit. a committee to look at a longer term solution. >> are the democrats giving all the ground here? ron is saying there is nothing

on paper. there are things they are trying to get through. >> what the president is doing right now and what harry reid is doing is trying to necessigotia deal. that is what people do in congress. to ron's point, the president in february submitted a budget. then he gave a speech in april and laid out another plan that cut even more from the deficit. that was done in april at george washington university. the president has been up front what he wants. he wants to no longer extend the bush tax cuts and let them lapse. that is adding to our debt. that is something we need to address. we have an issue of rich people are not rich enough problem in the country. we have a middle class that is shrinking. poor people are no longer working. if we go with the boehner plan, we will fight about this in the

next six months. they are stopping us from moving forward as a nation. >> ron, go ahead. >> i think tara is absolutely right. >> say that again? >> she is absolutely right. lost in the discussion, it is all about jobs. the democrats are focused on politics. they are not focusing on jobs. the president said his stimulus plan would take unemployment beneath 8%. when you look at the projections of what would happen with no stimulus plan, they said it would be at 7.4%. it is at 9.4%. i worked on capitol hill for nine years. i worked for the budget chairman committee in the last budget. president obama's budget was voted down in the u.s. senate. >> you said he had no plan. >> the congressional office reported they cannot score a speech by the president which tara cites. the president's plan gets voted down.

the congressional office says they cannot present a speech. the president has failed in his leadership. >> that is not true. >> you are saying the president never submitted something. >> he said initially the president says he never submitted anything. you had your opportunity. he had cuts in that budget that he submitted in february. you can look that up on multiple news sources. the president is talking about trying to have shared sacrifice. asking some of the people, the wealthy americans to move our country forward. we cannot continue to put the burden on the people who suffered the most in the financial crisis. we can't. >> let's get a compromise out of washington. ron and tara, thank you. the frustration is continuing over the debt debate. the americans are angry the

elected officials cannot close a deal. >> senator murray's office. >> i want to talk to you. i want to e-mail and let him know you called. >> here is a sample of what is taking place. constituents calling the senators and congress members putting the nation on economic alert. >> it is like a spoiled child. >> i hope somebody comes to the table. >> not one of these people asked how they could be part of the answer. they were 100% part of the problem. >> con woman cynthia lamas is part of the tea party caucus. congresswoman, as we hear about the backlash that is coming into d.c. from constituents from the left and right and middle. are you worried that the tea party is getting a backlash that

they are holding hostage a potential deal? >> oh, heavens no. we cut cap and balance which is a bill that would cap and allow the senate to vote. the senate tabled it. we are working on another plan. this plan is a compromise between harry reid and john boehner and house republicans. it includes elements of cut cap and balance. that is what i hope to see. we are working hard to resolve this issue. >> congresswoman, four gop senators came out today opposing the boehner plan. they say the cuts are inadequ e inadequate. is there a revolt that is brewing against john boehner right now? >> i think it is more mourning the loss of are cut, cap and balance. i have gotten past it now. i am focused on what we can do

to solve this problem. what we can do is pass a bill in the house that will include elements of cut, cap and of why reid eded and raise the debt ceiling. better yet, to change the trajectory of spending in the country over ten years. all of that is in the bill. >> congresswoman, what do you think about what john boehner is saying today to his people to get your butts in line? >> i don't know if he said that. i will tell you i have a higher comfort level with the bill than yesterday. we had a discussion last night of the mechanics of the bill. we also got a score from cbo. that is a financial analysis of the bill. it told us we still needed to tweak it a bit. the speaker is tweaking it. it does what we intend it will do. those two movements have taken me from the undecided column to

the leaning yes column when it comes to voting on the bill in the house. >> congresswoman, thank you for your time. is there a teen suicide epidemic in minnesota? it is blaming the school's policies. and the tragedy in oslo. is the man a terrorist?

welcome back. it is a mental health crisis. it is now under federal investigation in minnesota. nine teens openly gay or perceived as take in as we

talk about the one district. the district is denying any role in the bullying or the suicides. when we look at it from the aspect of parents and the people that are living through this, i want you to take a listen to what one mom whose son committed suicide said this week. >> teachers don't speak one way or the other. often times bullying gets overlooked. staff know about it. they don't intervene. when things are reported, there is no follow through on it. i found out after justin died that according to one of his

friends, he, according to a counselor in the school, he was at the top of her worry list. i never got a phone call. >> david, do you believe the school district's policies and the one that is referred to as "no homo promo" and that is the cause for the spike in the suicides there? >> absolutely, thomas. it is an unfortunate situation we are seeing in the country and certainly needs to be addressed. >> david, it is important to point out there are eight other states limited to instruction on homosexuality. this is a map that limits instruction on homosexuality. alabama and arizona and also in louisiana and mississippi, south carolina, utah. when we think about this and see what is going on in these states, what are you hearing from your colleagues about similar rises in bullying and suicides in those areas?

>> it is an issue that needs to be addressed in the country. there are individuals addressing this topic. it needs to change. youth in our schools should be able to be provided with a safe place. if they are feeling isolated or alone or in crisis, they should be able to have the resources in those schools to reach out and to be able to have those conversations whether it is with a counselor or teacher or administration. >> david, critics say minnesota school policy on homosexuality has been pushed by conservative religious groups. one letter was, "open your eyes, people, parents, do you really want your children attending a

gsa where homosexual behavior is affirmed?" david, i can only imagine what it is like for an lgbt youth to hear that. what can a trevor project do for students and parents in the district? >> thomas, it is a great question. this is a harmful message for the youth to be hearing. particularly in our schools. you know, we at the trevor project are there around the clock with a number of programs. the trevor lifeline is a 24/7 lifeline that youth can reach out. if they are feeling alone or isolated, they can speak to someone on the other end that is a trained counselor. we, at the trevor project, have workshops like our lifeguard workshop that addresses suicide

prevention which is being presented and discussed across the country in many school districts. in fact, in the school district area in the county that you are talking about, we made numerous attempts to make ourselves available to the superintendent to the district to put those workshops into the schools. we have been denied that conversation. we have been in that area with other schools whether it be public or private instituting the workshops to help the teachers and help educate the school systems that are really in need to provide services for your youth and families. >> this is congresswoman michele bachmann's district. she hasn't commented on these cases that have been happening at her alma mater high school. do you think politics is playing too much a risk here when it comes to saving at-risk youth?

>> politics plays a role, but at the end of the day, we are all human beings. michele bachmann has a voice. she can use that voice with a powerful message. how she chooses to use that voice to this point has not made change in the school district. there are many great voices to help create that change. michele is one individual that can make that happen. you know, we talk on a consistent basis with many politicians across the country and walk the halls of the congress and senate. we talked to both sides of the aisle. democrat and republican. everyone wants our youth to feel safe and have the educational programs to help school systems across this country. why this school system doesn't want that is a big question. that needs to change. >> david mcfarland from the trevor project. thanks for your time. i want to pass along to everyone out there, if you or someone is

feeling bullied or at risk of suicide for anyone across the board. it doesn't matter if you are part of the lgbt community. you can call the trevor project lifeline at 866-488-7386. this lifeline is free and confidential. here is an amazing statistic. half of all new jobs since the recession added has been added in one state alone. the state's governor might consider using this employment boost to help his run for the white house. there is the man himself. [ male announcer ] this...is the network -- a network of possibilities. in here, the planned combination of at&t and t-mobile would deliver our next generation mobile broadband experience to 55 million more americans, many in small towns and rural communities, giving them a new choice. we'll deliver better service,

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different continental airlines flights were canceled because pilots were calling in sick. they did not name the specific cancellations, but they were out of the new york area primarily. there were three primary hubs in new york with laguardia and jfk. it operates 3,000 flights daily. 21 continental airline flights canceled because of the pilots calling in sick. we will see if we can get more details for you. the debt crisis is consuming washington right now. the major issue is how to generate jobs. the nation is up 524,000 jobs. half of those are in texas alone. rick perry would put that employment boom front and center in his campaign if he decides to run for president.

wayne slater is a writer for the dallas morning news. he joins me this morning to talk more about this. it is good to have you on. i want to get straight to it. why has there been so much job growth consistently within the state of texas alone? >> those numbers are indisputable. it depends if it is half or 40% in the last two years. it has been in texas. it is the energy industry. energy costs are up. a lot of energy businesses in texas. it is a sun belt state. it is proximity to mexico. it has a business-friendly climate with taxes and low wages for business whose want to move here. >> wayne, a lot of companies flocking to texas because it has no state income tax and lower cost of living than other states. how much credit can rick perry take for this?

>> we have a saying among texas bird hunters. you shoot at everything that flies and claim everything that falls. it shouldn't be a surprise that the governor is claiming a lot of credit for good news in texas in terms of the economy. to some extent, he shares some responsibility or credit. that is he steered a fairly conservative line with respect to avoiding tax increases, if he can. camping down regulation against business. pushing for limits on lawsuits against business. all of these are important to firms. he has also given out a lot of taxpayer money to businesses that will move here or expand here. actually, if you look at that, that is a program that i think -- that is the kind of thing republicans are criticizing barack obama for. nevertheless, that is part of the equation. job growth in texas in the last decade while rick perry has been

governor has been the same in terms of percentage as it was under george bush and ann richardson. the longstanding tax system is the message that other people can look at for why texas over the long haul and not just rick perry. it has brought good news here. >> the energy and the sun belt. wayne slater, thank you. here are other headlines. federal officials say there is not enough evidence to show dust and debris from the 9/11 attacks may have caused cancer. the news upset ground zero workers and nearby residents who have cancer. the findings mean that as of now those victims do not qualify for the federal benefits to treat or compensate them for illnesses. the lockerbie bomber convicted of killing 270 people

over scotland more than 22 years ago appeared at a rally in support of moammar gadhafi. take a look. you see him there. the former libyan intelligence agents abdel al-megrahi was released from prison in 2009. and a rescue from the rains in south korea. many of the people killed in the landslide were college students doing volunteer work. police are warning female shoppers to be on the lookout in the washington d.c. area and northern virginia area. police are searching for a man making sneak attacks in area shopping malls. his target? their back sides. the man's m.o. is to create a diversion before slashing with a box cutter. these attacks started in

february. the woman known as the jay walking mom was convicted in connection with the death of her 4-year-old son. she faced up to three years in prison. the judge in the case gave her the choice of community service and one year of probation or to go to trial once again. >> we are weighing our options right now. there is a part of me that doesn't want to go through it again. by the same token, i said if i did it once, if that is the greater purpose, i will do it again. >> she has 30 days to exercise her right for a new trial if she wants to clear her record. stocks are not faring too well today as the what if scenarios are around us. red arrows across the board. we will talk with ezra kline next.

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welcome back. i'm thomas roberts. fast moving developments on capitol hill. the democrats are making it clear that the republican deal is a non-starting to compromise. >> they ought to scrap the boehner plan. it is not getting any democratic votes in the house. they are having trouble getting republican votes in the house. it is dead on arrival in the senate. the boehner model is not going anywhere. this idea that speaker boehner has to please the 80 most right wing people in his house caucus before he does anything is a formula for paralysis and failure. >> we have california senator barbara boxer joining us. >> good morning. >> explain to us in your estimation, who will bridge this gap? both sides say the other party's plan has no chance of reaching

the president's desk. the patience of the american people is running very thin. >> let me say this, the american people want a true compromise. the good news that i bring to your viewers today is that harry reid's plan is that compromise. this is not rhetoric. let me explain why. the republicans said they wanted no revenues and deep cuts. harry reid does that. we went for a score from cbo. john boehner's bill gets us $850 billion worth of cuts. the reid plan is over $2 trillion. deep cuts, no revenues. for the democrats out there, we save medicare and social security. we are not reducing any benefits. we put that off to a commission to make sure that if we do any changes, it strengthens those programs into the future. then finally, for people who were totally fed up with the

brinksmanship and holds us hostage, we get us past the election. we get time to get back to job creation and all of the work we have to do. it is right there in front of our noses. everybody wins with the reid plan. i hope saner heads prevail. >> listen to this. take a listen. >> if that's what lands on his desk, a short-term lifting of the ceiling, the debt ceiling, he should put it on his desk next to an executive order. he should sign an executive order invoking the 14th amendment to this issue. >> senator, do you think that is a realistic option and possibly a better move for the president than accepting a republican-led

deal? >> he is not going to get the boehner bill. it is dead on arrirrivaarrival. we will not hold the country hostage to the tea party. those folks over there, about 80 of them, and more of the republicans, they pledge to grover norquist. i urge everybody to get the constitution and read it. it says the debts of the united states shall not be questioned. i put my hand on a bible and i swore allegiance to the constitution. the republicans voted for the debts when they voted for tax cuts and two wars on the credit card. the prescription drug benefit. if they don't want to stand up and they want to make this a

dead-beat country? we should not allow it. >> senator, when do you think a deal should come through? we are looming on the august 2nd deadline. it really is going to have an affect on all people if we go into default. not how we are observed by the rest of the world, but trickling down to average americans. >> i can't control what every one of my colleagues does. i can say that every democratic senator that i spoken to about this says that default is not an option. that is why they are getting behind the reid bill. there is lots in there that they don't like. deep cuts that they think are important. we have shown our willingness to compromise. i cannot predict what the tea party is going to do now. if they back boehner or not. i don't know.

i can only tell you i'm striving to get this done. i think the republicans in the senate who have shown a willingness to work with us, for example, the gang of six is one exam ple of that, should come t the table with harry reid. this is a man who will listen and put together an agreement. they should come to the table and let the senate of the united states lead us out of this. otherwise it is the president that has to look at other options. we cannot allow this country to default the greatest nation in the world. it is an unthinkable thought and it would result in more debt because as interest rates go up and u.s. bonds, we have to pay more interest. it will cost taxpayers more. this is ridiculous. people should grow up and understand. in this world, you don't get every thing you want. you must give up something. this is the message that i have for my republican friends. >> the sign of a compromise is

everyone walking away disgru disgruntled, but you get the job done. thanks for your time. the government has extra cash to pay bills beyond the august 2nd deadline. the government will have enough money leftover in its wallet to avoid defaults on debts until august 10th. joining me now is ezra kline. give us the real deal about the deadline because if we are learning there is more cash in the wallet, isn't that putting off the inevitable? >> it is not the cash in the wallet, but the schedules and revenue. august 2nd is an estimate. we might find the market freaks out on july 29th. if we don't have a deal by then and tip over, the markets will

panic and we will not pay our bills and terrible things will happen to the economy. i don't take a lot of comfort in the report. it will give people a sense of complacency. >> what is the willingness to get this done? >> there is no inability to a downgrade. if congress passes a debt deal, it is unlikely that s&p will downgrade us. this gets to how badly we have mishandled this in washington and how much the republican caucus comes with a cost. s&p did not think we needed anything for the next three-to-five years. it is watching congress fumble to say they get something done and they get more worried and

applying a stringent test to the credit rating than in october of last year. >> it is a run away train. ezra klein, good to see you. the man behind the deadly attacks in norway can be called a terrorist, but is he a christian terrorist? why some take issue with that label. t meows ] ♪ [ whistles ] ♪ [ cat meows ] ♪ [ ting! ] [ male announcer ] travelers can help you protect the things you care about and save money with multi-policy discounts. are you getting the coverage you need and the discounts you deserve? for an agent or quote, call 800-my-coverage or visit travelers.com. somewhere in america, there's a doctor who can peer into the future. there's a nurse who can access in an instant every patient's past.

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welcome back. u.s. counterterrorism officials believe al qaeda is on the ropes. the cia and other agencies say the terror organization is on the brink of collapse. officials caution al qaeda could rebound in the threat of terrorism still persists, especially with the growing trend of lone-wolf attacks. norway is on high alert following the bomb attack on friday and shooting spree in oslo. the city evacuate td the railwa

station today after abandoned suitcase which was a false alarm. what led anders breivik to kill because of the hatred? sally quinn addressed this on her washington post column. sally, it is good to have you on with us this morning. some have been reluctant to talk about the motivations over what led this man to kill. you make sure religion is talked about here. >> the man is clearly an islamaphobe and the christian crusade to rid europe of muslims. so, he calls himself a christian on his facebook page. he refers a number of times in his manifesto to the lord, jesus

christ. he talks about christians being overwhelmed by muslims and the islam immigrants. the question is do you refer to him as a christian terrorist the way so many refer to terrorists who are muslim as muslim terrorists? you know, you never know whether somebody is acting out of religious motivations or political motivations. for instance, if a palestinian murders a group of israelis, is that out of religious motivation or he wants a palestinian state? we have been quick to categorize all terrorists who are muslim and they are religiously motivated. a lot of christians are angered because they are calling him a

christian terrorist when they are quick to call muslim terrorists muslim terrorists. i think over one billion muslims in the world are looking in horror when people are blowing up people of their faith. i think christians are now looking at this situation and saying well as bill o'reilly said this guy is not a christian because christians are not mass murderers. a true muslim is not a mass murderer either. my point is i just don't think we should identify or label people by their religions unless they actually say i'm doing this out of religious motivation. he did not anymore than a lot of the muslims who commit acts of terrorism. >> sally, it was a great read when we stop to take a moment of what took place in norway and

evaluating what is going on in the world. sally, thanks. as we have been waiting for it this morning, harry reid is taking to the microphones about what is taking place in washington d.c. about whether p washington, d.c. about whether or not a debt deal can be reached. let's listen in. >> i'm doing many interviewers. okay.

>> i really believe it's time for the house republicans to face facts. they're struggling to save a tea party bill. it's not a balanced solution. at tp end of the day, it's a matter of speaker boehner's bill passes or fails the way to resolve this crisis to ignore the extremists and meet in the middle of the road. people ask me, where's the room for compromise? that's what we've done. we have compromised. the senate bill was written to take care of the problems the democrats said they had and republicans said they had. it meets our goals to protect social security and medicare. it's a good piece of legislation. it's a compromise. it also satisfies the two major demands republicans have made. it doesn't contain revenues in the amount of cuts meets the length of the debt ceiling that we're trying to increase.

we feel comfortable with the score that we got from cbo. i know there are a number of questions with that to extend the debt for the time that we need. we need $2.4 trillion. also understand that with cbo we always give them something to look at. and rarely do -- the first run through what we wind up with. for us to arrive at $2.4 is fairly easy to do. it's what we called tweaking it. it can be done fairly easily. we'll continue to add savings to increase the number of total savings if necessary. and we're confident the final bill will meet our bottom line raising our debt ceiling through the end of 2012. the bottom line though is this, there's only one bill in congress that is a true compromise. we're running out of time. it's time to get serious about finding that compromise.

>> thank you, senator reid. speaker boehner spoke to the american people on monday night with the president. he said he had a plan. the next day, tuesday, his plan was downgraded. downgraded by the ratings agencies that said a short-term extension of the debt will endanger the american economy. it will cause us to lead to a downgrade oour credit report and an upgrade in interest rates at exactly the wrong moment in history. the boehner plan was downgraded by cbo and worst of all the boehner plan was downgraded by 100 members of the speaker's own caucus. i don't know where they are today. but hope that they would pause and reflect on where our nation is today. we are six days away from our deadline. six days away from the first default or our debt ceiling in the history of the united states at one of the most important economic moments that we've seen in recent times. we have a proposal here.

it's one that the republicans know well. it includes spending cuts that they've all supported and voted for. it includes an effort to extend this debt ceiling debate beyond the storm and furry of the next election came campaign and give our economy a chance to get back on its feet. it is a responsible approach. we are urging the republicans now to step back, put their party caucuses aside, put their pledges to grover norquist aside. put their caucus pledges to one congressman or the other aside and put this country first. we've got to get busy and roll up our sleeves today and get this job done. . >> well, the speaker's plan is on life support. and it's time for him to pull the plug. we need to move on to other plans that actually have a chance of passing. even if the speaker is able to

beg, borrow and steal his way to 217 republican votes, the bill remains a nonstarter in the senate and the president will never sign it. so the speaker's wasting precious time. every day he spends twisting arms in his caucus we careen closer to catastrophic default. how many times does he have to throw red meat to the extreme right in his caucus to please them. enough already. let's get moving and get something real done. now yesterday in an apparent attempt to rally their caucus, the republicans played a clip from a cops and robbers movie called "the town." in the scene they chose to inspire their house freshmen. one of the crooks gives a pep talk to the other. right before they both put on hockey masks, blue ontwo men with sticks and shoot a man in the leg. literally in the movie, the

protagonists say people are going to get hurt. but they have to go ahead and do it anyway. ladies and gentlemen, this is your house republican majority. >> we've been listening to senator chuck schumer there as well as senator reid and senator durbin talking about this morning what the senate is prepared to do and what they have drafted to put together. senator reid putting it best saying that the house republicans need to face facts. ignore the extremists of the house party and talk about the compromise. in it, they have brought forth what they are saying that is house has asked for which is demanding no new revenues and cutting cuts that would extend the debt ceiling all the way up until the time they need which is the proposal that they're trying to say would take them through the 2012 elections. but offer $2.5 trillion in cuts. we'll know much more in the next hour. contessa brewer is picking things up. for e rybody in an ap class,

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