. >> coming up senator chuck grassley taking on harry reid.senator reid's plan is dishonest i am senator grassley is fired up. tea party -- tea party leader ran paul says if default happens blame it squarely on the president's shoulders. he will tell you why coming up. mine was earned over the south pacific in 1943. vietnam, 1967. i got mine in iraq, 2003. u.s.a.a. autonsurance is often handed down from generation to generation, because it offers a superior level of protection and because u.s.a.a.'s commitment to serve the military, veterans, and their families is without equal. ben your lega. get an auto insurance quote. u.s.a.a. we know what it means to serve. ♪ let me make you smile ♪ let me do a few tricks ♪ some old and then some new tricks ♪ ♪ i'm very versatile ♪ so let me entertain you ♪ and we'll have a real good time ♪ [ male announcer ] with beats audio and flash, you can experience richer music and download movies straight to the new hp touchpad with webos. >> greta: blue smoke and gimmicks a few of choice words senator grassley ha

we'll talk with one of the strongest voices on the scandals, senator chuck grassley of iowa next.over for the east coast but millions of people in the middle of the country are still roasting. a live fox cast for you just ahead. [ jon ] we don't just come up here for the view up in alaska. it's the cleanest, clearest water. we find the best, sweetest crab for red lobster we can find. yeah! [ male announcer ] hurry in to crabfest at red lobster. the only time you can savor three sweet alaskan crab entrees all under $20, like our hearty crab and roasted garlic seafood bake or sn crab and crab butter shrimp. [ jon i wouldn'tut it my table at home, i wouldn't bring it in. my name's jon forsythe, and i sea fd differently. an accident doesn't have to slow you down. with better car replacement, available only from liberty mutual insurance, if your car's totaled, give you the money to buy a car that's one model-year newer... with 15,000 fewer miles on it. there's no other auto insurance product like it. better car replacement, available only from liberty mutual. it's a better policy that

we spoke with chuck grassley a member of the senate budget and finance committees.ice to see you too. >> greta: what do you think of senator reed's proposal and speaker boehner's bill? >> i think speaker boehner has a bill that is going to get good support. i don't know whether he's got the votes entirely yet. secondly, his real reductions, the most important thing about his program is, short term so we get a chance to review this from time to time. i think short term is good for the fiscal responsible of the federal government. when you have to review increasing the debt limit it gives congress more control over where we are going. the reid proposal is blue smoke from this standpoint. that he calaises a great deal of the savings -- he calculates a great deal of the savings from things we know are going to be saved any way. >> greta: a gimmick? >> yeah from this standpoint, safelying we projected we would in the iraq and afghanistan war when we know we are going to be out of there. it is dishonest to say you are going to have savings from something that isn't spent

chairman of the house oversight and government reform committee, darrell issa and also senator chuck grassley angry letter to the attorney general holder writing of melson's testimony: >> sean: that approach distorted the truth and obstructed our investigation. late yesterday an assistant attorney general responded: >> sean: issa has suggested holder knew of the scandal earlier than he admitted to in sworn testimony. joining medical cal congressman, darrell issa. welcome back. >> thanks for having me and covering it. it is almost impossible to believe that everyone, including cbs news and many newspapers and fox had reported on fast and furious. yet eric holder still didn't know anything about it. >> sean: why, for the benefit of our audience this was an idea ill-conceiveed from the beginning. they were gonna follow the guns from the lower level people involved in the cartels, in the hope that this would bring them to the kingpins the leaders of these cartels. tell us about the operation and why you think it was ill-conceived? >> if you are going to follow the guns, you put tracing devices on

iowa senator chuck grassley will join us with more on the investigation.up going on? we'll ask him just ahead. jon: we'll go to the web wall. harris is there with a look at today's must-see moment. harris? >> people are already voting. foxnews.com. go to the homepage and click on jon an jenna's beautiful picture there to take you happ egg now's home -- "happening now"'s homepage. choose what happened that left a elderly woman stuck in the ocean in northern california for 13 hours. the rescue you just have to see it. the next story that you might want to see the video is really amazing. armed police officials and forest rangers standing on the roof of a house to catch a leopard. why? and the third story? i don't know, hey criminal, in that getaway car watch out for that geyser. a whole lot the water. you make the decision so that the rest of us can see the story play out. if it is "happening now", you want to stay right here. >> as you were talking about with william la jeunesse a few minutes ago there is growing chorus of calls for the justice department t

. >> today chuck grassley, senator from iowa, actually admitted the president could use the 14th amendment of the constitution. should he do it, in your opinion? >> i don't think he should. i think congress should hold firm. i think the democrats should hold firm. we should defend social security, we should defend medicare. we shouldn't use a legalistic argument. do we believe the middle class is entitled, when they get to be 65, to access to health care that they can afford? do we believe that if you've worked hard all your life, you should have some help in your retirement when you've paid into social security? >> but you would not advise the president to use his constitutional powers in the 14th amendment to do this? >> i would advise congress to hold firm. i would advise the democrats to hold firm. >> great to have you with us tonight from vermont, peter welch. >>> the fact we're just a couple weeks away from america defaulting on its obligations for the first time ever rested squarely on the back of the republicans, i think. the democratic and republican senate no doubt would sign up

iowa republican senator chuck grassley says the justice department is obstructing the probe in to operationrious. that is the botched a.t.f. gun running scheme that deliberately put more than 2,000 guns in the hands of criminals to be trafficed across the mexican border. >> we're not getting everything that we know that exists. and we aren't getting answers to questions otherwise. there is stone walling on part of justice department on this. >> bret: we'll continue to follow that story. debt talks at the white house are back on. but is the gang of six plan already getting killed? we'll discuss that with the fox all-stars when we come back. [ male announcer ] there's more than one of these abandoned racetracks in america today. automotiveerformance is gone. and all we have left are fallen leaves and broken dreams. oh. wait a second. that is a dodge durango. looks like american performance is doing just fine. ♪ carry on. ♪ on our car insurance. great! at progressive, you can compartes side by side, so you get the same coverage, often for less. wow! that is huge! [ disco playing ] and this is

senator chuck grassley from the state of iowa. >> i congratulate you on this subcommittee. when i was the chair in the 1980's, we established a record that was able to help us get a bill passed that has brought $28 billion back into the federal treasury. >> they are big shoes to walk in. >> today's hearing allows us to conduct oversight into it just brought against american taxpayers -- address fraud against american taxpayers. most recently, this committee held a hearing on fraud enforcement efforts. we just received responses to our written questions last night after 5:00 p.m., five months after the questions were submitted. i am glad the justice department was able to get answers to these questions and return them to the committee, it is daunting to get them after 5:00 p.m. the day before the next hearing on the same subject. senator leahy and i introduced introduced a legislation bill to protect taxpayers. in fraudonsia cyst protection. the committee reported the bill by a strong bipartisan voted. the bill addresses important legislative changes. important work remains.

investigation, when acting atf director kenneth nelson met with both chairman issa and senator chuck grassley. and according to that testimony and we're just getting bits and pieces of it -- it is pretty damning of the department of justice and how far this goes, whether it goes to attorney general eric holder is yet to be seen directly. but that's where it looks like it's heading. the big question is, how does this operation work in its best scenario? how do you track it if you're not tracking the guns? like what's the purpose of it? so i think you're going to see a lot more questions soon. >> steve: they got a lot of explaining to do. bret baier, we'll be watching this weekend. >> eric: monday, you going to watch the 5:00 o'clock before your 6:00 o'clock show? >> i sure am. i have a vested interest. >> steve: thank you very much. we got headlines for you on this friday morning. somali terror suspect brought to new york this week to face trial in a civilian court. reportedly has ties to one of america's most wanted. the somali suspect now being linked to this guy, american born al-qaeda lead