charles krauthammer will have analysis. [explosions] >> bill: chaos in libya and now there is debate over president obama did the right thing as far as qaddafi is concerned. we'll analyze that with karl rove. >> a lot of gull libel folks in the united states actually believe what fox puts forward as facts when most of it is just complete distortions. >> and has president obama momp morphed into jimmy carter? the factor begins right now. captions by closed captioning services >> bill: hi, i'm bill o'reilly. thanks for watching us tonight. is president obama really responsible for the bad economy? that is the subject of this evening's talking points memo. last night we had a very lively debate with rodgers and ben stein about president obama's role in a dismal economy. mr. stein believes the president is a positive when it comes to economic matters saying his vision of government stimulus is a good thing. i, of course, disagree and i believe the facts back me up. mr. rogers says the president is a neutral for the economy. tha

charles krauthammer sees a bigger picture here and he joins us now from washington. correct me if i am wrong, but you think that the president and his guys are trying to transform america by using business regulations, correct? >> that's right. the president has never made a secret of his desire to change america. that's what he campaigned on. and that's what he did at the beginning of his presidency. he is already changing radically using legal means through obama care. but, when he doesn't succeed in congress, he goes under the radar. and there are a couple of pretty egregious examples. remember, last year he tried to pass the dream act, which is a pretty significant change in immigration in which if you were brought here by illegal parents as a child, and you meet certain criteria, you are in college or the military, you get a essentially amnesty. now, what's interesting is that the congress, which at the time last year was entirely in the hands of democrats rejected the dream act. so, what does obama do? his department of homeland security issues regulations unde

. >> bill: charles krauthammer on barney frank and other uber liberals refusing to compromise on socialustice spending but cut back on defense. >> bill: caution, you are about to enter the no spin zone. the factor begins right now. captions by closed captioning services >> bill: hi, i'm bill o'reilly. thanks for watching us tonight. collateral damage from the economic chaos. that is the subject of this evening's talking points memo. life is hard, then you die. that's the pessimist view of the human condition. right now in america, perform is running pessimism is running wild because we are living in a complicated dangerous age, our federal government not really protecting us. the primary reason the founding fathers instituted a federal government in the first place rather than a loose con federation of states was to provide protection to americans against foreign invasion, against criminals across state lines, against people who would manipulate the currency and the economy. simply put the federal government's primary duty is to protect you and me. to protect the american people. that's

charles, krauthammer is wrong and you are right, bill. sorry about butchering your name. illinois. just received my shirt for becoming a premium member. my son wants a pinheads and patriots shirt. this is fun. for us, gary, because you and thousands of others become premium members and buy stuff, we are able to give close to a million dollars to charity this year. david, san antonio, texas, bill we watch "the factor" in the galapagos islands. i want to know go there. brian neal, vacaville, california, saw "the factor" at the golden tulip inn in amsterdam, holland. another, watch you from a small town in northern thailand. appreciate all of you writing to us from all over the world. finally tonight, jon stewart traveled to afghanistan to meet the troops over there. stewart well understands the sacrifice of our military people overseas. >> the patience they display, the tenacity they display and competence they splay are astonishing, and they're doing it on a surface that at times resembles what i assume to be venus. so i cannot thank you all enough. you're amazing people.

megyn: up next, does krauthammer have a point?e'll have a fair and balanced debate. >>> and breaking news on this woman, vanishing from the same aruba resort town as natalee holloway. now the desperate search underway to find her. >>> and some shocking scenes unfolding in the london with new reports of rioters forcing people to strip naked in the streets. why? stunning new images coming in as thousands of british police scramble now to stop the mounting violence. a lot of people think fiber can do one thing and one thing only, and those people are what i like to call wrong. take metamucil. sure it helps you keep regular, but it doesn't stop there. metamucil is the only leading fiber supplement with psyllium, which gels to help remove waste and reduce cholesterol. it can multi-multitask. it's so 2012. look at it! it's doing over a million different things right now. metamucil. ask more of your fiber. how'd you learn to do that? what'd you use? every project we finish comes with a story built-in. it's how our rough ideas become "you

and sindcated columnist charles krauthammer.said you know it's a big night of importance when the panel expands. >> absolutely. all of america trembles. if there is a fifth, it's the apocalypse. >> bret: your thoughts? >> i think since the boehner proposal passed in the house thursday night after all the craziness it was clear we would not have a default. we would have an agreement. we now have it no question it passes in the two houses. it gets signed in a week we worry what the insanity was about. i don't think there was a tremendously high chance of default or breaching the debt ceiling. once boehner had control of his house, it was a done deal. i expect that in an hour it will be done in the house. interesting to see how many republicans will go against the leadership, how many democrats will oppose it on the left. there will be a tradeoff. either side wants to protect its wing and we'll see how it works out. >> bret: a.b., explain it for people at home. the republicans are telling the democrats we really need you here, beca

>> charles krauthammer has some thoughts. >> i tell people, i say one of the quick ways you can tell the difference is, you know, he's a yale graduate and i'm a texas a&m graduate. >> there doesn't seem to be any love loss between texas governor rick perry and former president bush. karl rove will be here to set the record straight. they picked a successor to usama bin laden. guess what, he was blown up by an american drone. >> and are al-qaida terrorists on a jihad to hurt david letterman? geraldo is investigating. >> caution, you are about to enter the no spin zone. "the factor" begins right now. >> hi, everybody. i am monica crowley in tonight for bill o'reilly. thank you so much for watching us. let's get right to our top story. another awful week for the american economy. today, the dow dropped another 170 points losing more than 14% for the month. to make matters worse, citigroup and j.p. morgan chase slashed their growth outlook for the u.s.a. so it doesn't look like the economy is going to be turning around any time soon. you may remember that more than a year ago, the obama

krauthammer's assessment of the wisdom and the urgency of this memorial. >> i think it does make him look like chairman mao. everybody agrees that he should have no moral, but i think he could have had a better one -- it had a morial, but i think he could have had a better one . >> the children of dr. king picked that. o> i don't need to get int what he looks like it is a reminder for me -- the "i have a dream" speech did not create an a-ha moment in the south. it underscores the problem that we face that and we face now. >> last word. see you next week. for a transcript of this broadcast, log on to insidewashington.tv. now he tells us. how far am i off the floor? about twelve inches. twelve whole inches?

krauthammer, so i don't want to -- >> i backed you on fox. >> what a privilege, and i thank you, charles. one of the disturbing think this week is senator mcconnell, who played a useful role, said that the way work is a template for congresses to come. >> what happens when congress returns from its well earned vacation, mark? >> evan's optimism about tax reform -- it is that interest groups, it is and lobbyists. it is money -- it is not interest groups, it is not lobbyists. it is money. money that they put into the political system. we now have an unlimited money in the political system. if you think you are going to get tax reform without in some way it clearing up the money -- >> there was no money in politics in 1986? >> there was a lot less money in politics, and ronald reagan ran at three times president and every time he did, he ran by the limits of individual expenditures and individual contributions. >> obama ran -- >> he ran socialize campaigns, charles, and it worked. >> obama is the one -- >> changed -- >> pledged to live within the limits, and blew them up because he would ge

syndicated columnist, charles krauthammer. steve, start with you. today the white house seemed to be trying to get its footing here after a good day on wall street yesterday. and then just got wallloped by another horrible roller coaster at the end of the day. >> i'm not sure today, i think consensus is that today's performance on wall street had much more to do with things that were happening overseas with rumors about french banks and whatnot. still, not a good day for the white house, never a good day for the white house when the dow goes down anything like it was. i found most remarkable, jay carney press briefing they are emphasizing a, quote/unquote, balanced approach, which everybody understands to be raising taxes. now the president himself has said in the past repeatedly, raising taxes in a recession is the last thing you want to do. you can't consider it. it would hurt the economy and suck demand out of the economy is the way he put it. here today, you have the president in what is an economic downturn, distressed economy. his smokesman ag

and charles krauthammer. >> my main thought is what the president said is unbelievable.t clip we just heard, he is saying that the debate over the debt ceiling the threat of default royaled the market. two 500-point drop after the debate ended, after the threat of the debt ceiling not raised resolved, it make sense that market hold up fine in the debate and collapse afterwards? i don't think so. the markets are collapsing because we didn't do anything about the debt not because we have a debate over the debt ceiling. it's pathetic that the president said we have a raucous debate in congress. the debate was resolved. signed the bill. a week ago he said it was progress. we collapsed since then? the rating agency said we have not made progress since dealing with our debt. >> juan? >> the royal waters convince people quality of the political leadership is not up to the challenge. the challenge increased in terms of the threat that we face overseas, particularly the idea of italy and spain with the major crisis. the notion of investor confidence slipped off the table. i don't

joining us from reaction is fox news political analyst charles krauthammer who himself has criticized the tea party but did not call them terrorists. the coordinated annual at this tea party effort is interesting here, charles, is it it not? >> well, it certainly is a spitting and sputtering of people who are been deeply defeated. i mean, they were routed. they were up against a small minority of one house of 1/3 of the congress and they got -- they lost everything. they got routed. look, this was their henry the fifth out numbered by the french three to 1 option, liberals hold senate, white house and media. leaking and pair rodding the white house line all the way through and they still got defeated. i think this is a pathetic response, if you have no ampleght, what do you do? you add whom nipples, attack homonyms. i don't think these people have the wherewithal to orchestrate a three car motorcade. >> bill: here is what i think happened. >> the reasonable for the repetition is lack of intelligence and lack of originality. people who are slothful. >> bill: here is what what we are he

. >> we'll get to krauthammer later. >> i want to get krauthammer in. >> i want to get david axelrod.at charles ca krauthammer says. the system works, the conventional complaint is that the process was ugly. big deal. you want beauty? go to a museum -- and get off my lawn. i love him. >> is he holding a gun. >> democratic politics was never meant to be an exercise in aesthetics, not just ugly, moan the critics, but oh so slow. true again. without this long ugly process the debt issue wouldn't even be on the table. we'd still be whistling our way to greece. instead a nation staring at insolvency is steering itself to action and not without spirited opposition. great issues are being decided, constitutionally designed. the process is working. i love clarls kraut hammer. >> live from iowa, david axelrod and willy's week in review. >> this is kiss by the way. every day, all around the world, energy is being produced to power our lives. while energy developement comes with some risk, north america's natural gas producers are committed to safely and responsibly providing decades of cleaner

krauthammer comes out and says, why are we waiting until september?we have to wait until now at all? >> i think the president is right that these guys need to be back in their district and actually feeling the pain that their constituents are feeling right now. this congress has been unwilling to do anything to create jobs and help this economy. all they think that they have to do is cut the deficit, which makes no sense right now. sure, it's a problem, it's something that needs to be fixed long term, but right now we need jobs in this country and focusing on the debt ceiling as they did and holding it hostage was not going to do that. the president is going to make proposals in september, the do nothing tea party terrorists in the house of representatives are going to reject it and we'll be back to where we were. megyn: here comes the terrorist rhetoric, which by the way we have a segment on in one hour: let me ask you this. lars. the president has come out and said, this is more and more on the record to media, that he's going to send the jobs packa

and syndicated columnist charles krauthammer. what about this action, charles?> i thought the late-day rally that we saw probably started around 3:00, when the president would not address the country, cheering and thrown in the air. general international exuberance. that is an attempt at satire. trying to get a chuckle. >> bret: i figured i'd let you go. >> you have to explain yourself, it's -- >> bret: the crickets were chirping. okay. >> i guess i wasn't cut out for that. the real story is what happened around 2:00. the man who really runs america, chairman of the federal reserve said for two years, keep interest rates low. normally, the chairman will say words like indefinitely, or for a while. they'll use the obscure words. but he was extremely specific. this is a contrast from the predecessor. he spoke in language that was so opaque and obscure you think you were listening to distinct himalayandy lecht. this ilecht -- himalayan dialect. he said two years so at a time when there is uncertainty about tax and regulation, all caused by the administration and th

stoddard from the hill newspaper and syndicated columnist charles krauthammer.s for july were better than expected. put them on the screen. 117,000 jobs created. and the unemployment rate went down from 9.2% to 9.1%. after a 500 hof point drop in the dow jones yesterday it went up 61 points today. question, are our troubles over? >> no. i think the best way to think about the statistics on this, we lost 200,000 people leave the job market entirely, which is why unemployment rate went down. the way to think about it is imagine that president obama says the rate is improving but what is really happennal we're running faster on a treadmill and the tre mill is moving faster the other direction. so it's really pulling us back in what we feel like we're making some progress in the last 12 months, we lost 300,000 net jobs -- 300,000 jobs from the economy. 1.8 million able-body people have entered what should be the labor force, population that should be the labor force. the economy is simply getting worse when it comes to the major indicators, because spreading water i

sindcated columnist, charles krauthammer.l thoughts about the whole whatever it is we watched in the past couple of weeks. >> well, call me crazy. but i'm willing to say the cup half full. my reasoning is we have gone through a brutal debate. it did end in a compromise. the debt ceiling meltdown scenario got avoided. the debate sharpened and crystallized. it had pep traited the country's consciousness, the public is really focused on the nation's financial conditions in a really serious way. there were endless antics in washington, but the issue is squarely confronting the country in a healthy way. >> bret: steve, late today, moody's came out and reaffirmed the government triple-a credit rating but gave at it negative outlook. one of the concern was the joint committee that the bill sets up. here is a quote. while the combination of the congressional committee process and the automatic triggers provides a mechmism to induce fiscal discipline -- this is actually not the quote. "attempts at fiscal rules in the past have not alw

susan paicio for examiner and syndicated columnist charles krauthammer.d what precipitated it. >> all of us like to think this is all about washington. this is not about washington. there are two factors here. the less important of the two is the u.s. economy. what is slowing. we had bad consumer spending. added to that, terrible revision of gross domestic product. instead of growing at 2%, perhaps 3%. the first half of the year the economy expanded at .9%, which means it's flat. which means the economy has completely stalled. the estimate is a 1 to 3 chance of second recession. that is number one. that yad is afraid of worldwide slowdown is reflected in the oil. if it anticipates a slowdown, it goes down. down by 6% today. that is the first factor, the second one more importantly is the panic in europe over the status of spain and italy. this is not a greece or ireland. which is, you know, kindergarten. italy is too big to bail. eighth largest economy in the world. the prime minister did not tell us wednesday, they thought he'd announce austerity measure

nobody is so conservative as the editorial page and krauthammer. i would like the republicans who voted against the debt ceiling to explain themselves. >> this is a satisfying experience. they're flat earthers. they believe that the debt ceiling is meaningless and all of this talk about apocalypse and catastrophe and the damage, that's not true. that's what they say. >> wait a second. >> tim geithner is lying. this means nothing. >> are you saying -- are you saying that they're taking the same exact position as paul krugman who's a flat earther this morning saying just let it go. >> anybody who said default wouldn't be terrible for this country is out of his mind. >> were you surprised that he didn't let the vote go through? >> i'm only not surprised because he's tended to head in that general direction for a while now. >> nobel prize winner willie geist saying, oh, just vote against it. we didn't know what was going to happen if we default. seriously. that's -- he and michelle bachmann should have a party. >> this is america. >> he's from the prog

charles krauthammer pounding this home on "special report" saying dirty little secret is the presidentout of options. he's tried things. he's out of options. >> the key there, though, is the fact that the president had a gigantic stimulus, remember about a year ago, close to a trillion dollars. and it was the wrong thing to do. he farmed it out to congress, he said ok, i'm going to get a stimulus. nancy pelosi, harry reid, what should we do with the money? and it became a pork project and a whole bunch of jobs wound up costing $200,000 a copy and now fast forward to today and we are in a pickle. >> he would do the same thing. if the house was not controlled by the republicans right now, he would already have been asking for stimulus, too. this has to do with ideology, the difference between how the democrats feel that the economy will be stimulated and how republicans will feel totally different. here will be my suggestion. why doesn't the president go to wisconsin, ohio and texas and ask the three governors and govern those states how they have managed to create jobs in the last six m

signs of dysfunction are all around us, most immediately was the dreadful experience that charles krauthammer has seen as a sign that the american system is working but everyone else sees as truly an embarrassment. a matter of great seriousness and potential damage, but of utterly unnecessary and i'm talking, of course, the hostage-taking of the debt ceiling increase and that was planned earlier used in a way that it has never been used before. forcing -- it was hoped a set of changes, but in the end produced a paltry payoff that left most observers sickened by the risks that were taken on. and very much unimpressed by the results came from it. and you put that together with sluggish growth, high unemployment, projected increase in the debt to gdp ratio and the fact that no action on any of these matters is likely to occur before the 2012 election and it's not clear how things will get themselves resolved afterward. the s&p downgrade was part of this although i think the global rush to treasuries remind all of us that s&p is likely to suffer a greater downgrade than the u.s. i think underlyin

plus, charles krauthammer accusing president obama of failing to lead on the debt crisis calling hisemarks yesterday weak and small. is that fair? we'll discuss it. and the criminal case is reportedly falling apart against dominique strauss-kahn, but the maid who says he sexually assaulted her in his hotel room just filed a whopper of a civil suit. why now? kelly's court back in session. see you top of the one. jon: rick folbaum has been keeping an eye on your communications to us, lots of great messages in to us today. he shared some of them with you before and has a couple more for us. >> reporter: busy chat room. jon: yeah. they're on fire. >> reporter: especially a couple of comments particularly aimed at the idea of foreign aid. jon: jim angle did that story about foreign aid to places like china. >> reporter: right. renee writes; we're sending money to countries that don't need our assistance. and then there's this comment from nicklaus, why are we allies with pakistan? they hate us. stop aid for all international countries that help lazy people become even more lazy. just a co

thought i'd start on the lightning round about juan williams with charles kuralt -- and charles krauthammer>> every time i give a speech i always start by saying [inaudible] to be anywhere where one williams can't interrupt me. [laughter] [applause] >> and i make faces at you, too. >> the other thing is he has been such a good friend over the years. to say something i've been preparing for years to say on the air but life been holding back and now i'm going to give it away i'm going to say so much error, so little time. [laughter] [applause] have been waiting half a decade. the one thing i do want to say through all the years even before we ended up together on fox i deeply admire him. he has written and said and spoken things that are not popular in many works and he's done an amazing courage and a lack of future and also [inaudible] [laughter] i want to congratulate you on the books in your friendship and say what an extraordinary man you are. >> thank you. [applause] >> this is a lightning round. on the panel whenever upon is running short on a stick my our mouth like this and that is th

most immediately was the dreadful experience charles krug hammer has seen as a sign -- krauthammer sees as a sign that the american system is working and everybody else sees that it is a true embarrassment. it is a matter of great seriousness and potential damage. utterly unnecessary. i am talking about the hostage taking of the debt ceiling increase that was planned a year earlier. used in a way that it has never been before. it was hoped to force a set of changes, but in a en thed, produced -- in the end, produced a paltry payoff that left onlookers sickened by the result that was left. you put that together with sluggish growth, high unemployment, projected increase in the debt to gdp ratio and no action on any of these matters is likely to occur before the 2012 election and it is not clear how things will get themselves resolved afterward. the s&p downgrade was part of this. the global rush to treasurys reminded us that s&p is likely to suffer a greater downgrade them the u.s. underlying these specific things are two widespread views about the craziness afoot in america. the first t

most immediately was the dreadful experience that charles krauthammer has seen as a sign that the americanystem is working but everyone else sees as truly an embarrassment, a matter of great seriousness and potential damage, but of utterly unnecessary. i'm talking of course, about the hostage taking of the debt ceiling ing crease. that was planned a year earlier, used in a way that it never has been before, forcing, it was hoped, a set of changes, but in the end produced a paltry payoff that left most observers sickened by the risks that were taken on and very much unimpressed by the results that came from it. you put that together with sluggish growth and high unemployment, projected increase in the debt to g.d.p. ratio and the fact that no action on any of these matters is likely to occur before the 2012 election, and it's not clear how things will get themselves resolved afterward. the s&p downgrade was part of this, although i think the global rush to treasuries remind all of us that s&p is likely to suffer a greater downgrade than the u.s. i think underlying these specific things are

charles krauthammer had this analysis on that. >> i think they say, maybe we picked the wrong candidatee just have a lousy leader, a guy who had no experience, a guy who was a flash in the pan, gave a good speech, but never ran a candy store. that's one argument. the ideology is right, but the leadership is wrong. >> steve: that is the same sentiment echoed on a number of editorial pages where they're going, we picked the wrong guy. the people are saying that we should have picked hilly. >> peter: you see maureen dodd who says he doesn't lead and he doesn't understand why we don't feel led. that's an incredible condemnation from her. >> steve: let's see what's going on in california, in santa clara county, apparently the housing authority obviously -- as we run the animation. that's how they're spending our money. the housing authority is charged with trying to find houses for people who simply don't have any place to live. $16 million in the kitty and rather than spend the money to find homes for people, they took that money to bolster their employees' retirement benefits. apparently t

host: columnist charles krauthammer writes about the super committee. he believes it can be a success. he concludes, "the result of such a grand bargain would be debt reduction on a scale never seen. world confidence in the economy would rise dramatically. we would be on the road to national solvency. could be done in three months. in three stages." is there any experience at the committee operate on this short a framework? guest: that is a good question. i'm having a hard time coming up with a committee that has been given such a short deadline. not to say that members are not always under the gun, given the annual budget an annual spending process. but it is a rather large charge here for this committee. again, as you said, there are plans on the shelf so they are not starting from scratch. certainly, the time constraints here are going to keep pressure on members not to deadlock so easily. host: many have their own staff they have to hire. the time frame does not seem to leave enough time for them brought out with the administrative part of this be s

host: columnist charles krauthammer writes about the super committee. he believes it can be a success. he concludes, "the result of such a grand bargain would be debt reduction on a scale never seen. world coidence in the economy would rise dramatically. we would be on the road to national solvency. could be done in three months. in three stages." is there any experience at the committee operate on this short a framework? guest: that is a good question. i'm having a hard time coming up with a committee that has been given such a short deadline. not to say that members are not always under the gun, given the annual budget an annual spending process. but it is a rather large charge here for this committee. again, as you said, there are plans on the shelf so they are not starting from scratch. certainly, the time constraints here are going to keep pressure on members not to deadlock so easily. host: many have their own staff they have to hire. the time frame does not seem to leave enough time for them brght out with the administrative part of this be struc