tv Lou Dobbs Tonight FOX Business September 18, 2012 7:00pm-8:00pm EDT
fair to act like grownups. that is my two cents more. that is it for tonight's "willis report". don't forget to dvr the show if you can't catch us live. have a great night. catch us back here tomorrow. lou: good evening, everybody. i'm lou dobbs. anti-american rage and violence still spreading across the muslim world tonight. more than 500 angry muslims forcing the u.s. embassy in bangkok, thailand to shut down today. protesters there, excuse me, shouting, death to america, demanding the u.s. government apologize for the anti-muhammad movie produced on american soil. in indonesia violent mobs hurling rocks and molotov
cocktails at the american embassy. 11 police officers there were hospitalized after being pelted with rocks and bamboo sticks. in kashmir, thouss turned out. they burned government vehicles. american and is rally flags and burned in effigy, president obama. all the while calling for complete shutdown of all businesses and government offices. in afghanistan a suicide bomber killing at least 12 people after debt it thatting a car filled with explosives, next to a bus full of foreigners. afghan insurgent group claimed responsibility for that attack calling it a response to the anti-islam online video. the u.s. military suspending most joint field operations with afghan forces. that after a number of insider attacks by the very men our forces are there to train. afghan soldiers killing 51 nato troops this year alone, more than the past two years
combined. meanwhile the united states government backing away from the spontaneous attack description by the administration's spokesmen and spokespersons over the past week about events in libya, events that led to the murder of ambassador christopher stevens and three other americans. fox news has confirmed from an intelligence source on the ground in benghazi that there was no significant or sizable demonstration of any kind in benghazi when the attacks on the consulate were launched. the white house has now apparently decided that the investigation may well lead to a different conclusion than the one the administration has been so certain about for almost a week. >> what i can tell you that we have provided information about what we believe was the precipitating cause of the protests and the
violence based on the information that we have had available. there is an ongoing investigation. the fbi is investigating and, that investigation will follow the facts wherever they lead. lou: the libyan government, an intelligence source in benghazi, eyewitnesses in benghazi, pointing to a preplanned, well-organized and coordinated strike that the obama administration still refuses to call a terrorist attack. we'll take up all of those issues here tonight. we begin with the author of, spring fever, the illusion of islamic democracy. the author is former federal prosecutor, andrew mccarthy. also tonight, chicago teachers voting to end their strike and return to work. did mayor emanuel cave in to their demand or did he stand strong? was he a stooge for the unions or is he chicago's
new scott walker? former new york city schools chancellor joel klein joins us. the national liberal media has a hard time at times with the truth. is that why they are hammering governor romney? we'll take that up in the chalk talk tonight. for more on the white house's evolving narrative as they like to say in the murder of four american citizens in unprotected, unsecured and unprotected consulate and safe house in benghazi, we go to white house correspondent ed henry with our report. >> with anti-american riots raging in thailand and pakistan, fresh questions for president obama about whether his administration ignored or missed warnings from libyan officials they were having trouble controlling violence in benghazi before four americans were killed at the u.s. consulate? >> did the administration have any sort of heads up that violence was increasing
in libya before the attack? >> i'm not aware of ed. this matter is under investigation that precipitated the attacks, what motivation the attacks were, what role the video played in that. >> intelligence sources told fox's catherine herridge before the attack the cia assessed eastern libya was deteriorating because of four prior attacks on diplomatic and western targets. and today, carney seemed to backpedal ever so slightly from ambassador susan rice's sunday declaration was the violence in libya was a spontaneous reaction to the controversial anti-muslim film. >> the best assessment we have today, that in fact this was not a preplanned, premeditated attack. >> while carney did stand behind the video being a key factor he opened the door to other possibilities being uncovered during the fbi investigation. >> the cause and motivation behind them will be decided by that investigation. there are other factors involved in the violence that ensued.
new. >> new question as well on the fact that september/10 the white house put out a press release saying the president met with senior officials around security posture around the 9/11 anniversary. the release said the president discussed quote, steps taken to protect u.s. persons and facilities abroad. asked if the administration dropped the ball on that promise the following day in libya, carney said numerous security steps were taken and would not directly answer whether security in benghazi was good enough. >> you're not trying to say there was enough security in benghazi, are you? >> i'm simply saying this is matter under investigation. this is an absolute tragedy and that we lost four americans. in benghazi, including our ambassador. including security personnel. and there's an active investigation underway to what happened. >> as for specific questions about security measures at u.s. installation, carney referred that to the state department where spokeswoman
victoria nuland today walked back her previous claim that libyan security guard only operated outside the perimeter of the american consulate. >> thank you for that because there was an error in what i said. >> today, she clarified the administration had in fact hired a private security company, blue mountain group, to work inside the perimeter. >> they were hired to provide local libyan guards who operated inside the gate doing things like operating the security access equipment, screening the cars. >> now that is a significant walk-back by the obama administration there because the bottom line is there were allegations that some of those libyan security guards actually turned on the u.s. ambassador, told some of the protesters, the attackers where the ambassador was, what safe house he was in, what area. that may have led to him and the others being killed. that is why it is so
significant now the administration is admitting in fact that the libyan security guards that were there got in as part of the inner sanctum, not just the out area, lou. lou: thank you very much. ed henry, reporting from the white house. our chief white house correspondent. our next guest says the obama administration's insistence that the atrocity in benghazi was the result of spontaneous riot something absurd and the real story of the arab sprung is a movement whose stated goal is to destroy america. joining us now is andrew mccarthy, former justice department attorney who led the successful prosecution against the so-called blind sheikh, abdul rahman, the mastermind of the 1993 world trade center bombing. author of a new ebook out today entitled. congratulations on the book, andrew. are you surprised that the administration is insisting that the murder of a u.s.
ambassador was the result of a spontaneous demonstration by a mob that eyewitnesses and intelligence sources entirely neutral on the issue, say, didn't happen? >> i'm not surprised by it because i think that our entire policy, and this isn't exclusively an obama administration problem but you think they have exacerbated it, our entire policy is based on a fiction that we, we have a threat that is basically constituted by a handful of violent extremists and that everyone else in the muslim world who we confront is more likely an ally than an enemy. lou: this has moved beyond illusion though. this is an administration saying to the american people something that is on its face not true. >> yes. lou: first, it was a result, a consequence of the actions in cairo in which our
embassy's walls were scaled, the american flag taken down and then the murder of a u.s. ambassador which we now learn from intelligence sources in libya, again, eyewitnesses in libya, that this was an attack, an assassination. >> righters of american citizens in that consulate which was undefended, a safe house that wasn't. >> right you about we should not have expected anything else. do you know that benghazi, which was not something that was spoken of much during the libya war which president obama jumped into unprovoked by any libyan regime action against the united states. libya sent more jihadists per capita to iraq to fight against american soldiers in a terrorist war than any other couny in the world. and benghazi was the capital of jihadism in libya. they had every reason to know that that is, that not
only has been one of the most dangerous regions in the world for the united states, it is a more dangerous region now because they have the arsenals that muammar qaddafi used to have under lock and key. lou: we also are looking at a situation in which the administration now seems to be walking back its claims of spontaneous combustion. the idea that this silly, amateurish, anti-muslim movie, if you want to call it that, it is more a mockery of movie-making itself. >> right. lou: the idea that this is being pedaled almost unchallenged by the mainstream media. now the facts are beginning to come out. many of these facts were there, were there from last wednesday forward until now. >> righters the fact that we're not getting a straight answer from this administration and the idea that they can't give straight answers after the u.n. ambassador appeared on five sunday talk shows to talk about this issue, they
now claim they can't speak to the, to what happened in benghazi because the fbi is investigating our foreign policy? have you ever heard of such tripe? >> well it's commonalty when government doesn't want to speak about saying now subject to investigation. lou: foreign policy? are you kidding me? >> and it is worse than that, because only thing you really can't speak about investigations is grand jury matters, and grand juries don't have a lot of power. they're sitting in washington and they're trying to investigate something in benghazi. lou: your book, spring fever, the illusion of islamic democracy, the idea that we're not dealing with a violent fringe element of islam but that islam itself is a religion of islamic sue prem system? >> well, there is a lot of different ways to interpret islam and it is interpreted difficultly throughout the world but in this particular region, the muslim middle east, islamic sue pre
premmism supremacist system primary ideology of the middle east. the violent jihadists are the point of the spear. people need to understand islamic supremacy is you want sharia imposed. that is legalism and societal framework. once you've imposed sharia that is the necessary precept that is made to islamize a society. that is what is islamic supremacist. lou: what is transpiring in egypt? >> yes. lou: and drew, we appreciate you being here. congratulations on the new book. it is, "spring fever, the illusion of islamic deepak can i". the book is entitled. spring fever. >> thank you. lou: we'll be right back. governor romney caught by a secret camera behind closed doors telling big money donors exactly, what he says to everyone on the
lou: wall street likes the fed's easy money but they might be creating bigger problems for the economy later. wells fargo chief economist john silvia will join us here in just moments but first we want to bring up to date on that chicago teachers strike which i told you would be ending here soon. today it has arrived. they're ending the first strike that had taken place 25 years in chicago voting today. former new york city schools chancellor, joel klein, will join us here next. on wall street today it was a mixed day for markets. not really much movement at all. dow jones industrials up 11. nasdaq was down less than a point. the s&p managed to drop two whole points. oil continued its retreat dropping $1.33 just to over $95 a barrel. in corporate news fedex cutting its profit outlook. customers using well, less ground service because of this slow economy. fedex down more than 3%. and apple closing above $700 for first time ever.
apple up more than 19% over the past three months. with those numbers it starts to show up, the most valuable company in the world now with a market cap of 658 billion. can you hear a trillion? microsoft announced it is raising its quarterly dividend 15%. shares sliding in after-hours trading however. goldman sachs announcing its chief financial officer is retiring at the end of this year to be replaced by charles schwartz, the global head of securities. joining me, john silvia, chief economist at wells fargo. john, good to have you here. let's get right to it. this market is making some mysterious moves. what do you divine what is going on after ben bernanke said, here's the money? >> well the market responded initially to the liquidity the fed was going to provide in the marketplace. lou: endless, infinite. >> qe inifiti, yes. all right. but the second problem is,
you have have real economic growth to justify the earnings and earnings estimates and think what you've seen is weaker orders, higher inventories, slower final sales. we're looking for gdp growth of maybe 1% or so going into the fourth quarter. i think the comment on fedex re-emphasizes that the chinese economy is weaker. we've got news that the euro is still working through its problems. so we don't have a resolution in europe. lou: but still sitting up there at a buck 31, right? >> still sitting up there at 1.31. lou: what does that tell us? >> it tells us we print an awful lot of money because it is always a relative exchange rate between euros and dollars. the euro is sticking up there because people expect qe infinity of money going forward. lou: we've got a housing market that is showing bonafide signs of recovery, bottoming, moving ahead. >> yes. lou: what's going to be the impact of housing on ben bernanke's now even looser
monetary policy and support for housing? >> it will be a little bit positive. lou, there is a still a lot of constraints on the housing market but initially it is positive. they will buy a lot of mortgage-backed skurpts. that will provide liquidity into the marketplace to keep interest rates lower for a longer period of time. you go back to the fundamentals. who will buy houses? do they qualify buying houses? picking up a little bit what gerri willis had to talk about earlier. hey, can people qualify? do people have the jobs? do people have income? the answer is no. so there is short-run yes, get a little bit of a benefit but long run not helping. lou: just about 25 million people unemployed, underemployed, given up being employed. a plodding government that does nothing seemingly to change their status or to spur growth here. only the fed doing so. what is the result? are we going to see a lower unemployment rate? what are the odds over the rest of this year? >> well, as you know, lou, the unemployment rate being
low is driven in part by lower participation rates. people not showing up into the workforce. so yes you could have a lower unemployment rate but a lower participation rate that is our driving factor for that. again going back to the fundamentals. we're not creating jobs. lou: what in the world will it take to change all of this nonsense because frankly we know it is not shiny out there but we also know it is time for somebody to say to hell with this. this isn't normal we'll accept, let's get rolling? >> pick up on a couple stories you done recently. regulatory reform. hey, there is limit how much regulation you can put into the marketplace. second, having some certainty in terms of where policy is going, in terms of fiscal policy and taxes over the next year or two. lou: you're dreaming. you're dreamings because we don't have time for that. >> you asked me what it will take to change. i'm telling you. lou: i understand. if there is not a way we can get this country moving, and i mean right now, as soon as a president is either
reelected or elected, if leadership can't start on november 7th, we're in a hell after mess. >> you are in a mess. once again, why is the euro so strong despite all the euro problems? in comparison with the united states. if you ask about entitlement spending and why cbo has such drastic --. lou: john, you know me well enough. i won't ask about entitlement spending. i will tell about entitlement spending. john silvia, thanks for being here. dress it up a little. we need something fancier for our future. john silvia, good to have you. >> thank you, sir. lou: the mainstream media having a little trouble understanding governor romney's 47% comment caught on a hidden camera. i think they're struggling with the truth, don't you? and think governor romney is onto a campaign strategy. we're going to give everybody a little boost in their respective direction in our chalk talk tonight. later the chicago teachers strike? well, apparently it is over.
they're going back to school but will union members accept a sweetheart offer from mayor rahm emanuel? oh, is the new scott walker in chicago or just another stooge in the democratic party? we take it up with former new york city schools chancellor joel klein. he is talking reform. we'll see. hmm, it says here that cheerios helps lower cholesterol
the national liberal media and their masters in the obama campaign are calling the governor's comments gaffs. jonathan chait ham of "new york" magazine went so far, quote, disqualify his claim to the presidency, end quote! wow! could the national media work any harder to be lap dogs to this administration? to fix a problem, folks, we first need to have the ability to deal with reality and we really do have to get over being so offended because if we're going to fix the mess we're in, we will have to have somebody with the guts to get it done, and the first way to do that is to talk straight. i hate to be the one to break this to everybody, but in the national media, but governor romney is starting to be that guy. i will make some gaffs here tonight at the chalk board. and i may offend some people and i want to apologize to everybody. i love all the precious darlings i'm about to offend
but it has got to be done because this is about setting the record straight and talking about reality. so we're going to call this tonight, this is, the gaffe board. all right? and i want all the mainstream media folks, the precious darlings, to come together and kind of huddle over these gaffs. the census bureau, the social security administration, the it national taxpayers union they're behind a lot of gaffs. i want to give everybody credit. according to the census bureau, 49%, 49% of the americans in the second quarter of last year lived in a household where at least one member was receiving a government benefit. at least one member. that is up from, are you ready, 30%, 30% back in the 1980s. is that not impressive? according to the
social security administration, the united states set yet another record for the number of american workers collecting federal disability payments in september. that was 8.79 workers, that is million, folks. disability. okay? if you include the total number of americans, that is dependents, spouses, collecting disability with them, that is 11 million americans on disability, and half of those, think about this, half of those joined the disability rolls over the course of the past 3 1/2 years under president obama. i'm sorry, that is my gaffe but there it is. it is reality. meanwhile, three years after the recession officially ended, that is the, end of the second quarter in 2009, 47 million people are on food stamps. another 47 million. 47 million.
another gaff but there it is. and, you know i just can't imagine what is holding the little phone camera i suspect it was there and bad audio and listening to governor romney talk about the fact that half of the folks aren't paying taxes is a big deal. now this, by the way doesn't mean everyone collecting benefits is an obama supporter as the governor clearly implied but it is sure clear if you don't pay income taxes you're not going to be half as excited about governor romney's plan to cut income taxes. welfare, entitlements, it's clear that many folks would likely vote for someone who would expand those entitlements and welfare rather than working to cut them. and yes, 46% of the americans, 46%, just to put the number, get the number absolutely correct as of this moment, 46% are paying no income tax at all. 47% was the figure for 2010.
so, yes, things are getting better. i mean we've seen that drop from 47% not paying to 46%. but let's cut the nonsense. wealthier people, you want to talk about class warfare, mr. president? the democratic party? i mean, really want to try the class warfare thing? because you're really playing and pandering and appealing to the ignorance and stupidity of some people that you want to vote for you. because you see there is no secret about this. people who make more money pay bigger taxes and when there are tax breaks, they get a bigger share of those tax breaks or reduced taxes. in fact, the top 1%, the top 1% of this country, 1% of the population, those income earners, are paying 36.73% of. is that fair, mr. president?
you're all about fairness? i want to get that out there and talk about it. i know it's a gaffe in some people's mind to talk about 1% because they're very wealthy paying over a third of the income taxes in the country. the top 5%, by the way, to all of my friends in the mainstream media, the top 5%, the top 5%, okay, are paying 58, 58.66%. that is the top 5%. the bottom half, now, let's get this thing adjusted, the bottom half are paying 2.25%. you get all the way down here, they're paying 2.25% of the taxes, the income taxes. and you're hearing a president squeal and squawk about redistribution and fairness and that he beliefs in fairness and redistribution. you can't redistribute any
better than that unless you make it zero. want to go for zero? perhaps the national media should do a little research once in a while before they start talking about the truth being a gaffe. perhaps the media should check with voters next time they declare this presidential race to be over. 49 days left to election day. guess what? the president's convention bounce today has evaporated. yesterday he was being, he was being coronated. earlier this month president obama had a 7-point lead over romney. today's "gallup poll" shows obama 47%, and mr. romney, 46%. would you call that close or should we wait for the mainstream media to deliver unto us a interpretation of these numbers, about how, president obama is swamping this gaffe-prone governor? maybe. they told you it was all over but the media seems to be the one making the gaffe.
certainly on this one. mayor emanuel, a stooge of the chicago teachers union? or is he chicago's new scott walker? who wins in the chicago teachers union deal because it sure isn't the students. former new york city schools chancellor scroll line is with us. -- joel klein. on the campaign trail vice president joe biden loves to talk. that is sometimes a problem for the vice president. we'll have his latest. the libyan government, eyewitnesses and an intelligence source saying directly that the benghazi attack was an organized, coordinated assassination and the white house that has blamed for a week an amateurish home movie is now rethinking their spontaneous combustion theory for the death of the u.s. ambassador and three other americans. "the a-team" is next.
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lou: chicago's 7-day teacher strike is over. we got a week, union delegates today voting to end the strike after talking about the details of that proposed contract. which included a 7% raise over 3 years for teachers who are already among highest paid, making average $76,000 a year, which does note include health care -- does not include health care benefit or pension, that is 3-quarters of highest salary earned as a teacher, classes could resume tomorrow, about 350,000 students will have someplace to go. other than where they have been the past week, the contract has to be voted on by city's more more
than 25,000 teachers. our next guest argues that reform is becoming less of a partisan issue. joining us is a man that knows of what he speaks when it comes to education, ceo of application, education division branch for student services, and professional development, served as chance lore -- chancellor of new york te city public school system, you said this shows there is bipartisanship and reform, i am looking at that mess in chicago, a disaster of a school system. some unseem hseemly people, it s to me, involved in the union, and outrageous claims as student after student is denied a quality education, what is so
good about what is happening in chicago. >> rahm emanuel, democratic mayor in chicago, insisting on real reforl, that is what is going to change. he insists we have a emthat makes -- a system that makes improvement, he said from the beginning this system needs big changes, and he i know fought for them, did he get everything he wanted, nobody does. lou: what did he get? he has to add teachers, he did not want to do. they are getting a considerable raise, they are third highest paid in the country, they have some of the worst test scores in the country, this is a disaster of a school system, period, what did he get? >> more teamers, they ar are -- teachers, they are good, what he got is principals will be able to choose their teachers. lou: but not in an en tearty,
and -- entirety, and evaluation, 30% counting. this is not much. for crying out loud, these teachers will not be put on any kind of test of -- for their performance as evaluated by the performance of their students. >> it will start at 30, go up to 35, i think that will move. when you say outrageous, 5 years ago there was none of this, nobody was being evaluated on the improvement of their students. that is a big change. here is rahm emanuel a democratic mayor, taking on a fight with a traditional democratic constituency, high got more but he got stuff that
is meaningful. lou: union leader of the chicago union, you tell me what they got. >> i am the only plaque woman in -- black woman in class of 1974 from dartmouth college, woo. people are impressed, let me tell you, i spent those years smoking lots of weed, self medicating. self-medicating -- thank you. sounds like you all did too. hold on, i'm sorry, there are kids here, i was not supposed to say, that right, too late! lou: what is that? what kind of conduct is that. i understand a difference between the union and the teachers. >> these are unfortunate comments but there is a
difference. they want a system to help make sure they can perform well, what rahm emanuel and others are doing is trying to professionalize teaching. lou: give me the oldhamtures, you know, amateurs that when in with public schools, did not give a damn about politics or the origin of a student, just looked to a student with a spark, said we'll give everything we got equality teachers, the know the people that produce those folks in the '60s and '70s, in '60s in it could have -- particular have highest scores still. >> you are right, give me those teachers that look for the spark in a kid, there is not a 57 watching this -- person watching watching this that does not want
a great school and great teachers, we're not there today, we've made excuse the. the. >> any republican mayors? >> jeb bush in florida. lou: i am talking about guys or gals still in office. >> i think mitch daniel in indiana of terrific, pushing the -- >> he did a great job of reforming education. >> i don't care if you are democrat or republican. i want to know you will do right by your kids. lou: i could not agree with you more. and that is a real challenge, i am delighted you are working on that very important issue. great to be with you. >> thank you. lou: joel klein, up next, a joe biden criticism of governor
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sofor many, nexium helpsoday relieve heartburn symptoms. caused by acid reflux disease. osteoporosis-related bone fractures and low magnesium levels he been seen with nexium. possible side effects include headache, diarrhea, and abdominal pain. other serious stomach conditions may still exist. talk to your doctor about nexium. lou: the a-team now. from "wall street journal" editorial board mary his, good to have you with us, was it a gaffe. >> of it a private thing, when you run for president, you know that everyone is watching you, and videotaping it was a gaffe that was horrible.
lou: joe, you don't think that was a gaffe? >> i just hate to see somebody you see, you know. i think really, the thing that matters, the taker thing, you talk about people as takers, people who you know like have a mortgage deduction, they are working their rear ends off to pay that mortgage. lou: i want to us is bring in the music. >> but they are not on the -- no, so is the gaffe is making people feel that is how you think about them, talk about them. hardest working people on the planet. i don't care if you are in lower end or not, people work hard here in this country. lou: hard? >> they work their hearts out. lou: i am one of them. neil cavuto talking with governor romney today, i thought governor romney had a terrific
response. he is not expecting a lot of excitement on the part of cuts taxes of those not paying taxes that is the essential point. >> but that is not the tax message to give, you want a fair tax system? then lower rates for everyone. that is fair. i think joe is right on had he said that problem with message is not that 47 million americans do not pay taxes, but g.o.p. talk about empowerment, we want to lift you out of poverty. lou: i got you, you are right. romney is the wrong guy, obama is the guy talking about empowering and lifting people to jobs and creating small businesses, i'm sorry, i got confused. >> he used more language like that. he talks about fairness. >> romney would be -- there are days. lou: i have to say, this is
crazy. what mary is saying, if i may say. >> no. lou: we demonstrate, right now -- >> he makes sense to me, lou. lou: the bottom 2.5% of people in the country don't even pay income tax, the top 50 pay 97.95 it is crazy. >> romney is not going to win the election by saying i don't care about this. he wins by saying i will lift them up. >> he is saying you are takers. lou: let's talk about takers, how much more lying can we take from an administration that trouts out u.n. ambassador on talk shows, who are you going to believe? all about a chicken third-rate movie about muslims that is a
joke or respond ta or spontaneog that is outrageous. >> i am saying, what happens is they are looking for an excuse to create the fo for fervor. >> the libyans themselves disagree. lou: you have eight people sued, coptic christians being sued. by -- this is a guy we have 70 billion-dollars into this country it is just, a. we'll going to come back to this issue in a moment. no we're going with it right now. give me your answer. when is this administration going to stand up, so people
should be told to go to hell, he system bracing people who are insulting the nation, and killing by the way, if it cred toccurred to anyone there, one f our ambassadors, he cannot talk about it because our foreign policy right now is being investigated guy the fbi. >> this is the retreat abroad, this is what he said he would do, this is the consequence, this is what happens when america retreats from the world. >> administration after administration has tried to find some way -- >> you name one, name one that could not address its foreign policy because it is being investigated by the fbi. >> that is like working out out well. >> we have a democracy. >> what? >> nobody wants to answer my
lou: real quick, you heard of foreign policy put off limits because the fbi is investigating it. >> they have to speak to you, they can't speak about national security issues but they have to speak. lou: we have too end speaking, thank you, good night from new york. hey! did you know that honey nut cheerios