really care about this campaign. and i believe and what our administration is doing and i want to make sure that folks know that i'm not just talking the talk, i am walking the walk. we depend on $5, $10, $20 donations. we don't get some of the massive tax to the other side and what they get. we are america for the united states of america. and my occupation is president. megyn: chris stirewalt is our politics editor and host of power-play on fox news.com. you do have to laugh. it was a cleverly done piece. and i would like to get to that in a minute. but i'd like to start by putting this into perspective. your power-play column reported yesterday on how the president's team had added be my ticket fundraiser to his calendar after the democratic national convention. that by self is a highly unusual move. now, the president takes to this video to try to show people how to get online and donate to him. what is going on here? >> they are desperate for money. they need a lot of money and they need it now. the fundraising that they thought they were going to get, the thought that they were going to receive come individual donations are down. big-money donations are down. certainly from 2008, but even below some expectations. there was whispered boasting about a billion dollar campaign. that is not going to happen. unfortunately, they have champagne taste but a beer budget. so they need to get more money in the door to keep up with the situation. megyn: i can relate to that. do not be so judgmental. >> i did not come to judge. megyn: let me ask you about the comment in that bit that we saw there.some of the massive checks that the other side does. what is he talking about exactly? there has been a lot of coverage of huge donation for the president's reelection effort has received. his 40,000-dollar fundraiser that he is holding, bill maher's check, what is he referring to? >> user bring to the fact that compared to the last time around, you know, wall street selects president obama, but not as much as they like mitt romney, and that is a lot of where the money has come in. the entertainment industry is very fond of the president and so is the casino industry. but wall street, where all the money is, does not like the president policies and in part because of his various attacks which are attacks on mitt romney for being a super rich dude in paying his little taxes that he can. megyn: to the president have avoided this in his race against john mccain? he promised he would take it, then he rejected it, he did a 180. she went a different route and put a price tag on what takes to become president. that is the reality in which we all now live. >> i'm going to ask you to write a power-play tomorrow. that is a perfectly executed point. barack obama have fun burning john mccain when he backed out of an agreement that limited how much they pay, but he opted out and then drenched john mccain in money, absolutely drenched him. this time around, mitt romney is a much more effective fundraiser and a lot more republicans are more committed to making sure that obama loses and now the shoe is on the other foot the one on the subject of president obama doing more fundraisers after the democratic national convention, why is it so unusual to hold fundraisers? what should he be doing? to doing what he's doing today. going to swing counties in battleground states. that is exactly what he ought to be doing. they'll be some fundraisers after the fact. but they are already softening. reporters say they're going to do more than usual. any minute he spends sucking up to rich people is time that he will not look like he is governing or time that he can't stand the politics on the campaign trail, and that is exactly what he needs to be doing for the next 97 days. megyn: chris stirewalt, everybody. thank you. we checked the latest numbers this morning, combining spending by the campaigns, edging closer and closer to the billion dollar mark. governor mitt romney's campaign are supposed to raise nearly $297 million. on the democratic side, president obama's team on the dnc has raised more. nearly $529 million this election cycle. you can keep up to date with a wide range of presidential election news by going to our website. fox news.com/politics. megyn: we have outside groups now funding both sides in this election as well. we have some new jobs numbers out today from the nation's largest provider of payroll services. adp. their national employment report shows private employers created 163,000 jobs last month. that is more than economists expected, but less than adp expected for june. getting the federal job numbers will come this friday morning. and the u.s. manufacturing sector shrank for the second straight month. that is a worrying sign, as this is an important engine of the u.s. recovery. it appears despite not having faltered for many months when we were all struggling, it is now starting to. one bright spot today is construction spending. it is up for the third straight month. this sector of the economy showing flashes of improvement while other sectors are growing. on capitol hill, house lawmakers are reviewing a report about the forfeit massacre. the fbi's actions under the microscope now. this typically accusations that the fbi may have dropped the ball when investigating the alleged shooter prior to the 2009 rampage. army psychiatrist allegedly opening fire. in the end, 13 people were killed. more than 30 people were one wounded. here is one lasting image from the tragedy. the victims coughing covered and flags read it one of the victims there. there was one civilian and 12 soldiers. a 56-year-old psychiatric nurse who according to eyewitnesses rushed the shooter. catherine herridge is live in washington with the fallout from this report. reporter: thank you and good afternoon, megyn. the fbi director of the national security division, said that the bureau has been disciplined. lawmakers questions what they should tell their constituents and the lack of accountability that was involved. >> i was put in harms way for this country three times and my son did so four times. and he gets killed where he is stationed. by a member of his own military, who began his shooting career as a murder. reporter: two investigations have found that the field office has not chosen to interview the alleged shooter for the massacre because they did not want to jeopardize his military career. reading from the testimony from the chairman of the testimony pushed the fbi to explain whether political correctness was responsible. >> i am for the concerned that there may have been political sensitivities in the office. maybe even in the fbi's own investigative guidelines. reporter: for the first time from the fbi admitted publicly today that the american cleric was under full fbi investigation by the washington field office when he was invited to lunch at the pentagon in february of 2010, first reported by fox news. the fbi could not explain how that would happen. also from the chairman of the committee took the extraordinary step of suggesting the fbi witness is misleading the committee over an incident that occurred in 2002. for the first time, the fbi admitted that they knew that the cleric was coming back into the united states. and despite an outstanding warrant for his arrest, republicans and democrats on that committee want a further explanation about his contacts. megyn: there are new reports today that the president's health care law is already resulting in the rationing of some popular prescription drugs. we will investigate those claims and we will ask our panel of doctors what it means for patients. and china is on top of the world in the olympic medal count. but is it coming at too high a cost? a chilling report on controversial training techniques, chinese athletes are subjected to from a very young age. and since the public learned about the atf figures involved in that "operation fast and furious" from the department of justice has largely dismissed the report, and in fact, coming close to openly mocking it. in three minutes, we get reaction from the man who led the quest for truth in this gunrunning sting gone horribly wrong. >> have you and your attorneys produced internally the materials responsible to the subpoenas? >> we believe that we have responded. >> no, you are not a good witness. a good witness answers the question asked. let's go back then ♪ i'd like to thank eating right, whole grain, multigrain cheerios! mom, are those my jeans? 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[ dennis' voice ] poodles are one of the world's smartest breeds. ♪ bundle and save with an allstate agent. are you in good hands? with an allstate agent. therif they don't act,hike hanging over us. americans will see their taxes on dividend income spike, almost tripling in some cases. whether it's on him, or her, or them, it's a ripple effect on america's economy, slowing job creation, squeezing seniors and families, and hindering economic recovery. tell congress to stop a dividend tax hike now. go to defendmydividend.org to learn more. you megyn: robert roberts has begun her medical leave from that program to deal with a blood and bone marrow disorder. last month, the morning anchor announced that she had pre-leukemia. her departure comes a bit earlier than expected. last week she said she would leave at the end of august or early september to get a bone marrow transplant. but today,, she said that she's she is not feeling well and needs a vacation. roberts has our he arlie survived breast cancer. the treatments of that has been believed to resolving this problem in which she has talked about openly on good morning america. you fallout today after a dismissive justice department reaction to a scathing report about "operation fast and furious." that is the gunrunning sting that resulted in some 2000 weapons being put in the hands of some very dangerous mexican drug cartels by her own government. five high-ranking members of the atf are singled out as responsible for that operation in a report just issued by some house members. not one of these men has been fired. they have all been reassigned. the justice department is now calling the substance of this congressional report distorted and debunked. joining me now is the man who led this investigation, congressman darrell issa. he is chairman of the house committee on oversight and government reform. mr. chairman, this is the first of three reports in which he tried to get to the bottom what happened here and who is behind it. the first report focuses on what happened at the atf and he was responsible. we identified five individuals. then he focused on the department of justice. tracy taylor of the department of justice, it says as follows, predictably this report reiterates many of the distortions and now debunked conspiracy theories that representative darrell issa has been addressing for a year and a half. and it says that we the fiction that these flawed tactics are the brainchild of this administration is opposed to the reality of this pattern dates back until 2006 and the prior administration. your thoughts? >> first of all, it is not surprising that the worst attorney general ever to be held in contempt to spin anything and everything is somehow an accurate without providing one fast as to any inaccuracy. this is over 200 pages of report with over 1000 pages of sightings and inclusive materials. we were very careful. additionally, what we did was undeniable. we had shown that where it wasn't the atf, and we have included these previous tactics, that neeley and others promoted. we also talked about the differences and they were failed program shutdowns during the previous administration and brought back with full knowledge by this administration. that is what the object you. they would like to make it all about president bush doing occurred but that cannot be could not be further from the truth. our next report, when we get into the specifics, those who had an active role in reviving a closed program, one that has been, in fact, considered a failure and shut down during the bush administration and putting it on steroids, leading to the death of brian terry and the cover-up by attorney eric holder. megyn: you talk in your report about how this is known as they boasted that operation of the department of justice. can you explain what that means and why it is significant when it comes to what you believe the department of justice new or should have known in regards to this gunrunning operation? >> that is the most important thing for people to understand. the justice department is not my best blaming atf. but in fact committees combined task force are all about the justice department and along with the homeland security putting together a team that is supposed to work together and coordinate, and nothing could have been further from the truth. information was not shared. clearly the dea and others have culpability. our report exposes some of those problems. problems which of the atf has problems and we have people we would like to see fired. but we also see problems all the way up to the top of justice and candidly, still piping also goes over to homeland security and the fact that there were people from that cabinet position who were on the elizabeth but when something goes wrong, pretends like they were just along for the ride. that is something that the american people want us to do on the reforms i heard they don't just want a investigation. megyn: they try to say that they didn't know anything about the controversial tactics. but yet they sign up on some wiretap applications but they didn't know about the controversial aspects of the program. i want to tell our viewers, this is basically a designation that you get at the doj. could it be a ocdef operation and they do not know about the intricate details about the operation? >> that is exactly the point. they can't have it both ways. they can't say that they knew about wide receiver, "operation wide receiver", and it was flawed, and then start up fast and furious and claim they didn't know about it. they could not claim all of these things sequentially, particularly under the ocdef where dennis burke, who has resigned and his superiors were being read in and they are saying that we were right in and given this information but we didn't actually get told anything. well, that's a problem. what's the point of having briefings to go into the details and then try to have plausible deniability? megyn: i'm sorry, i want to ask you one question. the five guys the point you who are responsible for this at the atf, no one has been fired. they are still on the taxpayer dime. can nothing is working for the doj and the taxpayers are still paying him. >> they are still paying all these folks. we are concerned that there has been no real repercussions. more importantly, there has been no change in how it works. kenneth nelson as the acting director, clearly was in over his head. it is an example of what happens when you have acting director after acting director for six years. that is part of the problem. president obama left him as an acting director. his replacement is a former uat. what we don't have for the 1800 men and women of the atf is a permanent professional that we can rely on to know what is going on in a relatively large law enforcement organization. 1800 people spread around the world as a lot of people. they need a real leader and right now there isn't one. megyn: the doj says wait for its own inspector general to come out with the final report. we don't know when that will be given to us. >> we look forward to at. megyn: we will see. chairman darrell issa, thank you, sir. coming up, we have new developments on a midair terror scare that forced an emergency landing. we will show you what was found that scrambled fighter jets. plus, revenge of the dish best served cold and muddy. crazy video from a bizarre case of road rage. and we showed you yesterday have the media in the romney campaign had some intense exchanges with the governor's overseas trips. some reporters are avoiding covering what he calls the real issues in this country and elsewhere. that debate is just ahead. fair shake from the press? >> i think i'm getting exactly the shakeout expected. at e-trade. megyn: we just got this video of a massive crowd in houston, texas. the folks turning out to show their support for chick-fil-a restaurants. today has been dubbed chick chick-fil-a appreciation day in the wake of the controversy that has corrupted over comments from the company dan cathy. activists had scheduled a boycott in response to his comments supporting traditional marriage. now, several major national groups are standing behind him and the popular fast food chain. not only do we have this video out of texas, but we are getting e-mails from viewers about long lines in stores, people in virginia and georgia and mississippi, on and on it goes. new information on a terror scare that forced the united airlines flight to make a emergency landing. scramble jets brought down the plane after the flight crew found -- after they found a suspicious object hidden in the seat pocket or the bomb squad was called in to check it out and some are saying the response was way out for proportion to what they found. rick leventhal has the latest weather this suspicious object was a camera. the problem is that counterterrorism authorities have been concerned about cameras for years because they could be modified into explosives or triggers for bombs. even though it seems harmless, this series of events happen. it was two hours after united airlines flight 956 took up from newark, new jersey. no one on board said the camera was there spread the flight attendant told the pilots who made an emergency call to air traffic control and the bowing was turned around. with 167 passengers diverted to boston. one controller telling another i can't delay. you have a big problem and i have to get him in here quick. true to post- 9/11 protocol, the incident prompted operation noble eagle to kick in. the air national guard scrambled to at seemed to escort the plane to boston airport. one of the fighter jet and had a emergency of its own. that pilot had to head back to base without all the electronics working. he landed safely in massachusetts. the passengers left their stuff on board, they were rescreened, it was traced to a passenger from an earlier flight. all of those diverted travelers, still on the ground. expected to travel to switzerland in a couple of hours. megyn: unbelievable. coming up, a record-breaking wind shedding new light on the controversial training regimen many chinese athletes are subjected to at a very young age. we are talking six or seven years old. is this the best way to build a winner? and is it winning at all costs? wait until you hear this. governor romney returns from a campaign trip overseas where the media hit him for comments made in london, israel, and poland. why mr. romney said it is the president's own shortcomings having the media trying to distract voters from what he views are the real issues. and just hours away from a historic default. we will show you what washington is doing about it for the post office just ahead. are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today. 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[ female announcer ] new ensure clear. nine grams protein. zero fat. twenty-one vitamins and minerals. in blueberry/pomegranate and peach. refreshing nutrition in charge! megyn: one of the top stories on the campaign trail today, governor mitt romney versus the media. new questions about the coverage he received during his overseas press to it. some critics say the media seemed all too willing to pounce on every sort of miss that while reporters complained they were not getting enough access to canada. all that coming to a head when one of mr. romney's advisors and snapped at reporters. governor romney spoke with carl cameron and answered questions about his press coverage and why he believes some of the media are trying to avoid what he views as the real issues. >> do you think you're getting a fair shake from the press? >> i think i'm getting exactly the shakeout expected. >> as a conservative, i am interpreting what you are saying is that you don't think you'll get a fair shake from the press? >> i think in a nation that has a free press, we recognize the right of members of the media to pursue their own views and agendas. and i realized that there will be some in the fourth estate or whichever estate, who are far more interested in finding something to write about that is unrelated to the economy to geopolitics, or more, to the reality of conflict in afghanistan today, they will instead try to find anything else that they can to divert that the's last four years have been tough years for our country. megyn: joining me now is monica crowley. a fox news contributor. and dan gerstein. it was a good exchange and good follow-up by karel asking carl asking him, you know, what exactly are you saying. what is your reaction to what he said? >> i think he had a terrific response when he said i'm getting the shape than i expected. when you go back decades after every election cycle, the washington press corps from the white house press corps, they are all pulled on who they voted for or what party they voted for or their party affiliation. it is something like 90% are affiliated with an democratic candidate. we know that there is an inherent bias among most of the mainstream press. not everybody, but most. republican candidate to run for any office, especially president, getting a lot of traction with the base and the independent voters who don't trust the press and to see the bias. he pointed out. he did it very diplomatically here. remember during the primaries, newt gingrich got a lot of traction by pushing right back at the press, getting up into the grill and face. now that mitt romney is going to be the nominee pretty soon, it's a different kind of role. but i think his answer there was pitch perfect and says i'm getting the shakeout expected. >> did he take it too far? do american people who are struggling to get jobs and better jobs and put their kids through college, do they want to hear from barack obama or mitt romney about this? >> the media's not giving me a fair shake, you know, you're right. to his credit, i don't think he veered too far. at the end of the day, this idea that the media is biased against conservatives is laughable. look at where we're talking were talking about this, which is the dominant media outlet on cable news right now. you have rush limbaugh 31 it comes to bias. the real bias is conflict, sensationalism and triviality. rather than paying attention to what he was saying, he feasted on the little trivia titles. at the same time, he has his own worst enemy. he keeps saying stupid things that distract attention from what he wants to say. one portly, just read david brooks column. this is the most dull campaign we've had in my lifetime were neither candidate is putting forward ideas or real for real solutions to the problems of this country. and nothing in politics is filling it. megyn: always what he made some comments that got a lot of attention. the one that did not get as much of attention was about the labour party. he called him mr. leader. he got a little bit of blowback. [laughter] as members of the media, do we focus on whatever daily blowup there is and we don't address this much of the substance of what the candidates are saying? >> we tended to sensationalized. it is a very personalized kind of game. it is one human being who is fallible, making mistakes, whether it is barack obama talking about average please come acting stupidly and blows up into a much bigger thing. we are talking about two people who want to be leaders of the free world. when they do say something off off the script and then go up the teleprompter and they say something that perhaps they really mean but might not be politically correct, it will blow up because it is a person. it is not a huge issue. in other words, jobs in america is such a critical issue. it is not some sort of big unreal issue. it is a human being who set a specific thing, and therefore the press tends to run with it. megyn: it is the same thing we do with the jury and prosecutors in criminal cases. thanks to csi. they expect perfection. >> which doesn't exist. megyn: in politics, we expect our politicians to be perfect and not have any human failings. it is shocking when they do. governor romney.blowback after talking to one of his top aides. there was a contentious exchange at the tomb of the unknown soldier. this was in warsaw, and walk what happens in a governor romney, do you feel that you have overshadowed this? >> [inaudible] >> he got some pushback. megyn: do think the american public looks at that and says romney has been keeping us -- >> they want to say what he wanted you to help me get a job? were you going to do to change the course of the economy? you can't discount the impact technology has had in creating this sensationalism. this law that we have to be. it is because of twitter and the chamber on the right and left of the internet, everyone talks about it. the candidate exacerbated by not putting something on the table is actually going to be meaningful to people that would drive the conversation. governor romney is making a huge opportunity to steal momentum away from obama and put them on the defensive by putting up big ideas that will solve the problem. he is following a playbook. >> he doesn't have a deficit reduction plan. >> is there an appetite for that kind of discussion? he has a 59-point plan. do people want to hear about it? >> yes, i think one of the things they think governor romney should be doing is sticking to the big things. in other words, let your surrogates like chris christie beat up obama. what romney should be doing is taking a page out of obama's 2000 a playbook and step about it, talk about the big screen, big america versus big government america. strong military, strong economics. if you stick to those big happy warrior themes, he will when. megyn: i have to go, but a great debate as always. coming up, china's unbelievable athletic abilities at the olympic games. but with that comes what it takes to be an elite athlete and china. you have any idea what they are doing to their six and seven year old kids over there to show any sort of athletic prowess when we going back after this break. and imagine getting on the airplane and seeing the whole life this. that is not there. finding out that this happened in the middle of a pilot trying to land the plane. we will speak with the pilot is why this is happening more than some of us know it. and american families are paying the price for this recession and it's getting deeper all the time [ male announcer ] this is sheldo whose long day setting up the news starts with arthritis pain and a choice. take tylenol or take aleve, the #1 recommended pain reliever by orthopedic doctors. just two aleve can keep pain away all day. back to the news. megyn: there are new charges at the london olympics. the 16-year-old from china blowing away the competition, shattering the world record, and logging a faster time in the last 50 years than the male gold medal winner, ryan lochte. the controversy is raising questions about how these chinese athletes train. we are told that it is a life of intense preparation beginning in early childhood. complete with stories like those we heard from communist nations during the cold war. we have a senior writer for espn magazines and author of steroid nation. dr. keith ablow is a member of our fox news medical "a-team." it is not just about who is at the center of this controversy. it is about quite a few chinese athletes. the more disturbed we thought about the report that are admitted to by the chinese of houses how six and 7-year-olds who are in school who show any athletic prowess get reported to the government. they getting out of school and put into these special training camps. then all hope of staying with her family or having family relationship is gone. here's a quote from one athlete saying that the father, who had his child taken away, i don't even dare to think about things like enjoying family happiness. can you fill us in on how this happens? >> well, all around the world you see kids plucked out of school when they show time. in florida you can look and see this. the problem is that china has an overlay to that. when they get plucked out of school, are they given the best coaching in the world or all of them come are they given the best drugs in the world? there are a lot of american kids the wish that they had that kind of attention. when i am troubled by is the history of pharmacology. megyn: there are questions about this athlete, whether she has been doping or not. the daily mail had a fascinating interview with a swimmer. petra schneider who is from east germany and she was a big swimmer back in the day. she came out years later and said i was a lab rat. they stuck me full of drugs and they kept me in the pool all day long and i didn't see my family, and she said that they ruined her life. she came out later and asked for her record to be expunged because of what had been done to her. she sees laertes. -- similarities. >> this is not about liberty and that shows talent and is three hours intense practice after school for this is about a collective government that does not value individual freedom are you saying that your life will be spent in service to the state. your family and its affections matter not of this collective. because only the government matters. this is not florida. this is a different culture. we have very little in common with these people. we ought to just say this is not what we consider athletic competition. if you want a manufactured child, call it what it is, it's child abuse and abduction and kidnappings. i don't like those words in my office. megyn: they have a long history of taking athletes from families when they're young and there was a report, first of all, they have a long history of cheating as well. back in 2000 accredited a 14-year-old, they wound up losing the bronze medal when he came up that she was not of age. there is no respect for the fact that there was an age limit. these are children. >> don't get me wrong here, this is a country that is accused of widespread computer hacking. >> think about the kids. would you like it that was your daughter? plucked out of school, you don't see her come in decisions all made by the government that she will be a swimmer and that is the end of your decision about your daughter. >> of course not. what needs to be on the agenda is drug testing and whether the olympic drug testing cops are up to this challenge. megyn: that takes us to a whole new level. it's bad enough for you yank them out of school and put them into state-run camps and they are in the pool all day long. they don't have access to their families. but then he pumped him full of drugs and you take it to a new level. >> you do take it to the new level. you can test them, perhaps. everyone might agree. the drugs are not good in kids. if it could be proven that these kids were removed from their families and inhuman separation occur, don't let them compete. take the medals away. that is just as bad. megyn: i'm going to let you finish your point. >> it is 100 times worse. megyn: take a look at this swimmer. she won a third olympic gold medal and she is a chinese diver. we have her picture. it just came out that both of her grandparents died this past her and her mother had breast cancer and now they are admitting that they deprived her of this information. she lost both grandparents, she didn't know. they decided not to tell her until after she went for the gold. because the whole system over there is rigged to protect the chances for gold. it was her father who said i don't think about things like family happiness. we accepted a long time ago that she does not belong entirely to us. >> absolutely. this is a culture that tells the mothers that you will have your child aborted. even though you may have intellectual property, we don't care, we are going to steal it. we don't want your kids to enjoy their lives, they're going to go work in a factory. it is a whole different in this culture is. >> i was in beijing and i didn't hear a lot of this talk then. the people who have the opportunity to go on the record four years ago were care. what i did see in beijing was confusion about drug testing, which may have been purposeful. are the olympics able to take your care catching the cheaters coming out of the system? megyn: and the vigorous lifestyle questions remain a problem for now. gentlemen, thank you megyn: and the vigorous lifestyle questions remain a problem for now. gentlemen, thank you both so much. coming up next, new reports about the president's health care law and c rationing. oh you too! ooh, hey america's favorite cereais... honey nut cheerios ok then off to iceland! megyn: if you wanted to find true americana, it might be harder to find a better example than this. this business in rhode island, the store owned by the same family for more than 200 years. now that family is closing the store for her. they inherited disorder after her father passed away. it has become unsustainable because of the new grocery store down the street. a money meltdown of u.s. postal service raising concerns of a possible multibillion-dollar taxpayer bailout. today the postal service is defaulting on to legally required payments to fund retiree health benefits and there is apparently no good solution in sight. adam shapiro is live at the post office in new york city. reporter: the u.s. postal service is promising no disruption to service for service for people who are sending and receiving mail, no layoffs of employees. what is at stake here is a $5.5 billion came into the retiree health benefits program. they will in essence default on payment. in september, another $5.6 billion payment, which is due. about $11 billion. now, legislation in the senate is going on to help them get through this mass, allowing them to borrow from existing pension funds. they have overpaid into some of their counts. that is one thing that they could do. it will also allow them to lay out well over 100,000 employees. it passed the senate but stalled in the house. the postal service is waiting to see what they can do going forward. as of right now, defaulting on $5.5 billion, or another $5.6 billion in september. megyn: those are big numbers, adam. coming up in "kelly's court", or badminton teams disqualified for allegedly intentionally throwing their matches. is there anyway to prove that? they are contesting it. that is coming up next. the latest fallout from this economy. young adults moving back in with mom and dad in record numbers. what this means for america's future just ahead. [ female announcer ] research suggests the health of our cells plays a key role throughout our entire lives. ♪ one a day women's 50+ is a complete multi-vitamin designed for women's health concerns as we age. ♪ it has more of seven antioxidants to support cell health. that's one a day women's 50+ healthy advantage. to support cell health. it's something you're born with. and inspires the things you choose to do. you do what you do... because it matters. at hp we don't just believe in the power of technology. we believe in the power of people when technology works for you. to dream. to create. to work. if you're going to do something. make it matter. megyn: fox news alert a clear warning to iran. scale back your nuclear program for risk facing the full force of the news military. i'm megyn kelly. defense secretary leon panetta using some of his strongest language yet during a trip to israel even as israel states its right to self-defense with or without our help. >> the most effective way to stop the iranians from obtaining a nuclear weapon is for the international community to be united, proving to iran that it will only make itself less secure if it continues to try to pursue a nuclear weapon. megyn: dominic dina is streaming live from jerusalem. >> he was talking about how prepared america was if it chooses to strike against iran. it said all options being available at least three times. the language caught everybody by surprise. he was might be with his israeli counterpart, the defense minister. just to give you a taste of how he expressed it when we caught up with him earlier. >> if they continue, if they make the decision to proceed with a nuclear weapon as to the minister point out, we have options that we are prepared to implement to insure that that does not happen. >> reporter: if israel does strike against iran it will drag the united states most likely into a regional war because iran will strike at the u.s. assets in the beautiful. the sanctions america is trying to promote along with diplomacy -- they say they have the right to defend themselves. but the security apparatus are cautious about israel putting any strike on iran. they don't know know tactically if they will be able to do that. there is an internal argument going on. and of course america back any attempt the politicians want to make against iran. megyn: while the defense secretary is traveling through the middle east, congress is asking tough questions about the upcoming automatic defense budget cuts put in place last year by democrats and republicans. those cuts mean thousands of defense workers face pink slips in coming months. the obama administration has too come up with a plan to cut $100 billion by october 1. these cuts will translate into a loss of 1 million defense industry jobs with -- billions in lost income. >> reporter: the white house was adamant that knighters the defense department or the pentagon were planning for these defense cuts to go into effect. today for the first time they sent the acting director of the office of management and budget to capitol hill to answer questions from the house armed services committee. it immediately got heated and political. >> does it concern you in a democratically controlled senate by harry reid that harry reid would not even bring up the president's budget for a vote? >> what concerns me is that we have five months to do balance -- >> my question is regarding the president -- >> they have to pay their fair share. >> it's my time. >> reporter: congress leaves for recess this week. republicans accuse the white house of playing games to help the president get reelected. monday the labor department told defense contractors they don't need to issue pink slips to their workers as required by the warren act. quote to provide such notice would be inconsistent with the purpose of the warren act. >> you might, i know, have an understanding of the authority of the position you sit in so let's start with your position. do you have any legal authority or ability to waive the penalties in the warn act for non-compliance under the threat of sequestration? >> i do not believe so. >> reporter: under the warn act employers must give their employees 60 days notice. those pink slips would go out november 2 before the election. defense contractors say the white house is trying to intimidate them into not issuing the pink slips on the eve of the election. megyn: we got news about a spending scandal for the gsa. it hand out $44 million in bonus checks last year. $30 million more than the agency admitted to before. remember good old mr. hot tub? gsa administrator jeff neely. he has become the poster child for government waste after living it up at a conference in las vegas for federal workers. now other conferences are under investigation with a team building exercise requiring $20,000 worth of drumsticks and millions handed out in bonuses. you just got to watch it sometimes. look at your hard-earned money at work. for a full break down of today's hearing and the numbers being talked about, some of which are steering log jon onto our web site foxnews.com. now one of the scariest pictures we have seen this week. see that gaping hole in the front of this airplane? it happened after a bird strike seriously damaged a plane in strike. it was heading from dallas to denver and it was hit by a bird on its descent into dallas international airport. so, mike, they say that the number of animal strikes reported annually has gone from 1,800 in 1990 to almost 10,000 in 2010. are we in danger? >> no more than we were before. we don't have more animals in the sky. but the reality is as long as birds are going to fly, they are going to run into airplanes. in most cases you don't notice it. but in rare instances we can hit a bird and in very rare instances it can be life-threatening. >> is there anything they can be doing to get the birds out of the way? they say it happens when you are within 500 feet of the ground. >> birds don't fly as high as airplanes. airports across the country are doing bird mitigation. they are look at birds nesting and moving birds. the birds do not have the same rights to air space as an airplane. if you have got to move the birds somewhere else you move the birds. but now we are just more aware of bird strikes than before. it's not like birds are taken out after 737s. megyn: could it happen onboard and i aircraft and we don't even know it's happening? >> it's happening all the time. a finch runs into an airplane and it goes birdie heaven and we don't know about it. it happens all the time. but it's one of those things we have to minimize because as we saw in new york it can be life-threatening. megyn: even on a short trip when you get hit at 500 feet up. save the e-mails, peta. the airlines are suppose to be able to demonstrate they can ingest a 4-pound bird without endangering anybody on the plane. when you see the hole in the airplane was it bigger than a 4-pound bird? >> they certified the windshields by shooting a bird at the airplane to see what happens. but it's like winning the lottery. it's hard to do but it does happen so you want to minimize it. as long as we are going to put airplanes in the sky and birds in the sky, they will meet one another from time to time. megyn: what kind of bird is big enough to make that size hole in an airplane? >> it could have been a sea gull or goose. gooses are big on that, tbees are big on that sort of stuff. but it's probably a big chunk of bird that did that. there are those big birds flying around so it's a one off. it raises the issue of bird mitigation around airports. megyn: the pilot here declared an emergency. there were 151 passengers onboard and there were no injuries. that's the good news. mike boyd, thank you, sir. i'm a nervous flyer. so yet another thing to worry about. look forward to that. coming up, the latest fallout from the economy. fewer empty nests. okay, research is showing that a growing number of young people are moving back in with mom and dad. is this a good thing? we are not just talking 20-somethings. it could be 30-somethings and more head to their parents' basements. how will this trend play into this election? a new black eye for the olympics. 8 badminton players disqualified, accused of intentionally throwing their matches. losing on purpose to get an easier opponent in the next round. now there are questions about how the ioc can prove that because the teams are contesting the penalty against them. that's in "kelly's court." new concerns for patients as some states are putting restrictions on how many medications people can buy under medicaid. how many name brands you are allowed to have. for patients who take multiple medications this could have serious consequences. >> they are putting limits on all drugs. it's another place to cut. it hurts -- doesn't hurt everybody. but it could hurt some. okay, team! after age 40, we can start losing muscle -- 8% every 10 years. wow. wow. but you can help fight muscle loss with exercise and ensure muscle health. i've got revigor. what's revigor? 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[ major nutrition ] ensure. nutrition in charge! megyn: fox extreme weather alert on a monsoon causing major problems in phoenix. 8 people and a baby were rescued from this highway. the water and then the rescue operation -- the flooding follows a dust storm and monsoon that moved through the area late last night. one woman who got stuck in it described what she saw. >> all of a sudden the hail started coming down. we creeped our car up around the bank and pulled up just to protect ourselves from the hailstorm. it was just incredible. as we were creeping along the trees started falling. megyn: what is the difference between a monsoon and a hurricane. i think the monsoon comes from the pacific and the hurricane the atlantic? a flash flood warning is in effect until midnight for parts of that state. we have a report today about the latest fallout from president obama's healthcare law. 16 states have set new limits on the number of name brand medications they will cover for medicaid patients. industrysts say they have to find some way to maintain costs. so the deal is under the president's healthcare law, medicaid is becoming more expansive and will cover a lot more people and it will get more expensive because we'll have more people taking advantage of it. so now some 16 states are saying, well, we are going to limit the number of name brands patients can have access to. first do we know this is a cause and effect from the healthcare law? or was this based on the rising costs of medicaid we have been dealing with for some time. >> this is based on trends going on the past 10 years. the problem is there will be 30 million people who will have access through this medicate program. and that's where we'll see bigger problems. megyn: they say what to an asthma patient. you can no longer have access to the name brand drug you have been taking, you have to shift to a generic drug? >> two things are happening. in illinois and alabama they are restricting the number of generic medications you can get to four. that's a particular problem for patients who have asthma, patients that are diabetes where doctors are trying different medications. in my practice you might try two or three medications in a month and then try another couple of medications before we find what medication that patient had. generic and name brands. megyn: what position does this leave the folks on medicaid in when it comes to getting their medications? >> they are in deep trouble. many patients if you give them -- they have heart disease as well as diabetes and you give them six prescriptions. they are only going to fill the four and they will not spend money out of their own pockets to fill the other two. doctors are in the business of providing healthcare, not to determine which medicine is bad. we are only writing these prescriptions because you need them. megyn: the argument in favor of this would be if you are on medicaid, it's a need-based program and without this government help you would have no coverage. >> the threshold to being on medicaid will rise and more people will take advantage of the medicaid system. from my practice alone. when they are given the opportunity to get additional treatment for medication but have to spend money out of their own pockets, they don't want to do it. megyn: is the argument then that the expansion of medicaid could wind up having a detrimental effect on those already getting medicaid? they will now have access to less than they have. >> these are the fears people have that they will not be able to get the services they are used to. there isn't a lot of thought put into how this will be implemented. unfortunately that's not going to be beneficial for patients. it won't be beneficial for doctors. they will have to start to practice in a way that makes their life more complicated as well. megyn: you have to go through the chart. >> even if you go through the chart and you are limited to so many medication, the patient had to get those medications somehow. megyn: does this spill over in the future to medicare? >> absolutely. medicare will tell you there is a standard of care they agree to which is not necessarily the standard of care of your community. so when you are providing the care to a medicare patient you are saying you need certain type of testing. and they may not be covered. because there is not enough money in the medicare budget. the more and more people on medicare, the money available and there is only so much, so something has to go. megyn: can you give me an example how this will work in this is a patient who might require this drug and he or she can no longer get it. >> if the patient has four medications and they reach that threshold the doctor will have to provide supporting document to ought government for patient to get the medications they need. megyn: they are saying we are going to cover four medications total. >> then the government intervenes and decides whether the additional medications are necessary. megyn: who in the government will decide? >> i have yet to have one example where the government agreed to the additional medication. megyn: those patients are left in the lush much to find the money out of pocket. >> yes. >> the 100,000 physician shortage will lead to additional rationing issues. there is a systemic problem and we need to start to figure out how to deal with it. megyn: who will be your advocate if there are so few doctors with so little time. >> the doctors will be spending more of their time filling out forms than they are practicing medicine. so it puts more strains on the system. megyn: we showed you the breaking news. tens of thousands of supporters are turning out nationwide for a chic-fil-a support. we are getting e-mails from folks across the country. plus a trouble can new sign of the times. young people moving home in record numbers. [ female announcer ] granola thins. from nature valley. crispy granola, layered with creamy peanut butter or rich dark chocolate flavor. 90 calories. 100% natural. and nature...approves. granola thins. from nature valy. nature at its most delicious. metamucil uses super hardworking psyllium fiber, which gels to remove unsexy waste and reduce cholesterol. taking psyllium fiber won't make you a model, but you should feel a little more super. metamucil. down with cholesterol. what ? customers didn't like it. so why do banks do it ? hello ? hello ?! if youbank doesn't let you talk to a real perso24/7, you need an ally. hello ? ally bank. no nonsense. just people sense. megyn: the city of los angeles keeping an eye on the bottom line and telling city workers, stop watching the olympics at the office. apparently a lot of the folks are watching the games online and city techs are worried it could cause a meltdown of the computer systems. others are asking about lost work. city officials say yesterday's gymnastics finals slowed city computers to a crawl. >> things they are using their computers for that are work related they are unable to do that as a fast or normal speed. so trying to get your e-mail to come up probably takes forever. megyn: one lawmaker wants to know where the supervisors were while the workers were watching the women's team cruise to olympic gold. they were probably watching, too. 10s of thousands of supporters of chick-fil-a coming out in force today. got this video out of houston, texas. look at the lines. people showing up for chick-fil-a appreciation day. they are pushing back after the ceo came under fire for his statement in support of traditional marriage. we are getting e-mails from folks all over the country talking about lines at their local chick-fil-as. >> reporter: at lunchtime there were so many people here the restaurant was jammed and the lineup for the drive through went twice around the building and out into the street. for many it was a first amendment issue that the company's ceo should not have been so roundly criticized as was simply for stating his views. but some customers think there is more at work than just first amendment righ of speech. here is what he told us. >> i think there is a greater issue going on in america. there is a culture war going on. if people aren't really respecting each other and difference of opinion there is no dialogue really taking place to get to the heart of what we believe as a nation and what is truth. >> reporter: a lot of people i talked to, particularly conservative christians see bullying tactics at work. the mayors from boston and chicago came out and said chick-fil-a was not welcome in their town because it didn't reflect their city's values. here is what was said at a national press conference. >> it many the same thing that happened when i was marching fear civil rights when they didn't want a black to come into their restaurant. they didn't want us staying in their hotels. now they are saying because we take a position they don't want us in their cities. well, we won't take it. >> reporter: these demonstrations in support of chick-fil-a started modestly when former arkansas governor mike huckabee said let's have chick-fil-a appreciation day on august 1. a conservative black action group said this. i think liberals are missing a vital point in their blind hatred of chick-fil-a. being against gay marriage is not being anti-gay. a kiss-in is scheduled at 39 chick-fil-as across the nation. megyn: a new olympic controversy. 8 badminton players thrown out of competition for allegedly throwing their matches. they did that to get a better seed in the next round, according to the officials. they are abealing the decision. but the question is how does the ioc prove cheating? "kelly's court" takes up the case. you know the saying you can never go home again? tell generation x. a new report shows people in their 20s and 30s are moving back home with mom and dad in droves because they can't afford to live on their own. is this the new normal in this country? and how will that play in november? [ kate ] most women may not be properly absorbing the calcium they take because they don't take it with food. switch to citracal maximum plus d. it's the only calcium supplement that can be taken with or without food. that's why my doctor recommends citracal maximum. it's all about absorption. and i thought "i can't do this, it's just too hard." then there was a moment. when i decided to find a way to keep going. go for olympic gold and go to college too. [ male announcer ] every day we help students earn their bachelor's or master's degree for tomorrow's careers. this is your moment. let nothing stand in your way. devry university, proud to support the education of our u.s. olympic team. megyn: a new sign of the struggling economy many parents might not be happy about, that is their adult children moving back home. we are talking about some people in their 30s who cannot find jobs or can't afford to live on their own. a new report out shows the number rising steadily since 2007, the start of the recession. so are these extended families the future for america? chris hahn is a form aide to chuck schumer and chris plante is radio host of the chris plante show. this researcher says this recession has had tremendous effects that previous smaller recessions did not. and in particular chris plante, the kids are going -- there is no place like home, as it turns out. >> there is no place but home as it turns out because there is no place to get a job. so it's hard to pay the rent and keep the lights on when you don't have a job. it's not their fault. honestly, megyn, i get calls from listeners all the time hoffa seetionly thank the obama administration for bringing their family together. it's not just the kids sleeping in their race car bed again the mobile hanging from the ceiling. but mom and dad are sleeping on the couch. you have multiple generations. barack obama's economy is like the waltons. >> i love how you take a measure of 2007-twine and blame barack obama for that. so clearly there was something wrong with our economy before this president took office. megyn: but she is the one who says the great recession has had tremendous effects that previous smaller recessions did not. she is calling it the great recession. >> reporter: she is talking about the data she researched. where it was up only 4% from it was in 1990 after 10 years of reagan and bush. these things do happen. megyn: is this a good thing or bad thing? >> i think it's a very bad thing. i don't think it's all the economy. i think there is a certain problem creeping into our culture. if you still live in the same room where you slept with a barney and sippy cup you are not an adult in america. it's time to move on. but what's happening is parents are way too accepting. my parents would never let me have an overnight female guest in my room but a lot of these parents are making it comfortable for their kids to come home. and they are not willing to move to where the jobs are. there are parts of this country where the economies are booming. you don't see kids getting up and going. it should be easy for them to do that in this mobile age. megyn: i moved back home with my mom for a year when i was in law school to save money. i was poor. >> that part of it, too. college is very expensive. postgrad is very expensive. but the reality is this is about the bad economy. this study cuts off in 2009. but the numbers have been rising since then. i hear from listeners all the time about family moving back in. it is like the waltons. >> you don't know the numbers have been rising since then. there is no data since then. since 2009 this country created 4 million jobs. >> there is a net loss of jobs and for people below the age of 29, the real unemployment rate is 16.8%. you can't find a job. it's barack obama economy, he owns it web's been president for almost four years. when you have european-style policies you get european-style results. >> tell me one policy he has had that's european. >> the spending in order to create prosperity. the size of government. >> when did he do that? megyn: over in europe they live at home longer. that's a cultural norm. before it hasn't been near the united states. and according to researchers it's becoming more and more normal. they say that the only segment not affected are the young adult who have graduate degrees. and they say, listen to this, men are much more likely to live with their parents than women partly because they marry later and because compared with the daughters, the sons have fewer domestic responsibilities like cleaning and cooking so they want to go back home and live with their mommy who will do it. >> there is only one thing worse than a 28-year-old man living with his mother and that's a 28-year-old woman willing to sneak past her to spend the night. megyn: i read this, chris plante, and i say get to work. get to w, do some cooking, mow the lawn. just like when you were 13. >> exactly. >> the president said recently that we tried his plan and his plan worked. i guess you can't call them anti-family anymore. but they are bringing families back together in ways we haven't seen since the depression and the waltons. >> there is only one thing i agree with mitt romney on. he said you don't judge a president until after his first year in office. 400 million new jobs net after his first year in office. >> you can start counting whenever you want. 41 months. 8-plus percent unemployment. that's barack obama. not everybody can go to the northern plains to get those oil jobs. megyn: i'm defending those young people who moved back in with mom and dad. i was grateful to have that as an option when i had no money. >> you went to law school. megyn: for me it's a bridge to get me to a better place. back in the comfort of mom and dad who are there to support and love you. >> some people never leave home. i had a cousin who lived at home when the economy was great. megyn: when did you get out of your parents' basement? >> 17. i went to albany and i never came back. i never came back to my home on long island. i loved albany. megyn: a lovely pedestrian village. thank you both so much. follow me on twitter @megyn kelly. four olympic teams disqualified. badminton players. throwing their matches allegedly to assure a more favorable opponent later on. how does that work out. but how can the olympic committee profit? the teams have challenged the decision. 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[♪...] megyn: "kelly's court" is back in session. on the docket today. a new $scandal at the olympics. 8 badminton players disqualified, accused of intentionally throwing their games. four female teams were taken out of the running after last night's match, saying the players including from teams from south korea, and one team each from china and indonesia were purposely losing to have easier matchups in the knockout round. joining me is arthur aidala and jonna spilbor. there has been a ruling against the appeal. so the olympic committee is saying this to the people -- saying too bad, we are standing by the decision. you intentionally blight and you are out. -- you interest tension alley blew it. what is the evidence that they they intentionally screwed up? >> there goes a shuttle cock it was so obvious they were trying to blow the game. so these aren't olympian badminton players. they are supposed to be the best of the best. you can tell when they are not really on their game. that's how they got caught. so is there any defense to this, arthur? how can you prove that they intentionally stunk as opposed to accidentally stunk? >> i don't know how you can except by using common sense. these are the best players in the world. for them to be making such horrific plays or the lack of effort or lack of running to make a shot. it's similar to major league baseball and the national basketball association where the team plays the best team and the sect worst plays the second best. sometimes a team matches up better against someone rated higher or lower. megyn: for those you who aren't as quick as you are. if you have a goods team and stinky team, which one was the one who threw the match, the good team? >> the good team threw the match so it would change who they were going to play in the next round which was a matchup they were more likely to win than the matchup, had they won they would have played a different team. that happens in major league sports all the time. megyn: are just the ladies who allegedly threw the matches out of the olympic.or the entire badminton team for south korea and china and indonesia out? >> i don't think they will throw out the entire teams. the badminton world federation is really upset about this. the ioc didn't throw them out. it's the badminton federation that threw them out. i think they will allow the other teams to play. this is sending one heck of a message. here is the problem i have with it. megyn: according to the reports, this is not a wholly unanticipated strategy. it apparently happens all the time. and they say this has been a persistent problem. so if it's been aloud, if it happens all the time and nobody has been thrown out, how are these girls to know they will get penalized at the olympics for doing it. >> if this happens in american sports on a regular basis. how do you prove the new york knicks basketball team intentionally lost that game so that in the playoffs they face off against the cleveland cavaliers as opposed to the miami heat. it's so hard. it was so blatant that -- i mean, it's one thing if you missed a shot. it's another thing if it's a whole game. megyn: one report said they only connected with the shuttle cock four times. and the federation determined they were trying to serve it into the net and trying to hit shots out of bounds. but you tell me if these ladies call you and say help me out, don't you say, look you have got to go by course of conduct. this has been a persistent course of conduct in bad badminn and there has to be notice to the offending parties that the strategy is not acceptable. >> they did get a hearing where they had an opportunity to put their defense. their defense is it was strategy, it's not cheating. we have been allowed to do it before. they had a hearing and the ruling with us not only can you not do it, but you are out. >> it's still improper, illegal. whatever. all the people were turning their heads, now they decided to enforce it. is it fair? no. is it right? it was upheld. megyn: is anybody beside me getting sick of the cheating at the olympic games. drugs, alleged drugs. doping. intentionally throwing matches. >> get on the cover of the wheat why ies box. megyn: if you ever want to see you're family again you won't come back with anything less than gold. check your tvo for the 1:45 segment. we are taking your thoughts on it. is this cheating? it's over for them. follow me at megyn kelly and we'll be right back. ♪ i'd like to thank eating right, whole grain, multigrain cheerios! mom, are those my jeans? 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[ female announcer ] live the regular life. phillips'. megyn: a pair of christian and muslim leaders working together to get porn out of hotels. adult films are available in 40% of hotels in the united states and hotels charge guests $13 for the films. in the past decade movie rentals dropped 40%. the widespread use of wifi is to blame. lauren green live with that story. >> reporter: conservative christians and muslims differ theologically but with morality they share a common concern, which is pornography. they are calling to ban adult entertainment in hotel rooms. >> instead of trying to move people by protests and demonstrations and threats of boycotts. we make a simple appeal to the consciences of the corporate executives whose businesses have gotten into pornography. >> it would show people are willing to take a stand against something that is morally wrong. despite the effect it would have on their pockets. report report steve hirsh says if people don't want to watch, they can tune out. >> these self-proclaimed morality police come in and want to tell you what's best for to you watch. and it never ever works. >> reporter: we contacted all five hotels requesting interviews. in a statement hilton said all adult content is only accessible to adult guests who request access and choose to right. hyatt says it takes steps to insure guests are not inadvertently exposed to pornography. starwood has yet to respond to our requests but marriott is work on removing on demand adult content, switching over to an internet-based system. but the hotel will not be directly providing it. megyn: lauren green, thank you. another needle found in an in-flight meal. which airline was it this time? is this linked to the other incident? the latest on the investigation. okay, team! after age 40, we can start losing muscle -- 8% every 10 years. wow. wow. but you can help fight muscle loss with exercise and ensure muscle health. i've got revigor. what's revigor? it's the amino acid metabolite, hmb to help rebuild muscle and strength naturally lost over time. [ female announcer ] ensure muscle health has revigor and protein to help protect, preserve, and promote muscle health. keeps you from getting soft. [ major nutrition ] ensure. nutrition in charge! : >>megyn: so, a monsoon is moisture that comes from the pacific gulf and brings rain to the southwest. typhoon is the pacific version of the