Gretchen real estate guru bob massi tomorrow seminar from florida. Register, rebuilding your dreams at foxnews. Com. Steve bobby dean and maria in the after the show show. Martha sounding the alarm on americas spending problem. The Nonpartisan Congressional Budget Office says we are in for a massive and unsustainable increasing deficit if we dont get a handle on entitlements. Good morning. Glad to have you with us. Gregg the cbo is saying it deficit will go down to 840 billion. Thats the first time it will drop a trillion dollars under president obama. Martha but with baby boomers retiring at the rate of 10,000 people a day. Entitlement spending is set to explode. Stuart, as we pointed out, there is a lot of enthusiasm that we wont rack up a trillion dollar deficit. Reporter the headline was all about the deficit is going to be below a trillion dollars. Thats great news. The bad news and there is a lot of it. The next 10 years medicare will cost 1 trillion a year. Obamacare subsidies will total nearly a trillion dollars. The cost of medicaid will double and the debt will go to the highest portion of tour economy than its been in a generation. There is dismal views on the current state of the economy. 1. 4 growth this year and the Unemployment Rate will rise at 8 and stay that way for years to come. Martha the cbo makes very clear we need to do some entitlement work and recraft these programs if we want them to be our for our children. Why does the administration not appear to be too concerned about doing that. Reporter you have to ask, is deficit reduction a priority of the obama pad min straition . It doesnt seem like it. Just yesterday the president was trying to avoid the big spending cuts. Hes trying to avoid that. There is a faction within the Democrat Party that says debt doesnt matter, we have beaten it. Whether thats true or not. Deficit reduction is not a priority. Martha the president believes the economy is getting back on track. So let the folks decide. Stuart, thank you very much. Gregg according to the cbo. By the end of the year the federal debt held by the American People will be 76 of the gdp and it doesnt get much better from there. Martha the cbo also predicting unemployment will be with us for some time to come. Here is the director of the cbo. Under current law we expect the Unemployment Rate will remain above 7. 5 . That would make 2014 the 6th year in a row with unemployment so high. The longest such period in 70 years. Martha the Unemployment Rate has been above 7 since december of 2008. And most recent monthly number ticked up from 7. 9 from 7. 8 . Not a good trend. When you look at some of these numbers it makes it a tough argument for economic recovery. But the president remains convinced we are starting to see it. Gregg poverty is up. Incomes are down. So the arrow is going the wrong way. In the meantime president obama is asking republicans to delay spending cuts with more tax hikes. There are some liberal democrats who say republicans just want to gut the social programs. Its time we take off just the green eye shade and look at the people behind the cuts that have been made. 600 million cuts to Community Health centers. Thats talking about taking food out of the mouths of babies. I would say Mitch Mcconnell is a bully. Gregg will republicans go for president obamas deal . Martha there are some tough new questions for the white house after a memo surfaced that lays out the case for targeting u. S. Citizens overseas when they believe they are a threat to our country. The critics say it allows the president to be the judge, jury and executioner on americans. Now there is a group of senators who say they want answers to this, and if they dont get them the president s nominee for cia and defense could be held up. We conduct those strikes because they are necessary to mitigate ongoing actual threats, prevent attacks and save american lives. These strikes are legal, ethical and wise. The u. S. Government takes great care in deciding to pursue an al qaeda terrorist, to insure precision and prevent loss of american lives. Gregg peter doocy joins us in washington. The first thing an american citizen has to do to be targeted is associate themselves with al qaeda operations. When they do that the juts is Department Says that out weighs their right to due process. We say that we only take these kinds of actions when there is an imminent threat when capture is not feasible and when we are confident we are doing so in a way thats consistent with federal and international law. Reporter a secret Justice Department memo makes sure there does not have to be a known plot, just an imminent threat to target a citizen aligned with al qaeda. The first to be targeted was anwar alawlaki. We heard republicans and democrats come out in the last 24 hours and say they dont think decisions about executing u. S. Citizens should be made secretly. You have a senior unaccountable d. O. J. Official that makes the determination recent activities makes him believe we are in imminent threat and you can send a drone to kill him. Im troubled any time government is as nontransparent as this. Reporter tomorrow john brennan will come to capitol hill for the Senate Confirmation hearing. He was president obamas number one counter official terrorism official as the drone protocols grew. We expect to hear u. S. Senators bring that up at his confirmation hearing. Gregg the question being asked today, what if president bush had done this . Some say he would have been raked over the coals big time for his. Martha the city of charlottesville, virginia is the first city to pass resolutions related to drones. Originally they tried to make me charlottesville a completely dronefree zone. Its a big issue in this country. Gregg we are learning new details about the end of that hostage standoff in alabama. Authorities say accused killer jimmy lee dykes rigged his bunker with explosive and even planting a bomb device in a ventilation pipe that he told negotiators to use to communicate with him. The feds continue to scour dykes property for more evidence. Meanwhile, relative say the child appears to be doing quite well. His mother released a statement. Ethan is safe and back in my arms and i owe it all to some of the most compassionate people on earth. Ill never be able to repay those who helped bring ethan home. My family and i ask that you respect our privacy and give us time to heal and time to put this nightmare behind us, time to move forward. Martha thank goodness that worked out the way it did. There was a spoim warning that was can there was a tsunami warning canceled overseas because a magnitude 8. 0 earthquake struck in the solomon island. It triggered a series of relatively small waves. They are located in the socalled ring of fire which has the most volcanic activity in the world. Gregg it looks beautiful, but how would you like to live in a ring of fire. Martha the tsunami alert has been thwarted. Some new problems for Lance Armstrong. Reports that there is a new investigation that could lead to some serious charges for him. Gregg criminal charges. Forecasters from predicting a blockbuster storm. The question is, is it head your way . Martha new allegations of crony capitalism as a big donor and friend the the white house just received a massive contract to give highend smartphones to the unemployed. But does the program work . Remember this from the last election. Everybody in cleveland got phones. He gave us a phone. You sign up, you got no income, you get disability. Hey, our salads. [ bop ] [ bop ] [ bop ] you can do that all you want, i dont like v8 juice. [ male announcer ] how about v8 vfusion. A full serving of vegetables, a full serving of fruit. 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Adt. Always there. Gregg police in texas release the chilling 911 call that led them to the sniper. The sister made the call after her brother reportedly confessed to murder. My brother just came by here. He told me that he committed a murder. And im terrified for my life. I dont know if hes going to come back here. Gregg ralph is a 25 year old iraq veteran being held on murder charges. Martha Cell Phone Company tracphone will be giving out free phones with Internet Service to help lowincome job seekers find work. Bu the first time the president has given a business deal to one of his socalled cronies. It was a practice he promised to get rid of it. The days for sweetheart deals for halliburton will be over when im in the white house. Martha Jonah Goldberg joins us. You know, i think that these kind of deals have happened over and over and over again. But the difference is that president obama made it very clear in the election he wanted nothing to do with this kind of thing. Now you have a good friend of his, the ceo of tracfone is a frequent visitor to the white house and they have got a pretty good deal out of this one. President obama said no more sweetheart deals for halliburton. He didnt say no more sweet hurt deals for tracfone. Its a pilot program. This program which i think is constitutionally dubious to begin with. The fcc should not have the power to raise taxes by itself. But under this program its supposed to be for under privileged poor people and Unemployed People to learn typing skills and write resumes and they will hand out smartphones which i think is not great for typing out resumes. Martha the Program Supporters say its a way for the unemployed to learn Technical Skills to prepare their resumes and search for jobs. But one of the pilot projects went to this Tracfone Wireless company that president obama is closed to based on their visits to the white house. Whether these programs even work, i think everybody would say great. If it gets people jobs and its truly helpful you could make some good argument for that. But it doesnt appear it does. Im not shire would be entirely in favor of these giveaways if you can prove they work. Why are we turning libraries to train people with if the whole idea is to stay on the couch and play with their smartphones and play doodle jump. My friend and muck raker tim carney says whenever the government gets involved in a new business the wellconnected always win. This is a classic example of this. This Company Owned by a mexican mobile giant tise tis of advertises incredibly aggressively saying do you want a free phone. If this Program Takes off the company is set to take in 100 million a month from reimbursements from the government. Martha it raises questions about a growing Entitlement Society as well. The gifts from the government is a way to keep people unempowerred. This goes to obamas core philosophy which we heard in the second inaugural and nancy pelosi who called unemployment a jobs bill. Positive liberty is when the government gives you stuff that lets you be all you can be. Thats what obama talked about in the second inaugural. He said all these programs liberate people to be entrepreneurial. My suspicions if you give them free this, free that. It doesnt make them entrepreneurs but it makes them dependent on the government. Martha thank you, jonah. Always good to see you. Hes a poet and doesnt know it. Gregg another day of dramatic testimony expected in the exgirlfriend murder trial. She changed her story over and over again about her former boyfriends death and her latest version of events. Save her from the death penalty. We talked about it and basically our relationship was over and it was kind of sad. Eat good fats. Avoid bad. Dont go over 2000. 1200 calories a day. Carbs are bad. Carbs are good. The story keeps changing. So im not listening. To anyone but myself. I know better nutrition when i see it great grains. Great grains cereal starts whole and stays whole. See the seam . More processed flakes look nothing like naturalrains. You cant argue with nutrition you can see. Great grains. Search great grains and see for yourself. For multi grain flakes tt are anxcellent source of fiber try great grains banana nut crunch and cranberry almond crunch. Martha she suffered a terrible crash. Word now that olympic ski champion lindsey vonn is out for the rest of the season. Sheer to ligaments in her right knee and suffered a broken bone. Its a slow motion replay of what happened yesterday. What a tumble for lindsey vonn who is such a great ski champion. The hope is shell be back on the slopes. This an optimistic hope. For october in the world cup she says she is grateful for the outpouring of support and looks forward to competing as quickly as possible. She hopes to be in tune for the sochi olympics. She has a year to rebuild. Gregg her story has changed. More dramatic testimony in the case of jodi arias reportedly after he ended their relationship. Her appearance is now different from when she was dating alexander. But it isnt just her looks that have changed. Her story has changed. During an early Police Interrogation she denied killing him. About a month later she claimed he was here he would back up that zwroir. September 2008 her account changes when she claims she witnessed two other masked people killing alexander and this week on the witness stand she admitted she killed alexander but claims its selfdefense. Adam, she was on the witness stand all day again yesterday. And she said a lot of things about her relationship with travis. What did we learn . Reporter the defense team is methodically going through just about every relationship she had since high school trying to show her as level headed even when she claims one past boyfriend tried to choke her. And some difficult times growing up in her household. The defense is trying to paint her as someone able to handle it. Then they started talking about travis alexanders relationship with jodi trying to show that he was someone controlling. Take a listen to this snippet from court. Mr. Alexander motivated you to break up . It was about my life and career and direction of my life. It made me step back and take a look at where i stood and where i was going. Reporter there was graphic testimony talking about the relationship. The theory is as they move through today shell start to show him as more controlling and someone who beat her. Gregg her appearance is strikingly different from her earlier life. There she is on the lefthand side. Do we have any indication how much longer the defense is going to go on direct examination . The real fireworks will be crossexamination. Reporter everybody is waiting for crossexamination. We expect the defense to rest today. That is the theory. They are very methodical in the way they are laying this out, trying to portray her as being this calm individual. They have three or four major holes in their story. They say that, hey, if you are going to skill somebody, why would you split them from rear to rear, and drag the body around the house. Everybody is waiting for that to happen and that could begin midday today. Gregg prosecutors love these types of crossexaminations with a witness. Reporter so do court observers. Martha a showdown over spending cuts that are weeks away. The president says he needs more time to come up with a budget. Republicans say time is up. Kevin mccarthy joins us in americas newsroom. Gregg he has taken a beating in the court of puck opinion but Lance Armstrong could soon find himself in a real criminal court facing prison time. Well tell you the new charges he could be facing. [ male announcer ] its a rule of nature. You dont decide when vegetables reach the peak of perfection. The vegetables do. At green giant, we pk vegetables only when theyre perfect. Then freeze them fast so theyre are as nutritious as fresh. [ green giant ] ho ho ho. Green giant gregg a new report that cyclist Lance Armstrong is the target of a federal investigation. It comes just weeks after arm strong admitted to oprah in a televised interview that he did in fact use performance enhancing drugs during his career and he had been lying all along. A former federal prosecutor joins us in the studio. Lets put up the entire laundry list. Its pretty scary. Drug trafficking, money laundering, fraud, conspiracy, obstruction of justice for trying to bully and intimidate witnesses into lying. And perjury. Under oath in a civil case he lied. Absolutely. Gregg will the fed prosecute him . You have to look at the history. There was a case in california that was hastily dropped. Some of the agents in the case were saying they were surprised and they thought it was a viable prosecution. They recommended an indictment. Not appears either another district or main justice in washington is looking into it. I would not be surprised to see some type of case. Gregg isnt this why we tell our client shut up, dont talk to anybody but me. Always Public Relations. He thinks he will do to great Public Relations move and legally its an absolute disaster. First of all he received a settlement for libel from a british tabloid. Gregg martha and i were talking a moment ago, she doesnt think he will go to prison. I would point to marion jones in a track start. She went to prison for lying about drug use. If you look at the steroid situation in baseball i think marion jones might be the outlier. But we dont have crystal balls. Gregg were barrie bond might have gone to prison if he had not gone to prison on the substantial charges. Put up on the screen the potential civil lawsuit. This federal whistleblower case pending accusing him of defrauding the government of 30 million. Libel reimbursement case to the sudden daytime. Recovery of 12 million in bonuses for the fraudulent Tour De France wins. Then sponsoring lawsuits to recoup millions paid which nike and others. In the end he could have to fork over almost his entire 100 million fortune . Yes and no. I dont think there are times when the athletes give back their actual compensation. A baseball player used steroids. They may be subject to legal machinations, but not necessarily salary. The people he defamed by saying how dare you claim i did this. There will be a lot of lawsuits and big time with the sponsor money. But not necessarily what about the people he bullied . He ruined their lives. And their careers. He took such a scorched earth offensive allout thing that by the way he also created tremendous bad will which i think will come back to get him. Gregg good to see you as always. Thanks so much. Martha the boy scouts of america are expected to soon vote on whether they will allow gay scout members for the first time in their history. That decision could come today. Here is the Group Headquarters in irving, texas. Why are the boy scouts considering this move now . Reporter they have not addressed that. They refused to go on camera leading up to this answering any questions. But there are several theories floating around about that. One of them is primarily financial. Keep in mind the boy scouts of america have lost hundreds of thousands of dollars in corporate sponsorships because of its antigay stance. Intel and United Parcel service have pulled their funding and there is a decline in membership. The Organization Claims 2. 7 youth members and 1 million adult volunteers. The number of young people involved in scouting plunged 20 since 2000. And many simply say it is an outdated discriminatory policy. The leading cause of death for gay kids is suicide because they feel deep feelings of rejection from organizations like the boy scouts of america and individuals in our society that reject that. Reporter even president obama said gays should have the same access and opportunities as everyone else in society. Martha not everyone is on board with this change, are they, casey . Reporter no, they are not. Groups like save our scouting and the Family Research council have had a lot to say about this. The Family Research council said it does not want role models for children to be heterosexual foreigheterosex sexualfornicato. They want to change their principles we are definitely going to consider removing our boys from the program. Unfortunately because i really love the program. Reporter if this ban is lifted it would not require the chartered organizations to allow gay members. It would change the language and National Policy and allow scouting units to decide for themselves. We do not know when the decision will come. The boy scouts have not told us. But we are on top of it, martha. Martha it will be interesting when they do make that decision. Casey stegall. Gregg the problems that could bankrupt a major city that the super bowl will not erase. Martha the Postal Service made a major announcement about your mail service that you need to know. [ ] gregg new dash cam video capturing a horrific accident. Take a look at this. That just came out of nowhere. It was reported by a driver in south korea. The people inside the car are all lucky to be alive. No word on what caused the suv too jump over the median. Martha wonder why they had a dash cam on the front of that car. It makes you want to be sure your seat belt is buckled. Those people are okay. New reaction from House Republicans after president obama asked for a shortterm budget plan to avoid what the pentagon called devastating defense cuts known as the sequester. The white house is offering a tradeoff including spending cuts and more taxes. Eric cantor says that deal will not fly. Absolutely not. Its just more of the same. We have got a real problem in this country we know. We are spending much more money than we have to the tune of a trillion plus dollars a year and its got to stop. It doesnt help people for to us keep doing that. Martha good morning, congressman. Good to have you with us today. What do you think about that . The president its asking for more time. A lot of people i think at home listen to that and say this will be the second extension we have had on this which was supposed to be a make or break push before the end of the year. The whole idea of sequestration was the president s idea. The house passed last year twice a way to find the cuts with protecting the military and the senate and the president ignored it. That does not solve the problem. This president is just coming back to his same answer. To take more money from the taxpayers. That is not the answer. We need to get government under control and expand this economy. Martha the thinking is on the fiscal cliff deal you didnt have that much leverage. This time around you do. Charles krauthammer was on special report with bret baier and said they need to do nothing. Republicans should sit on their hand in this one. Are you going to do that . We are not doing nothing sitting back because we have passed a bill that would find the cuts to make it go forward. But we are moving forward to produce a budget that balances and grows the economy. Where the president for the last five times has missed the deadline. We had to threaten the senate to do a budget. Havent done one in the last four years. And its sad that the last two weeks we have to spend our time on one of the most basic things to get them to answer. Martha the president said yesterday they have cut 2. 5 trillion in defend city reduction. All the thing that were on the table when he tried to make a deal with john boehner are still there. Entitlement reform, tax reform is still on the table. Come to the white house. Try to hammer out a deal based on that framework. Why not . Do you know how many times hes been to the white house and he pulls the football out from under you. This president never comes to an agreement. Of all the budgets the president sent to this capital it has not received one vote from a republican or democrat. This president has increased spending and put deficits in the trillion dollars every single year. You cant continue that. The cbo director warned yesterday that the amount of debt to the gdp is in dire straits. We have to do something about it. Martha what many your next move . Put a budget that reforms government. Expand the economy and lets us grow. Thats something we passed. This is sequestration the president asked for. Its going through march 1. He requested it. He ignored it. The house has acted. Martha you will allow sequestration to kick in on march 1. This is what the president asked for. Martha he says hes willing to do entitlement reform. Why would you be reluctant to do means testing or raise the age for those of us under 55 and have a ways to go before we get to that point. Why do you think he doesnt want to get together with republicans on that idea that seems to get a lot of general support. The president has never campaigned for it and he always fought against it in the time it came forth. Thats the challenge when he says come negotiate with us. I think what needs to happen. The house passed a budget. The senate needs to pass a judge the and let many start working from there. Show where the path will be where you can make fiscal responsibility here and bring accountability back to washington. Martha you are saying sequestration would kick in. The senate says they are going to put out a budget. Its been over three years. Always good to have you with us today. The majority whip, california congressman, kevin mccarthy. Thank you, sir. Gregg some dangerous weather heading toward some of the biggest cities in the northeast. What can we expect from this latest winter blast . Well have a live update from the fox news extreme weather center. Gregg extreme weather is headed toward the northeast. The area could be hit by a socalled weather blockbuster this weekend. How extreme is this one . Reporter a lot of people have been asking for snow across the northeast. We still have time to go so its only wednesday and we are expecting the storm later in the day friday and Early Saturday Morning. Everyone around the northeast just needs to be made aware. There is a storm that could be coming to wrap up the workweek and. The big story will be the wind and the possibility of significant snowfall. Especially across eastern portions of new england. This is one of our computer models. This computer model has kept the storm track focused to the coast. So that means a greater chance of heavy snowstorm parts of new england, and strong winds. And this model also keeps a stronger storm system. So this will be critical as to how much snow well be seeing and where. The area right now that does seem to have a higher confidence seeing a foot of snow will be massachusetts, vermont, New Hampshire and southern areas across the state of main. There is another computer model that keeps the storm weaker. It keeps a rain event across the atlantic. D. C. , you could be seeing a wintry mix as we head into friday and Early Saturday Morning as well. And very strong winds with this storm system. A classic noreaster. Southern areas in vermont, New Hampshire and maine. We are expecting 6 inches of snow. But the possibility for more snow does exist and well continue to see watches and warnings as we head into today and tomorrow as the storm system continues to tomorrow. Just a foul snow showers in the northeast. Nothing too significant. The two areas of low pressure that will merge. One is across texas. The other across the make northwest. A possible north easter friday and saturday. Gregg lets hope we dont have any power outages. Some people are still suffering. You are passing the white stuff on. Martha i like snow, not power outages. Lets talk about the story brewing this week. There were details leaked on president obamas drone strike policy that some say make him the judge, jury and executioner in these cases. Its raising a lot of questions about president ial power and the constitution. Is it in line with what he publicly said about the fight against terror and how would people respond if another president had done the same thing . Gregg we are minutes away from a big announcement by the u. S. Postal service. Thats a live look in washington, d. C. Why mail delivery as we know it could be changed forever. 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Call now to request your free decision guide. This easytounderstand guide will answer some of your questions, and help you find the aarp Medicare Supplement plan thats right for you. Martha sifl Rights Groups are calling the president a hypocrite for backing a policy of targeting american citizens overseas when they have not been charged with a crime. I would point you to the amplamample judicial precedence. Thats established in a number of cases. Im not even a lawyer and im aware of that. Fox News National security analyst. Morning kt. Good morning. Martha im tkpwegs you dont have a problem with that drone policy in and much itself, right . If this had been the Bush Administration wed be talking impeachment now. In the Bush Administration what happened, necessity water boarded three admitted selfindicted criminals who were part of september 11th. That was something that was called great human cry. Now we have american citizens being killed. I have no problem with anybody being killed who makes war in my country. We are doing it in an openended way. This is the same guy, john brennan was at the c irk a during the waterboarding day, the enhanced interrogation and hes the mastermind of the drone wars and the new cia director. Martha what do you think it tells us about the obama administrations policy towards the war on terror . I think a couple of things. They dont want to get their fingers dirty. They dont want american casualties. Known wants that. The problem i think is three in the whole drone war idea, number one we may have been very good at the very beginning when we were taking out key people in very difficult to reach parts of pakistan and afghanistan but weve now expanded that drone war and are the third thing martha that worries me probably more than anything we are lowering the threshold of when we use force. Its an important thing to have americans in the loop. By doing something where no americans are at risk. Martha it negates your ability to get intelligence from any of these individuals. Yeah, they are dead. Martha we know the president is not fond of the gitmo model. It raises a lot of questions about the most useful way to apprehend people and get information from them. As far as we know, right we are talking about anwar alawlaki, and americanborn citizen who we know was an inspiration to the fort hood shooter and the time square bomber and underwear pwo erpl, most americans would think that was a pretty legitimate case built there and two others connected to them. We are are not talking about any other instances that we know of. Against american citizens. There are an awful lot against the taliban. We are the only guise with drones now. That will not last forever. What happens when other count theres get drones . Do they takeout an American Ambassador driving a car in saudi arabia . You could even see drone attacks in the United States. I worry about the precedent, the generation that were creating of people who are really going to hate america and i worry about loring the bar so we make it much too easy to pull that trigger and go to war when we dont have anything at risk. Martha we basically had heard that the war on terror was over in many ways, and yet it has been carried on in a way that may perpetuate it if youre right. Kt thank you so much for being with us. Always great to talk to you. Thanks. Gregg we are just getting word of a shooting in ben srer denver, colorado now. Several people including children have been killed or injured. We just dont know yet. There is a heavy Police Presence at a home in denver, and witnesses say they saw a child being brought out on a stretch tore a waiting ambulance. Now police are saying in a tweet that there are multiple victims but we dont have any further details. As soon as we get them well pass them on to you. Hate to be a buzz kill but here it is, the city of pwoupl, the ravens cannobaltimore, a new report showing that the city is on the path to ruin. They will accumulate 75 million in budget deficits, factor in Retiree Healthcare cost, struck struck needs th struck. The total shortfall 2 billion. Charlie gasparino joins us. Charlie there have been 41 bankruptcies by municipalities, a lot of them were mismanagement. In one case it was a huge legal judgment. What happened in baltimore . We should point out that they are not bankrupt yet. They phase like a similar dilemma as the United States in a certain respect. In the future there is going there is a point where you cant borrow any more, your expenditures are much higher than your revenues, and then you are in the muck so to speak, you are in bankruptcy. Obviously if they take steps to prevent it over the next couple of years they could prevent that. 2billion is not a huge amount of money. It sounds like a lot of money but think about it, Warren Buffett is worth 40 billion, they can get their arms around this. Here is the problem that baltimore faces and a lo facebook. Commess and a lot of big government. They raise taxes at the blink of an eye. They dont deal with the pentagons and Health Benefits they give workers. The necessary steps that need to be taken arent taken until its too late. When you think about what happened with new york city, they had years of that and then you had the 1975 fiscal crisis, and you had to take draconian steps, massive cuts, it was years before the city got back on its feet. They had a technical default at the time on some of their debt. In some ways new york city is still paying higher Interest Rates because of that thing in 75. Thats what pwoupl has to do. Baltimore has to do. Do they have the political will to do that . I doubt that. Gregg you have a revenue problem. You have the problem of middle class people working out because of lousy schools, and high crime. Do what Rudy Guiliani today and ed koch did, you deal with crime and start restoring confidence in the business sector of the city. New york city is a much lets place now than it was in the 70s and early 80s. The reason why was because Rudy Guiliani, and ed koch to took the time to deal with the fiscal problems with the city, and remember taxes arent the answers. When you raise taxes on working class people, middle class people property taxes they run. If you dont deal with crime middle last people leave. Businesses dont want to stay. That region of the country, that sort of washington region is the era of the country that is doing very well right now. Baltimore should benefit somewhat from that. Gregg when you come in on a train in baltimore its scary. Very scary. Gregg enough said g. To see you. Martha karl rove is firing back at some of his critics after claims that he is favoring Establishment Republicans over tea party candidate. Rove says that is not so. He says he is looking nor wins, winning candidates and results. Take a look at this from last night. Some people think the best we can do is todd akin and richard murdoch, they are wrong. We need to to better if we hope to take over the United States senate. We need to get more conservative candidates and win. Martha who better to talk about that but to carlson and alan colmes. Gregg the president said if you like your hilt insurance you can get to keep it. Not so fast. Details on how wrong he might have been. Martha stunning video of four volcanoes all erupting at the sale time. It looks like the beginning of earth. Its unbelievable. Wait until you see all this. Well be right back. Gregg a deadly scene in fort lauderdale, florida, one person was killed when this truck slammed into a pillar halfway off the overpass. Rescue crews working for hours to remove the driver, eventually had to use a crane to pull the truck off the ramp. The accident backing up rushhour traffic in both directions. Martha interesting conversation going on here, and karl rove is now responding to critics after coming under fire for his new Political Action committee. Several conservatives have claimed that rove is supporting mainstream republicans over Tea Party Candidates but rove came out fighting on this last night with shaun and a tee. He says what he wants is to get the best republicans elected. Take a look. There is an awful lot of tension between the grassroots and the establishment in the Republican Party. The grassroots believe the establishment is ideologically corrupt, they dont really mean it, and the establishment things the gas roots is crazy and are putting up mediocre candidates. The bottom line is not whether youre conservative or hreu or liberal. If you cant, for example, attack abortion without appearing into dores rape yo endorse rape. Its not a question of who is conservative and who is liberal its a question of who is articulate. Martha what karl was saying last night is his group supported Tea Party Candidates, they supported candidates considered conservative candidate, he this is this whole thing about him shoeing the tea party for the establishment is bunk. I think hes got a really good point. They did support an awful lot of conservative candidates. The Republican Party for a bunch of Different Reasons apparently isnt Strong Enough to weed out the poor candidates in the primary. Groups like karls fills the boyd. Somebody has to be a gate keeper keeping morons away. If you cant speak english youre not going to win election. Martha alan loves when morans runs for office it makes him very happy. I want conservatives who cant win. I want conservatives to make comments like god intended if women get raped that the baby should be born. Martha we dont want to hear that one again. Just to pick up on what tucker said, tucker and i probably agree that carl is saying, he clearly said we want the most conservative candidate who can within, that makes a lot of sense. Its being pragmatic. Martha that is what is known as the william f. Buckley rule to root for the conservative who has the best chance of winning and who is the most conservative. Where do you think this goes from here, tucker, this conversation . Does it get republicans to a better place where they do win more electio elections . Because thats clearly what they want. There is still a lot to shake out here. No one says it out loud or rarely. An awful lot of conservatives, the republican primary election threat believes they were sold down the river, not in all ways, they are upset about the Prescription Drug benefit, the lack of fiscal restraint, there is this battle going on mostly behind the scenes between the people basically in charge of the partly and the people who are actually coming out to vote. And i think this will not be settled until there is a broad consensus among republicans on what they stand for. What does it mean to be a republican . What do you believe when youre a republican . Martha it seems like that message, we heard it from tkpo fz bon mcdonald, from eric cant torques the message alan i think in many case democrats have been able to successfully demon mice republicans as being out of touch and not caring about the best outcome for the country on a whole. I dont think republicans need any help from democrats to be demon niced. Look what happened to mitt romney he had to twist himself into a petition zell to try to appeal to a constituency, try to be something he really wasnt. We never knew what he stood for e. Was trying to be whatever he thought the Republican Party needed to win. Martha which is always a mistake. I honestly believe that both sides really do want the best for the country, they just have very different ways about how you get there. One side believes that the government is the best route to helping people and the other side believes that people on their own sroe hreurgs the best. I dont think they always think government is the best way to help people we. Have a benign view of government than conservatives. And think government can be a force for good. I wouldnt generally State Government is always the answer. Martha final thought and we have to go. Just to be totally clear, fielding candidates who can make the case, its not the same as fielding liberal candidates. You can field strong, ideological conservatives and still win. They just have to be able to talk. Martha very low bar. Thank you, tucker. Tucker carlson, alan colmes, sue he guys next week. Gregg the muslim cleric behind the planned mosque at ground zero is now in a whole bunch of trouble. Why he is accused of taking donations and stic sticking them in his own pocket. Martha the results are in the Great American board game getting a new token this morning. Well tell you which one of these little fellas will be in your next monopoly box. [sing l [singing] stpho et. Twins. I didnt see them coming. I have obligations. Cute obligations, but obligations. I need to rethink the core of my portfolio. What i really need is sleep. Introducing the ishares core, Building Blocks for the heart of your portfolio. Find out why 9 out of 10 large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. Jo a big change come being for the Great American board game and it has finally been revealed. I know youve been thinking about this all morning i. Was tweeting about it before. Monopoly fans voted to lose the iron. Remember the iron . It was always the last piece that nobody wanted, right . Now its going to be the cat. The toymaker, hasbr aorbgo let fans decide. They have sold more than 275 million games worldwide. In the Fourth Quarter of 2011 the sales were flat. They say the fans from more than 120 countries cast their votes. I like the guitar better. Do we have all the choices . There was a guitar, what else is there. Gregg the dog. Martha the new version, the robot, helicopter, guitar, diamond ring which is always popular with sroebgs. With folks. The scotty dog. Gregg i knew there was a dog. Bombshell developments concerning the founder and former head of the ground zero mosque, a former donor slapping the imam with a 20 million lawsuit accusing him of taking millions in donations and spending money on pricey trips and sports car and other personal expenses to tell you about. Eric san antonio is here ieric shawn is here. What do we know about this . Reporter he was the imam behind the ground zero possible being and is accused of absconding with millions of dollars for his own use. He once said the u. S. Was, quote, an accessory to 9 11. He allegedly diverted Charity Donations intended for islamic causes to line his own pocket, that at least according to a lawsuit filed by businessman and tphrapb tr Robert Leslie deek and his family. They siphoned off donations that were intended for a separate Islamic Education program. The money went to him and his wife, daisy kahn. She gained notoriety for the mosque around the corner from ground zero. The money went to a luxury sports car. Personal real estate. Laugh sreulavish trips. They say they are shocked that they have been preyed upon and they accuse him of taking more than 3 million from the maylasian government and allegedly falsifying the tax returns from his nonprofit groups to they say hide the money, gregg. Gregg what do they say. Reporter they deny the allegations. Paul knight says, quote the lawsuit is merit less and will be vigorously defended in the new york court. It turns out there may be a lot more to this or Something Else than it peoples because h it seems because i and his wife are suing the deeks in washington. That 16story Islamic Center has not been built and its future remains uncertain, gregg. Gregg thanks very much. Martha if you like your Current Health plan the president promised that you would be able to keep it. But a new report shows that 7 Million People are finding that is actually just not so. Were going to explain. Gregg check this out, four volcanoes erupting at the very same time, incredible videotape coming up. [singing] [ indistinct shouting ] [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All onhinkorswim from td ameritrade. Martha breaking news. It looks like there is no decision from the boy scouts on whether or not they will allow gay scouts in their organization. We thought we were going to get some decision on this at some point today but we are now learning that they are still deliberating and that they think more discussion is necessary. No decision today from the boy scouts on whether or not they will change their policy as a National Organization to allow gay boy scouts. Well see. Gregg troubling developments from a brandnew report on healthcare. Despite president obamas pledge when he pushed for his healthcare overhaul, if you like your coverage, you may be among the 7 million americans not able to keep it now. This coming from the Nonpartisan Congressional Budget Office. That number is nearly twice their previous estimate. Matt mccall president of Penn Financial group joins us live. Matt, explain why 7 people americans will lose their Job Based Health insurance . Well from the corporation standpoint that is supplying these employees with their Health Insurance it is actually cheaper for them to take the penalty. What happens is the government will impose a penalty on your employer for not offering you insurance. As an employee you then go into the exchange which the government will put together. The big problem i see with this. Gregg is the fact that a lot ofs exchanges according to the ceo themselves will not be able to handle this influx of people coming in, so youre going to have a mess on your hands when you have 7 Million People looking for Health Insurance. Gregg when the president was pushing for obamacare and he doesnt mind that hes sort of proud of that now. Here is what he promised, take a listen. If youre one of the more than 250 million americans who already have Health Insurance you will keep your Health Insurance. This law will only make it more secure and more affordable. Gregg we now know its not true, 7 million are going to lose it. Was that a promise that really never made sense . There is no way he could have made that promise. The way that obamacare is set up, it forces employers not to offer the same type of insurance that they offered in the past. Not only that, these exchanges, he knew people were going to go on to these exchanges. And the Health Insurance offered on the exchanges is not the same as they had in the past. In his mind, yes, maybe in a Perfect World that would have happened but realistically it never would have been the case, gregg. Gregg we just learned that the gdp in america is negative, late last week, unemployment went up so its going in the wrong direction. We know that poverty is rising, income levels are dropping, and unemployment, according to the cbo report that just came out said hey its going to stay at around 8 , and they call the deficit unsustainable, and yet the president stood there yesterday and, you know, he said we are experiencing a recovery. He claimed the economy is recovering. Do the facts belie that. No if you look at numbers it just does not add up. You look at some of the things that cbo put out as far as unemployment remaining high. And growth estimates are somewhat laughable thinking that our economy is going to grow upwards of 3. 5 in the next fl three years. We had negative growth last quarter. As bad as they look they are based on pretty robust growth numbers. If we dont meet those numbers it gets worse. 1. 6trillion its going to cost us over the next nine years for obamacare. Gregg sure. Very quickly im almost out of time. The president is now talking about on the heels of tax rate hikes, and tax hikes, more tax revenues. What would that do to the competent . There is a few ways we can get out of this. Obviously increase revenues, another one is reduce spending. Clearly the president does not want to reduce spending that is not in his vocabulary. The only way to inch sraoes revenuincrease revenue is to increase taxes. If they increase what happens, they lay people o. It hurts an economy that is already in negative territory. Gregg it can have a deterrent on the economy. Matt mccall good to tee you. Martha the Medicaid Expansion part of the healthcare overhaul is causing concern for dozens of states. The federal government is offering funding to states who agree to expand their medicaid coverage. Not every state is willing to participate in this plan. William la jeunesse joins us live from los angeles to explain. Reporter martha if i gave you a dollar would you give me a dime . Of course, youd be crazy not to, right . Many people think a dozen governors are fools for doing just that, turning down millions for the relative price of a penny to pay for Medicaid Expansion which expands subsidized medical care for families earning up to 130 over the federal poverty guidelines. 32,000 dollars for a family of tpoufrplof for. So, the 15 states that you see here are likely to turn down washingtons promise to pay up to 90 of the cost of that expansion, 11 states are undecided and 24 plan to take the money. With this move we will secure a federal revenue stream to cover the cost of the uninch churneuninsured who already show up in our Doctors Office and emergency rooms. Reporter governor brewer offers that if she doesnt take the money other states will, meaning her residents would subsidize the medical care of other states poor even though it runs against her philosophical grade. Martha what about the states that are turning the money down . What do they say . Reporter they call this a about it and switch. Here is the carrot, 100 100 tpupbzing, once youre hooked its 90 , two years from that it goes lower and lore. A dozen republican governors say we cant afford the 10 . People say its free federal money. That is our tax dollars, your tax dollars and my tax dollars, so dont pull that game on me. Secondly its 9010. That 10 is the part im concerned about as a state. Reporter the cost of social programs are typically a shared, federal state funding formula but the percentages do change. Special education started out at 40 federal money now its 20 so its fears are not unphonedded. Its a controversy in the states because the hospitals are saying this is uncompensated care, we want a piece of the federal action and the states say we want to spend this money on education, maybe not healthcare for the poor. Martha it sound like the burden gets shifted to the state so they have to factor that in in deciding whether they will take the ten cents on your dollar. Thank you. Well see you soon. Gregg awaiting a News Conference with republican leader john boehner expected to weigh in on the fight over a looming deficit Defense Budget cuts, pardon me. Can washington reach a deal to stop cuts described as dangerous to our national security. Martha have you watched this case, dramatic new testimony in the trial of a young woman accused of a brutal murder of her x boyfriend. What she is now saying about the very first time they met. I thought he was going somewhere, because like he had purpose, so i stepped out of the way, he needed to walk past me, but he stopped right in front of me and stuck his handout and introduced himself. Martha fox news alert. There is a whole loft hacking going on out thereof computer systems. Remember the story about the wall street journal and the new york times. Now we are learning and this has been confirmed by Fox Business Network that the Federal Reserve was also hacked. They are saying they are aware that information was obtained by exploiting a temporary vulnerability on their website in a vendor product. They say they fixed it quickly and it did not affect any critical operations of the Federal Reserve system but you have to wonder what people are testing in terms of the vulnerabilities. An interesting story it sounds like they have got it under control. Well be watching for more on that. The Federal Reserve. Gregg we are expecting more dramatic testimony today in the exgirlfriend murder trial jodi arias scheduled to return to the witness stand, continuing to layout the events that led to the brutal murder of her exboyfriend, travis alexander. Here she is describing how the two got together. He was friendlier and friendlier but not inappropriate, but after i learned that he already knew i had a boyfriend and he continued to act that way i thought it would be i thought i needed to pull him aside and tell him that i have a boyfriend so that he didnt get the wrong impression. Gregg lis wiehl is a attorney and knocks news analyst. And monica is w. I want to ask you what is going on here, so much testimony about what she claims to be a life of physical and Emotional Abuse that she suffered. She is not claiming diminished capacity or in sanity but nevertheless is this to lay the groundwork for a sort of mental defense connected to selfdefense . Absolutely. See we already know that the defense is going to have experts come onto talk about battered women, and the abuse, and what she feels like, or what this caused her to be like, so she needs to lay the groundwork of her life, and her history, and the abuse that she suffered in her life, and why she stayed with someone who was so sexually aggressive, or who abused her. Without her laying this groundwork the experts wont be able to testify about why they came to the opinion that well probably hear next week. Gregg liz i bet you the defense is trying to get a jury instruction that is a subjective selfdefense jury instruction that is, did the defendant given her history of alleged mental and Emotional Abuse reasonably believe that her life was in eupl manslaughter danger of death and thats why she acted. If they get that jury instruction, what then . The key is you said imminent threat of death. Really she has given no indication of that. Shes taken the stand and talked about the sexual relationship between them, to many of us its a very odd relationship. But it was consensual, gregg, all along the way she said it was consensual. She talked about the abuse in her family in the past. Ive read a lot of reports and people that i prosecuted and then criminal reports afterwards, everyone has been abused at some level. I have to say the level that shes been talking about is not that high a level, gregg, not to get that instruction. Gregg monica what about the socalled imperfect selfdefense, a honest but mistaken belief that your life is in imminent danger because of all of the alleged physical and mental abuse over the years and so forth, you just mistakingly misunderstood the circumstances. Well, i dont think that is going to go very far in this case, because in arizona she has to show that he is the one that was the abuser to her and that he was threatened threatening her with imminent physical force and deadly force. If she cant show that, if she cant show that history with him she will not be able to use that selfdefense justification at all. I dont even think just a mistake will even get the instruction in, because she need to give more evidence, and they havent really put anything out there yet with him. Gregg imperfect selfdefense did not work nor eric and Lyle Menendez so they tried. What well see coming up is crossexamination by the prosecution. Because she told so many different lies leading up to her surprise testimony of selfdefense they are just going to have a field day on crossx. Theyll go through every single story she told, to the media, cops, everything. The first story was i wasnt there, i wasnt even at the scene i dont know what youre talking about. Theyll have that, blow that up, make sure the jurors see that, take a lot of time to go through that. Came in. Ory it was two masked theyll particular a lot of time going through that story and now she is claiming selfdefense. Then theyll go through the injuries, gregg, 27 stab wound, slitting the throat and then a firearm through the forehead. Gregg that could go in the defendants favor because in closing arguments the defense attorney is going to say only a traumatized and abused person would lash out with such extreme violence like that. Absolutely. And you know it only takes one juror to agree with her, to feel sorry for her to like her, which is one of the reasons why shes going on and on and on about all the details in her life, because she wants to draw that jury in, get a like interest, a like experience, something for a juror to relate to her, so when they get to that part they can say, but we know why she did this. She only need one to agree with her. There is no support for the claim shes making about the abuse with this guy. I agree. Gregg i think they are trying to save her life from the death penalty. Thats what is on the table. Monica lindstrom who was inside the courtroom and we wi lis wiehl thank you both. Jon have you heard about the cbo report suggesting the u. S. Is headed for a dangerous place if we do not get our spending under control . This as the president meets with senate democrats. So what is the plan on the debt . Well get into that. Plus, the post office saying goodbye to some mail delivery on saturdays, but do they even have that authority . Gregg was just talking about the jo tkeurbgs ariadi arias trial. The woman accused of stabbing her boyfriend 27 times back on the stand today. Well update you on what the prosecution wants to know. A new research station in antarctica open for business. Well give you a peak happening now. Martha well see you then 11 00 at the top of the hour. You are about to witness Mother Natures furry in a way you have never seen before. Look at this. Unbelievable video. Four volcanoes simultaneously erupting at the same time. Guess where this is happening, and how photographers were able to capture this video. Well show you in a minute. Fire. Fire. Fire martha this is so cool, Mother Nature putting on a fiery show like youve never seen before i. Know ive never seen this before. A team of photographers capturing an incredible display in eastern russia. Four dol volcanoes they found erupting at the same time just over a hundred miles apart. They used a special camera and created an amazing virtual volcano tour. Corey powell editor of a magazine joins us. This is not the one that i created in fourth grade. What are we seeing here . This is probably the most volcanic area on earth, in siberia. Three crust ta crustal plates are crushing together, and where they slide you get a frenzy. There are 150 dormant ones. Nobody has seen anything like this. Four different volcanoes with four eruptions happening at the same time, unprecedented. Martha its a great story about the photographers and how they basically stumbled on it. I new there were storm chasers, these guys were volcano chases. They were on their way to a photo chute in due by. The dubai. They hired a helicopter pilot and had him take them there where they were walking over hot lava to get these shots. Martha its almost as if when you look at this youre seeing what that might have looked like. This is where the continents came from. This is new earth being born. Martha as you point out the reason that its happening in this spot, is the tectonic plates, right, merging and nashing against each other. How quickly is that process happening . North america and russia, like it or not we are moving closer together. Its about two inches a year, the rate your fingernails grow. That little bit of motion is enough that the rocks scrape together that creates incredible heat and friction and that is the result. Its the same thing that caused the tsunami in japan and what they call the ring of fire, its volcanic activity all around the ring of the pacific, thats where the earth is kind of living and breathing. Martha thats where we saw that earthquake in the sol louisiana monesalomon islands. Going there and studying shes things where its erupting all the time tells ahh lot about how to predict risks in some place like Mount Rainier in the United States, which is dangerous but we dont know how dangerous, you go there and find out. Martha at the rate your fingernails grow how soon before russia and the United States are kissing cousin neighbors. We have thousands of neighbors. We have plenty of time. Martha thanks, corey, always a pleasure. Good to have you here. Wonderful, what an amazing story. Martha it is a great story. Gregg when your boots are smoking its time to leave. The president s pick for c. I. A. Director facing fierce resistance on both sides of the aisle, serious questions hanging over the head of john brennan just 24 hours away from the Senate Hearing that could decide his professional fate. This is so sick i cant believe your mom let you take her car out. This is awesome whoooo youre crazy. Go faster go faster go faster go faster no stop. Stop. Go mom i rais my son to bester careful. Hi, sweetie. Hi, mom. mom but just to be se. I got a subaru. announcer love. Its what makes a subaru a subaru