the u.n. international energy agency says it has credible evidence suggesting that iran is secretly working on nuclear pay load for a missile as well as other component of a weapons program. the-up nuclear chief call a meeting in the middle east for mid-november. the european union lifted ports on banks and discussing ways to help them transition from muammar gaddafi's rule. rebels continue their advance toward gaddafi's hometown of sert despite the extension of a deadline for the town to surrender. the e.u. banned oil imports from syria. the move is in response to the crackdown and they fired on thousands of demonstrators in southern and eastern cities. there is still more intrigue in the failed u.s. government gun running operation fast apt furious that led to the death of a border patrol agent. correspondent william la jeunesse examine what some are calling a coverup. >> first of all, i did not authorize it. >> the president said he knew nothing about the operation sending guns to mexico. but three of president obama national security advisors were told about the operation. >> if they are advisers to the president on national security, why wouldn't they be telling the president about important information and a relationship with mexico. >> republican senator darrell issa says the administration knows more than it's letting on. >> we have confidential sources that have shown us why the administration's representatives knew these weapons were going to the cartels. they insist they didn't know the guns were going to mexico. they knew immediately that guns recovered at the murder scene of border control agent brian terry purchased by the fast and furious suspect heidi avilla but officials tried to cover it up. according to a letter, "in the hours after agent terry's death, assistant u.s. attorney tried to prevent the connection from being disclosed. >> everybody should be outraged. used as collateral. they don't care less if guns were handed to criminals or people that did not have them. they didn't take in account our lives or property or safety. they dismissed it as informal conversation as colleagues that offered in their words color to the policy initiativ initiative. fox news was excluded but they offered us briefing at later date. >> thank you for that. >> elsewhere, the drug cartels are branching out. the latest victim of the illegal activity is the education system. steve harrigan has that story. >> reporter: it's not the students that fear the first day of school in acapulco. it's teachers. they fear the extortion, kidnapping and decapitation. the threat comes from a letter to the teacher pay manager from the notorious bara dora drug gang, demanding a list of the teachers' names, addresses, cell phone number, salary and voter registration cards. lets the teachers hand over 50% of their salaries, they promise there will be serious consequences. 600 elementary school teachers are refusing to come work and are afraid to talk about the threat. a parent with the face hidden sums it up. >> all the teachers and the relatives got scared and left the school. the situation with the drug cartel is changing for the worse. no longer willing to as isnate from the west, they are broadening to include kidnapping and extortion. teachers are asking help from the police and the local got. >> we are going to revive this following a request from the mayor. so far they cannot keep it open. it's not just acapulco. across the border in el paso, texas, have a similar threat. turn over half of your salary or we'll kill you and your family. in miami, steve harrigan, fox news. >> ahead. congress returns next week to a jam packed agenda. but first, as the gulf prepares for a tropical storm, the east coast is still suffering. wake of hurricane irene the gulf coast is bracing for tropical storm lee, the 12th named storm of the atlantic hurricane season. the national hurricane center says the system will dump up to 20 inches of rain over southern louisiana, mississippi, and alabama through sunday. the storm has already cut off almost half the normal u.s. oil production in the golf. but there is one bit of good news. tropical storm lee may provide relief from the worst drought in texas. since the 1950s. the gulf braces for that storm and the east coast is cleaning up from hurricane irene. >> nearly one week after irene first landed to the east coast, the floodwaters and hard hit patterson, new jersey, noticeably recedeed. authorities say the water level of the river is dropping at rate of two feet a day. by the time, president obama visits the city on sunday, it's expected to drop below flood stage. but some folks don't plan on sticking around. >> i'm trying to get out of here. >> getting in and out of vermont is not that easy. hundreds of roadways were damaged by the storm. >> it will take a long time. it could be months and it could be years. to get roads back the way they were. >> new york state, governor andrew cuomo private insurance companies will be the main source of funding for the $1 billion in statewide storm damage. the storm made life especially difficult for 2300 daily commuters to get to and from work. 14-mile stretch of railroad line through the suburbs was twisted like a pretzel. throughout the east coast, there is still 400,000 homes and businesses without power. some customers of national grid in massachusetts are angry that the thursday before the storm, the power company president went on vacation to hawaii. returning on tuesday she said her absence didn't delay repairs. >> the fact that i was out of the state for four days made absolutely zero difference to the restoration of service to our customers. >> for thousands of flood victims this labor day weekend will be anything but a holiday. the floodwaters might soon be gone, but the massive clean-up is just beginning. in new york, david lee miller, fox news. >> there were two large earthquakes in separate parts of the globe. 6-point # magnitude earthquake in the pacific ocean. prompted a brief tsunami warning early this morning for alaska's aleutian island. meanwhile, magnitude 6.4 earthquake struck north central argentina shaking things up enough to make people evacuate buildings in the capital of buenos aires. hundreds of miles away. i sit down with former vice president dick cheney for this week's fox news sunday. here is an exchange we had on president obama's handling of the economy. >> obama is making a speech to congress to the nation next thursday. a new plan to turn around the economy. based op what you heard, based on what he has done, what are your thoughts? >> i don't think it will get the job done. we need policies to encourage people to save and invest and expand their businesses and create more jobs. the thing we did in reagan years. >> it airs on sunday sunday. check you -- it airs on"fox new" we have more coming up. grapevine is next. china is the single biggest holder of u.s. government debt. soon they may own part of an american baseball institution. frank mccourt has been oftened $1.2 billion all cash payment record for a major league team. the los angeles times report funding would come from certain state owned investment institutions of the people's republic of china. as women as american investors. the offer expires in 21 days. republicans in pima county, arizona are raising eyebrows with a new fund raiser as part of a get out the vote effort, they are auctioning off a glock pistol. the online newsletter reads get yourself a new glock 2340 caliber handgun for $10 if your name is grown. for $10 it could be yours. it was used by -- the brand is used by jared loughner who shot gabrielle giffords and 19 others in tucson this past january. an agreement reached in arizona says the state cannot base hiring of english teachers on how well they speak the language. the u.s. department of justice and education found practice of singling out teachers with accent or imperfect grammar discriminated against hispanic teachers. the subject says they only need to be flute in english, no longer they must have a good command of the language. that determination will be made by the school districts, not by the state. >> the labor department says the sputtering economy added no net jobs in august. the unemployment rate remained unchanged. first time in 1945 a net job change of zero was reported. the weak number sent stocks sliding. the dow lost 253. the s&p gave back 30. and nasdaq dropped 65. as doug mckelway reports, congress already has its hands full when it returns from the month long recess next week. >> if divided congress left for august recess on the relatively bad terms. >> this is a bad piece of legislation. >> dealing with the white house is like dealing with a bowl of jell-o. >> it returns next week deeply mired in divisiveness over the conflict when to schedule the joints job speech. >> the scheduling snafu is a bad sipe for things to come and shows how high the stakes are that even the scheduling on a certain day could be problematic. now you have serious deadlines and pressure. >> foremost on the agenda the fask of finding $1.5 trillion in cuts that congress couldn't agree to last time around. it first meets next thursday. some will expect a trigger happy outcome. >> you have it for deadlock with the six republicans and six democrats who have indicateed they are not willing to accept the other side solution. >> by law, congress has to pass 1 12 appropriations bill to fund it. stop gap or grab bag omni mouse spending bill. the authorization has be held up by the two party inability to agree on funding. >> if we allow the transportation bill to expire, over 4,000 workers will be immediately furloughed without pay. if it's delayed for ten days it will lose nearly $1 billion in highway funding. >> in addition congress will have two new issues op its plate it could not predict before the recession. new expenditures for last week's earthquake and hurricane. one more it has not yet seen. the president's job plan to be spelled out thursday. all of that while the members begin posturing for the 2012 campaign ahead in washington, doug mckelway, fox news. >> chemical often used to kill american soldiers in afghanistan is making its way across the border from pakistan. u.s. officials are incensed. national security correspondent jennifer griffin looks at the effort to engage pakistan more in the war on terror. >> a year ago, nato intercepted a large shipment of calcium ammonium nitrate. the main ingredient in a commonly used fertilizer and roadside bomb that killed 250 u.s. troops in afghanistan last year. the u.s. military believe 80% of the lethal bombs are made from the fertilizer neverered by two companies in pakistan. one pack arab company. the other also in pakistan. >> out of the factors comes most of the deaths of the u.s. soldiers and catastrophic injuries they received as well. >> the state department has been in talks with the pakistani government for past year-and-a-half. to stem the flow to no avail. senator bob casey wrote to secretary hillary clinton last may urging action. "in the wake of the killing of usama bin laden we believe that pakistan must implement concrete measures to counterterrorism. removing ammonium nitrate from the terrorist arsenal is one such good faith measure that is also in pakistan's national security interest." with the u.s. drones taking al-qaeda leaders of pakistan, why not simply destroy the pac arab facility? >> they are capable of doing that. you would destroy the ability of farmers to grow food. >> pushing them to the lucrative opium fro production that also funds taliban. >> now they are manufacturerring the fertilizer in the roadside bombs hired the american consultants to help them get listed on the u.s. stock exchange. at the pentagon, jennifer griffin, fox news. >> federal judge ruled baseball legend roger clemens will have to stand trial again for allegedly lying to congress about using performance enhancing drugs. >> today they rejected the request to throw out perjury charge against him. new trial is set for april 17. we will talk about the troubling job numbers with the fox panel after this quick break. รณ i am going to present a detailed plan about how to get america back to work and how to grow our economy. it will be bold. that is a little stimulus. a complete restructuring. it will be sweeping and specific. >> g.o.p. candidate mitt romney promising he can do better than president obama in putting americans back to work. bring in the panel. steve hayes of weekly standar standard. kirsten powers from daily beast website and syndicated columnist charles krauthammer. no way to spin it. the latest job numbers for august are bleak. put up numbers on the screen. zero jobs created in august. zero. private sector created 17,000 jobs. that is the lowest since february of 2010. the economy created 176,000 jobs in the first quarter and 105,000 in the second quarter and only 28,000 a month so far in this third quarter. the recovery stalled out, hasn't it? >> this is a horrible trend for the white house. last spring, the white house was saying. >> horrible trend for the country. >> horrible trend for the country but politically a bat trend for the white house. they said after last spring after three months of somewhat encouraging job numbers this is a trend and they talk about the recovery picking up and making a big deal about it. now you have four months of very bad numbers. the white house is in a pickle. if you look at what it might mean, the "new york times" economics writer yesterday was talking about what the job numbers said, if the job numbers come in at this level, this is what it would mean. 150,000 plus he said. unexpected progress. 100,000 to 150,000 staying in place. 0-50 double dip watch. double dip here. this is a stark warning if we talk about being in a double dip watch or double dip recession. >> is it fair to say that the president economic policies failed? >> what they would say that is they saved off the next great depression. they expected things to pick up and point to the external forces, different things happening, the tsunami and the earthquake in japan or what is going in europe that we are being dragged down by them. i say look, they didn't do enough from my perspective. they need a larger stimulus. that is something that conservatives don't agree with. but there is something needed to be done differently. we are headed to double dip recession. that's not what anybody was anticipating. >> you do believe we'll go into another double dip recession? >> that's what people are feeling. trajectory is not in the right direction. >> this comes days before the president speech to joint session of congress. which will be on thursday, not wednesday. 7:00 p.m., not #:00 p.m. because n.f.l. football is more important than the future of the economy. realistically, for a democrat, i mean he is not going to turn in, in the next four days in a conservative supply side. realistically for a democrat, what could he possibly suggest in this speech that could turn things around? >> that assumes the speech he thinks will turn the economy around. this is not that speech. this is to frame the debate for the re-election. this is not a serious jobs proposal. it will include things he knows republicans will reject. thus he sets up the premise because his own white house has now said we are going to be 9% up employment next year as well. the premise will be we are at 9% on election date. because the obstinate republicans who care only about the re-election and not about the country have rejected the great idea he is proposing. look, i think the republicans have their perfect slogan. president zero. zero economic expansion, zero jobs. zero ideas on how to cure the economy. the recession ended two years ago. we were supposed to have a recovery summer last summer. in the numbers you showed, the unemployment, the slowdown in jobs started at the beginning of this year. he threw trillion dollar stimulus at the economy. kenyan effect. it didn't. obamacare, epa, a foot on the economy. his administration stopped recovery in its tracks. >> kirsten, i doubt you believe it but do you agree with charles that the speech on thursday is less about finding a solution and getting something to pass congress to boost the economy and more setting up campaign themes to use the republican member of congress as a prop, foil? >> it's both. he is running for re-election. he is going to try to lay out something that is as big as possible. they are trying to work with fanny and freddie to get them to agree to let americans refinance their mortgages even if they are under water. especially if they miss payments. the question is what they get them to go along with something like that. but that would give them disposable income. >> people who eat it is fannie and freddie. people don't feel sorry for them. >> they will eat it one way or another. they will lose that money. to help americans who are going to lose their home. >> your thought if this is a serious attempt to solve the problem or campaign. >> it's a campaign speech. but what he has to do to go beyond what charles is saying he has to include something to appeal to republicans. republicans and the independent voters, the middle class americans generally. he has to include something like that so when republicans reject it looks like they're being up reasonable. >> why would the republicans reject it? >> it will be loaded down with the give-aways we're accustomed to seeing from the white house at every turn. >> there is a combination of both. stimulus and green jobs stuff. they won't call them green jobs or infrastructure spending. something that will tempt the republicans to ultimately reject it. >> panel, we have to step aside for a moment. friday lightning round is next. every year we have a vote for the lightning round. but this is charles pick one. now up to 60% of the vote. we're back with the panel. your acceptance speech and choice for bigger loser of the summer. >> i'm humbled. second, i want to congratulate the competitors. they ran a clean campaign. not about the issues but personalities. >> landslide. >> i have to be humble. >> so? >> the question is who had the worst summer this year? >> carl paladino otim pawlenty . but it would be al-qaeda number two who got whacked, terminated by a predator. this country has no idea what to do with the terrorists it captures but it knows what to do with the terrorists on the run. justice swiftly delivered. from the air. >> the correct answer, my is romney. he had a low mortgage strategy, he has stayed out of things and left it wide open. >> not a good summer but not as bad as a guy that got killed by a drone. >> with all new humility. you are both wrong. the right answer is obvious to most americans and everybody watching tonight. barack obama. this guy started with approval rating of 48, and now at 42. 50 disapproval. that is 12 points in 12 weeks. but that's not the reason he is the biggest loser of the summer. the reason is because of why his approval numbers. despite the effort to defend them, the policy numbers collapsed and didn't work. a failure. >> second topic. operation fast and furious. the administration trying to end or get aholt of this scandal. they replace the u.s. attorney in charge of the operation in arizona. is it going away or getting bigger? >> you take one step in that direction and you take another step in another direction. the word in the past couple of days that the e-mails reached the white house. wi don't know what they say. we don't know how high it goes. but there is more there. >> i remember sitting here and discussing this before when i was told by the white house they knew nothing about this and never had contact whatsoever. now we find out they did have contact. >> there were e-mails to member of the national security council. that puts it in. >> there were people briefed on the national security staff. now it's come down to what they said. what did they know? they say the words "fast and furious" was not actually used but the problem is this is a different story that they were told. i expect to grow. >> iron law scandal, never the original act. it's always the coverup. you could argue the original about is stupidity. and i assume that the administration thought control of house and senate they could have a coverup. well, they lost control of the house, which allows these injuries. >> okay. a little time so lightning responses, charles. obama white house is already asking for $5 billion more in federal emergency relief fund. this is before all the bills come in for irene. republicans talk about if you spend more on that, you have to offset it. good or bad idea for republicans to be talking about budget when americans are suffering? >> a bad idea to make at it big issue now. people are in the midst of reconstruction, recovery right now. only in the end, you have to have it paid. but not if it's a bad political move to talk about it. >> bad. eric cantor is leading the charm on this. i was reading the things he was saying. he is moving in newt gingrich circa 1995 territory of just seeming very, just sort of mean frankly. toward people who really are suffering. same time he has gone after federal funds in 2004 when there was a tropical storm that hit his district. now a different opinion. >> the house passed $1 million in energy senate. the house has done its job. in addition, president clinton according to the national review four times signed disaster legislation with offsets. there is nothing wrong to tell taxpayers we want to see where it goes before distributing it. >> that is it for panel but stay tuned to see why charles and i check what both of us are wearing before we go on camera. >> chris: finally tonight, we always like to take you behind the scenes to show how television news really works. here is another helpful tip. >> he will unveil some of his highlien anticipated plan to get americans back to work. molly henneberg is live at the white house. molly, no sooner does he announce it do we hear there is more controversy