vacationing brian kilmeade. good morning to you. >> thank you for having me. >> good to see you from the weekend show. let's do a couple of headlines because the fear that gripped wall street traders are spreading around the world. this morning, we're seeing strong selloffs in markets in asia and europe. >> will we have a repeat today of what happened on wall street? joining us right now is dennis neil on the streets of new york city. dennis, how does it look? >> you know what? the do or die time now. we were down 4%, 5% in u.s. stocks. europe is trading down maybe 2%. will we actually see a turn back to the positive or will investors say no, you know what? it's even worse than i thought yesterday. this jobs numbers coming out at 8:30 this morning. 85,000 jobs. that's a really punk number and we think that's a terrible number but if it comes in below 85,000, you could see another slaughter today. just one thing, though, steve, remember that stocks are now cheaper one financial advisor told me last night, cheaper than they were in 1990. everybody is selling off their stocks and fleeing into u.s. treasuries right now. back in 1990, a 10-year treasury bond paid you 8.6% a year to lock up that money for 10 years. today, it's paying less than 2.5%. this guy says where are investors going to go? treasuries are no safe haven and double -- gold has doubled since the meltdown began two years ago. do you put money into gold? yesterday, in this worldwide panic when everyone sold out of stocks, gold should have gone up because it's this safe kind of paranoid little value and instead, gold went down elsewhere. everybody out there is very skittish. remember what warren buffet, the famous investor said. when everyone is greedy, you should get fearful. when everyone is fearful, maybe it's time to get greedy. >> all right, i don't know if that's the recommendation to buy today. >> yeah. >> but maybe so. >> maybe not. >> you'd have to have a cast iron stomach. weren't we supposed to be calm now as a result of this -- now that we have -- now that we have the debt ceiling increase, everything was supposed to calm the markets. >> the markets were going to sell off if we did not come up with the deal. we came up with the deal. obviously, it has a lot to do not only with the possibility of a double dip recession in this country but there's all sorts of trouble now in the euro zone where italy and spain, maybe they're going, you know, this could be a lot worse than we thought over here. >> also, a lot of people were so focused on the debt ceiling debate over the last month and we were discussing on this show was the very next morning, you wake up to still the nightmare of 9.2% unemployment, folks. i mean, the jobs situation is not going away and as i just mentioned 8:30 eastern time, we're going to get the report about how many jobs were created in july. that's going to come out today. remember in may and june, it was dismal. now, that will affect the stock market today depending on what those numbers say so where are the jobs? finally, the white house reporters are challenging the spokesperson for the president. >> what is the president doing? what is he -- we know that he went to -- he went to fundraisers last night. what is he doing today? what is he doing -- >> that is -- >> what is -- >> congress has -- the president is having meetings with his senior staff. the president has called on congress to move quickly on things that have bipartisan support and he is focused on -- >> calling on congress to pass things, he's been calling on congress to pass for months. >> he is working very closely with his senior economic advisors to come up with new proposals. >> robert gibbs somewhere is going man, i got out of there just in time. >> whew! am i glad i'm not a part of that anymore? >> how unusual to see that kind of questioning. >> here's the real secret and governor huckabee reminds us of this all the time. there's very little they can do to create jobs. they can foster an environment that businesses can create jobs. charles krauthammer pounding this home on "special report" saying dirty little secret is the president is out of options. he's tried things. he's out of options. >> the key there, though, is the fact that the president had a gigantic stimulus, remember about a year ago, close to a trillion dollars. and it was the wrong thing to do. he farmed it out to congress, he said ok, i'm going to get a stimulus. nancy pelosi, harry reid, what should we do with the money? and it became a pork project and a whole bunch of jobs wound up costing $200,000 a copy and now fast forward to today and we are in a pickle. >> he would do the same thing. if the house was not controlled by the republicans right now, he would already have been asking for stimulus, too. this has to do with ideology, the difference between how the democrats feel that the economy will be stimulated and how republicans will feel totally different. here will be my suggestion. why doesn't the president go to wisconsin, ohio and texas and ask the three governors and govern those states how they have managed to create jobs in the last six months and in rick perry's case in texas, longer than the last six months. maybe they have some great ideas that they could pass along to the white house. >> well, apparently, the democrats have got a great idea. remember last year they had that great idea where, ok, we've got the stimulus going. things are really turning around. let's call it recovery summer and all the democrats will get all of the -- >> how did that go last year? >> the summer -- >> recovery summer of 2010. >> we didn't recover. we're still recovering from the recovery summer. now we're learning that apparently the democrats have decided what they're going to do now is they're going to have accountability august and what that is is a campaign to hold the republicans accountable for "repeatedly choosing millionaires over seniors and medicare." well, here's the thing about that. you know, we have learned in the last couple of days that during the negotiations to fix the debt ceiling, the president of the united states actually was talking about making big cuts to medicare. he's going to jack up the retirement age and do some adjusting to the cost of living. >> that's the secret here, right? so congressional democrats did not support a lot of that and that was what was allegedly on the table although we never saw a written plan from the president in the debt ceiling increase. this could have been vapor. we don't know if it was actually ever on the table but it angered many people on the left so now democrats are having to go back home to their districts during this august recess and try to sell the american people on this idea. it's almost class warfare. >> do they want to have that moniker of accountability? until this year, the democrats held both houses of congress and the white house. so do you really want to be held accountable for what's going on in the economy? >> is it a smarter play to go back to the republicans and say republicans control the house of representatives. where's the jobs plan? why put it on them? >> i think the most important thing coming up by august 16th is who you're going to name to that committee. who is going to have to hash out -- >> who is the head of the accountability in august. >> exactly. those are the people who are going to be accountable. they're the ones that will come to together in a fast fashion and figure out what the hell to do with this country. >> what they're doing with this accountability in august is they're simply trying to change the subject. if the subject is jobs and obviously, we're all focused on the economy and jobs right now, they lose coming up in the next election. if they can turn it around to those darn republicans, they're trying to steal grandma's dog food which is all she has left to eat now, then they're in trouble. >> let's talk about defense. this is one of the big issues coming out of this debt ceiling increase that slashing of defense money and if you look at the money that would be added up over the cuts of this would be equal about $1 trillion and, of course, on the hill, we got to hear from secretary of defense panetta and admiral mike mullen on what this would do on our ability to defend ourselves. take a listen. >> as i have said many times, our growing debt remains the single biggest threat to our national security. the military exists to eliminate or mitigate security threats so we will do our part in this regard but we can't allow this effort to go so far and cut so deep that it jeopardizes our ability to deal with the very real and very serious threats we face around the world. >> if it did happen, it would result in a further round of very dangerous cuts across the board. defense cuts that i believe would do real damage to our security, our troops and their families and our military's ability to protect the nation. >> somewhere in there was the troops because our own jennifer griffin reporting from the pentagon saying there's a lot of smoke and mirrors in these numbers. >> a trillion dollars would be cutting it to the bone in some projects. this is a scary world we're living in. that's way too much. obviously what they're doing is trying to focus congress on do you really want to make gigantic cuts at the pentagon? no. if you don't, you'll have to make a choice. make cuts or changes to social security and medicare and medicaid. that's the choice. big trouble with the pentagon or work on the entitlements? >> yep. so you got to make sure that committee comes to some decisions so those triggers don't go into effect. well, let's do some other headlines because it's friday. today, the senate, guess what they're gonna do. they're going to actually pass the bipartisan bill ending the two-week partial shutdown of the f.a.a., the shutdown cost the government about $400 million in tax revenue and 74,000 workers were temporarily laid off. so the fight, what was it over? well, it's not over. congress still at odds over subsidies for small airports in rural areas and rules that let workers unionize. the casey anthony saga continues in court this morning. her defense team will try to block an order for her to return to orlando to serve probation on check fraud charges. the judge who originally ordered that probation stepped down from the case. judge belvin perry who resided over her murder trial is taking over that part of the case as well. the stepfather of 11-year-old celina cass has checked himself into a mental clinic. it's the second time this week he's been hospitalized. he went to the emergency room the day her body was found in a nearby river. he has schizophrenia and was committed to a mental facility for threatening an ex-girlfriend in 2003. he has not been named as a suspect in celina's death. the actress best known for her role in the movie "grease" has passed away. annette charles who played cha-cha reportedly died from cancer. her death follows that of co-star jeff conway. she was 63 years old and those are your headlines. >> that was such a good movie. take a look at this video. gunmen open fire on a city bus with automatic weapons. the terrifying moments for those passengers just ahead. can you imagine? man. >> and texas adding jobs while the rest of the country is losing them. what's the state's secret? the job growth, listen up, washington. >> feared that the debt crisis in europe is getting worse. in several european nations they're trying to borrow money from china. and obama got tough and he told them hey, china is our sugar daddy. you get your own! you get your own! 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[ female annncer ] lipitor is not for evyone, including people with liver problems and women who are nursing, pregnant or may become pregnant. you need simple blood tests to check for liver problems. tell your doctor if y are taking other medications or if you have any muscle pain or weakness. this may be a sign of a rare but serious side effect. lets go... haha. if you have high cholesterol, you may be at increased risk of heart attack and stroke. don't kid yourself. talk to your doctor about your risk a about lipitor. the reason that texas does so well is because of oil. not the case, though? >> not the case, our oil sector is smaller than our medical sector. the truth is we do well and people are moving here because it's a state that's economically free. we have no income tax. the unions are less of a force here in texas, for example, 6.4% of the private sector labor force is unionized compared to 27%, say, in new york and much higher rates in other states other than texas. and also here, our government is not growing as fast in terms of the size of its spending as other states. and so these are the main things driving people. our land values are about a third of what they are in california. a single family home in california over the time period of our study costs about $448,000. here's it's about $148,000. >> maybe washington is scratching its head this morning because i think washington's response to a lot of these problems is to spend more money. as you take us through some of your five points of why, number three on your list is low rate of local and state spending so texas isn't spending a lot of money to spur this growth. how are we this go do? >> what people need to understand is that inside america's borders now is the largest migration between the states in recorded history. and people are voting with their feet to tell us what they want at the state level. they're moving from high-tech states, high union states and so on. states with big government. to states like texas where there's self-determination and economic freedom. people are looking for the new, new world and so we know what people want. the states are a microcosm for the nation. they're telling us what people want if people in washington would pay attention and follow suit, they will cut taxes. they will cut government spending and do reagan style things that happened in the early 1980's that made this economy boom. >> what can washington learn from texas? we have low to no income taxes in the state of texas. taxing doesn't seem to be the answer either. >> well, you know, the problem is that we've taken this a united states and converted it to a d united states. we need to put power back to the states so at least people can make a choice of where they want to live. they can live in the state with the high tax and the benefits that come with it, be it high or low or choose to live in a state with low taxes and low benefits if they turn out to be that way. but it's very difficult to do that at the national level. you have to lead the entire country so in a sense, washington is playing this very dangerous game that what people are doing across the states, they may soon decide to do across the globe. lead the nation. and many people are, canada is the number one source right now for americans leaving this country. >> i wonder why there's so much -- so many people itching to have governor rick perry throw his hats into the presidential race. i just can't put my finger on it. michael cox, nice to see you this morning. thanks for joining us on "fox & friends." >> thank you. >> i said that rhetorically, of course. a mom getting fined for saving a bird? the government going wild with fines. where is uncle sam picking on the little guy? then file this under bad decisions made while drinking. a mayor has a wild night of partying and decides to sign some documents for the city. worth $1 million. whoops! naturals from delicious, real ingredients with no artificial flavors or preservatives. naturals from purina cat chow. share a better life. 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[ coughing continues ] log on to lungusa.org and tell washington: don't weaken the clean air act. >> got some quick friday morning headlines for you. terrifying surveillance video from a bus in philly. two guys start firing into the bus sending the passengers obviously running remarkably for cover. nobody was hurt. prosecutors say it started after a woman on the bus told the man with the gun to shoot a fellow passenger for making a comment about her. the men facing trial later this month. that's just crazy. and the mayor in new mexico testifying that he was drunk when he signed nine contracts with the california company that's now suing his city for a million dollars. martin recendez says he signed the documents after happy hour and was so smashed, his sister had to drive him home. he's a democrat and now he's running for congress. quite a record, gretch. >> at least he didn't drink and drive apparently. every now and then, it seems the government has gone a little wacky and wild picking on ordinary americans and fining them for even the smallest infraction. this week, we told you about a story in virginia where a girl and her mom were nearly signed $500 for rescuing a dying woodpecker. today, we have two more interesting stories. he is a beehive landlord who was fined $2,000 for not having a water dispenser nearby to water his bees even though it was two feet away and gina schaefer is a hardware store owner in d.c. fined $200 for a soda can being mixed in with her trash. i'm glad to know that you're getting a chuckle out of gina's story because i thought yours was funny. what was it? >> i got a ticket for $2,000 for not having a waterer for my bees, my bees, they're a friend's bees but on the other hand, there was a waterer two feet away. so the inspector just didn't notice. he didn't look. >> but ok, i'm trying to reason this and i know it's early in the morning. there is such a job as a bee inspector in new york city? >> apparently there is and the funny thing is mayor bloomberg was on the radio and he said he wasn't aware they had bee inspectors. >> all right. i'm going to get back to you in a minute as i try to analyze this ridiculous story. gina, you put a soda can in your garbage and you were fined $200. one soda can? >> a