Lets get right to my first reads the morning. Egyptian Officials Say at least 24 policeman were killed in an ambushstyle attack near raffa on the gaza border. According to Egyptian Security force, armed men stoppeded two buses carrying offduty police, forced the passengers to get out, before shooting them executionstyle. More than 900 people are reported to have been killed since wednesday when the interim Egyptian Government began a bloody crackdown on supporters of ousted president Mohamed Morsi. On sunday, the Egyptian Government confirmed Security Forces had killed 36 islamists while they were being transferred to a prison north of cairo. The prisoners were attempting to escape to justify the attack. The Muslim Brotherhood said 52 prisoners were assassinated, shot and tear gassed through the windows of a locked prison van. President obama, who returns to the white house, returned last night actually is being pressed to suspend aid to egypt. He canceled a joint military exercise with egypt that was planned for next month. Its a step many are calling insufficient. For us to sit by and watch this happen is a violation of everything that we stood for. When we threaten something as we did that we would cut off aid, the administration did, and then not do it, then you lose your credibility and your influence. I do not see how we can continue aid. I believe it must be suspended. The acts of the last few days by the Egyptian Military are unconscionable. I do believe we have to change our aid. I think also we have to have included in the legislation a National Security waiver. There you go. Dont overlook the importance of that last caveat from jack reed there. It suggests that even if congress does pass legislation that cuts off aid, it could be toothless, leaving the white house flexibility make the final call. Every step of the way, calls from congress to cut off aid has gotten louder. The white house has slow walked its response. The president released a statement citing concern and saying, quote, the United States is monitoring the very fluid situation in egypt. We believe that ultimately the fo future of egypt can be determined by the egyptian people. Now the New York Times reports another baby step. The administration has put a hold on civilian economic assistant to programs that directly involve the Egyptian Government out of concern that the interim government has violated congressional rules that bar foreign aid to countries where there had been a coup. The administration is careful not to call morsis ouster a coup. Morsi has been under house arrest for 48 days and he still is under house arrest. At what point does the argument this is not a coup become impossible to make . National Security Council spokesperson issued a nondenial denial about cutting off domestic aid. Saying, quote, as we made clear, all our assistance to egypt is currently under review and well consider additional steps as we deem necessary. No additional decisions have been made regarding assistance. But a Senior Administration official tells us that while no money has been stalled, a decision must be made by september when the federal governments fiscal year ends. The nearly 1. 6 billion in aid, 1. 3 billion is military aid. Israel, jordan, saudi arabia and the uae have lobbied the u. S. Not to cut off aid, arguing the Egyptian Military still offers the best chance of stability. Today, ambassadors for the eu meet to review the European Unions relationship with egypt. Meanwhile, in the latest site it has no intention of complying with u. S. Demands, egypts foreign minister said it is reviewing its relationship with the United States and other governments. For every dollar the u. S. Could withhold from egypt, right now it would be replaced from the saudi arabia and the gulf stat states. The u. S. Is leaning towards having some impact internally if they keep the relationship alive rather than cutting them off complete completely. The mantra of trying to have an relationship with whoever wins takes precedent. Its not elegant and certainly not representing democratic ideals. The question is whether this 70s era of Foreign Policy is workable in the 21st century. Nbcs Ayman Mo Hayden joins us. The breaking news out of egypt it seems is while Mohamed Morsi remains under house arrest, the former president of egypt, hosni mubarak, may be released. Tell us more. Good morning, chuck. Yeah, its almost out of a page here that many people would not even imagine as being possible. The fact that the former president who so many People United to topple now has at least cleared one more hurdle for his release. That is after a cairo Court Essentially ordered him released pending a trial for new charges of investigation. In essence what the court order is saying is president oba ing mubarak should be released while his trial has yet to begun. Hes already convicted in one case, in negligence to protect protesters. That conviction landed him a life sentence. But since then he appealed that. He has now a retrial under way for that specific charge. Hes facing a lot of charges of corruption. But because he is facing so many charges, one of the court orders today is he should be released pending these Legal Proceedings against him. That would anger a lot of people here, chuck. Amazing he would be released while morsi is still in custody. I want to ask you about your reporting last night, about the increased religious violence between muslim and koptic christians. Since last wednesday, theres been a spike of attacks against the Christian Community here in egypt, against churches, their business, schools and homes. In fact, nearly 60 churches have been attacked or damaged in some sort of attack. Now, many in the community here are blaming that on sympathizers or supporters of the ousted president. Many of them felt that the koptic church here has taken some political views, Christian Church has taken some political views, closely aligning itself with the military. So some of that anger has spilled over to street violence. However, speaking to people across the divide, the Muslim Brotherhood has rejected that type of sectarian violence. As that organization, they con depp condemned it. The church said this is not an example of egyptians or muslims at large. Theyre saying this is an extreme fringe group within the society behind these attacks. Some have even gone so far as to say these are the old intelligence operatives of the previous regime which have been known to kind of fuel that type of sectarian violence. So a lot of blame going around, but no doubt, one thing that is a fact is that the Christian Community here has suffered in the last week as a result of the political unrest. Clearly believe theyre being targeted. Ayman, thanks very much. Back at home, president obama is facing growing calls from congress to do something to punish egypt, either cut off aid or something temporary. Joining me now, the columnist from bloomberg view. The question you asked me, who do we root for . W which side . If youre in the United States, it seems right now, the decision is try to figure out whos going to win. Thats the practical question. The moral question is, which side do you come down on . You have a party, the Muslim Brotherhood, thats essentially a theocratic fascist party thats obviously behind a lot of this antichristian violence on the one hand. You have an authoritarian military dictatorship on the other hand that has obviously perpetrated some massacres. If youre the average american citizen, youre saying, why do we have to get in between these sides . Its kind of like syria in a sense, how do you get behind these . If youre the Obama Administration, at a certain point, you have to make a practical decision. This is what theyre hearing obviously from the israelis, the saudis. Go with the military because the military will prevent chaos but at what price. I want to play a clip from lindsey graham. No fan of the Muslim Brotherhood. Who is finding himself almost siding more with the Muslim Brotherhood. Particularly after he had some very it looks like a meeting meetings with the military that didnt go very well. Listen to what he had to say. The brotherhood would get creamed at the ballot box. But theyre going to be a very Formidable Force on the streets. Theyre going to get aligned with al qaeda. Al qaedas going to come uninvited to egypt. Youll have a failed state. That means gas prices go up for us. The suez canal gets compromised. And egypt becomes a staging area for terror attacks against it israel. An absolute disaster in the making. Went further in the New York Times story on this, he said, what youre doing now is making mor morsi a martyr. Its no longer about how badly they ruled the country. I think hes exactly right. Remember, al qaeda was created essentially in egypt. It grew out of yes, right now in egypt, you have to imagine theres some 16yearold, you know, who is becoming, his mind is moving more radical. I mean, they are creating new terrorists i think by so harshly cracking down on the Muslim Brotherhood. They could have ignored these protests, these sitins. Instead, they chose to go right at them. Is there anything differently the Obama Administration could have done . Whats interesting, i dont find youre not seeing this sort of breakdown of Political Polarization on this. Because there doesnt seem to be theres this idea that maybe theres no good response. Well, you know, lets you have to roll the clock back unfortunately in order to find a solution. One of the early steps they could have taken more forcefully morsi tried to exclude everyone but the Muslim Brotherhood. American could have tried to use leverage then to try to make him open up the government. Didnt really happy. Got a little too close to the Muslim Brotherhood perhaps. Even now, there are moments we talk about the letdev raj wed from the aid. Do we have it . I mean, the way the saudis in the gulf states are basically telling the egyptians dont worry about the u. S. No, no, i mean, what the army gets from the u. S. Is certain types of weapon systems that they like to have. And that only we manufacture. In terms of money, no, the spigot is open, the uae, saudis, will fund this government, they dont need american money. This is where i have some sympathy for president obama. Because sometimes we overestimate our leverage over people. From the Egyptian Militarys perspective, theyre in a zero sum fight against islamist extremism. They dont care about fighting, damaging the relationship with the United States. It has the shape of a civil war. I wouldnt go so far as to call it a civil war yet. Were sliding toward chaos in a kind of way. Iraq, lebanon, syria, egypt. Yemen. Dont forget yemen. Pakistans not looking so great. This is becoming yeah. This is very hard for a president who wants to focus on domestic issues. Thats for sure. Jeffrey goldberg, always a pleasure to have you on. Well bring you new developments on egypt as they happen throughout the hour. The idea of mubarak released and morsi not, just contemplate that. Plus, more of the first reads coming up. The very early 2016 president ial race is under way. Is it under way too quickly . The race is on to recall embattled san diego mayor bob filner. Hes set to return to work this week amid allegations of more sexual harassment. In an effort by his constituents to kick him out of office. Todays politics planner. The big meeting happens to be with financial regulators today. Its all about getting them to speed up implementation of the dodd frank financial reform. And of course tonight, all you rg3 fans can watch kirk cousins play the pittsburgh steelers. Well be right back. Theres a new way to fight litter box odor. Introducing tidy cats with glade tough odor solutions. Two trusted names, one amazing product. But, dad, youve got. [ voice of dennis ] allstate. With accident forgiveness, they guarantee your rates wont go up just because of an accident. Smart kid. [ voice of dennis ] indeed. Are you in good hands . But you had to leave rightce to now, would you go . 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