tv Special Report With Bret Baier FOX News December 18, 2010 4:00am-5:00am EST
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you will get more buzz for calling sarah palin an extreme -- extremist. >> it is possible to have a republican nominee who -- >> no. >> that was metal. >> that was fun. see you later. >> imogen lloyd webber, a pleasure. and you are a human mistake. governor mike huckabee, thank you for enduring this. i'm greg gut feld and i shall see you next time. long fight, the president signs the tax rate compromise bill. the senate goes back to the drawing board for government funding. exclusive interview with senate minority leader mitch mcconnell on what is left, start, the dream act and "don't ask, don't tell." live from the studio in
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washington, this is "fox report." good evening, i'm bret baier. after moving at a snail's pace for much of the lame duck session, lawmakers on capitol hill picked up steam. since we signed off thursday night, the house passed the tax rate bill. and the president has now signed it. senate republicans forced democrats to withdraw the trillion-dollar spending plan. conservatives want to keep victory on guantanamo bay prisoners. we begin with chief washington correspondent jim angle on the effort to keep the government running. >> with the massive spending bill going down in flames, democratic majority leader harry reid and republican leader mitch mcconnell are now working together to fund the government into february so they can start fresh next year on spending bills. >> the senate will take it and pass it. senator mcconnell and senator reid agreed they will pass this. >> the senate hopes to vote this evening on that extension or perhaps the longer one. >> no one should be worried about the lights going off.
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that will not happen. >> the movement pleased republicans, g.o.p. leaders in both houses took a moment to hail the progress. >> after two years of policies that lacked public support, the tide is beginning to turn. >> yesterday in the senate, we saw victory for the american people when the so-called omnibus bill had untimely death. >> that sweeping senate bill died after senator reid lost key votes he needed to pass. he thought he had nine republican supporter, and included appropriators, those on the committee that churned out 6,000 earmarks. but they bolted and reid had to pull the bill. >> in the last 24 hours, walked away from the ability for us to complete this legislation. >> the reason he doesn't have the votes is because members on this side of the aisle increasingly felt concerned about the way we do business.
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for many of the members, it's in the so much the substance of the bill, but the process. >> it wasn't the substance of the earmarks which can range from utterly ridiculous examples of pork to perfectly legitimate spending needs that would be supported by many lawmakers such as drug enforcement efforts for instance. it was instead the process of having 6,000 earmarks in a bill that was going to be pushed through in three days, with no changes allowed, a point the leadership pressed. >> the bill that will cost $1 trillion and very few members will have had time to analyze, let alone read. >> even some of the fiercest opponents of earmarks say the problem isn't proposing them but rather funding them without letting other lawmakers first judge them on their merits. senator mcconnell didn't convince all the colleagues that the earmarks are bad but did convince them that the process of jamming them through was. and even senators who defended their own earmarks found that
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persuasi persuasive. >> bret: thank you, jim. despite progress, this is partisan finger-pointing on the hill. chief political correspondent carl cameron shows us that and what else is going on. >> democrats want to accelerate the last-minute lame duck legislature and blame the rush on republicans. >> it all depends on the other side of the aisle. they want to continue as they have this whole congress. putting roadblocks in front of everything we do or move forward to culmination of this debate. >> no apology from the g.o.p. for blocking the democratic spending. they promise more constant vigilance. >> in the final days of the 111 congress. we held the line on taxes. we held the line on spending. next, we'll turn to cutting spending. and getting debt. >> the first priority is avert a government shutdown midnight saturday with a short-term funding measure known as continuing resolution, which both the house and senate are expected to approve.
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house democrats friday put expedited calendar and passed it with two-third vote but complained the whole time about the contents and the process. >> we could have done and should have done better. >> it prohibits the transfer of suspected terror detainees from guantanamo bay, cuba, to the u.s. but allows transfer to some countries overseas. talk about a christmas rush also on saturday, senate democrats will again try to repeal the "don't ask, don't tell" policy, which has already passed the house. senate democrats expect happenedful of republicans to join them to repeal it. they will also try to pass dream act, to grant children of ill leam immigrants brought -- illegal immigrants brought to country at young age path to citizenship if they serve military or go to college. critics expect to block it. democrats hope to churn out healthcare package for ailing 9/11 responders, dispose of judicial nomination and get ratification of the start treaty on nuclear disarmament on russia. the debate lasted two days so
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far. republicans want two weeks, but harry reid wants to wrap before christmas. >> we know this is the holiday season but this is something that we are going to complete before we leave here. >> there are several other things the lame duck democrats would have liked to have done before end of congress. zeb more shopping days before christmas and santa needs to get home to pack his sleigh. so democratic leaders of both houses are suggesting they may be out of town tuesday or wednesday. >> bret: we'll see. thanks. now to the tax rate compromise bill that split both democrats and republicans. but made its way to the president's desk anyway. white house correspondent wendell goler has that part of the story. >> the signing ceremony just two weeks before the tax cuts were to expire, president obama said was both bipartisan effort and real christmas cheer. >> both houses of congress have now passed a package of tax relief that will protect the middle class. that will grow our economy.
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and will create jobs for the american people. >> lawmakers from both parties ascended the signing and each claim they got the better deal. republicans pointing to two more years of bush administration tax rates for all americans. and lower estate tax. democrats to another year of extended jobless benefit and help for the middle class with the payroll tax cut and extended tax credit from the stimulus act. incoming house speaker john boehner suggested it was just the start of the people's agenda he plans when republicans take control of the house. >> it's a good first step, but let's be clear. if we actually want to help our economy get back on track, and begin creating jobs, we need to end the job killing spending binge. >> the president denied the bill marked bill clinton move to center but there were complaints from the far right and left. afl-cio central intelligence agency richard trumka joined other labor leaders and called it unconscionable give-away. outgoing speaker nancy pelosi said she was sorry about the price to be paid.
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>> our children and grandchildren to the chinese government to pay for the increase in the deficit that the republicans insisted upon. >> tea party favorite sarah palin called the compromise a lousy deal that creates a temporary economy. boehner disagrees. >> considering the democrats control the house, the senate and the white house, i thought on balance it was worthy of my vote. and i voted for it. >> the republican said republicans and democrats won't always have the christmas spirit. there are tough fights ahead. but he said there is a lesson here. >> when we can put aside the partisanship and political games and put aside what is good for some of us in favor of what is good for all of us, we can get a lot done. >> former president bush says he really doesn't like having the tax cuts named after hill and his aide had no comment on the extension of him. perhaps in the spirit of the season but more likely eye toward 2012, democratic committee said they're happy to call them the obama tax
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cuts. >> bret: i bet. thanks. . index of the economic indicators rose 1.1% in november biggest jump since march. the dow lost seven. nasdaq gain ed 5-2/3. there are several lawsuits against bank of america alleging that they misled consumers trying to get loan modifications. bank of america is disappointed with the filings. speaking of money, government is spending yours to promote healthcare law. that's in the grapevine. next up, mitch mcconnell joins me live.
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developments is mitch mcconnell. welcome back. >> glad to be here. >> bret: first, let's do process here. continuing resolution. it passed the house, just a temporary, a few days. do you have a deal with senator reid on funding government to early next year? >> we're working to decide how long the continuing resolution should be. february, march. we're working on the details of that. the important thing is we did not pass a 2,000-page omnibus bill, eerily representative of what we were doing here in february last year, passing 2700 page healthcare bill. >> bret: another issue. start treaty. u.s. and russia. senator kerry continues to say that he has 67 votes for ratification. are you confident? >> at some point he has to demonstrate that. if there are 67 votes -- there are certainly 60 votes to bring debate to close and move to final consideration. and the democratic majority
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insists on doing that before christmas, i'm assuming they will. >> bret: not to spend too much time on it, dream act on the table. >> i think it's defeated in the senate. that's immigration bill that ought to be dealt with next year in a different context. >> bret: "don't ask, don't tell" repeal? >> it will be dealt with tomorrow. not certain of outcome but majority will push that. >> bret: other things, the 9/11 responders bill. these are all still pending. >> the kind of things, some of them, that you would normally address at the end of the session. some of them are not the kind of things you'd address at the end of the session. this democratic majority is having a hard time letting go of power because they know they'll be remaced by a new bunch in january. >> bret: there was push-back, you were at signing ceremony today. there was pushback from conservatives. some of them you talk to the green room. charles krauthammer among em. about this bill. to quote the column, president obama pulled this off at his
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lowest political ebb after the shambles of the election and with no bargaining power, the republicans could have gotten everything they wanted on the bush tax cut retroactively in january without fear of obama veto. he walks away with what even paul ryan admits $313 bill in superfluous spending including subsidy for ethanol. how do you respond to that? >> my friend charles and i love washingtonites but he's wrong on this. 97% of the bill was republican policy, 12% was democratic policy and balance was discussion of payroll tax discussion which was originally republican idea. we have eliminated the tax issue for the next five years. when you have '96, anytime you put tax cut in bill democrats
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would say you are taking money from mouths of babe to give tax relief to millionaires. we settled the tax question and it's over. for the next two years all we'll do is talk about cutting spending and debt, which is what the american people believed the november 2 election was about. >> bret: before november you said, "the single most important thing we want to achieve is president obama to be a one-term president." some on the conservative side who say with the tax compromise you did the opposite and emboldened his chances to be re-elected in 2012. >> if the president is willing to do what republicans are for anyway we won't say mo. overwhelming number of republicans voted for the tax relief bill to guarantee nobody's taxes would go up in january. sure, i want the president a one-termer. there are two years between now and then. but if he is willing to do things we'd do anyway, we're not going to say no. >> bret: people at home saying this bill increases deficit
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after election they were concerned about the cutting spending, what do you say to that? >> only if you consider the failure to raise taxes as increasing the deficit would you argue this is a deficit enhancing bill. republicans do not believe that the failure to raise taxes on the american people increases deficit. to raise taxes now would have been particularly bad. we have 9.8% unemployment. i don't know anybody who thinks raising taxes in the middle of a recession is a good idea. this is the right thing to do. a policy where the president is responding to what happened november 2 and deciding he better do business with republicans. >> bret: on afghanistan, will the republicans fully support the president is now he is waging the war? >> we do support the president. i don't like the discussion about the mandate. we don't like taliban and al-qaeda know there is a certain date we'll leave.
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the president ran up is the right thing to do. most of the members support it. they are moving away from advertising when we'll leave. >> bret: president bush writes in the book in heat of war you said this, "mr. president, he said that your popularity will cost us control of congress." he writes -- >> did you say that? >> i'm not going to get in an argument with president bush. that's not how i remember the conversation. getting in an argument with him over the book is not productive thing to be doing. the facts are -- >> bret: wait, wait. >> no. the facts are i supported the effort to increase funding and my bill got funding for the surge. i have stand by my record of supporting his effort to win the war in iraq and it worked out pretty well.
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>> bret: because september 5, you said the democratic leadership finally agrees on something. unformerly it's retreat. people look at the quote in george w. bush's book and what you said that month and would see concerns about whether you support it publicly and privately. >> what i did is support the surge. it was my amendment when we were in the minority to achieve funds to implement the surge. i stand by my record. i don't think getting in argument with president bush over private conversations i don't rememberbe the way he does is productive. i stand on the record with iraq. it was my amendment. they have the funds for the surge and it was successful. president obama followed his path in iraq. >> bret: senator, thank you for the time. you have had a couple good days. leave on a harsh note but
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>> bret: federal authorities trying to determine why mexican drone was in texas air space before it crashed in a backyard in el paso after sunset tuesday. no one was injured. the drone was returned to mexican officials. checking world headlines now. mike mullen believes the pakistani military can shut down taliban hide-outs on soil to prevent them from moving
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back and forth along the border. pakistani officials say missile strikes killed people and they pulled the station chief out of pakistan after threats made against his life. north korea has is threatening defense strikes if there are drills in the coming days. earlier exercise from the south prompted last month's shelling of an island by the north. white house anti-terrorism chief brennan says they're watching up efforts to capture or kill militants. he met with the yemen president today. he told him yemen must do more in the fight against terror and told usa to yemen isn't arriving fast enough. in coming years part of the battleground on war on terror might not exist. catherine herridge reports on a virtual landscape that holds real dangers.
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>> the cyber space is a new battleground. whatted bin laden has trigger on ak-47 but the children will have it on the mouse of a computer. >> frank is one of the leading homeland security experts predicting cyber space will be used by terrorist to maximize impact of future attacks. >> al-qaeda is going to look at it as means to enhas -- enhance leathty. >> cyber experts say it could be a likely future scenario with a car bomb and center with a cyber attacks that could crip the 911 communications. >> you have a short window to save lives. many more dead. that's what al-qaeda is looking to. >> the country top officer under president bush. he said imagine if the attack
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like back pack bomb in spain on eve of the election in 2004 with a denial of service attacks on on the country's banking system. under the second scenario, it's meant to distract authorities as the financial infrastructure is derailed. >> cyber wall will seldom if ever be used in isolation. used in the conjunction with the other things. >> identifying the source can be illusive. >> in cyber space you are swinging at ghosts. >> whatever the future looks like, some experts say cyber could level the playing field. fall-out from wikileaks has shown what a handful of individuals can do with a laptop and website. in washington, catherine herridge, fox news. >> bret: wikileaks founder julian assange said in england today the flow of leaked u.s. diplomatic documents will
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quicken now that he is out of jail. he is staying at supporter's and fears the u.s. is getting ready to indictment. >> the big risk is the onward expedition to the united states. that seems to be increasingly serious and likely. we heard reports yesterday a secret indict indictment has be made against me. senior leaders say they believe it's 80% likely. >> european leaders are expressing surprise and disappointment after the moody's investors service slashed ireland's credit rating. that happened after hours after the e.u. leaders vowed to use all the financial resources to protect members state. administration effort to promote healthcare plan is costing you more money. we tell you about it in the grapevine. is the end of a beautiful
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she said, "at first, maybe a little." she says she wished he moved faster to repeal the ban on gays openly serving the mill taur but still believes he's a great president. "glee" actress james lynch slams him for the refusal to support gay marriage saying -- actor matt damon early supporter of obama said he was disappointed with the president's progress saying, "everyone feels a little let down." and kiss singer gene simmons says he wantses his obama vote back because, "if you look at the resume, you couldn't find somebody in retrospect more unqualified." the government is forking over your cash to steer internet users to the website for the healthcare law. health and human services department bought advertisement for the website that's at the top of the google search for word "obamacare." politico notes it's a
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concession that the administration lost battle over defining its terms. since it's used by detractors of the plan. [ reading ] finally, sarah palin says there is a double standard when it comes to politicians who cry in public. "good morning america," palin agreed house speaker designate john boehner gets a pass when he cries in public. "if i got up there and did a speech and started breaking down, i'm sure i'd be mocked a little bit for that." . new tradition from colorado company that took a negative, slowdown in business and turned it in to a positive. correspondent alicia acuna has that story. >> do you know who that is for? >> reporter: santa came early for the project self-sufficiency charity in northern colorado. >> you know, it makes a fellow feel good. look at that kid.
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>> santa's helpers dick chin and his sons bill and scott. this delivery of little buildings is only part of a much bigger story. >> and last year, the company slowed and the company alpine cabinet needed to avoid layoff. >> we decided to keep the people through the holidays and we made a commitment to them so we needed a project for them to do. >> workers made 74 doll houses fully furnished and decorated for charity. this year they added barn and farm eequipment. low-tech, hand-made. >> nice to see some of the old props out there turned in to wal-marts. >> the family started to build cabinets in 1968. >> did you think you'd be in dollhouse business? >> no. cabinet ord toers picked up so
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it's double duty to maintain business and commitment to the kids. >> these are the blankets that the girls crocheted. >> it makes christmas happy, being able to get back. >> change of pace that is good for the community. >> you can't buy the treasure. they're for donation only. does it cost them? >> for sure. you have don't want to ruin it. don't think about that. >> easy to forget with priceless greetings. in colorado, alicia acuna, fox news. >> bret: for more on the company and its project go to live shot.blogs.foxnews.com. we'll look at the winners and losers on to capitol hill following the tax rate compromise and the tossing out of the omnibus spending bill. the fox all-stars join me in a moment.
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the time product proves when -- the final product proves when we can put aside partisanship and political games and put aside of with an is good for some of us in favor of what is good for all of us, we can get a lot done. if we can keep doing it, if we can keep the spirit, i'm hopeful we won't just reinvigorate the economy and restore the american dream for all the work for it, i'm also hopeful that a we might refresh the american people's faith in capability of their leaders to govern in challenging times. >> bret: president obama today before signing the tax rate compromise bill in to law. ensuring that the rates stay the same. there are also a lot of other things in the bill. we'll talk about those. no is how the house vote broke down. around midnight. you can see the democrats 139 yes. 112 no.
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bring if your panel. stephen hayes for "weekly standard." nia malika-henderson of the "washington post" and syndicated columnist charles krauthammer. steve, thoughts of winners or losers? >> the first winner was your earlier guest, mitch mcconnell. he had a good week to keep the taxes from going up on january first. so i think that is a feather in his cap. it also think that he deserves credit, a lot of credit for killing the omnibus. this puts the republicans in control of spending going into the next year. he did it by all accounts talking to appropriators in the senate, the big porkers who were likely votes for the omnibus bill. he got them together and said don't do it, it's not good for the party or the country and persuaded them. >> i think one of the big winners here, charles might agree is barack obama. the white house thinks he came
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away to separate himself from congress and looked at the signing bill. you didn't see nancy pelosi or the progressive democrats there. so he in many ways came away seems bipartisan. he has been dogged by kind of the charges of being, you know, too liberal and too progressive and he seems to have emerged from this with a compromise. it's sort of a bipartisan change. >> bret: charles? >> all right. i do agree with that but it's true. it's obvious the president, the way he appeared today and he had the huge majority in the house and senate. remember, he governed for two years on a radically partisan style without getting a single republican on healthcare, getting only a few on the first stimulus bill. i think that makes him look centrist and it could reposition him. care him to where clinton was after his shellacking in the
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midterm election it took clinton a year to get stature back, relevance back. this was a press conference in april that was half a year after the election where he was asked a question are you still relevant? he is the president, because the republicans have taken over. so that's how low he was. obama basically a month after the shellacking he took is now a player. he is the one who brokered the deal. as i said on a night that obama announced it, as a candidate in 2012, just as analytical point not arguing this with mitch mcconnell as a candidate he has helped because he got $1 trillion of debt to the budget to give the economy sugar high to the election in 2012. the piper will be paid the year after and year after, but if you are a candidate, thats what every candidate wants, huge injection of money in the economy. >> bret: senator mcconnell said here and i'm sure he said it in the green room that most of the bill was the republican policy.
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that to have the president sign on to the republican policy, even though they have to swal elow whatever percentage was democratic policy was a win. >> he said it even more emphatically in the green room, i can assure you. just because a policy is something that republicans wanted, doesn't negate the fact that it adds to the deficit. it adds a trillion dollars to the deficit. i don't think it's what you want when your party run for a year controlling the deficit spending and trying to have a new kind of rationality in washington. i think it contradicted that and it will hurt the republicans. going in to the future. when people expect that kind of restraint which wasn't shown i don't think. >> bret: we have been around this barn a few times, steve. on this issue. let's go to the omnibus. this was a backroom deal that essentially senator reid found out he didn't have the votes to push it through.
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now they're doing temporary continuing resolution to fund the government. probably until february or march. do you think it gets done? >> they don't have a choice. >> bret: senate doesn't swallow a year of continuing resolution that the house sent over. they do their open deal. >> they will do their own deal. the white house doesn't want this fight right away the conversation about spending. so they push for longer deal out of the senate and not something that will last until february. they don't want the conversation on their hand. >> bret: house democrats pushing for the senate to take action on dream act. the immigration act. steve, any chance of this gets cloture and comes to the floor? >> harry reid says he wants to move it tomorrow morning. i think the prospects for ultimate passage of the dream act are slim to none at this point. i would say, however, where we were looking two days ago on to "don't ask, don't tell" and on the start treaty, those
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might have flipped. it's probably more likely that we get don't ask, don't tell passed. and less likely that we have start pass. primarily because mccain can cane has his backup and is causing problems in the senate. >> bret: conservatives call it the beginning of amnesty. the dream act. you don't think the votes are there? >> i think deservedly it not succeed. it's larger than it appears. it's sold as helping unfortunate young folks born here but it will have ripple effects to include families ultimately. huge step to general amnesty before we shut the borders. that is the problem. >> bret: the schedule it seems like they're going to get all of this in. >> probably get a vote on start. it will hinge on mccain, whose protest is on missile defense which is the key issue here. he wants assurances.
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i don't know if he will get them. but if he does he should oppose the treaty. >> what do you think the couple of weeks will tell us about the how the next congress deals with president obama? >> it will be a different congress. it will be more tea party based. you've got senator paul, you know, in the senate. out of kentucky. folks in the house. that is the place that took the shellacking in november. the president tried to sort of set a tone of compromise. you will have fighters on the hand. >> bret: is his problem from the left? >> in the short term might from his left. this will unfold to typical boundaries. people are talking about the tax compromise. make no mistake the feelings on the hill right now as we speak on "don't ask, don't tell" and on start are very
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strong. people are taking partisan shots at one another. >> i would discount squawking and dancing and protest on part of the congressional left. they did it on the obamacare and folded and tax cut and in the end they have nowhere else to go. they will never have a president as left as obama is and they know it. >> is president obama negotiating with the congress? >> trying to reposition himself. it started with the tax cut deal. i think he will stand firm on obama care. if there is an attempt at repeal, but if he wants re-election he needs center which he lost in midterm election. he knows that. smart guy. he'll go for it. >> bret: who do you think is most responsible for the passage of the tax rate compromise? go to the home page at foxnews.com/specialreport. vote in the online poll. friday lightning round is next.
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>> bret: every week on the home page viewers vote on the topic to discuss this on the friday lightning round. the winner is the third war, u.s. border that won with 61% of the vote. take a listen. >> when you have drug traffickers afraid of other drug traffickers and things are getting bad. >> they use what i call terrorist tactic. they're not terrorist organizations and they're not jihadist. but they use tactics to intimidate the police. >> look at the stats just out. in mexico in 2010, 30,000 deaths. 3,000 in juarez across the el
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paso, texas. >> the u.s. government has one job: keep it from coming over the u.s. border. we have seen now with the death of agent terry this week we might getting to seeing this. but the question is it's isolated or continuation of a trend. if it is, we have to do everything we can to beef up the presence on the border. >> you see the senator calling for more security down there, for something like 6,000 more troops along the border. you see increase of american death. something like 39 were american. 36 last year. it will take more. more of the violence to really put this on the map. of the federal government and nation. >> does the administration policy change at all with the developing?
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it seems like it's getting worse. >> it doesn't like they're increasing the concern about this. there is an element of this no one will talk about. you want troops and guards down there. you also put up barriers and that's how they seal themselves off from other countries everywhere in the world if necessary. with fences. ultimately, the fact you had overwhelming vote in if viewers on this, over 60% indicates how the public is way ahead of the government understanding how serious of an issue it is. >> bret: north korea, south getting ready for another live fire exercise. north korea fired artillery shells and killed south koreans there. now we hear that new mexico
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governor richardson is in north korea and talking to reporters saying that the situation is tender box and urged extreme restraint. and said there is enormous potential for miscalculation. >> charles? >> the reason it's dangerous now is north koreans cross the threshold attacking civilians in the attack last month. the first time since armistice at the end of the korean war. created a huge reaction in population of south korea which had been passive. tougher government. it will do live exercises starting from the same island between now and tuesday. the other side said it might retaliate and it could explode. >> there is a test for president li who campaigned saying -- >> bret: president of south korea. >> right. saying he would take a tougher stapes on north korea. interesting to see. the exercises are supposed to
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go on saturday. the state department said that south korea should proceed with caution. see if it happens. >> . >> bret: the attack on the 23rd. is this the right time for richardson to be is there? >> no, not at all. it's a glory trip. stale department gave him approval but people in the administration are not happy him being there. it sends mixed messages when we're trying to be stuff with north korea and china. he is playing like it's rewarding them for the bad behavior. >> bret: uncertainty in europe about protests. future of euro. a complex issue down the line. about explosions over the economy. >> what we saw in italy was more political event than economic event. a vote of no confidence for silvio berlusconi.
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in italy. he survived it. they came back. longer term economic problems but what we saw in the video was political. >> this is a crisis in europe that is rooted in debt government spending. the question is whether the politicians and citizens will look at that and take cue to see it as a way not to go or end up. >> one domino after another. it started out with greece and ireland. now belgium is wobbling and spain where the bond rating is lowered. interest rate shoot up as a result of no confidence in them. in the end, euro is threatened. may end up with euro as the only way out because of disparity between strong and weak economies. >> bret: that is it for the pam. stay tuned for a good example of catching yourself. before you say something bad.
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