release her first book of photography. it's cold of love and war. that's it for today. have a great week and we will see you next "fox news sunday". >> i am thrilled to announce that in the second quarter of this year, the united states economy grew at the amazing rate of 4.1 percent. if economic growth continues at this pace, the united states economy will double in size. more than 10 years faster than it would have under either president bush or obama. >>paul: welcome to "the journal editorial report". i am paul gigot.

that was president trump taking a victory lap on the news that the u.s. economy grew at a robust rate at 4.1 percent in the second quarter. the fastest pace in almost 4 years. here with a look at what's behind that acceleration is - - chair of the white house council of economic advisory. nice to see you. 4.1 percent. economists predicted 4.4, as you look at the details of the report. what do you like in it? >> it goes back to a piece i wrote a while back that corporate tax cuts would cause a capital spending boom. if you look at the average of the first half of the year, we got a capital spending boom in the average growth is 3.1 percent. it's not often that economists can nail it that tightly and it showed its working exactly as we thought. >>paul: capital spending in the first quarter was more robust than in the second quarter.

do you have an explanation for that? >> one of the things that happened is for equipment spending you were allowed to expense it retroactive to october. in the fourth quarter of last year, you could deduct a machine at 35 percent so you get a bigger tax deduction. at the start of this year, the value went down to 21 percent to we expected to see a spike and then and negative number in the first quarter but in fact, we got the spike in the fourth quarter but continued strong growth.so capital spending by the way is one of those things when it pushes growth, it means the growth will be sustained. because now we have these new factories and machines in the u.s. over the next year's, they will produce more output. if you have a capital spending boom, you can expect that to be sustained growth. >>paul: here's another surprise, gdp of 4.1 percent came without any increase from residential housing. >> is actually down. one of the bad pieces of news in it.

>>paul: how do you explain that, that housing problem? >> it's something we are studying closely but there are three factors.one is there's an increase in lumber prices and part of that is driven by canadian lumber. second is homebuilders are saying they're having a hard time finding workers to build the homes and the third is the hottest real estate markets have zoning regulations that make it hard to find property to build a home. >>paul: sounds to me you may need more immigration did more people, more workers, more gdp and prosperity. >> we want something that brings prosperity for all americans and he wants to increase gdp on a per capita basis. basically as the president has emphasized, skilled immigration is the right way to go. >>paul: you know the big critique from our friends on the left is that this is a sugar high. this isn't sustainable. it's a one-time hits.

what's the case for this being sustainable? you mentioned capital investment but what else? >> the other thing is the president has emphasized opening up areas for oil exploration. there was a big increase in drilling and mining activity consistent with that. the biggest story going to the second half of the year is a lot of times if the economy is really booming, then inventories will be drawn down because people are buying stuff more than producers are making. then that's a positive for the quarters ahead because the producers want to build up their inventories. it's up a percentage point from gdp growth and we expect you'll see that come back in the second half. last year in the fall, we said we see 3.1. the first tapestry .1 and were carrying into the second half,

this inventory which could go higher. >>paul: the other big economic policy issue is trade. we are beginning to see an earnings call from ceos and anecdotal reporting that we get, they are saying, it's creating uncertainty and i will hold off investing in that plant or my costs are going up so i have to worry about how i manage that. how big a headwind is trade policy going forward? >> in the second quarter, trade was a big positive. net exports skyrocketed. i think that's a sign that maybe one of the effects of the stress to you mentioned is that people are reassuring activity now in anticipation of future uncertainty. but make no mistake, the president has guaranteed the american people he would get them better trade deals. he's assured me over and over that his objective is tomove toward reciprocal deals even , 0-0 deals. i would have to say to people hoping for that outcome must be really happy about the meeting

we had this week with the eu because they removed the ball in the direction of freer and fair trade this week. >>paul: are we going to get a nafta deal before the fall? that thisrepublican congress ca on? wax i'm not >> i'm not a negotiator but what i'm hearing is that they are making tremendous progress. my guess is that we will see something before the fall but i'm not the person authorized to comment on those things. it is amazing the progress they are making. >>paul: thanks for being here. when we come back, united states and the european union declare a tariff terms as the two sides continue to negotiate a larger trade deal.

my mom's pain from moderate to severe rheumatoid arthritis was intense. i wondered if she could do the stuff she does for us which is kinda, a lot. and if that pain could mean something worse. joint pain could mean joint damage. enbrel helps relieve joint pain, and helps stop further damage enbrel may lower your ability to fight infections. serious, sometimes fatal events including infections, tuberculosis, lymphoma other cancers, nervous system and blood disorders and allergic reactions have occurred. tell your doctor if you've been someplace where fungal infections are common. or if you're prone to infections, have cuts or sores, have had hepatitis b, have been treated for heart failure or if you have persistent fever, bruising, bleeding or paleness. don't start enbrel if you have an infection like the flu.

since enbrel, my mom's back to being my mom. visit enbrel.com... and use the joint damage simulator to see how joint damage could progress. ask about enbrel. enbrel. fda approved for over 18 years. man 1: this is my body of proof. woman 1: proof of less joint pain... woman 2: ...and clearer skin. woman 3: this is my body of proof. man 2: proof that i can fight psoriatic arthritis... woman 4: ...with humira.

woman 5: humira targets and blocks a specific source of inflammation that contributes to both joint and skin symptoms. it's proven to help relieve pain, stop further irreversible joint damage, and clear skin in many adults. humira is the #1 prescribed biologic for psoriatic arthritis. avo: humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal infections and cancers, including lymphoma, have happened; as have blood, liver, and nervous system problems, serious allergic reactions, and new or worsening heart failure. before treatment, get tested for tb. tell your doctor if you've been to areas where certain fungal infections are common, and if you've had tb, hepatitis b, are prone to infections, or have flu-like symptoms or sores. don't start humira if you have an infection. woman 6: need more proof? woman 7: ask your rheumatologist about humira. man 1: what's your body of proof? >> first of all, to work toward

zero tariffs, zero non-tariff barriers and zero subsidies or non-auto industrial goods. we will also work to reduce barriers and increase trade in services, chemicals, pharmaceuticals, medical products as well as soybeans. this will open markets for farmers and workers.increase investment and lead to greater prosperity in both the united states and the european union. it will also make trade fair r and more reciprocal. >> that's president trump declaring 80a tariff truce .

in which the united states would back away from imposing a tariff on imported cars. in return, the eu agreed tomake unspecified purchases of soybeans and liquefied natural gas. this as they work toward the larger goal of zero tariffs , barriers and subsidies let's bring in a wallstreet journal editor - - and communist tim straw tim straw- . first the gdp report, i was hoping for better but what do you make as you examine the details of the report. is this sustainable? >> first of all, it is excellent. if the president wants to call it huge, fantastic, beautiful, he's entitled to. this is really the economy hitting a higher gear. whether it's sustainable, i think there is interesting elements and that is very strong business investment which suggests higher productivity in the future and higher gross.there's also this elements within it in

terms of final sales that suggest this is in a one hit wonder for our left-wing economist saying it's a sugar high, i think they will be disappointed again. >>paul: they were telling us it was secular state nation. that said we can't grow much faster so we have to spend $1 trillion on infrastructure because tax reform and the regulation wouldn't do it and yet, the policies are tax reform and the regulation. are we seeing the payoff? >> i think we are good look at the measure at how the expectations have - - that i'm disappointed in 4.1 percent. remember, we were told by so many people that a new normal was two percent or under two percent i think from 2000-2015, the economy grew at 1.7 percent which is miserable. >>paul: we have several liberal

commentators that we publish, that says you can't grow faster than two percent. trump did predict that. >> i think he predicted this in the campaign and was laughed at. we are going to 3-4 percent and maybe five percent. >>paul: let's move to trade. let's talk about the truce with the european union point what do you make of this. why do you think president trump moved in this direction? everything we heard internally from our sources was that he was dead set on really whacking german cars. what changed? >> since you were talking about gdp, he said something interesting in his press conference about those numbers is that the economy is doing fatter wait until we get these trade deals in place and then

it will be even better. which was notable because it was an acknowledgment that trade matters to the economy and the reverse would matter too. these trade fights are going on are hurting the good work the republicans have done in terms of deregulation and taxes. i think that's what was driving this. it matter that - - seemed willing to go to a place that trump is now pushing the zero tariffs and barriers. in the short-term, it has avoided a majorconflict . for longer term, that can be a much harder thing to pull off. >>paul: so you think there was a political part of this and that republicans presumably in the senate and house were telling the president, look, these tariffs are really having an impact in our districts and you need to ease up and reset where you are, at least with the eu. i assume nafta may be going the same direction.

>> absolutely. by the way, when you impose tariffs as the president has been doing with china and elsewhere, those efforts are felt immediately in these people's districts. he's been getting a lot of pushback from the ag sector in different parts of manufacturing sector and even from his own economic team saying we can't keep going down this road. >>paul: james, what do you make of the trade agenda going forward. as you look at the gdp numbers, did you see any impact of trade, the trade policies in the numbers?>> you saw a nice contribution from exports. that's a nice reminder that and everyone included, this is part of the growth strategy. >>paul: but some of that people think, let's get our ahead of the tariffs and sell the soybeans. we may not get that balance in the second or third quarter? >> i'm sure that was part of it but balanced somewhat by the

fear of trade fights discouraging some investment. all the capital investment was terrific, it wasn't quite as good as the first quarter. i think some of that was people being afraid to pull the trigger on a new that we not knowing how this new trade stuff would be resolved. going forward, it's really striking the tone of these trade discussions has changed. starting with the g-7 where the present at the end says how about zero tariffs? now he's got the germans excited about it. let's hope that is the discussion but how do we lower instead of raise them. >>paul: is that the larry kudlow affect? >> i don't know. this trump reminds me of totalt mcgraw. load the bases at the end of the game and then strike them out was terrifying until the end. [laughter] he isn't looking for

protectionism, is looking for zero tariffs. >>paul: the trump administration putting those auto tariffs on hold as they continue negotiations. get your groove on with one a day 50+. ♪ get ready for the wild life ♪ complete multivitamins with key nutrients that address 6 concerns of aging, including heart health, supported by b-vitamins. your one a day is showing. that's the same things i want to do with you. it's an emotional thing to watch your child grow up and especially get behind the wheel. i want to keep you know, stacking up the memories and the miles and the years. he's gonna get mine -but i'm gonna get a new one. -oh yeah when it's time for your old chevy truck

to become their new chevy truck, there's truck month. get 18% of msrp cash back on all silverado 1500 crew cab lt pickups when you finance with gm financial. that's $9,000 on this silverado. plus, during truck month make no monthly payments for 90 days.

are you ready to take your then you need xfinity xfi.? a more powerful way to stay connected. it gives you super fast speeds for all your devices, provides the most wifi coverage for your home, and lets you control your network with the xfi app. it's the ultimate wifi experience. xfinity xfi, simple, easy, awesome. >> aluminum tariffs remain in place and investigation on autos will continue. we just won't impose auto tariffs as long as the negotiations are progressing properly. >>paul: that was commerce secretary wilbur ross saying he will continue his section 332 investigation into the national security threat posed by autos

and auto parts. but that would be put on hold as talks between the u.s. and the eu continue. this is good news for tennessee senator lamar alexander who introduced a bipartisan bill to delay the proposed 25 percent penalty. he joins us now. welcome. >> thank you paul. >>paul: you cheered this truce between the united states and the eu, why? >> zero tariffs is exactly the right policy. that's what we did with the north american free trade agreement. we implemented nearly 0 tariffs over 15 years. now that we've got a policy of where were going, zero tariffs, time to get rid of the steel and aluminum tariffs which are driving the cost of cars and hurting the 136,000 tennesseans that work in the automotive industry.

>>paul: you heard wilbur ross say this week that he's still going to go ahead with these investigations. which basically are designed to show, to answer the question, do cars that are imported pose a national security threat? do you think bmws or nissans imported are at all plausibly a national security threat? >> of course they are not. it's wrong for the president to use that pretext. the bread-and-butter part of this is of this.tennessee has become in many ways the number one auto state. we've got 929 auto parts suppliers. 50 percent of the cars we make here are steel. 10 percent are aluminum. when the price of steel goes up, 40 percent as it has since january, think of what that does to our economy and the jobs in tennessee. we are shooting ourselves in the foot with the tariffs and it's time to do with the

president said this week, zero tariffs and the sooner the better. >>paul: you hear from the companies in tennessee that their costs are going up on their supply chains, they are being disruptive because of the tariffs? >> of course i am. you saw this week that ford and general motors, gm has a big plant in tennessee. they announced they each lost $300 million this year. they have to tell that to their stockholders and they attributed most of that to the tariffs. you can't be in the zero tariffs world which is where the president wants to go and raise the price of steel 40 percent and still make cars and trucks in tennessee that are competitive to sell in the united states or export around the world, which we do a lot. >>paul: how many cars are made in tennessee remark you've got a nissan plant and a volkswagen any gm plant. how many of those cars are exported outside the united

states? >> i don't know the exact number but it's billions of dollars of cars that are exported. and billions of parts are exported. the real employment in our state is with the 900+ auto parts suppliers. the way you make automobiles, a nissan rogue will go back and forth with its parts to canada, mexico and back to tennessee before it's finally built. that permits it to be built in a competitive way at a low cost and sold successfully here and exported around the world. >>paul: your colleague bob corker has introduced a bill with other colleagues to take back some of the president's authority to use 232 and that national security definition to impose tariffs. he hasn't been able to get a vote on that with some of your colleagues in the senate. why not?

>> getting a vote on anything is hard in the senate. i am the cosponsor of that bill. i think the visits we've had with the president, senator corker's bill, my bill, all of the activity we've had in the senate to say tariffs are shooting ourselves in the foot. really shooting ourselves in both feet. we have a trade problem but the way you solved it is not to shoot yourself in the foot. you find some other way to deal with it. now that the president has said let's go to zero tariffs, which is the same thing japan and china are doing with each other. same thing we did with the nafta. i think we've had our impact and i suspect we'll get a vote as time goes on. >>paul: the president also saying trying to renegotiate nafta. what's your advice on nafta? are using let's close this negotiation so we can have a vote this congress? >> yes. let's get it done before september. nafta has been good for

tennessee. we've doubled the amount of cars and jobs and it's been good for the united states in my opinion. the president disagrees with that. we are making about as many cars in the united states today as we did when nafta was signed in 1944. the only difference is, we've had 3.5 million jobs shift not overseas but from the midwest to tennessee and other states in the southeast because of right to work and it's more competitive. my advice would be finished the work on nafta. modernize it. that can be done. get it done by september and give us a signal about where these tariffs are going. we need an end to shooting ourselves in the foot. that's a good way to solve a problem. >>paul: senator, i appreciate you being here. still ahead, immigrants are

stepping up the rhetoric and stepping up the rhetoric and the delay tactics on a bid alright, i brought in new max protein ...to give you the protein you need with less of the sugar you don't. i'll take that. [cheers] 30 grams of protein and 1 gram of sugar. new ensure max protein. in two great flavors.

new ensure max protein. i wok(harmonica interrupts)ld... ...and told people about geico... (harmonica interrupts) how they could save 15% or more by... (harmonica interrupts) ...by just calling or going online to geico.com. (harmonica interrupts) (sighs and chuckles) sorry, are you gonna... (harmonica interrupts) everytime. geico. 15 minutes could save you 15% or more on car insurance. >> i'm here to call on folks to understand that in a moral moment, there is no neutral. in a moral moment, there is no bystanders. you are either complicit in the evil, you are either contributing to the wrong or

you are fighting against it. >>paul: that was new jersey democrat this week rallying the opposition to supreme court nominee brett kavanaugh. democrats are stepping up the rhetoric and digging in for what they hoped would be a protracted fight demanding access from millions of documents from cavanaugh's years in government including his time as staff secretary in the bush white house. mitch mcconnell says despite the democratic delay tactics, he will get a vote on the senate floor before the midterm elections. we are back with - - bill, are the democrats making headway against brett kavanaugh? >> i don't think so. they think they can - - brett kavanaugh. it's a different situation.

it was 45 minutes after the announcement was made the white house was unprepared, the judge was on prepares it i think the attacks may be nastier but there's a hint of desperation. as long as the republicans hang together, he will be confirmed. they might get one-to democratic votes because the democratic in the trump seats might be more - - and then those against him. >>paul: this document requesting they want all the documents for his time during the bush white house. that is a clearinghouse for the president. all of the documents coming through him and he make sure the president sees them and they're in the shape the president wants them. should the senate have the right to see all of those? >> no, absolutely not. that is not the precedent. we have had prior supreme court

nominees for whom the executive branch have said some things are off-limits. particularly, elaina kagan where the argument was her time at the solicitors general office, some of those documents were too critical to be exposed. this argument that they should be able to see every piece of paper he touched and initialed while he was there is not going to fly. you have susan collins, one of those key swing republican votes that says i don't need to see that. that's way more than necessary. and chuck grassley who is head of the judiciary committee who will make this final call. think we will get you the paper from white house counsel but not everything thing he touched as staff secretary and that's a reasonable standard. >>paul: they are talking about providing a lot of documents at the white house counsel's office but it's that staff secretary position where i would argue james, those documents really don't relate

to brett kavanaugh's thinking. they relate to the decisions that george w. bush made as president. therefore, they're not really relevant to the court. where as the solicitor general's, that would have told you what a lot of elaina kagan thought about judicial issues and still the obama admission did not turn those documents over. >> speaking of elaina kagan, when she was running harvard law school, she hired brett kavanaugh to teach there. this shows you that rhetoric we saw from senator booker is over-the-top. it's if he's kim jong-un or something. i think it relates to the desperation of democrats to find something. the republicans are saying we will provide hundreds of thousands of pages of emails and documents and they are saying no, millions.

more than 300 open from judge cavanaugh. that's not enough to get some sense of where he's headed? there's nothing in there that would disqualify him. so this is an increasingly frantic search. >>paul: let's talk about what to brett kavanaugh things about presidential power. there's one case, the famous watergate tapes case. nixon had to turn those tapes over. judge cavanaugh was on a panel in the late 90s where he was in a discussion with democrats from bill clinton's defense team. he said maybe u.s./nixon was wrongly decided. >> i think it's ridiculous bid

on a panel, you should be able to say let's think about this and think about the premise. if you can't do that in a panel discussion, we are in a really bad place. he wrote a law review article before that he was firmly on the side of the decision. and chuck grassley, pushing back on chuck schumer, he has a long record and that's what should matter. i will go out on a limb, i think he will get 52 votes. >>paul: what about rand paul? will he be a problem? his raised concerns about the fourth amendment. >> he did meet with brett kavanaugh this week. we haven't heard a lot about where that meeting went. rand paul will often raise these issues. remember he said he was going to vote against mike pompeo. he voted for him in the end. become a real ally of the president so it looks as though republicans are standing together. >>paul: a group of republicans escalating their view with

escalating their view with i don't keep track of regrets. and i don't add up the years. but what i do count on is boost®. delicious boost® high protein nuritional drink now has 33% more protein, along with 26 essential vitamins and minerals boost® high protein. be up for life. boost® high protein. you're smart,eat you already knew that. but it's also great for finding the perfect used car. you'll see what a fair price is and you can connect with a truecar certified dealer. now you're even smarter. this is truecar. wlet's do it. ? ♪ come on. this summer, add a new member to the family. at the mercedes-benz summer event. lease the glc300 for $429 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing.

hi, kids! i'm carl and i'm a broker. do you offer $4.95 online equity trades? great question. see, for a full service brokerage like ours, that's tough to do. schwab does it. next question. do you offer a satisfaction guarantee? a what now? a satisfaction guarantee. like schwab does. man: (scoffing) what are you teaching these kids? ask your broker if they offer award-winning full service and low costs, backed by a satisfaction guarantee. if you don't like their answer, ask again at schwab. if you don't like their answer, if yor crohn's symptoms are holding you back, and your current treatment hasn't worked well enough, it may be time for a change. ask your doctor about entyvio, the only biologic developed and approved just for uc and crohn's. entyvio works at the site of inflammation in the gi tract and is clinically proven to help many patients achieve both symptom relief and remission.

infusion and serious allergic reactions can happen during or after treatment. entyvio may increase risk of infection, which can be serious. pml, a rare, serious, potentially fatal brain infection caused by a virus may be possible. this condition has not been reported with entyvio. tell your doctor if you have an infection, experience frequent infections or have flu-like symptoms or sores. liver problems can occur with entyvio. if your uc or crohn's treatment isn't working for you, ask your gastroenterologist about entyvio. entyvio. relief and remission within reach. >> it is appropriate we conduct

oversight of the executive branch and we get full compliance, on what our very legitimate document requests. do i support impeachment of rod rosenstein, i do not. >>paul: house speaker paul ryan voices his opposition to the impeachment of rod rosenstein. house republicans accused rosenstein of withholding documents from congress claiming he has a conflict of interest in part because he signed off on the renewal of a fisa warrant to spy on carter page. house republicans announced thursday they wouldn't vote before leaving for summer

recess but supporters say all options are on the table when congress returns in september. we are back with james freeman, kim - - and bill mcgurn. how seriously should we take this threat to impeach rod rosenstein? >> even though the word this week was impeachment, the word everyone was all that was contempt. mark meadows, the head of the freedom caucus after they filed those articles of impeachment and after paul ryan said he disagreed, he gave a little talk. he said he spent the day with leadership. that his group was backing off impeachment but what everyone decided and rallied around, if they come back after their break in august and the department of justice is still not compliant, they will rally around a contempt resolution against rod rosenstein and the department of justice. which is probably a more accurate description of what's been going on rather than high crimes and misdemeanors. >>paul: contempt is no small thing. congress, if they took it far

enough, could call for the arrest of someone who's in contempt of congress. you made a really strong argument in your columns that if congress doesn't enforce its subpoenas, it's losing its authority to oversee the executive. do you want an impeachment? >> i could use an impeachment in the sense that i'm not opposed to any constitutional exercise of power. congress gets to decide high crimes and misdemeanors. if you go back to the federalist papers it's not just treason or bribery. however, i think contempt is a more perfect vehicle in the sense it's been used before against officials not giving documents. when you find someone in contempt, there are three options. you make a criminal referral to the justice department. you could go to the courts in a civil action. or you can jail them in your own jail. congress doesn't have a jail but they could make a deal. i am personally for the last

one because the first to have proved they don't work. >>paul: here's the problem for me, i don't think impeachment is good politics of republican congressmen trying to impeach a republican attorney general. rod rosenstein works for donald trump. he can at any minute saying, turnthose documents over to con. i will do the declassify them. why won't he do that? >> i wish he would. it would allow americans to learn how surveillance was turned - - [indiscernible]. this is kind of dangerous for a democracy. rosenstein is de facto operating without a boss on these matters. >>paul: his boss is the president. >> sort of. >>paul: he works for the president of the united states. >> any attempt by the president

to manage rod rosenstein is seen as a horrible conflict by many on the left. >>paul: if he declassified the documents, he wouldn't be covering up anything. he would simply be sang let's let the public see the record. how could they criticize him for that? i think he should declassify everything it doesn't mean congress doesn't also have a responsibility to conduct oversight. i think when people don't cooperate, we see these markings taking out this redacted material, it's understandable they would take measures to demand the information. >> i agree. it baffles me that donald trump doesn't do this. however, the congress and president are co-equals in the branch of government. until they exercise their power, they're not going to be taken seriously.

>>paul: talk about the fisa documents. the fisa warrant on carter page that was released this week. what was your take away from that? >> the key take away is that what house republicans claimed the fbi did were in fact true. that is what happened. the main argument that house intelligence committee devin nunes made back in february was that the fbi made this steel.ca an essential part of their application to the fisa court and had not told the court where it had come from. both of those things were spelled out crystal clear in that fisa application. this should be very concerning to a lot of americans. it means the fbi was using political dirt to obtain surveillance warrant on another campaign. >>paul: we are following this, continue to follow this.when we come back, as president

jean woke up with knee pain. but she's got work to do. so she took aleve. if she'd taken another pain reliever, she'd be stopping for more pills by now. only aleve has the strength to stop tough pain for up to 12 hours with just one pill. aleve. all day strong. booking a flight doesn't have to be expensive. just go to priceline. it's the best place to book a flight a few days before my trip and still save up to 40%. just tap and go... for the best savings on flights, go to priceline. we really pride ourselves on >> temaking it easy for youass, to get your windshield fixed. >> teacher: let's turn in your science papers. >> tech vo: this teacher always puts her students first. >> student: i did mine on volcanoes. >> teacher: you did?! oh, i can't wait to read it. >> tech vo: so when she had auto glass damage... she chose safelite. with safelite, she could see exactly when we'd be there. >> teacher: you must be pascal. >> tech: yes ma'am. >> tech vo: saving her time... [honk, honk] >> kids: bye! >> tech vo: ...so she can save the science project. >> kids: whoa! >> kids vo: ♪ safelite repair, safelite replace ♪

there's also a lot to know. the most important thing? medicare doesn't pay for everything. yep...you're on the hook for the rest. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. a plan like this helps pay some of what medicare doesn't. so you could end up paying less. and these are the only plans of their kind endorsed by aarp. selected for meeting their high standards of quality and service. call unitedhealthcare insurance company now to request this free decision guide, and learn more. like, medicare supplement plan, give you the freedom to go with any doctor who accepts medicare patients. it's nice to have a choice. and your coverage goes with you, anywhere you travel in the country.

we have grandkids out of state. they love our long visits. not sure about their parents, though. call unitedhealthcare and ask for your free decision guide today. >> it's time for iran to shape

up and show responsibility as a responsible nation. it cannot continue to show irresponsibility as some revolutionary organization that is intent on exploiting terrorism, exporting disruption across the region. i think the president would make it very clear that they're on the wrong track. >>paul: that was secretary jim mattis responding to president trump's stark warning to iranian president - - that warning coming in the form of

an all caps too sang key west dire consequences if he continued to threaten the united states. - - good to have you back with us. we've got the tweets back and forth it might compile giving a speech this week. a speech that i thought was very good. and many statements from the administration. what is the trump administration's policy toward iran? >> i think from what we can tell so far, it is we're not going to simply isolate the iranian nuclear program from the rest of iran's maligned activity. that's why the president walked away from the deal in may why sanctions will snap back into place in november. i think beyond that, this is an administration that will not put up with threats with closing the - - which is something they have alluded to in recent weeks. i think that explains the presidents tweets. and more broadly, we are announcing a policy being laid

out why secretary of state mike pompeo, that we are now basically going to launch an assault on the legitimacy of the iranian regime. that it has pilfered funds from its own people. that is responsible for most of the unrest we are seeing across the middle east and that the u.s. will go on a counteroffensive which i believe is long overdue. >>paul: you've got on the one hand, let's rewrite the nuclear deal so it's more constraining. push back against iran's middle east activities venture resume elsewhere in the middle east. and three, question the jetta misty of the iranian regime. that sounds to me, maybe we have a policy of regime change. is that what we are talking about? >> not sure we can call it exactly that. my compile delivered a speech at the reagan library.

i think he was trying to echo president reagan on the assault of the legitimacy of the soviet union. would you say reagan's policy was a regime change in the soviet union or trying to support the dissidents of the people of the soviet union to rise up against an illegitimate government the one you are. >>paul: you are right. it was telling the truth about the soviet union in a way that might echo through soviet society. it's interesting what might come pao did asmike pompeo did . - - presumably, they would tell the truth that they can't get inside iran as well. >> i think that strategy is incredibly important. part of the problem is that iranians don't understand the united states is behind them

and there is a truthful narrative out there. unfortunately, i think that's born by misbegotten policies in years past. we had the opportunity in 2009 to stand with the iranian people as thousands came into the streets after the - - rigged election. the obama administration elected not to stand on the side of the iranianpeople . again, i think with the iran nuclear deal, providing$150 $15 billion was a legitimization of the regime and it was a message that we were not with the people. we are seeing a shift in policy and i think we are trying to message to them directly. whether through media or mike pompeo's speech. if you look at the people in attendance at the reagan library, many of them were iranian americans in california and beyond. i think it was important that they were in the audience.

that he was speaking to them directly. >>paul: is one question i have that i think will be a test of this policy. in syria, the iranians are trying to establish a permanent beachhead. israel doesn't want that at all and the united states doesn't want that either. i don't see from the attitude of the white house or this administration, any appetite to push hard to get iran out of syria, other than talking about and begging putin to help us. >> that's exactly right point what iran is doing is stretching its influence from its western border all the way to the mediterranean. some are calling it the shiite crescent. they're using the revolutionary guard corps. i think no one has stopped to them to this point. the failure to prevent them from getting that foothold across the middle east. in my view it would be obama

2.0. everything the trump administration is doing to counter would be for not if we don't stop them in terms of the regional ambitions. >>paul: have to take one more break. when we come back, hits and misses of the week. ve got to te something important. it's not going to be easy. quicksilver earns you unlimited 1.5% cash back on every purchase, everywhere. actually, that's super easy. my bad.

>> time now for hits and misses of the week. james? >> this is a hit to megan mccain of the abc television program the view. she started useful debate this week pointing out socialism has failed everywhere around the world that has been tried. the bernie sanders crowd came back saying what about scandinavia? i think it is puzzling to people that live in scandinavia because bernie may not realize there is a corporate tax cutting binge. they have it down to donald trump levels.

so kudos for raising the issue. >> kim? >> a hit to the interior department for the proposed modest regulatory revisions to the endangered species act. with the goal of making that both more predictable and effective. this is caused the usual meltdown on the environmental area but they have no answers to a law that has failed and has not been revised in 25 years. any efforts here to help those that struggle with this every day ought to be applauded. >> bill? requester innocent businesses that have been hit by the terrace. we've a new one, the trump 2020 campaign.the keep america great banners are coming from china. 90,000 of them. the factor manager there says there are about one dollar apiece.he thinks the campaign has ordered so many because they expect the price to go up with tariffs. a big hit to the flag factory

for not letting politics get in the way of trade. >> all right, thank you very much >> start with a fox news alert. the presidents legal team stepping up attacks on the credibility of his one-time attorney, michael cohen. this is the current attorney rudy giuliani, he says a secret recording may have been doctored. then doubled down on the claim again today. hello everyone and welcome to "america's news headquarters" i'm eric shawn. >> i'm alicia in for arthel neville. rudy giuliani demanded to see the original tape saying about buying the story of a playmate that claimed that she had an affair with mr. trump you giuliani telling chris wallace on "fox news sunday" they