>>shepard: that is what he gets for impersonating santa claus. the news begins anew, the only suspect in the disappearance of the american woman in aruba is speaking out. that is not the suspect that is the woman who is missing, speaking out after four months in jail. and wait until you hear what he says happened the kay the woman robyn gardner vanished. and a showdown on capitol hill over a payroll tax cut set to expire and what happens tonight could effectivery -- every working american. and new concerns over dangerous chemicals in grape juice and apple juice! come on. what the feds are saying now about arsenic. that is ahead unless breaking news changes everything. this is "studio b." fox news is america's election headquarters. with less than five weeks until

the caucus in iowa the stakes are high. the race for the republican nomination is very much up for grabs. romney battling a late surge from the former house speaker gingrich. he is attempting to define his new rival as a lifelong politician, which he is. while talking up his own experience as a businessman. last night on hannity, gingrich hit back. >> across the country people are saying, i think we need gingrich because we need somebody who can debate obama, somebody who has done it before, we need somebody with very substantial big ideas. >>shepard: we have seen several g.o.p. contenders soar to the top and then fall back down. it happened to rick perry. it happened to businessman herman cain. and governor romney has been the most consistent frontrunner but had a very lard -- hard time getting above 25 percent. can he withstand another

challenge? and now to washington, the romney campaign, to hear it from the folks on the other side they are in panic. >>carl: romney is adjusting and ramping it up and recognizing gingrich surge. romney launched the first tv ad in iowa, a clear signal. and he will go after gingrich just ahead. aides say rome high tout the 42-year-old marriage to his wife, compared to gingrich married three times and then hitting the speaker as a flip-flopper and washington, dc insider who has not always had conservative positions and could actually stop the criticism himself on a lot of the vulnerabilities. >>shepard: gingrich says his surge came sooner than expected and how well prepared is the campaign? >>carl: they are behind. he knows he needs to transfer the lead to serious boots on the ground. he miss add key filing deadline

in new hampshire to list the slate of delegates. he did not fill out the whole form and did not file for missouri which takes place february 7th and has relied on tv and social media. he is the last candidate not race to open up a campaign headquarters. they are now shipping in the furniture with only four staffers. they will hire a 5th tomorrow. a small operation. but something to be remembered. republican politics for the presidency, to be the nominee, you have to suffer a huge set back when you look at history. john mccain was dead on arrival in 2007. he won the nomination. george w. bush lost the new hampshire primary. and he won the nomination. in order to win you have to have a huge set back. gingrich had his when the campaign imploded early and now he is on the rise. if he take as beating from romney, or beats romney, romney could have his set back that could qualify him for a

comeback. the first time romney has had a real challenge. >>shepard: thank you, carl, great to see you. and now, you worked on arnold schwarzenegger's bid for governor in california and a head for the presidential bid for fred thompson. thank you. there is a pattern. the not romney camp, candidate, have come and gone in five or six weeks and gingrich is two or three weeks in. what is there to suggest he won't go the way of the others? >>guest: well, his, whatever newt's weakness and vulnerability, they are a far cry from the other candidates. for instance, herman cain put the accusations aside, he is not strong on foreign policy. he cannot talk about the economy beyond his 9-9-9 plan, and you have a lot of the candidates sort of the one hit wonders with

a limited range of talking points. but gingrich understands how the government works and understands foreign policy very well, probably better than romney and that would be an interesting one-on-one debate. and, look, he has been around a long time. he has lost a lot of campaigns before he won. and he led the 1994 victory in the house of representatives republican side. this is a man who understands politics. he understands policies. he will be in there for the long haul but i do think there is still that issue with the ground ground and the organization. most people do not realize how were work it takes and how large of a staff and how many volunteers it takes to get candidates on the ballot. >>shepard: what is romney's strategy? the strategies with the others

is let them implode. something different is in the works here it seems. >>guest: sure. that is right. if you lock at candidate like michele bachmann, for instance, articulate, did well against pawlenty but had a limited range. with gingrich, what can't he talk about? what doesn't he talk about? >>shepard: karen, that is one thing that people who have wanted this game for a a long time have suggested. and, carl, join in, gingrich is on the record on everything you can imagine and in some cases, frankly, he has more than one position. >>carl: but he knows that and is keenly aware having been scolded by republicans so often over the years in washington, dc, that his shoot from the hip/lip gets him in trouble. it has been said before the debate and before the public

appearance he whispers, "don't let me screw this up." he cannot make mistakes and he knows. whether he can curb it in five weeks when the rivals will come at him, when the cameras go six or seven deep and keep him away from the voters with shouted questions we will see he if he keep his cool. >>shepard: karen, what do you think? >>guest: i would be surprised if he can keep his cool. it is not because i think he has a short temper, but it is because this is a guy, the wheel are always churning and he is not in stick to the talking points. he has his message going on but he think you use engage the questions one-on-one and that is not always effective way to manage a campaign. >>shepard: both of you, thank you. both parties agree on one thing. that is, they need to extend the payroll tax cut. they do not agree on how.

if the devil is not details that could be the spot. payroll taxes are the state and federal taxes that an employer is required to pay on behalf of all employees. if tax cut expires pay chucks -- checks would expire. and mike, on capitol hill, they have two completely different ideas. and the spin from the democrats is the republican way freezes pay for hundreds of thousands and could eliminate hundreds of thousands of jobs. >>reporter: what the republicans are saying here is how we pay for this, for federal workers for three years and cutting the federal workforce by ten percent when people quit or retire do not replace some of them and some means testing to make sure the wealthy do not receive government services since they are are wealthy. here is republican leader

mcconnell on why he favors an extension. >> no reason folks should more than they are president's failure to turn the jobs crisis around but no reason we should pay for that relief by raising taxes on the employer we count on to help jolt this economy back to life. >>reporter: that's the republican argument about the democratic plan to impose a surtax on millionaires and billionaires and republicans say those are the folks who need to hire. >>shepard: the democrats admit it is not enough money if they impose this surtax it is not enough. what do the democrats say? >>reporter: they have jumped on the point about cutting the federal workforce saying republicans are at war with the middle-class and here is democratic leader pelosi. >> tax cuts to the middle class,

that needs to be paid for. i don't know what the middle-class ever did to the republicans so that they are so out to get them. whether it is job creation, economic growth, the tax code and the rest, this deck is getting stacked against the middle class. >>reporter: two senators have come out and said they are not for the republican plan or the democratic plan. they are "no" on both, democrat from west virginia, a senator, is a no and senator kirk is a "no," worried about the impact on the service transfer transfer. both the contempt and the republican measures are expected to fail and we expect both sides will get down to negotiating a deal that will pass by the end of the month. >>shepard: at the last minute

as the economy fails it is our politics that fail most consistently. mike, thank you. the country star mcready has had several run ins with the law and this time the trouble could be more serious. officials filed a missing person's report saying she ran away with her own son. [ sniffs ] i have a cold. [ sniffs ] i took dayquil

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pregnant. twice pregnant. mcready took her five-year-old son from her father's son and now is in nashville, but there are more than a few twists in this case. she claim she took the boy because her mother was abusing him. the mother denies that. and in what we are told is a tearful interview, mcready admitted he is seven months pregnant. with twins. right now. police have said she had trouble with drugs, trouble with domestic abuse and once tried to kill herself, and she was also known for saying she had an affair with the baseball pitcher roger clemens that began when she was in her betweens. birthday boy extraordinaire arthur aidala is here with us and randy zelin. she has been and but the law says on this ruling she cannot have this child and she clearly has gone outside the rules.

>>arthur: don't mess around with this. if she has a valid claim that a parent or someone is abusing a child you bring up the evidence, hire a lawyer and bring it to the judge and the judge has a degree of self preservation, so the mom says, lock, you took the kid from me but there are burn marks on the child or my five-year-old, the child can speak, he was hit with a belt, et cetera, et cetera, the judge will take action. you do not thumb your nose at the court and do what you want. that is a recipe for disaster. >>randy: sometimes the maternal instinct you have the fight or flight, well, she flew, she took her kid and she is going do worry about the repercussions of not listening to the judge but knowing that her child is safe and, by the way, her history? where was mom during all of this? where was grandma during her running around with roger clemens and drug abuse? why not give the woman the benefit of the doubt, she is

trying to cake care of her kid and get the kid out of a bad situation. why not give her a chance? >>shepard: isn't there a process for this? didn't arthur describe the process? would you not first go to law enforcement and child protective services and say this woman is doing this, please investigate or just steal the child and risk prison? >>randy: that takes time and how many times have we talked about the judges doing nothing, your kid, i will grab my kid and make sure my kid is safe and then deal with the system. i will not leave my kid in a bad place. >>arthur: you lose all credibility with the court and the court cannot trust you and if they do believe you, your mom, the grandmother is abusing the kid, well they say mom can't have the kid, grandmother can't have the kid and dad can't. so the kid goes into foster care and everyone loses. >>randy: make an application to another court or get the

child back. you don't lock the woman up or issue a warrant for her around, she is seven months from oaths with twins give her a chance to dot right thing. >>shepard: she says she cannot travel because she is 15 months pregnant. >>arthur: there are plenty of ways to get your five-year-old back, whether to give the child to the flight attendant at one end. or just ask a fend. listen, i need a big favor, can you take a quick flight to tennessee to florida with my son who need, my child, needs to be in court. >>shepard: they have two hours. so we will know tonight. happy birthday again. the problems in the housing market have a federal agency on the brink of collapse. gerri from fox business network will explain what could happen. and whether another bailout is on the way. plus, our forecasters call it the worst storm the western united states has seen in years.

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>>shepard: and an agency that has helped millions of americans buy homes could be in need of a bailout with only $2.6 billion in cash left. analysts say that is a big cause for concern because the f.h.a. ensures $1 trillion in mortgages. and if the house markets drops fur the agency could run out of money. and now, gerri from the fox business network is us with. fannie mae and freddie mac got bailed out.

this agency is a lot different than fannie mae and freddie mac. >>gerri: and guarantees the loans that come from 1519 -- from fannie mae and fred which we have already bailed out. will we have do do it with the f.h.a., as well? they have $40 billion that could be on the hook for if some of the delinquent loans go belly up that they guarantee. >>shepard: and jobs. jobless benefit claims for first timers up. >>gerri: up 6,000 for the week first time filers going up, and that does not look good for friday because of the november jobs report. it is expected to be at 9 percent, 122,000 expected to be reported as unemployed, an increase of that anybody, so we are looking for a brighter picture for jobs in this country not seeing it yet. we have a lot of hope yesterday because there was a private sector report that showed that some 200,000 jobs were created in the private sector last

month. and people were very excited but it did not she up in the weekly numbers. >>shepard: gerri part of best team in business at 5:00 eastern on the fox business network giving you the power to prosper. both alert. gusts up to 100 miles per hour whipping up serious damage in southern california. and now our chief meteorologist, rick is live in the fox weather center. there are hundreds of people --. rick: that is not california, that is utah, 102 miles per hour, and kind of a utah and nevada and southern california thing as far as the winds. we are not completely done with it with the low pressure spinning around in arizona and high pressure to the north, where it comes together, the pressure griddent, that is where the winds howell when they moved through parts of southern california, all the wind comes from the basin and hits the mountains and it has to come in

through the valleys and scan beyonds and that is what we are dealing with. we have it tonight. look at the pictures coming from california, maybe damage, trees down, all over the place. pasadena having to declare states of emergency in parts of their areas of pasadena. a lot of people dealing with this. a lot of people with roof damage and power outages and trees down. and rough going on the roads. tonight it is, getting better, though. and we have rain and snow side and arizona and southern california is cut off from the flow so it will move its way toward the east but not in any big hurry. it will be a big snow maker with winter storm warnings around the four corner states and some areas will see over 1' of snow, the four corners. by saturday, it will be an ice storm across texas and oklahoma and then it moves to the east slowly the next weekend and next

week, rain and possibly severe weather. >>shepard: december is here. the suspect in the case of the missing woman in aruba is speaking out since his release from the caribbean holding cell. gary giordano says the media is misreporting details. misreporting. stay tuned.

>>shepard: this is "studio b." it's the bottom of the hour. time for the top of the news. the lone suspect in the disappearance of a woman in aruba denies he had anything to do with her vanishing. this started in august. robyn gardner was vacationing with this guy, gary giordano, a man she met on the internet. he says they went snore killing and she never made it back to shore and he took out $1.5 million life insurance policy on the woman and inquired about cashing in on the life insurance policy days later. in the first interview, gary giordano appeared to blame the whole thing on "the drug trade," and human trafficking. and he made the revelations on abc's "good morning america." >> aruba has two main sources of income: cocaine and human traffics. where we were it takes half an hour to drive a boat to

venezuela. and right where we were, i find out, that is where they drop off illegals to swim to shore. >>shepard: the prosecution considers gary giordano the prime suspect in the disappearance despite a three judge panel rejecting an appeal to keep gary giordano behind bars. and now from new york, the suspect seemed, how would you consider him this morning? >>reporter: combative. strange, i think. gary giordano seemed evasive, unresponsive, the answers disjointed and he says, i'll interview myself if you don't mind. the attorney, baez, jumped in several times. gary giordano denies drinking the day robyn gardner vanished and claims they never ordered drinks at the bar where they sat together for an hour. even though there is video of him sipping from cocktail cups which was filled with vodka and gary giordano says they were not

snorkeling in a remote location on the island. >> we were 100 yards from a scuba diving store, with tanks in the back, 100 yards from a cuba diving store, not a remote location. okay? we were in view of other people at the beach. >>reporter: yet he admits the dive shop was closed with nobody around and he does not account for all of their whereabouts the afternoon she disappeared, a two hour time period unaccounted for. gary giordano is confronted with surveillance video of the moments after he claimed he came ashore looking for help and he does not appear to be pannished. >> there is nobody there. i'm supposed to scream into the air? i heard people talking around the site, where we parked and i asked for help. >>reporter: while high spoke the three young sons stood behind him silently and it was a bizarre aspect to the entire interview. >>shepard: not to long after all of that, as he described the

day, he went to cash in on the life insurance policy that he had taken out on this woman. >>reporter: he said this is a standard trip insurance which he bought for himself and he claims the computer which he accessed would not allow him to remove her name on the other options like accidental death. >> i cannot unselect her, okay? it came down to the insurance you cannot unselect her, okay? so i selected that i was selecting it for me and she got the same thing. >>reporter: then he blamed the first lawyer for telling him to contact the insurance carrier to pay for any potential costs in the search for robyn gardner. >>shepard: so the first lawyer's fault he tried to cash in on the life insurance policy. and either human smuggling or cocaine trafficking which made her disappear, but this does not explain ... anything?

>>arthur: he gave a lot of "possibly," "could be," and "according to a travel guide," in holland if someone misses you should immediately contact the insurance company. so, i don't think it was, he should not have been on television, he should not have been speaking, he should have been as far away with his kids assessing the situation. >>shepard: randy, you say "don't talk." >>randy: don't. talk. >>shepard: but he did. what do you thing of what gary giordano said? rain he is out of his mind. why are you tugging on superman's cape? why would you say aruba, sure, go there to be involved in human trafficking and drug smuggleing. why give him most vision to barbecue? why not give all of the other prosecutors out there, well,

here is a new lead? i agree with the birthday boy, it was insane for him they do it. shut up. lay low. wait for the next person to screw up and thank god you are in america. >>shepard: some lawyers enjoy the cameras. >>randy: not on our own cases. you do not do it on your own cases. >>shepard: some do. >>randy: you do not eat your own supply or talk on your own cases. >>shepard: but a lost lawyers do. >>arthur: you are correct. so you try to check your ego at door. i contacted american express and spoke to a representative, about this type of insurance, and this type of insurance covers you for a death in the course of transportation, airplanes, buses, taxis, to and from it does not cover you if you decide to go to aruba and jump out of the plane and the parachute doesn't open and it is a high

risk activity like snorkeling. it is not traveling. not traveling. it is not automatic that he is going to recover. >>randy: don't you think the prosecutor in aruba knew this? >>shepard: he has had quite a record. >>randy: and the first thing they did, you know, is in the motive is based on cashing in on this and they found out as arthur notes he cannot cash in because they wasn't traveling. >>shepard: that is not to say he didn't try. everything is the lawyers. the media. and now human traffics. and coke. >>arthur: in venezuela. >>randy: that is valid. don't blame the lawyer. all i am doing is finding out i could get covered in aruba and

let me see if i can get covered. >>shepard: western governments claim iran is trying to build nuclear weapons. nothing new k they punish iran with economic sanctions which rarely has ever worked on any. but hurting the people. the response? iran government ordered the attack on the british embassy. so, where is all of this leading? we will break down the new iranian crisis.

>>shepard: our elected officials in washington are meeting to talk strategy with iran, how to punish them for refusing to cooperate with western leaders. an old problem. this comes as international relations with iran further deteriorated this week after protesters or somebody stormed the british embassy and

promised, or prompted the u.k. to pull the diplomats out of the country. and now, like in washington this afternoon, lawmakers are suggesting there needs to be greater sense of urgency dealing with iran. >>guest: both republicans and democrats criticizing the administration for not moving fast enough and for astronaut showing enough urgency as the potential for military action growing as they move closer to nuclear weapon. >> we have about a year according to reports. now, when are we going to start our sanctions robustly? >> we have a real problem in an enthusiasm gap or urgency gap, sense of urgency gap between how the legislative branch views this and how the executive branch views this. >>reporter: but the treasury official who testified on iran said the accusations had no merit and the multilateral

approach for several nations to apply sanctions is working well. >>shepard: there is disagreement over how far to go? >>reporter: this was an interesting mobile in the feeling that provided fireworks. a menendez amendment goes further than president obama's order by barring any u.s. financial group from doing business with other financial groups who fox business network with iran's central bank. the administration officials hinted today that iran's crude oil revenue could be targeted next because that revenue goes exclusively to the nuclear program but they say they are concerned because they believe the amendment could drive up oil rices and enitch iran. >> we think it may both increase the price of oil which will give iran a windfall. that is not the objective. it may have that effect. >>reporter: some of the

questioning today is that without better cooperation from china and japan and india, the sanctions do not amount to were. >>shepard: we will bring in former senior director for middle east affairs at the national security council. michael, thank you, as always. it seems like we have been waiting forever and forever whether sanctions work against the government or just the people. what is your sense with this? >>guest: well, the fact is the administration has a point if that it has a very robust sanctions regime in place and those sangs are having an effect on the iranian regime. but what is frustrating about the administration's response first statements this is working. that is frustrating congress because if the goal is to get iran to stop the nuclear program, it is not working. and it hasn't been working for a long time. what the congress doesn't see

and what we in the public don't see is what is the strategy to actually accomplish the goal which is to stop iran's nuclear progress. >>shepard: maybe you have to use force? or israel would do so. or the once go along with this. >>reporter: what we have seen when we apply pressure iran does not back down. they escalate the actions. the embassy takeover this tehran, we saw thement against the saudi ambassador. so we have to convince iran's lowers if they escalate we are not going to back down. but we are willing to use military force. we are willing to target their oil revenues. right now, they are not really convinced of that. >>shepard: catherine, along those lines, there is a great deal of reporting that suggests that not only was the iranian government okay with and allowed what happened at the

british embassy but they trashed the place. they set it on fire. but they were actually of haved -- actually involved in it. >>reporter: analysts said when you attack a country's embassy you are, first, attacking the heart or the essence, the identity of that country so it is a very personal attack. iran has a legal obligation to protect the people in the embassy who are working in tehran which they failed to do. and i was domed you have to then conclude that this has the backing of the iranian government because it would not happen any other way. and you are raising an excellent point, what you see here is iran has learned to live with the sanctions. >>shepard: that points out diplomatic difficulty. >>guest: it is. because the next step we could envision, whether it is targeting iran's industrial bank or cutting the oil revenue or

supporting military action against iran, that will require a heavy diplomatic effort to get any kind of international support and certain countries such as russia and china will not go along so it means getting together an ad hoc coalition. >>shepard: president obama announcing an additional $50 million to spend to combat h.i.v./aids in the united states marking the 23rd anniversary of world aids day and increasing global treatment by 50 percent in two years. >> but know treatment is also revenges. today we set a new target of helping six million people get treatment by the end of 2013. >>shepard: he is georgeed by bill clinton and george w. bush, both speaking by satellite and

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>>shepard: there are some people with concerns about potentially dangerous levels of arsenic in fruit juices that can cause cancer. officials at the food and drug administration are looking at standards after researchers at

"consumes reports," found high amounts of arsenic and lead in a budge of different juice brands. according to the results, 10 percent of samples contained levels of arsenic higher than allowed in water. researchers say this is a problem because a lot of kids drink a lot of fruit juice. trace is in the west coast hub. this report caught some of the feds off guard? >>trace: consumers wonder why the feds would allow arsenic in fruit juice which is mostly drunk by kids to be higher than in drinking water? they are saying the feds allow drinking water to be ten parts per billion, the standard. right? but in juice it is allowed to be 23 parts per billion and the consumer report found apple juice at 13.9 parts can they want it lowered down to three parts a billion but doctors say loweringed standard may not be enough.

listen. >> the issue here is, to what level do the juice companies comply? i don't personally believe lowering it from 23 parts down to three parts a billion will have much significance in terms of human health? but they have to set a standard and the standard should be lower. >>trace: but law the feds can seize any juice that exceeds that 23 part as billion standard but they have never done so. >>shepard: what are parents supposed to do? >>trace: hide the apple juice. the consumer groups in this case that are pushing for these lower standards are not worried about small amounts, but the big concern is, about kid whose drink a lot of juice over a long period of time. some experts think the kids under the age of six should not drink any more than one juice box a day, six ounces, but, quit

worrying. >> i am not concerned about this whatever. the acute health risks are zero. i am more concerned about the sugar but i am concerned whether the f.d.a. or the epa rap is aware of how much there is in this substance. >>trace: and whether they put the juice maker's feet to the fire, they are not concerned about the natural arsenic but concerned about the man made arsenic which comes in the form of pesticides. ship ship the doctor's health concerns are zero. one part a hundred is 1 percent, and one part for 10,000 would be .01 percent, and now we are at a billion. anyway, bringing in dr. london running her own family practice

and assistant professor at cornell mold college in new york city, very well respected. i can't figure out why i'm supposed to give a damn. >>guest: arsenic over time causes lung cancer, skin cancer, bladder canner, in 24 hours of ingesting, in pregnant woman it goes into the fetus. so this is something to care about and children, because they are developing, the cancer risks are unknown and repeat exposure is a problem. >>shepard: the difference between 23 part as billion and three parts a billion according to the other doctor is not much. >>guest: i agree with the doctor on that, there are on the other hand concerns. i have never been a fan of juice for children. period. >>shepard: coke? diet dr. pepper? >>guest: your children should be getting water and milk. if you have to give them something sweet give them

chocolate milk. or make a smoothie. there is no nutritional value in juice and soda, it is empty calories, or diet soda they take the calcium out of their bones. >>shepard: french fries and chicken nuggets, and something from chick filet. >>guest: they will not allow gay couples this there, that was all over year's when. >>shepard: i missed it because the chicken sandwiches are spectacular. >>guest: in small amounts. if your child is drinking juice ever day --. >>shepard: i thinked my mom fed us arsenic soup. doctor, always good to see you. don't take off a snake charmer

but the guy who left the snakes to the local tax office said they got what they had coming. your long-term payout into a lump sum of cash today.

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>>shepard: accusations of bribery and a snake attack. another day at the tax office in end da. an angry snake charmer released dozens of snakes after accusing officials of demanding pay offs. there were several dead cobras but no reports of anyone hurt. he claimed higher ups approved the permit but the local officials wanted the money he could not pay. he says that left him with nowhere else to put his deadly snakes. tax office. enjoy. the dow is down 30 on the day, arthur's birthday, and randy i figuressed -- figured out what to get him, skip the snakes, 500 gallons of a