• With: KT McFarland

    MCFARLAND: We don't have a history -- what we don't do is use it like you and I would use allowance with our kids. It is a reward if you do well and if you don't do well, we are taking it away. We have never...

    CAVUTO: Yes, I don't buy that, because my kids have already formed a union and they demand it immediately.

    MCFARLAND: I thought your kids were perfect. Yes, well...


    CAVUTO: For no work.

    But you are saying that we -- at the very least we better be more -- more scrutiny towards every penny we give out here, because we tend to have a bad track record with the pennies we have.

    MCFARLAND: Look at what we did with Morsi when he was squishing democracy. We didn't cut aid. In fact we gave him additional military equipment.

    CAVUTO: We wanted to him like us, right?

    MCFARLAND: Well, I don't care if anybody likes us.

    I think that the most important thing the United States can do is do stuff that it advances our own interests. It is in our interest to have a stable Egypt. It is in our interest to have a trade in the Suez Canal continue.

    CAVUTO: So, let's say we didn't help out. Who steps in?

    MCFARLAND: Well, then maybe nobody steps in. Hopefully, if we help out, the Gulf -- wealthy Gulf states step in as well with food assistance, because guess what? If nobody steps in, and this economy continues to spiral down, by the end of the year you will have food riots Egypt because they are going run out of food. It's the world's largest importer of wheat and without currency to buy that wheat on the world market they don't have enough to feed their people. And once you have that, then you undo what Henry Kissinger did 40 years ago, which was to take Egypt out of the equation. Content and Programming Copyright 2013 Fox News Network, LLC. ALL RIGHTS RESERVED. Copyright 2013 CQ-Roll Call, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of CQ-Roll Call. You may not alter or remove any trademark, copyright or other notice from copies of the content.