Journal Editorial Report: 8/9

" This week gets damaged versus downs as the political left who. Wraps up moderates who won't get when Obama isn't government run health care program plus. How close -- look at the stock market summer rally even as job losses continue but at a slower pace is at the beginning of a real recovery. After the release of two American journalists what's America's next step. -- North Korea the journal. Editorial report begins."

" Welcome to The Journal Editorial Report on apology go well lots of attention being paid this week to those town hall meetings. And we'll get to them in a moment but the most ignored political story of the week. The political left and its lobbies are roughing up fellow Democrats who won't get what president Obama's government run health care program to liberal groups. Democracy for America and the progressive change campaign committee. Put out this ad against Nebraska senator Ben Nelson a Democrat who was lukewarm on the so called public option take a look."

" Now I hear that Ben Nelson the senator that I voted for him was leading the charge to delay health reform this summer who. That's exactly what they want them. The health and insurance companies that are given senator Nelson over two million dollars to know that if they can solve reforms they kill him. I have to ask the senator from whose side you aren't."

" They're calling he had a warning shot to any senator who tries to block president Obama's public insurance option and it's just a sample. Of the campaign being waged against wavering Democrats by other Democrats here to discuss this in -- party smacked down Wall Street Journal columnist. And deputy editor Dan and anger senior economics writer Steve Moore and Washington columnist Kim Strauss also camp. Do you think the White House part of it is behind the political part of it is behind this campaign."

" course it is -- look at you look. Did did the -- Democratic National Committee has its own arm which is is president Obama's campaign arm. They have been now running ads that don't necessarily mean he was that way in and aren't that aggressive. But in districts above moderate Democrats saying it's time for health care now so they've been exerting downward pressure now. Apparently the president in private meeting in the says he doesn't approve of any of this. But but according to these groups they haven't received telephone call from the White House telling -- wait I get up."

" Been the president has said these told senators look I don't think this is productive Harry Reid the majority leader in the Senate has set knock it off they are working there counterproductive are you saying that David Axelrod the political director at the White House or Rahm Emanuel. A pretty rough guy sometimes the chief of -- on the side saying yeah go get them."

" Think -- there's an element to that and we thought is back in the campaign that when Obama campaign for president Mitt. -- have publicly thing we need to get along we need to to go together. But don't and the background we're not averse to using some of these groups to pushing for their hands and right now look the public option is one of their ends."

" Our idea this is working. I don't think it's working so far it intimidation does work coming they have intimidated some of the private. Sector people involved in the hope they're big pharma is running -- is in favor of the plan is well not only that but the Pharmaceutical Manufacturers Association and business roundtable are part of a group called help the economy now which also includes the public sector employees union. And they have been to gather running ads for the part of this plan in some of these areas so they have intimidated. Some of the private people in Washington that make work as I've only got."

" politician has been worked with some of the blue guard -- mean that they got the bill ultimately out of committee last week Henry Waxman's bill and the some of the -- only through I think 45 of them voted against it yet but I think the real story here policy is and the reason I think the left so frantic right now. Is that support for this plan has just eroding so quickly and and I think they've become totally desperate and that's whether it's you know -- turning their attack dogs against each other. You know we're talking about a little bit earlier about how the fact is. The other Democrats gained their -- your majority -- talking about them being a center left party. And that they had moved in a more moderate direction and now they're turning their attack dogs against the very. Moderates who made this majority a possibility yet Kim Rahm Emanuel when he was in the house. Recruited a lot of these moderate blue dog Democrats to help make their majority and in fact did help make their big numbers majority. Into south and six in 2008. Are they willing to sacrifice some of these moderates now for the greater cause of national health care."

" I don't know how you read it any other way. That the plan they had put out what's passed in the house has passed in the Senate. Has put these guys in an absolutely untenable situation. They're districts are full of these Americans who are relatively happy with their health care maybe not thrilled with certain price hikes in recent years. But they are very careful about rape in the deficit about a government take over. And there is no way that they can sell these planned these blue dogs back in their districts in and these photos are just looking for an opportunity to to put a Republican back in those states."

" All right let's talk about those town hall meetings and some of these districts back home we have an -- clip from -- A town hall involving Michael Ross and Arkansas Democrat let's take a look."

" In the -- as its. -- that it appears that we don't support it appeared that. Hope those."

" Well Steve democracy at work -- an innocent. -- And you know these are real people on mean these are housewives and these are plumbers and these are school bus drivers who are just angry. Not just about the health care about the out of control deficit. And the idea of the Obama administration saying oh my god these are manufactured by special interest and how -- these are angry mobs I -- Paul did you ever see anybody say that went in Barack Obama was turning out hundreds of thousands of people at his rallies. But there's is there it is true is it -- that -- Dick Armey the former majority of the Republican majority leader now runs a group called freedom works they've been they've been sending people into these and town halls and encouraging people to -- so in that sense it is it is organize no question but that the people who are actually doing getting the people out by the way at some of these -- getting you go to -- one point 500 people 250 people concept. So you get 10% of the voters showing up and those are organized by grassroots activist in those districts what about the White House strategy here to say this is disinformation to say that staged and it's all."

" Kind of fabricated. Is that you're not gonna pay -- I don't think it's gonna pay off Paul I think the White House lost control of the message around this health care bill big turned it over to the house Democrats the house Democrats for the most liberal wing of the party. They conveyed the idea they have over the years talked about a single Payer system I think the public has it in it's mine. That's where the Democrats are going with this bill is in a very liberal expensive direction and I don't think the White House is able to push. People off of that idea. Kim Barbara --"

" Should the senator from California said to the some of these demonstrators are just a closer to -- stress enough -- to relieve stress and to ask that can be spontaneous. And and you know she's always dressed pretty well to herself. What do you think -- that criticize the system saw a lot of Republican campaign."

" Look at you have heard a lot of push back from Democrats on that's coming it was all kinds of reasons for why these are supposedly made up but that. I think -- may -- may be some people in the audience inventive and pushed out by activist -- to -- but there's a lot of average Americans were showing up -- these things. To make their voices heard and also to ask questions and that interest and you look at this isn't good news for the White House because of the story line is. People angry people coming out and then it hits instead them sending out their own troops to kind of shout those people down none of this is good health care discussion in this is this as a sideline to what they wanna be talking."

" I don't look there's always been played up why Arab voters so apathetic -- and attention to -- that they were at the wealthiest -- empowered the people will not right at all of the recall politics well the freedom of assembly but ultimately I think what why this council much is this bill is gonna sink or swim based on public opinion -- what the lobby say but public opinion. All right still ahead. Have you look at your 401K. Lately you may be pleasantly surprised when we come back. A closer look at this summer stock market rally doesn't signal the beginning number recovery. And is the government's cash for clunkers program the expressway out of recession. Or a dead --"

" Have you checked your 401K lately you may be pleasantly surprised the stock market coming off its best July in two decades. Got a strong Argus August start this week with better than expected car sales some say thanks to cash for clunkers. Adding to bets that the economy might be starting to recover and another welcome surprise -- better than expected unemployment numbers the economy. She had just 247000. Jobs a lot of jobs would still lower than people thought. The fewest in the year we're back with -- here and Steve Moore and also joining the panel is columnist Mary Anastasia. O'Grady all right Steve. Do you believe that the stock market is a forward looking indicator we have a big rally. What's it telling."

" It's GSM -- has beer bear in America. That's what I'm telling us I don't even at this rally. -- you know we did see some improvements in the in the jobs number respect. My goodness 250000. Washed -- we have to create a 150000 new jobs a month just to keep up with the increase in the live report. So I'm not by and the fact that this like I think we're at the start of a weak recovery but. Paul we are the job's gonna come from what is Washington doing -- helping gentle touch I mean can you help your game. More optimism that frontlines of this -- here."

" Well you know let's not the rate on people's parades if people's growing -- are rising and that's a good thing. If the jobless rate is Google you know flattening out and that's a good thing. But I agree with Steve the question is are we going to have a jobless recovery we did after the last two recessions it seems to be a phenomenon that we get into. Absent real one son is the question is where is the job growth going to come from but listen if that economy's coming back."

" That's good news when that we had -- haven't had we had we'd have a jobless recovery after last two we had. Terrific jobless growth and nineties and for the middle part of this decade also quite good jobs growth. So I mean I would I would be delighted if we could get back to 5% unemployment 500% unemployment I think the fear is it's gonna end up being you know in the seven categories or -- more for a very very long time."

" well I mean I think them that one of the problems -- the government wants to take responsibility for some improvement in in the environment right now. But if you look at the history -- business cycles steep declines followed by credit markets that start to act more normal. Are always followed by a recovery and I think you know this stimulus is not what is working here the Fed pumping lots of money into I had. And they'll let us happy is that its own stimulus. On top of that all this cash it was on the sidelines because there was a huge amount of pessimism right and then. The market starts to look at the fact that he may be Obama is not internationalized 20% of the US economy. And you start to see profits improving a little bit because inventories are drawn down. Of course your gonna get some kind of a recovery the question is what how Long Will last into 2010 there's a lot of debate on that and I'm afraid when we run out of gas there. Well you better not."

" Have all your chips so what you're saying what you're saying is -- about to hear we're gonna get it's gonna show up in that. Official figures because when you've been falling for 6% for a long time you're gonna get just to get back to zero you get 34% growth. But then you're saying you might see a plateau where instead of to get 345%. Growth that you get for a couple of years typically -- you won't get that."

" That and I think Dan's point about the incentives there are what we really have to look at here what happens in 2010 when. That taxes. To pay for a lot of the spending start to hit small businesses small businesses have been the source of growth job growth in this country for decades and those. Entrepreneurs are really gonna -- tax increases are they gonna take on new and employees when they see all these new taxes coming in -- the other one another."

" She -- the uncertainty that's been fomented -- minds of a lot of investors small business as well by the Obama agenda we don't know for the -- And we don't distribute tax increase on health care we don't be a tax increase on energy. Who what kind of companies will pay that tax all of that creates a sense or am I keep from a setback public I'm not gonna invest not to take any -- let's see when the smoke clears and made."

" imposing their health care bill is to require employers to provide health insurance -- sure you know is that in the Senate to hire people -- thanks -- you know what its interest and I think Mary Mary mentioned this. If you look at the stock market it's going up in inverse proportion to to those opinion numbers for the health care bill in the cap and trade show is American investors CDs maybe not being as bad as they thought there's more often it's all right Steve has a big supporter of redistributing income. You know you walk. Cash for clunkers said to be the greatest beltway success Washington policy success in years personal popular. Did you like -- think it's doing any good well first alive for full disclosure my family's taking advantage that I want to thank all three. Thousand dollars -- minute by -- got out. Look Americans -- free money you're not up and people. If people are taking advantage of best of there was a bump up in the auto numbers so yeah this actually it from a stimulus perspective in the short term this has worked but what's gonna happen is people are buying all the cars -- and -- in about six months from house of a long term effect will be back please help me here. -- this is just."

" Bad idea because I. I love that they've."

" I'm excited to breaking news this deep into transferring money from eating hemp is not the and Intel to transfer exactly what I took a loss on the trade. But the general appetite for risk is what matters and I think that's something that we should really really be concerned about here and -- these jobs numbers that everybody's so happy because they haven't fallen quite as much you know. We we only have nine point 4% unemployment -- terror that's a very strange thing to celebrate. And don't forget that they don't pick -- Small business that the way to surveys done you don't really see what's happening hints in the job growth in small businesses and that matters so much to this economy. Our rights still ahead the next step."

" North Korea following Bill Clinton's visit and the release of two American journalists. What does Pyongyang expect and what is the US willing to give."

" The Obama administration -- this week that US policy toward North Korea remained unchanged in the wake of former president Bill Clinton's trip to secure the release of two American journalists who had been held there for close to five months the White House. Said it is up to North Korea to take steps to improve its relationship. With the United States but is that the message. Mr. Clinton's visit really sent in what will appeal -- do next Wall Street Journal. Editorial features editor rob Pollack joins the pan all right -- White House says no change in policy. You really don't know and of course the policy -- changed the policy was the six party talks."

" Once North Korea went nuclear there really no good options that they wouldn't invade the North Korea about six on drugs they want direct talk -- guy that's right and that's what they got out of us our policy should have been Wednesday -- once they went nuclear as we should have sustained multilateral pressure. Effectively by sending President Clinton over what we've done is released the other five parties in the six party talks from their obligations to do anything about the problem."

" For re gonna do if you wanted. To get those two women out amid news that Kim was saying I want Bill Clinton. He wanted somebody of that stature didn't even want Al Gore he didn't want Bill Richardson the former UN ambassador now governor of New Mexico was made numerous trips there. He wanted Bill Clinton and somebody Bill Clinton's stature. It wasn't the Obama administration a very tough spot if they wanted those woman release."

" Of course they -- at -- property gonna send a former president every every time some rogue states take -- takes a hostage no I don't think you are not maybe you do. Well I think they did this fall for reasons of -- pulled the legitimacy of the -- There's going to be a succession here soon in North Korea Kim Jong -- would like to transfer power to his -- secure old son he's in the have gone hand as he said set -- right answer now this is a difficult thing in a regime like this which is basically a dictatorship. Now they've recently there have been demonstrations -- food shortages inside North Korea. Kim -- and isn't it has initiated something called the 150. -- battle this is something that this Sunday as -- the fifteen year battle well it's about fighting against their -- about the economy they're trying to force people into state factories to boost the economy they do sweeps through the city's taking women -- trying to -- there been resistance to that -- demonstrations and there's you know people have been growing. Their own food private markets are developing inside North Korea simply too. Survive. And the government is trying to suppress that sort of thing that's -- bread recipe for starvation and I -- understand that's been begun to extend to the young North Korean Army as well so they're very unstable there at the moment I think this was an effort to raise the public image of the regime."

" There's no evidence that I've seen that so far no public evidence that the US. Promised anything in return. Have you seen anything I haven't noted that the White House claims there was nothing promised but I think to -- point you know it's it's hard I think for a lot of outsiders to understand just how cruel and ruthless this government is. Don't forget in the ninety's they had -- huge. Famine. This is somewhere around estimated 600000 people died that's prospect could be a conservative estimate it could be well over a million people. The average height of the North Korean male is now four inches shorter than the South Korea and now. It because of that the deprivation of food. And you know as standpoint how many people are just doing what ever they can to survive but this is that this isn't really that the ruthlessness of this regime is."

" And by appearing with Kim Jong -- Bill Clinton a former American president does help his stature at least outside North Korea that is unfortunate and what are the irony is that has barely been mentioned in the coverage here as it was Bill Clinton himself who started the precedent of of of black -- nuclear blackmail by rogue states with the 1994 agreed framework with North Korea. Whereby we agreed to provide them with various data -- and whatnot and they were supposed to -- concessions on nuclear program when North Korea went nuclear it was his policy that fail."

" All right so what do what what is the Obama administration what -- what choices ahead Kim Jong Il I think is gonna send -- I did disfavor for you. Now what are you going to be able to deliver to me is there anything we can give him any. Or should we give."

" I think we should not think we should try to keep the multilateral pressure on I think the larger lesson to draw out of the -- that it's not a tremendously important body no but the the larger lesson to draw out of this is this is exactly why we can't let Iran get to the point where North Korea is now because we're basically helpless well I think they want money to. You know because economy's in trouble but that only allows them to suppress the people that Mary and I were talking about which would be the bad."

" Thing to do what is it what do you mean increased to multilateral pressure when you talk about to have we've been increasing -- Africa are you talking about some new sanctions. And financial sanctions are you talking about boarding. North Korean ships if."

" Even those are those are great ideas and and we have to stop them from up proliferating their weapons from what and we can't take the weapons away from them but we can't blockade their ports we can search shipments in and out that's that's one kind of thing we can -- one thing I worry."

" That is that the message that this trip and one on one negotiations sent to Japan South Korea who have hostages of their own. In North Korea -- Japanese some of them for decades. And they've been very concerned about that this could send a signal that look we don't really -- your your citizens just aren't that important as part of its six. Six party talks all right. We have to take one more break when we come back our hits and misses of the week."

" Time now for our hits and misses of the week scan first you."

" Yep Paul Russian TV this week broadcast pictures of a lot of her -- bare chested in Siberia riding horses and shopping what this is a ridiculous trans national leaders using photo ops and publicity. Turn himself into the embodiment of the nation's spirit. Nicholas Sarkozy is wife Carla Bruni is trying to transform in him into a French intellectual. Barack Obama's on TV virtually every day -- this guy you've ever met Silvio Berlusconi and Italy is going to become the nation's mythical ladies' man. I think -- what they should give these guys a copy of the book of proverbs and most famous saying is pride goes before this fall still true."

" All right -- At this of the hit four Pennsylvania democratic congressman Joe says that. You know what Arlen Specter's switch parties earlier this year. And gave Democrats their sixtieth seat in the Senate it was some on the understanding that they were -- clear his path to reelection next year. Well mr. says that clearly didn't get the memo he announced this week he's challenging mr. -- in a primary and this is great news for Pennsylvania Democrats who actually gonna get a choice rather than have a senator handed to them that their party chosen backroom -- All right I'm rob."

" Yes they hit two for Budd Schulberg who passed away this week at 95. -- his best remembered as the screenwriter of on the waterfront and thus of the famous line. I could have been a contender. The movie from the what was that the thirties to the four none of the next interest is Marlon Brando. But what people may not remember about the movie there is the plot which is that it's about the sufferings of a group of longshoreman. Under their corrupt union bosses and I think that that -- this particular -- relevant this summer as congress considers. The -- named employee free choice act which would turn back the clock on labor rates and empower union bosses at the expense of rank and --"

" Workers right thanks rob and remember if you have your own hit or miss please send an -- JR at foxnews.com. That's it for this week's edition of The Journal Editorial Report thanks to my panel into all of you for watching I'm -- ago. We hope to see you right here."