'Special Report' Online: 9/2

" Welcome to another edition of Special Report on line I'm Bret -- our panelists here from the broadcast if you're watching we hope you war Steve Hayes senior writer for the weekly standard AB Stoddard associate editor of the hill. And syndicated columnist transcribe them want to start. By the way you can obviously blog on give us your comments and questions we'll be putting them on as fast as we can and the most that we can. And also on the bottom of the screen here you see this poll a couple of polls will be scrolling through and you can. You can vote and we'll give you the results at the end. We want to continue this talk about health care reform start out and where we are on the public option the government run option. And what the president may or may not say we were talking in the break he'd be about. Is there any chance any chance he could come to the podium there in that the house floor and say. I'm gonna put -- I'm going to push for the public option no matter --"

" I I think there's always a chance I think he's counted the votes I think he counted the months ago I think it's very clear the White House is working all along back channels. With the Senate Finance Committee hearing Max Baucus the chairman of the Senate Finance Committee that was never gonna have a public option in their bill. Tremendous. Authority and and independents. And lots of leeway for missing -- deadlines. I think the bill will be -- the bill that is signed into -- I'll be born in the Senate. And I don't think a lot of public option so for him to come out in his final address when he's had so many addresses. Not to congress but before the cameras on this on this issue always -- poll numbers down. And actually say he's gonna fight for something that he knows he doesn't have the numbers for."

" Would be a real shocker. --"

" I think if he wants to recapture the debate he's lost his public opinion. Not much happened in the congress independently you always a reaction. To what happened in the town halls and he's lost public opinion he's going to be his last shouted regaining it. I think what he has to do is to emphasize what he knows it's popular. Seven native American have health insurance and the majority of them overwhelmingly like -- So what does he do I think what he needs to do was to promised only good things. Free lunches. For example number one. No preexisting conditions you can never to be denied treatment they can drop you if you get sick. And the insurance companies cannot cap how much they will show our lifetime. Everybody wants that he'd get overwhelmingly Republican support. The insurance companies would then have to get an individual mandate -- individuals would have to purchase insurance. Meaning the young and healthy would be subsidizing older people. Once you have that you so heavily regulate the insurance companies. You've turned him into public -- you utilities. You won't need a public option."

" What about. Olympia snow's proposal that there's this trigger. That the public option is triggered at some point it's not there at the beginning but then it's it's triggered she. Apparently is getting some converts there and in the senate finance committee to this you think that has a chance of the president could latch."

" Well let me in though Mara -- for the second time in this program Morris Morris -- has -- Her argument has been that that Obama always tries to find the center and when he has trouble it's because he's he's -- that -- it's it's not where he thinks it is. It would make perfect sense I think politically for him to try to do something like that to make everybody happy. I don't ultimately think it'll happen. I don't think it would it would ultimately make everybody happy if he did I think he'd be much better -- to spend his time talking about co ops. And trying to morph co -- in the want anyway airplane -- Olympia snow's proposal -- we."

" Have a grasp awarded entails calls asking for trigger on public option so when does it trigger like when -- it --"

" I don't there is various trigger proposals on and -- the blue dog Democrats do not want a trigger they do not want a pilot program. This -- You know somebody set up set up is some kind of an exchange or system. That creates competition and choice and contains costs these are moving parts. And you can pick a few of them to make it to get tickets to reach your goal."

" But what they're talking about with triggers is."

" Will look in a few years after this is implementing any of these goals have not been met. It will trigger statutorily. Eight public plan which is dangerous where all these federal money -- right."

" An example would be if if insurance cost. Premiums. Have risen above a certain percentage. You know so they really out of control. That would trigger a public option in the absence other he would need a public option because the idea for public option at least as the Democrats pretend. It's only as a way to keep it down intrusive caused by by creating outside the competition -- that's what would trigger would look like."

" Jim from Texas asked how does the present you with Pelosi who wants the public option was essentially said she can't pass anything that doesn't -- That's who questioned -- He's the president he overruled sir and I think he's a -- yes I mean look. We we know where she is we know where she -- she repeats -- again and again sometimes to the astonishment of the -- she seems to be saying things increasingly. That that seem really out of touch I would say. He's the president one of the one of the problems and I think tactically if if you want to get into the tactical discussion of this. One of the problems as they need that he -- of this and and now. Pass that on to congress in the first place and didn't take enough control from the beginning which allowed these kinds of divides two. For you don't exist and then metastasized. That's been a problem I still think ultimately any discussion we're having a tax -- matters less than his problems with substance but that's what the problem tactically."

" in Connecticut says the triggers attached to a gun held -- the head and wallet of taxpayers. Renee says I'm in health -- and I want specifics and clarity from President Obama on health care mark says snow the rhino. We bring in senior White House correspondent Major Garrett hey major we're talking about the possibilities of what could be said in the speech a week from tonight. And we were debating you know where we are on public option and does he come out. And just drop me what's it going take."

" That part of the speech hasn't been written yet and hasn't been written yet is because he had been given permission buffaloes to take the public option off the table it's not more complicated -- then that. Close to have to be able to tell the president all right Mr. President I can deal with -- liberal. Caucus in the House of Representatives they will revolt they'll stand with you. But I'm not ready to tell you that yet because -- aside the politics than my own caucus yet. My guess is based on conversations I've had with senior congressional Democrats -- that message is not going to be ready by -- of the president's going to be. Vague about that again on Wednesday -- what you're gonna begin to see. Is either -- trading of the definition of public option for a movement toward this idea of a trigger that we don't get it now. But -- the other -- that we put through and our pats don't work in a specified period of time that we can revisit this debate. Enough to give the left of big league. And I can -- themselves all right I can live with this Olympia snow's point guard -- precisely and it's been talked about before the one problem for this legislatively is. There are a lot of house Democrats Charlie Rangel among them -- of the Ways and Means Committee who have said I'm not infinite trigger we're not gonna play that game. We've been down that road before where it's always a criminalist and now with the time I -- a full blown public option -- but on the flip side you -- conservative Democrats and Republicans saying they trigger. Is just a delayed government run option -- just a delay of a public option exactly all of these things have to be sorted out and there's this idea that if the public option is taken off the table suddenly all of this becomes easy I don't agree with that I believe the legislative politics are still complicated on financing. On what constitutes an employer mandate for a government mandate for coverage for everyone. Those things are also tough nut to crack and public option is the only way you get to those other tough issues but it doesn't resolve those issues by themselves --"

" I actually agree I agree with what Stephens and earlier that that would -- is gonna come to pass."

" I I want that member of the leadership with 25 years under his belt told me before the recess -- He's heard talk of triggers here's entire legislative career. We've never triggered anything and a major policy. Reform."

" Bill so it's very hard to do."

" And I think if you look at what Rangel said at the heat on the left and the resistance from the conservative right of the Democratic Party. Com and just the problems. That Charles's point out about how complex this debate isn't -- that that administration. Play the president has failed to explain -- the American people."

" I think the trigger thing is gonna cause them to not lose another three weeks but the jewels says you know the stats will be rigged so pushed to push the triggers -- there's a lot of skepticism obviously out there about any kind of trigger."

" But there's there's one very obvious advantage to the trigger and it's that it's being pushed by Republicans that. You know people in Washington I think -- a Republican Olympia Snowe and put an asterisk next -- and but I think he could credibly say to the country if he wants to appear. Centrist and he wants to appear like he's trying really hard for compromise before you you know. Potentially. Allows congress to go to -- reconciliation process. He could say look this is Olympia snow I'm adopting a Republican plan let's get a -- major what."

" About this whole deal about going after Grassley and and C and Mac just seems like a loser for them. Flooded out and doesn't comport with the fact at least in the case of Charles Grassley the White House -- out of its way to say we know that fund raising letter he put out but basically -- the idea of health care reform we can't deal with him any longer and -- you understand of course that fund raising letter went out August 7. The president praised Charles Grassley in a town hall meeting on August 12 you remember that right. And -- well that's room. And I'm Robert -- I'm -- this conversation almost verbatim and elect but things have changed you know now we have envious part of the next -- that what it ended it well you -- that Saturday radio address spaces today I'm not or. Well look all these things are happening in public and what the White House is trying to do is great. To construct two new arguments one Republicans have wandered off the reservation they're no longer -- in negotiating in good faithful that's a tough sell. Based on the fact pattern I've just established the other thing is. They're trying to -- Because the Republicans and walked away we have to restart this debate. No the reason -- have to restart the debate because you've lost forty points in the polls in the last -- that's what you have to restart the debates which is up in the White House refuses to even acknowledge publicly David Axelrod was out here just an hour -- fund reports. That -- professional sports you know the perfect not tired -- the president and we don't -- hills country is protect the president all on this issue I know which is amazing because you look at the polls."

" They directly time he came out twelve or thirteen times and they continued to drop every time. He came out of -- the town halls around the country at first were dismissed by the White House. And then they were essentially ignored now there is a retooling of the message I mean it seems Charles that this has come full circle."

" Well what's interesting news from major whose -- so historian of -- this reminds them that they praised Grassley after he. He he attacked the plan and now all of a sudden they're anti Grassley what's changed precisely. Is that they've been beaten up in the in the weeks in between. They have to look for an excuse I think there's also going to be a -- The administration's gonna -- this through with Democrats -- and is -- to to explain that. They're gonna say the Republicans are the ones who forced our hand we wanted to compromise. Grassley has wandered away. And he's a way they did they're gonna try to retain a connection with -- Olympia -- they're only Republican. As a fig leaf reaching across the aisle but I think they -- good if not they present his -- already are starting. The attack on the gang a true as a way of saying we're gonna have to go it alone we're gonna have to pass a huge reform of the sixth in the economy. Only with Democrats and perhaps one Republican."

" Bruce writes those are big crickets behind major actually the sound is this a cadence. Which is a Washington. You know August early September McCain is on the White House -- I remember it well yes indeed there all my friends. -- diligent routinely applaud for me this. We all applaud what we're -- I should routinely get that -- every time I'm -- someone else said they thought it was code pink in the background but now it is sophisticated it's. Okay what else -- anything -- that we didn't cover on the show."

" Well -- a couple of -- there was a conference call today that the White House -- weekly basis with -- sympathetic democratic. Echo -- folks and that's not a derogatory term. Brooke White House bush white outfitted with sympathetic Republican folks -- appear. On television and radio -- the post up and it wasn't about health care which surprised all of Democrats I talked to it was about the stimulus and the argument that came from the White House was what. If you look around. The range of economists they're beginning to come around on the beneficial aspects the White House says of the statement the recovery act. And they said look at industrial production companies other than -- the economy are beginning to show progress. The message from the White House was and they want Democrats begin to amplify this is that. From an economic point of view the stimulus is beginning to work and will work better in the future. Secondarily they've said then when you're talking about health -- see there was initial public skepticism. Even some doubt as to work whether the stimulus would work. And it's gonna -- the same thing will be true of health care we understand the policy we understand the politics stick with us we're gonna see you through on both of stimulus and health -- itself was that -- that was the public -- that is how the White House is gonna begin merging these two arguments with its most sympathetic audience those Democrats who are outside the White House put it there and amplified through blog posts. Media appearances in other ways what the White House believes is the dual message they can begin to move on the economy and on health care."

" Major who. I wanna tell you that Sammy here says he or she has named his or her turtle Major Garrett. -- There is that a high -- to -- privilege to hit fact that. OK I want to talk about Middle East real quick Charles we just got back from Israel. And it was amazing trip it was very quick. And we talked to Israeli President Shimon Peres. It was fascinating talked about this previously undisclosed meeting that's gonna happen at the United Nations and the thought that. They -- there may be a lot of give and take on the settlement issue. Is it possible that this whole thing starts moving in the direction that they could come to some kind of deal and peace talks."

" The pressure the Israeli prime minister to come to some. Understandably the Obama administration is huge. -- if and what they're talking about is a temporary freeze. For maybe nine months. Fine on just not expansion -- expansion is out new settlements is out. It's only on what's called that natural growth meeting if you get -- chip children born in the settlement can you construct a new house."

" I went -- the settlement is anything any construction. Outside the internationally recognized border of Israel. Set -- and there is a settlement were walking through a settlement in this picture that's just outside of Jerusalem where construction is going on. As of now."

" But the reason it's such a difficult issue for Israelis who generally understand that the vast majority of settlements are going to be dismantled. As aware of the settlements in Gaza in any agreement they already except that that's already known. The problem is this when people speak of settlements today they include. Jerusalem. Israelis don't think of Jerusalem as Palestinian -- occupied territory especially East Jerusalem. Which historically was always Jewish it was lost in the 48 war and all the Jews were expelled. So it's a return it's not a settlement of -- weren't so when you have a US administration. Insisting that you can't construct a seminar for a school in East Jerusalem. Because it's called a settlement its expansion of a settlement the Israelis. From left and right it's not only the right it's it's it's across the board are extremely upset that's why it's a delicate negotiation. Because that's what the most of these -- agreed to was a temporary. Could freeze on that as a way to see. If the Palestinians and Arab -- reciprocate and that's what it all hinges on. Will they get a reciprocal concessions out of the Arabs has Lou today there is not an iota of evidence that they will."

" Yeah Mac says give and take Israel will give Palestine will take. Palestinians will take. Major what is the sense of the White House about this whole. You know where they stand on Middle East issues -- of their of their working it is exactly as Charles described the pressure is very intent from the White House was extremely unhappy. When Egyptian President Hosni Mubarak was here at the White House about a week and a half ago I sat next to the president said all the right things except one phrase. He said the Israelis."

" And and privately Israelis were not happy that the Obama administration led off so strongly with the settlement issue. Hey you know an attempt to kind of balance the field if you will. They -- it was overboard and privately."

" Well I'm I'm sure that David from the White -- perspective they wanted to development -- they're afraid that you sort of Michael who -- in -- street -- among Arabs and Palestinians on pressing the Israelis. While the Israelis know how to establish street -- for themselves they've been doing that for the better part of their existence they know how to push back and they know protect their own interest and all all -- this for all the political reasons that -- outlined no Israeli government can -- Jerusalem which is not gonna -- snapped. And that is one of irreconcilable differences and when the egyptians say -- temporary solutions -- temporary -- We're back -- status -- which is a very tough place to move from."

" I really is Stuart Kauffman says the Israelis have no want to negotiate with its nonsense and that's -- it's a great point because you look at. Hamas in in Gaza. You look at for a time in the West Bank and they're completely different and and you can't negotiate. With Hamas in Gaza. -- it it is a you know a conundrum."

" Yeah it is and I think it's somebody in the package the of the day from when you were over there. Call that Humpty Dumpty. Regime and I think that's that's exactly right I think. You know that these are these -- her I think -- entering this with the proper degree of skepticism. Yeah and there's been talk about and insistence on some sort of exit plan that would have. The administration saying. You know in advance in fact look if this doesn't work we -- gonna go back and these things -- resentment and we're gonna start over and I think it's it's a smart move but it also it reflects a certain degree of realism about."

" Collective success in this undertaking okay it be on change topics what are -- views about President Obama talking to our children on September 8. From -- Talking to our children yeah basically he's going to give this address to school children around the country on Tuesday. And the Department of Education is put out a work sheet that says you know the teachers should. Stunning present Obama. Is history they should then ask what the children could do to help President Obama that's one of the little. Bullet points there are some people out there who obviously are thinking. This is a little bit more political than perhaps it. It is. They're good -- that."

" I am I am I'm sure that there's a political angle to it under the guise of his. Doing good and helping young schoolchildren and I I think it. Obviously it's. It's their purview any -- talking about health care reform on Tuesday that the kids we have another issue right see I thought that that September it was actually the day he was gonna make it's health care -- as far as confuse and helpers let's keep our kids up to watch you know half black radio tour if you. It's trying to get into there's sure a tough choices on Afghanistan okay and health care that's gonna be a little bit strange but. If he can be a good role model and not push it too far so that's probably something that --"

" It's a preview some of those questions were unbelievable how -- your own right write letters themselves talking about how President Obama will inspire us -- that is. Creepy I'm not somebody uses -- you know. Overly paranoid about about pretty Big Brother but this feels like you know of the dear leader insists creeping I -- I'm paranoid about Big Brother. And this -- I say okay I'm I'm I'm I'm I'm I'm I -- I'm overly paranoid about in this administration look and I'd say -- only -- apparently -- this is so be it. This is the supreme leader speaking to your children not through a parent -- you directly on television. -- you're supposed to have your child. In no way you think about how we can help. The dear leader this is not see you -- that this is not paid a country in which we worship. The supreme leader he's an elected president and it's completely outrageous funny."

" Major I tell you what I got a lot of emails about this home. I I had people that said that they are keeping their kids home from school on Tuesday but I mean people are fired up about it now what the Department of Education puts out this worksheet. It just raises a lot of eyebrows want to do it."

" The White House says this is completely -- all voluntary defending compulsory about it and -- suggested helpful hints of how you can -- students. In this process. And I see him under the impression that the White House -- department of education of putting together a little bit -- push back -- say look there's nothing about this that. Is trying to indoctrinate -- lecturer. In any way shape -- form it's just taking someone who is a historical figures every president is -- the first African American president even more so -- of the classroom and have a dialogue about -- working hard staying in school and achieving your academic -- they're trying to leave it at that and make it as -- as possible but clearly."

" There are those in our audience and elsewhere who see other more sinister overtones in the White House is gonna have to spend a day or two -- unexpectedly. Pushing back on. On what Steve Hayes said was creepy yeah. Here's here's the thing that I -- uses the marker if George W. Bush or Ronald Reagan or George HW bush had done. What ever it is what would the level of outrage or they let -- level of coverage be. And something tells me there might be a lot of people that would be fired up about you know. What other things of the White House often says in its defense on these things and they sent it to me in this the female controversy that went on for two weeks that story's not over by a longshot. If we're doing things differently and the country's gonna adjust to that and we talked about connectivity and interactivity we really mean -- we're gonna do things no president has done before. To increase our exposure our connectivity and the public's exposure connectivity to us getting back to us and we're gonna try to have this two -- communications. And we're willing to take risks on behalf of that idea of two way communications. That's their defense. I would say it's clear public polling data that there's no problem with exposure to the White House that's really not an issue that we're not happy to dig much deeper on -- haven't fully aware of maybe -- but -- exposure here."

" Not Tina BI didn't steal your idea this is her commented George Bush -- Ron Reagan had done this. There would have been complete outrage imagine Dick Cheney have done this next -- the country would be -- in a volcanic eruption. -- less fortunate wrap this up major which we think about next couple of days."

" While the president's off to Camp David for the long weekend yes he's preparing for this joint session address to congress on health care but he also has. -- report on Afghanistan and he -- have to -- that carefully because they're all sorts of political cross -- that he's being. Affected -- right now -- not a direct request for more troops but there -- recommendations about how to deal with US -- forces going forward and the -- the democratic congress over increasing our footprint there at all -- to say how much -- going to be very difficult for the -- to deal -- that's gonna weigh heavily on the president this weekend."

" in Milwaukee says Charles. Do you think President Obama will be a one term --"

" Eight I think it depends entirely on the economy if it's weak -- unemployment aside he loses. If -- strong you'll be given me credit even though he want to see her. Cast sarge says I think my kids are feeling -- for Tuesday. Okay a big -- chased the rest the week."

" Oh obviously health -- prime minister that more hybrid shouldn't let major delivered which is that Nancy Pelosi is -- the White House know that she's not ready for him to drop the public option in his speech on Wednesday. And she may not be ready by Tuesday. That was. Very interesting news for shore and and I I think it and watching it again. Watching. Not only what he what what President Obama tries to do behind the scenes with members beyond -- six. Maybe you should start speaking to those on the left on the house side. And and also to see if he continues to bash Republicans like -- And Chuck Grassley in the -- com while they still try to keep them at the table. Linda has a question about Tuesday and the school she says should all the children -- the same clothes. Okay when -- know questioning his. I really if I had why do you decide that. -- gone on now if I want the President Reagan when I was growing -- and and others George Bush senior anyone have any political party and come into my classroom. And teach a lesson I would have thought it was a total thrill I I I was ratings of the president was an important person but you know call me crazy I just think it's not. That's tantalizingly. Says but the actual content doesn't seem -- and speak."

" You know my children through a television."

" Save less for my daughter -- loves Barack Obama and every time she sees in everywhere whether it's you know on net that. This stands near the capitol itself Barack Obama towels or she -- mama. The television she yells out with utter delight Barack Obama Barack Obama does your daughter she's four -- she loves and ways to influence. I still go on Obama speaking."

" All right major thanks buddy as always we'll see you next week. Thanks for watching this Special Report on line -- we will see you next week Wednesday at 7 PM joins us join us every weekday 6 PM. Of course for Special Report on Fox News Channel. Until that's done."