The Obama administration's national security priorities

This is a rush transcript from "The Five," June 12, 2015. This copy may not be in its final form and may be updated.

GREG GUTFELD, CO-HOST: Hello, America. I'm Greg Gutfeld, along with Kimberly Guilfoyle, Juan Williams, Eric Bolling and Katie Pavlich. This is the little thing we call, "The Five."

So while we're obsessing over a Texas pool party, this story broke: Hackers nailed the Office of Personnel Management and stole information from millions of Americans. This is bad because the OPM performs federal background checks and dispenses security clearances. These hackers just won the spy lotto, making Snowden look like know Snow White. They got Social Security numbers, health records, addresses -- if you're an employee with the past, you're now at their mercy. If a spy wants you to steal files from work, all he has to do is dangle that brief affair you had with a llama back in '87. We all have skeletons. Some belong to llamas.

At some point we're going to have to declare stigma amnesty. If something bad is leaked about you or me, let's just ignore it because it's going to happen, but we punish no one for such behaviors. We publicize Sony's hacked e-mails, we joked about Jennifer Lawrence's hacked photos and elevated to hero status a wonk who grifted 900,000 documents from the Pentagon. We don't follow spying because we're too busy attacking ourselves. Christian bakers, Washington Redskins, Hobby Lobby, these are the identity spats that China thanks us for. While petty divisiveness distracts us, we lose track of yet another real adversary. Race, gender, class -- as we quarrel over identity, someone just stole all of ours.

But hey, if a cop had done it, maybe we'd march.

Kate, I'm going to you first because it's been awhile. How are you doing?


GUTFELD: You look great.

PAVLICH: Thanks.

GUTFELD: All right, that's enough. K.G.


GUTFELD: OK. So this story.

PAVLICH: Thanks, Greg.

GUTFELD: This story is an amazing story.

PAVLICH: But it is.

GUTFELD: There are no good pictures of computer hacking. So nobody really cares, right?

PAVLICH: No, it's true. So for television, we need things like video and photos.

KIMBERLY GUILFOYLE, CO-HOST: We have no pictures.


ERIC BOLLING, CO-HOST: We have an amazing (inaudible) out there. Good job.

PAVLICH: Thanks for hacking, guys. This is what it looks like. Yes, there it is. No, but I'm glad that we're covering it. So I guess we'll talk about the details here.


PAVLICH: No, but it is a serious thing. Intelligence officials are saying this is the worst it can get. We're talking about 14 million people. The government of course said it was only 4 million people. We're not just talking about Social Security numbers. We're talking about information about, you know, your family, maybe your friends, who you know. So the information that they have now they know who you're associated with. And the other thing too is that, they were warned about this happening.


PAVLICH: Before (ph) of that, the government was warned a year ago. Hey, you might want to put in some encryption codes to prevent this from happening. They failed to do so, which implies to me that as a whole, our government has gotten really complacent when it comes to National Security. We live in a world now where American government officials and especially, the leadership think that the world is a nice place and we don't have to really worry about protecting ourselves against enemies that do exist. So they're just the Chinese, we work with them all the time. We don't need to worry about them. But essentially, while we're worried about, as Greg said the things were happening here, how we're ignoring the fact that we still have very serious enemies around the world. And now they have all this personal information they certainly will use against us.

GUTFELD: To blackmail.

PAVLICH: In a very bad way.

GUTFELD: Yes. Eric, May 2007, a VA employee left his place with a government laptop. Bush got blamed for that because it had all these patient records.


GUTFELD: This is amazing. Is it because it's President Obama that it's not as much press?

BOLLING: I think there -- I think it's big.


BOLLING: I think there's going to be press. I think once some of the information starts to leak out what they have, like the Sony hack when we started reading the actual e-mails, everyone wanted to talk about it. The pictures obviously, everyone wanted to see. But there's some Breaking News, Greg. Al Sharpton, he's organizing a march in D.C., hands up don't act.

GUTFELD: Oh, that's.


BOLLING: Mayor de Blasio has decided to talk to his son and said if he warned -- he's warning him about offensive or aggressive Chinese emojis. Chinese are all going to resign.


BOLLING: Because they're worried about Al Sharpton blowback. Here's the thing, though. Defense wins championships. A good offense is beat by a good defense, always. We're so busy aggressively going after other peoples -- other peoples stuff. In some cases Americans, innocent Americans, that we're not fighting the fight defensively. Put the walls up. Get the better walls. There's no reason the army website should be -- should be hacked. There's no reason 14 million Americans have information as Katie points out. Not just their Social Security numbers and phone numbers, their personal lives are being outed now. Everything they do, whether they drink, whether they smoke, who they -- which doctors they see. There's -- you're right, Greg. This is the absolute lotto for spy information.


BOLLING: Bribery, this -- there's going to be massive bribes going on.

GUTFELD: Yeah. Because John Shindler, a really good writer on Daily Beast said that, this will go out there. Juan, they'll be going after the counter -- our Counter Intelligence Agents. Let's say, we're at -- our spies are doing something. They will then -- they will have stuff on our spies because they went through the security checks. So they can't spy anymore because they'll be blackmailed.

WILLIAMS: Did you ever see, The Americans?


WILLIAMS: Which is a good show.

GUTFELD: Yeah, it is.

WILLIAMS: And so, in that show, they do stuff like this. They get information and it's the basis then for which you turn the spies for the other country. So I mean that's potential here, but to your larger point, I think if we had a movie made about it, Greg, like The Interview, then we could get more attention for this story. We just need some stars and we need some racist e-mails, like the ones that Sony had.


WILLIAMS: Or if you had, how about credit card numbers? Now here, every American will start screaming if this was target and the idea was, hey, somebody's going to get my credit card number and go shopping for Kimberly's white dress. Then people would be really like, wow, that's a good idea.

GUTFELD: By the way.

GUILFOYLE: The one I'm wearing?


GUILFOYLE: It's on me now.

GUTFELD: Interesting point. Target CEO got fired over that. Should President Obama be impeached?

GUILFOYLE: Yes, I think so.


GUILFOYLE: Finally, I've been lay (ph).

WILLIAMS: Oh, that was it. That was a softball.

GUILFOYLE: Six minutes into this show, my gosh. Thank you for that layup. All right, listen. So here's the big problem. It's the Chinese. They're very, very good at this.

GUTFELD: Do we know for a fact it's them?

GUILFOYLE: Oh, come on.

GUTFELD: Well, I mean.

WILLIAMS: Oh, let me tell you something.

GUILFOYLE: It goes like this, (inaudible) Chinese restaurant.

WILLIAMS: Let me tell you something. This is really funny. So the administration wouldn't say who did it, right?


WILLIAMS: So guess who said it?


WILLIAMS: Guess who, it was.


WILLIAMS: Harry Reid.


WILLIAMS: Harry Reid just said "Oh, by the way, the Chinese did this." So Susan Collins backed him up, but the administrations still the same. If Harry Reid hadn't like.

BOLLING: So, they're...

GUILFOYLE: We know that it is China.

BOLLING: Why won't they point the finger?


BOLLING: Are they afraid to point the finger at China? They're afraid of.


BOLLING: Retaliation?

GUILFOYLE: Yes, yes, yes because and if the United States retaliates.

BOLLING: Why is there.

GUILFOYLE: China has said that any retaliation by the United States will consider -- be considered an act of war against China. So they are sort of pinning us back.


GUILFOYLE: Like this. And it is a problem because they do have one of the most effective cyber warfare units in the world. I mean, only, maybe you know that Russians can beat that.

WILLIAMS: No, no, we're good. We have -- we spy, too.


WILLIAMS: Don't think -- don't.

PAVLICH: You know what else they have?

BOLLING: I'm not sure we do.

PAVLICH: You know what else they have? Our debt. That's what they have, a lot of it.

BOLLING: Yeah, but they can't do anything about that.

WILLIAMS: They're.

PAVLICH: I don't know about that, Eric.

BOLLING: They play games with our debt. They would screw themselves more than us.

GUILFOYLE: Yeah. But we are in a very vulnerable publicity (ph) just because of that. BOLLING: But here's the question. Why are we always worried about other -- where is -- OK, so we have a good offense. We have a lot of information, probably on the Chinese, the Russians, whoever else is spying on us.

WILLIAMS: Yeah, yeah, yeah.

BOLLING: But why don't we build that defense? Why would they -- why are we so vulnerable to all these.

WILLIAMS: Because it's hard.

GUILFOYLE: Yeah, but they.

WILLIAMS: It's really hard.

BOLLING: Korea, China, who else? Anyone.

WILLIAMS: It, look.

BOLLING: Any comers like they can.

WILLIAMS: It's really.

BOLLING: They can find the way in.

WILLIAMS: What is it.

GUTFELD: In my ear, Breaking News. There were -- Chinese hackers are responsible for this, I was just told that and sensitive information on military personnel.

GUILFOYLE: Yeah, which is a huge problem and they always target U.S. Defense Contractors, Counterintelligence Officers. They'll put this in a compromising position. They steal all our secrets.


GUILFOYLE: The bad people. They don't like to pay for things. And then they steal it. They copy our F-35. All of our, like for the nuclear submarines, to make them.


GUILFOYLE: Like quieter, to avoid detection. They stole and copied that technology.

WILLIAMS: Oh, it is?

GUILFOYLE: It's just embarrassing.

GUTFELD: But the problem is -- I mean, you guys missed -- isn't this really caused by global warming?


WILLIAMS: Correct, correct.

GUTFELD: Isn't President Obama correct?


GUTFELD: That the number one threat is global warming because global warming heats up China?

PAVLICH: Well, China is building islands, Greg.


PAVLICH: I think that's your threat, too. They're creating global warming by building fake islands in the ocean, OK?

GUTFELD: I had no idea.

PAVLICH: That's the problem.

GUTFELD: Here's Ian Bremmer. He was on -- I guess this is Fox and Friends, right? Or FBN? FBN discussing the threat of China.

(BEGIN VIDEO CLIP) IAN BREMMER, EURASIA GROUP FOUNDER & PRESIDENT: I think that the greatest danger and threat to the United States in the world today is absolutely coming from China. It's not ISIS. It's not what's happening in Iraq. The fact that you have the largest hack against the U.S. government in history, and it took us four months to be aware of it. It's something that should be concerning every single American. What we going to try to do, of course, is blackmail a whole bunch of people. They're gonna try to find out who was most vulnerable to cash. Who's most vulnerable to selective information that they can turn against the United States governments. I mean, every government tries to do this. The point is that China's going to be so much more effective when they're empowered with the kind of information the U.S. never dreamed they'd actually have.

(END VIDEO CLIP) GUTFELD: Only solution to this, vise amnesty. All of us -- I mean, well, maybe a few, maybe you're not. You accepted. Can be that blackmail? We can all be blackmailed, right?

GUILFOYLE: Don't be so sure.

PAVLICH: Yeah, I mean.

GUILFOYLE: She looks innocent.

PAVLICH: You know.

GUTFELD: Shouldn't we have some kind of weird -- vice amnesty? Where like, if something comes out.

BOLLING: Am I onboard?

PAVLICH: Is he really, really, really.


GUILFOYLE: Look at Bolling. It's like, where do I start?


WILLIAMS: Well, you know the problem with Eric.

GUILFOYLE: Notice this, like.

WILLIAMS: You know.

GUILFOYLE: How do we know for sure it's China?


GUILFOYLE: Take it, Juan.

WILLIAMS: I'm gonna say the problem with Eric is that llama.



BOLLING: And he was saying. WILLIAMS: That you were talking about earlier.

BOLLING: Clearly, (inaudible).

GUTFELD: Yes, yes, yes.

PAVLICH: It wasn't a llama. It's more than Obama.

BOLLING: Did you know the Obama administration watching The Five, when we call them out for not pointing the finger at China and they said.


BOLLING: Hey, they're right. We better get in front of it.


GUTFELD: Yeah, I mean.

WILLIAMS: I must say, James Comey, the FBI director said, "Oh gosh, you know there are two kind of American companies. Companies that have been hacked and companies that don't know they've been hacked."



WILLIAMS: That tells you, everybody's been hacked. So it makes me think like, when I'm on e-mail and I'm sending a lovely note to you, Gregory.

GUTFELD: Oh, I know. That's (inaudible).

WILLIAMS: I have got to watch myself.

GUTFELD: Oh, yes.


GUTFELD: Especially, with your little pet phrases for me.

WILLIAMS: There are -- uh-oh.


WILLIAMS: My emojis.

PAVLICH: But what about.



PAVLICH: But what about that point of the question?

GUILFOYLE: Yeah. Didn't you call Bolling babe at that time?

WILLIAMS: Well, he is babe.

(LAUGHTER) WILLIAMS: Isn't he a babe?


PAVLICH: In terms of what we don't know, I mean.


PAVICH: If they can hack into a personal database that is run by the government that has all this information, what happens when they hack into the electrical grid? Or when they hack into the transportation system or the system that runs the airplanes?

BOLLING: The terrorists.

PAVLICH: I mean that is.

BOLLING: That they are after that. Chinese are (inaudible).

PAVLICH: You don't think the Chinese want to do that?

BOLLING: No, I think they want to dangle.

PAVLICH: I mean, come on.

BOLLING: They dangle information and say, here, we'll trade you. We won't go public with this, but you got to tell us what's going on.

PAVLICH: But in the long term.

BOLLING: They want money.

PAVLICH: If it gets ugly.

BOLLING: Katie, they are after the money.

PAVLICH: They certainly have that card to pay.

BOLLING: They are after the patents. They're after, you know, which companies are reporting live. Those are the things that (inaudible). I don't think they're looking to blow us up to have our economy go down.

PAVLICH: Maybe not today, but down the road, they certainly will.

BOLLING: The Iranians? I would say, absolutely. By the way, if the Chinese sell that information to anyone else, then we're screwed.


GUILFOYLE: But it's already for sale on the darknet. I'm so sorry to tell you.

GUTFELD: Darknet? Is that some kind of hair product?

GUILFOYLE: People -- keep up. Catch up, OK.

GUTFELD: Darknet.

GUILFOYLE: No, that is sexy (ph).

GUTFELD: For your roots.


GUTFELD: I know what darknet is. Anyway, we used to worry about msg. (inaudible) can the government pick your neighbors? We'll discuss a plan that might just do that.


GUILFOYLE: Do Americans want the government to micromanage every aspect of our lives? President Ronald Reagan certainly didn't.


RONALD REAGAN, FORMER PRESIDENT OF THE UNITED STATES OF AMERICA: I think you all know that I've always felt the nine most terrifying words in the English language are, "I'm from the government and I'm here to help."


GUILFOYLE: Well, he's so right. But President Obama feels otherwise. Did you hear about his new plan to force wealthy neighborhoods to diversify? Proposed regulations would use grant money as an incentive for communities to build affordable housing in more affluent areas. Congresswoman Mia Love grilled HUD secretary, Julian Castro, about it yesterday.


MIA LOVE, UTAH REPRESENTATIVE: The Obama administration is moving forward with regulations, designed to help diversify America's neighborhoods.

JULIAN CASTRO, U.S. SECRETARY OF HOUSING AND URBAN DEVELOPMENT: That's not the way that I'm thinking about it. That's not the way we're thinking about it. The way we're thinking about it.

LOVE: How are you thinking about it? I know that as a mayor, you wouldn't want the Federal Government coming in to tell you what to do with your zoning laws and what your rules because you have more skin in the game, OK.

CASTRO: It is not about changing.

LOVE: All right.

CASTRO: Zoning laws, planning laws or anything like that.


GUILFOYLE: Who do you want to believe? Everyone who wants to vote for Mia Love, raise your hand.



BOLLING: (inaudible).


BOLLING: You know (inaudible) and you have an associate that's right there going head to head. Julian Castro, OK. So you don't change the zoning laws, but you do it the other way. You do it through money. You say, here we're going to give you -- offer you affordable housing money, to give you money if you put up affordable housing. And there are a lot of groups or mayors that might say, hey, I need the money. I have budget deficit, so I have to do it and they do it. It doesn't matter what the community wants or where the money comes from? The federal money comes from federal taxpayers, half of the people. So the people who are working, paying their taxes are put into the system so it's -- so that affordable housing could be built in neighborhoods that they probably live in that. That they may not want to, they may pay a premium so that they could live where they want to live and you end up with just another massive redistribution of wealth. That is what Mia Love was trying to say to Julian Castro, who apparently wants to move his way up the Democrat Party, was taking the other tack, the socialist route which is more of the same of Obama.

GUILFOYLE: All right. What do you think, Juan?

WILLIAMS: You know I'm just amazed at the response to this because I just - - I think this good policy and good sense. I just think that what we have is zip codes in this country that determine everything. And in New York City, where you guys live, I think you have things like group homes. I know I'd have one in my neighborhood in Washington, D.C. Do I think, you know, why I do want a group home with ill people in my neighborhood? But you know what? I don't think that's wrong. And I don't think it's wrong to say that schools in this country are again, determined by zip codes. I don't think there's any question that if you're talking about getting jobs, transportation matters. I know in some neighborhoods in Washington, D.C. and in New York City. No theaters, no movie theaters, no good restaurants, no parks to go play in. So the idea that you would encourage this, it doesn't seem like communism to me.

GUTFELD: But you know what, you would -- everything you just said is correct. But when the government sees a poor area, its solution is to move the poor out. That's -- no. It doesn't address the problem that you just mentioned which is lack of an educated labor force.


GUTFELD: And a local population that has no purchasing power. Those are the things that you have to address. And the only way you can address it is avoiding the social engineering, the moving out and actually trying to create some kind of free market idea to get businesses there. We talked about this awhile ago.

GUILFOYLE: Yes. The island you want.


GUTFELD: No, an amnesty.


GUTFELD: When immigrants go into the worse neighborhood and they fix it up, they should become citizens. I think that your people, when you save a place. But the problem is, then you see immigrants saving cities in Baltimore and you see 40 Korean groceries get burned down.


GUTFELD: But they still go in there and they probably.


GUTFELD: I think the answer is an Amnesty Act where you have people working to become citizens and you tell them, you go build, you rebuild the city. But moving the poor out to places where you know what, they may not be able to live there because they can't afford it.

GUILFOYLE: You're setting them up for failure.

WILLIAMS: We're right.


PAVLICH: Exactly.

GUILFOYLE: That to me is not an economic model.


WILLIAMS: But wouldn't you rather, if it was you and your son that you had the opportunity to live in a decent place and then, you know, the schools, the education, the shopping.

GUTFELD: Absolutely. That's -- you're absolutely right.

WILLIAMS: I think you're right. GUILFOYLE: Work hard to make sure that it happens.

PAVLICH: Exactly.

GUILFOYLE: I don't understand what's wrong with that.

PAVLICH: Yeah, that's the point here. I mean, this policy that they are trying to implement, by the way, has been in the works for a couple of years now. This is coming to fruition in the next month that they've been working on this for a couple of years. This is a cop out for bad liberal progressive policies, and what I mean by that is, look. This is social engineering, just like we've seen over the past 50 years in places like Baltimore, St. Louis, Detroit, we've seen how this works out and it doesn't work out well. The way that you empower the poor to be able to live in those neighborhoods is not to just move them and give them something, give them the better neighborhood. You have policies that allow them to get out of the neighborhood permanently and afford that neighborhood through hard work. And the thing about was that Julian Castro has been saying in part of his testimony is, well, we need kids to be able to have access to good schools. OK, then why are progressive so -- you're not Juan, but why are the majority of progressives against school choice?


PAVLICH: When we they fix that problem very carefully.

WILLIAMS: I believe.

PAVLICH: And the bottom line is, that when you are handed something instead of having to work for it, you don't respect it as much.

WILLIAMS: Well, I say.

PAVLICH: That's exactly what we've seen in cities like Baltimore.

WILLIAMS: I grew up in Section 8 housing in Brooklyn. And I've -- thank God and I've heard Lindsey Graham say the same thing about down in South Carolina. How he and his family got out of a bad situation when his mom died. I don't think you have to look there.

BOLLING: There is another alternative. If you want to use liberal speak and call the money that's being used, you know how liberals turn things around? Talk, call -- talk about business incentives to lower income communities. How is that?

WILLIAMS: Yeah. No, no.

BOLLING: To buy business, the money -- the same money.

WILLIAMS: That's good.

BOLLING: Instead of building housing in a wealthy neighborhood and saying, here you go, here's some under the market which will, by the way, drop the market for everyone's housing. Go into the lower income neighborhoods and say, here's a business incentives, so that people can get jobs.


GUTFELD: Because they had enterprise zones.



WILLIAMS: That's sure.

GUTFELD: And now, Obama has got promise zones. They haven't worked that great, but that's -- I think it's the way to go.

WILLIAMS: That's a good idea.


GUILFOYLE: All right. And now to this, the government has been trying to change the way we live for years in order to save the planet. And the mainstream media has helped push the hype. Check out the Dire Predictions, made on ABC exactly seven years ago today, for this year, 2015.


UNIDENTIFIED MALE: In 2015, we still fail to address the climate problem.

UNIDENTIFIED MALE: Well, how warm is it going to get? How much will sea level rise? We don't really know where the end is.

UNIDENTIFIED MALE: Temperatures have hit dangerous levels.

UNIDENTIFIED MALE: Agricultural production is dropping because temperatures are rising.

UNIDENTIFIED MALE: It's June 8, 2015. One carton of milk is $12.99.

UNIDENTIFIED MALE: Gas has reached over $9 a gallon.

UNIDENTIFIED MALE: I'm scared (beep) right now, but I have to get this out.



GUTFELD: This reveals the amnesia of the media. I don't think anybody who worked on that segment remembers that piece at all. The media treats fear like a one-night stand. They jump on it and then they leave the next day and they forget -- remember the Alar Scare? Things - see, nobody even remembers Alar.

WILLIAMS: Yeah, what was that?

GUTFELD: Using apples.

WILLIAMS: Oh, apples.

GUTFELD: The apples, yeah.

GUILFOYLE: No one knows. OK, go ahead.

PAVLICH: We are all gonna die, that's all it.

GUILFOYLE: OK, thanks. It was uplifting, now.

BOLLING: And then.

GUILFOYLE: A message from our positive sponsor.

BOLLING: That's actually after it.

GUILFOYLE: Whoa, Debbie Downer or something (ph).

WILLIAMS: You know what, that's why I went to see Mad Max last weekend.


WILLIAMS: Yeah, yeah, yeah, it was Raffi. And I got to tell you something. The apocalyptic visions, they're everywhere in our fantasies in this country.


WILLIAMS: All over the place and that was a great example of them. But it's just so ridiculous because that's supposed to be the news media.

GUTFELD: Yeah, I know.

WILLIAMS: By the way, I wouldn't -- the conservatives will tell us, the economy is about to fail, the terrorists are attacking, anyway, I don't know.

GUTFELD: We have our own.

GUILFOYLE: Well that's.

WILLIAMS: Well, I think so. Yeah.

GUILFOYLE: That's actually all happening. OK.


GUILFOYLE: Ahead on The Five, tomorrow, Hillary Clinton is going to try to make Americans trust her again during her first major campaign speech. How does she plan to do that? Ed Henry knows and he'll join us next.


BOLLING: If Hillary Clinton wants to win the White House, she's gonna have to convince Americans they can trust her and if you seen the recent polls, they don't. There's one American who has faith in her, her husband Bill.

GUILFOYLE: (inaudible).


JAKE TAPPER, CNN CHIEF WASHINGTON CORRESPONDENT: There are polls that show that fewer and fewer Americans think that your wife is honest and trustworthy. That must really bother you.

BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES OF AMERICA: I trust her with my life and have on more than one occasion. She was always -- whenever I had troubles, she was the rock in our family.


BOLLING: Jake Tapper did a nice job with that interview. Anyway, tomorrow, Hillary is gonna try to convince the rest of America to trust her at her first major campaign rally in New York and Ed Henry joins us for (inaudible). Is this gonna be -- I don't know, Hillary 2016 reboots, new one or this is continuation of that, the struggle she's had over the last couple of months?

ED HENRY, CHIEF WHITE HOUSE CORRESPONDENT: Well, you know Eric, I think its Hillary 3.0. Really because when you talk about a reboot, she already tried that last year with the book tour, Hard Choices. And remember, slipped up a little when she said that the Clintons were dead broke when they left the White House. And then with the pricey speeches and the book advances, that came admittedly years later not when they first left the White House, though, she slipped up in trying to connect to the middle class. Then you had 2.0 perhaps, which was April. The video launch, the Scooby Doo van, the Chipotle surveillance video, this is 3.0, the first big public rally. And you mentioned Bill Clinton, I think one interesting factor is this is the first time we will see her on the same stage with Bill Clinton, since she announced as a presidential candidate. Yes, she's been doing some interviews. Yes, she had foundation events. But he has been very much in the background of this campaign. This is his sort of coming out.


WILLIAMS: Ed, when is your interview with Hillary?

HENRY: Juan, if I told you that.



HENRY: You know, I think it's gonna be -- it's gonna come on this, it's gonna be a long time -- a long ways.

WILLIAMS: You mean that she is -- is she talking to anybody?

HENRY: She hasn't talked to anyone. I'm hoping to get the first one. I'm working on it.

WILLIAMS: No, but I'm saying, really, seriously, I was joking with you. But I mean, if she, like Bill Clinton is on CNN this weekend for an hour, right? Where is the candidate?

HENRY: Well we've been asking that question for some time. Out on the road we've been pressing her. She's taking some questions. Her campaign has tried to say look she's taking a whole bunch of questions from real voters not from you guys, OK, fine.


HENRY: But you know a lot of these voters though have been her supporters at carefully staged events so they haven't exactly been tough questions. Yes you're right though Bill Clinton has faced the music on the foundation he's at least given his version of it. She's answered a few questions but not a lot. Not a lot about the email. And you know so I think this is again, this 3.0 role out if you will tomorrow she gets to give her economic vision her rationale for running but again we're not expecting her to answer questions and really face the music. It's going to come down the road but not yet.

GUILFOYLE: So what do you make of the reports that in fact you know the campaign is concerned about her numbers about slipping in the polls and also that she's going to be utilizing her mother's difficult childhood and trouble past to help humanize and make her relatable to the middle class?

HENRY: Well look, that's smart you know her mother was seen and she passed a few years ago as somebody that people who knew her well, I didn't know her well, but said that her mother was a rock in the family, had a very tough childhood as you said. And look we've seen Marco Rubio talk about his parents whether a democrat republican, that's always a way to try and connect. It's obviously smart politics for Hilary Clinton. But ultimately people are not going to vote on her mother, they're probably not going to vote on Bill Clinton, they're going to vote on her. She knows that and I think that's the big reason why she wants this to be a coming out for her tomorrow number one. But number two the tease video that they gave us for tomorrow's speech was all about her being a fighter. Well what happened today, the President's trade deal went down, Hilary Clinton didn't fight. She didn't pick a side. She's been waffling on that.

So there are a lot of big fights, she hasn't been weighing in on all of them and again hasn't been answering our questions on them.

PALVICH: Hey Ed, I have a very serious question. Is Hilary now launching her third round of campaigns because she has enough money from pantsuit t- shirt sales and crocheted pillows to make it happen?

HENRY: I think that look, she's got that pantsuit t-shirt that John Podesta modeled a few weeks back, it was on the .


HENRY: .Drudge Report I think for an entire day. It's probably bringing her in some money. I've seen Rand Paul is selling flip fops. He tried to sell those Ray-Bans that he wears and I think Ray-Bans told Rand Paul, he can't actually do that because it's theirs. But look all candidates are going to try to do that. Money is not going to be a problem for Hilary Clinton. What's going to be a challenge and potentially a problem is actually getting out there and connecting with the middle class given some of the foundation problems, given that the Clintons' brought in $25 million last year from speeches and book income, that's not exactly middle class.

BOLLING: Yes, note to all candidates don't sell flip flops during a campaign.


PALVICH: Or their pantsuit t-shirts.


BOLLING: Is it true Ed that Bill Clinton joined her on stage so he could see all the single women in the audience in one shot?

HENRY: No it's not true.


BOLLING: As a follow up .

HENRY: That's about the safest answer from me.


BOLLING: As a follow up - as a follow up, this is actually a serious question, you've got China attacking us and spying on us, you've got ISIS, you've got Russia, you've got Iran, and her priority is diversity. How long is that going to last? She's again stressing something that causes Americans to fight amongst themselves rather than facing a common enemy which is not what this country needs.

HENRY: Let me - let me answer it this way. A week or so ago I was at the White House and in the briefing I asked Josh Hurnice so basically North Korea hacks Sony, we had the Russians hack the White House to your point, the Chinese now allegedly hacking maybe the entire federal government, and why did Hilary Clinton have a person server at her house in New York if the President of the United States and White House staffers are being hacked by foreign governments, why don't we think the Secretary of State maybe was hacked as well. And so Josh Hurnice pushed back on that but that is one of those questions we're going to be pressing her on. Which is how as Secretary of State she thought it was safe and secure to just have her emailing her personal servers.

BOLLING: So just really loud Ed from the 20 or 30 feet that you guys are often (inaudible) it won't let you get close. Ed we're going to have to leave right there, thank you very much.

HENRY: Good to see you.



BOLLING: All right, coming up the parents of an NWACP leader say their daughter's been lying about her race for years. That wild story coming up.




WILLIAMS: It's the most bizarre story of the day by far.


WILLIAMS: This is the President, the Spokane Washington Branch to the NAACP, Rachel Dolezal has identified herself for years as an African American but her parents have come forward to reveal her true racial identity. They say this is her as a teen and she's not black, she's white, like them.

So how is Dolezal answering questions?

RUTHANNE DOLEZAL: I think she's told herself as well as she's told others this erroneous identity of hers enough that by now she may be it more than she believes the truth.


WILLIAMS: So, how is Dolezal answering questions about her race?


UNIDENTIFIED MALE: I wondering if your dad really is an African American man?

RACHEL DOLEZAL: That's a very - I mean I don't - I don't know what you're implying.

UNIDENTIFIED MALE: Are you African American?

DOLEZAL: I don't understand the question.


WILLIAMS: Well the NAACP standing by Rachel. What do you say Greg?

GUTFELD: This is pure white privilege deciding at any moment to be black. And she - she lectures on it. She's an expert.


GUTFELD: Is it fraud, is it a psychological disorder? I think it's actually both.

When you are so obsessed with identity politics it's not healthy because you're constantly worried about how you're perceived as opposed to your achievements. Once your identity becomes your achievement then you run into serious problems.


GUTFELD: Very, very deep problems. Its why in a lot of these hoaxes you see where people have hoaxed hate crimes, they're always people with psychological issues. And I think this is - I think she has a real problem.

GUILFOYLE: Like was there ever like a bring your parents to work day?


GUILFOYLE: I don't understand so then they turned her in and they were well you know what I'm saying


GUILFOYLE: And then here or we'll put up your (inaudible) photo or what?


GUILFOYLE: I'm just saying this is crazy and her parents must think something's serious wrong with her. Like why - why is she trying to pretend she's something she's not?

WILLIAMS: Well the local government in fact maybe suing her because she's said on applications you know where she was going to be like on the Police Investigations Committee and (inaudible) Complaint Commission that she was black. So you think she's going to end up being sued and lose?

GUILFOYLE: I mean listen.

GUTFELD: She could just say that's `cause I'm black.

GUILFOYLE: She's gonna just say .


GUILFOYLE: I don't understand the question.

WILLIAMS: Oh my god.

GUILFOYLE: And I didn't understand what you're talking - I mean this is - listen to the interview right now about it but I don't think that's fair or appropriate. I mean she's perpetuating a fraud on everybody in that organization. I mean that is really .


BOLLING: No they're fine with it.

GUILFOYLE: But she's pretending.

BOLLING: They're absolutely fine with it.


BOLLING: Not only the local chapter where she's an executive there but also the nationals says they're calling it Juan, second best story of the day.


BOLLING: The best story of the day was LeBron James last night flashing ABC News on national television. Whatever, wow, unbelievable that they got that one through.

GUILFOYLE: You know he drinks apple martini?

BOLLING: Can you believe they had a camera right there and he goes like this - and then whatever, make a long story short. Hey you know you watch the show a lot?


BOLLING: I love Latin culture. If I feel that


WILLIAMS: If you were - if you were Jeb Bush you could put that down .

GUILFOYLE: Well that's why you call yourself (Bordito Blanco) because.

BOLLING: (Bordito Blanco)

GUTFELD: This is more like Elizabeth Warren.

BOLLING: Exactly.

PAVLICH: But it's worse because she got a full right scholarship to Howard University in Washington DC. She has claimed multiple times there has been hate crimes against her.


WILLIAMS: Yes, that's a good one.

PAVLICH: That is something that is very stupid because it has to do with accusing other people of crimes maybe they did not commit. And the thing is this is bizarre and shocking right but Christian Adams who was a DOJ civil rights attorney under the Holder Justice Department said don't be surprised about this, this is a result of race guilt psychosis.


PAVLICH: He wrote a piece about it at PJ Media and he said he once knew a white Italian woman who worked at DOJ who posed as a Sioux Indian. So he said this is actually pretty prevalent when it comes to progressive .

WILLIAM: Wait was that Elizabeth Warren?

PAVLICH: No it wasn't Elizabeth Warren.


PAVLICH: But it's prevalent when it comes to


PAVLICH: And race focus.

GUTFELD: It goes back to the if you were - if identity becomes your achievement, what do you do, this is what happens? And I do think it leads to psychological disorders. You have to start doing things and stop thinking about yourself.

WILLIAMS: Well you know in black America there's such a thing as passing, the black people who are light skinned and they will pass for white. And but it creates such tensions and it is broken apart by the way this lady's family.

GUTFELD: Are you offended by her doing that?

WILLIAMS: Offended no but I think it's something psychological going on. It reminds me you know is it Dave Chappelle's jokes about the black guy who thinks he's white, you know he's blind and then he becomes the head of a KKK, that's crazy, there's something going on. I don't know. Something's wrong don't you think Eric? Look at you you're biting your tongue.

BOLLING: No I'm living, I love Dave Chappelle but.


GUILFOYLE: He's still obsessing about LeBron.

WILLIAMS: Will you stop, can I do a show. New moms and dads want to know where you can get a full year off to work and still take care of your kids with a full salary? We've got the answer here on the Fox.




PAVLICH: All right, well multi billionaire Richard Branson thinks if you take care of your workers they'll take care of your business.


PAVLICH: So he's now offering some new parents at his Virgin Management Division a very generous parental leave option. One year off - one year with full pay. And that goes for both moms and dads.


PAVLICH: Now some of the details of this Greg are that it's only for 140 employees out of 50,000 employees, you have to have worked there for four years. And it's only applicable in the U.K. and Switzerland. Why? Because America's always working so Europe can have time off.

GUTFELD: I have three points to make here. Why not paternity leave, what if I want to spend a year with my puppy Captain Whiskers? Paternity, paternity. Let's think about this. This discriminates against the childless. So you get a year off because you produce a brat. If anything if you have a child you should work more because your brat's going to annoy me at the restaurants.

PAVLICH: On the planes.

GUTFELD: Also I should get - I should get paternity leave for my inner child.

GUILFOYLE: Aye Aye Aye, you hate children.

GUTFELD: No I like children.


PAVLICH: But you think a whole year off is a good idea? I think it's too long.

GUILFOYLE: I would not do it, no.

WILLIAMS: Wait, wait, for maternity?

GUILFOYLE: For a year? No.

WILLIAMS: Wait you're saying you don't think new mothers should have time with the child.

GUILFOYLE: No, no, no, I did not say that. Take as much time as you like everyone. I personally do not need a year off, thank you.


GUILFOYLE: Juan, do you need a year off?

WILLIAMS: I think this country's got to do better with moms and babies. I just I .

GUTFELD: I hate mothers and babies, Juan.


WILLIAMS: You are jealous.

GUTFELD: What is - what is (inaudible) argument?

WILLIAMS: You are jealous.

GUILFOYLE: I mean everybody gets maternity leave, so do I think you know a year? I don't know. I mean I don't

WILLIAMS: No, no, but I'm saying most American companies only give a certain percentage, a few weeks of maternity. We're talking about paternity, about dads here.

PAVLICH: And moms.

WILLIAMS: Almost no American companies give you.

GUILFOYLE: Parental leave.

WILLIAMS: Yes, almost no companies give you that and I just think if we care about kids we should give parents some time with a newborn child.

PAVLICH: Eric, a year out of the workforce isn't that a bad idea?

GUTFELD: It's a ridiculous idea but you know what

GUILFOYLE: Thank you (inaudible) alone.


GUTFELD: Richard Branson - Richard Branson founder of Virgin Airlines, Records, Virgin everything, you know yourself out. It's great he wants to do it, he's a business man, he's making a bad business decision. Just like that idiot in Seattle, remember that guy, the credit card guy who said, the payments guy, the CEO's going to take a dollar and give every employer 70,000 bucks.


GUTFELD: Pretty soon he'll be broke, Richard Branson, 140 people out of 50,000 employees it's not - this is more publicity than anything else.

WILLIAMS: Yes, that's true.

GUTFELD: Than an actual policy. If Richard Branson really means what he says if he's worried about the kids and the year that the mom spends with the kids, make your offer to everyone Richard, everyone of your 50,000 employees. That's a change.

GUILFOYLE: Then you have to make sure that they stay because they don't just take the leave and then bye, bye, see you for never.


PAVLICH: With the company.

GUILFOYLE: `cause you've made an investment.

GUTFELD: No, no I'm following you, I've got you.

GUILFOYLE: You got it?

GUTFELD: So it's family (inaudible) bye, bye.

PAVLICH: Well he's making it people earn it though. I mean he's saying you have to have been there four years, you have to be at a management level. He's not just giving it out as a .

BOLLING: No, I think you can get partial if you've been there less. I think if your two years .

PAVLICH: Right but it ..

BOLLING: you get 25 percent,

PAVLICH: Right, you don't get a whole year off though.

BOLLING: Right, right.

PAVLICH: But in terms of the new you know family structure I actually think it's a good thing that men also have the option to take leave. `Cause sometimes women are breadwinners in the family.

WILLIAMS: Do you (inaudible) children in your spare time?

GUTFELD: No, no I don't want to hurt my boots. But you know what's funny is there's going to be a lot of guys going like ah jeez now I have to spend a year. Don't tell my wife about this.

PAVLICH: All right, well me what you think for that. We're going to go along and not take a year off and one more thing is up next.



GUTFELD: Time for one more thing, Eric.

BOLLING: OK, so the Special Olympics of New Jersey kicked off today and there's a police officer law enforcement torch run which started it all.


BOLLING: Take a look here a couple of friends from my local law enforcement community. These guys ran in it. By the way 3,000 law enforcement officers ran in that run raising $3 million for the Special Olympics of New Jersey. Law enforcement guys have a big heart. Congratulations, thank you for that.


GUTFELD: Excellent, Kimberly.

GUILFOYLE: Thank you so much, so earlier, stop.

GUTFELD: Kimberly.


GUILFOYLE: This is the worse. I can't wait to watch special report. All right, so earlier in the week we celebrated Barbara Bush's birthday.


GUILFOYLE: And now we are celebrating 41's birthday. Former President George H. W. Bush, 91 years young celebrating his birthday at his home on the main coast. You might ask who's attending and who's there, well. His son, 43 is there, and unfortunately the one that wants to be 45 is not there. He is actually in Europe.

However, let's take a look at the little sky diving situation from last year, remember this.


GUILFOYLE: `Cause I love this. I mean 90 years old, this is last year how he celebrated his birthday. You've got to love America and love this family. Isn't that fantastic.


GUILFOYLE: But God bless him, and happy birthday Mr. President.

GUTFELD: Kimberly you did use a bad phrase, 91 years young.

GUILFOYLE: Oh, I'm sorry what are you going to do about it?

GUTFELD: It's 91 years old.

GUILFOYLE: What are you going to do about it?

GUTFELD: You're gone, get your things and go.

GUILFOYLE: All right, good luck.

GUTFELD: I just got a breaking news bulletin. Sunday night at 10pm Eastern.


GUTFELD: The government will be conducting scientific experiments using all cable network channels sending sonar attack waves aimed at your brain. It will be very, very painful and the only way that you can block them is to watch this show at 10pm.

GUILFOYLE: Somebody's going to think that's real.

GUTFELD: Yes, no it is real. The government is controlling your mind through chem trails, we all know this is true.


GUILFOYLE: I see the evidence of this.


GUTFELD: We never landed on the moon, and Jade Helm is for real.

BOLLING: Exactly. It was controlled by LeBron James.


GUILFOYLE: Now you've done it.


WILLIAMS: Here we go again.



WILLIAMS: By the way John Sununu who was 41's Chief of Staff has a new book out and it's pretty good. I haven't finished it but so far it's a pretty good book.

GUTFELD: Anyway is that your thing?

WILLIAMS: No, last night, last night MBA finals LeBron James.

GUILFOYLE: Oh my god.


WILLIAMS: Driving to the basket, gets (inaudible) and whacks his head against the cameraman and opens a gash, a bloody gash on his head. I thought this was it, this guy's gone. In fact he came back to not only shoot the free throws but then they glued his scalp during the game. This I had never heard of. They will glue it back together. He had to have stiches later on.

But you know LeBron, the Cleveland Cavaliers lost the game but I will say this, I was so impressed.


WILLIAMS: LeBron James scored 20 points and 12 rebounds with a huge gash in his.

BOLLING: And then they lost.

WILLIAMS: I (flagged) that.

BOLLING: by 21 points.

WILLIAMS: Yes but man, that's awesome. That's hard.

BOLLING: Can I just tease one thing tomorrow morning at Cashin. There's a really super interesting story about the Golden State Warriors that you're not going to miss. You've got to see it tomorrow morning at 11:30.

PAVLICH: Go California.

GUTFELD: LeBron will be glued to that.

BOLLING: It has nothing to do with LeBron.


PAVLICH: Yes right, you'll be talking about it tomorrow, we know it. Is it my turn?

Well when Dana's gone it is my duty to bring in a dog story, right.


PAVLICH: So there's a new study out of Japan that's my little puppy, his name is (Jadstone Boots Pavlich).

GUTFELD: (Jadstone), that's a great name.

PAVLICH: (inaudible)


PAVLICH: American Revolution, that is him. And there is a new study out of Japan Kyoto University that shows that dogs don't like people who are mean to their owners. So if you want to be friendly with puppies and everyone else because they're so cute, you better be nice to your owners.

There was a study that showed they did this stuff with a couple of different people and people that were mean to their dog owners did not have a good time with the dogs.

GUILFOYLE: I like that, it's very loyal, right.

PAVLICH: Very loyal.

GUTFELD: Thank god they're doing that kind of research instead of like looking at cancer or anything, you know.

WILLIAMS: What kind of dog was that?

PAVLICH: A Labrador retriever.

GUTFELD: Set your DVRs never miss an episode on "The Five." Have a great weekend. "Special Report" next.

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